HomeMy WebLinkAboutRES 082625-5.E - Consent for Wesleyan Tax Exempt Financing� i ,..�
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Cection 2. This Resolution shall take effect immediately from and after its adoption and it
ocvsed on Public
Finance since 1919,
Off-IMMM
Members o t c City ounci
City of Georgetown
808 Martin Luther King, Jr. Street
Georgetown, Texas 78626
Re: Consent re: Bonds issued by New Hope Cultural Education Facilities Finance
Corporation for Wesleyan Homes, Inc.
New Hope Cultural Education Facilities Finance Corporation (the "Issuer"), on behalf of
the Town of New Hope, Texas, previously issued its bonds (the "Bonds") pursuant to the Cultural
Education Facilities Finance Corporation Act, Chapter 337, Texas Local Government Code, as
amended (the "Act"). The proceeds of the Bonds were loaned to Wesleyan Homes, Inc., a Texas
nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended ("Wesleyan"). A portion of the proceeds of the Bonds were used to
finance the cost of the acquisition and refurbishment by Wesleyan of a skilled nursing facility
located at 4011 Williams Drive, Georgetown, Texas 78628 (the "Skilled Nursing Facility").
Wesleyan now expects to sell the Skilled Nursing Facility and use a portion of the net sale
proceeds in an aggregate amount not to exceed $6,000,000 toward the construction, equipping
and/or improvement of a retirement community known as Wesleyan at Estrella located in
Georgetown, Texas, which includes, without limitation, independent living and assisted
living/memory care facilities located, respectively, at 139 Estrella Crossing, Georgetown, Texas
78628, and 109 Estrella Crossing, Georgetown, Texas 78628 (the "Replacement Facilities"), with
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a manner so the Bonds continue to be treated as "qualified 501(c)(3) bonds" under Section 145 of
the Internal Revenue Code of 1986, as amended.
Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires
that the approval of the City of Georgetown (or the highest elected official of the City of
Georgetown) be obtained prior to the use of the sale proceeds of the Skilled Nursing Facility for
use toward the Replacement Facilities, in order to preserve the tax-exempt status of the Bonds. The
public hearing required by the Code will be held on the morning of August 25, 2025, with the
minutes of such public hearing to be sent to the City shortly thereafter and prior to the City
Council's consideration of our request.
M93M 1 I'll i. 1 .1 -1 11 0 1- 1
600 Congress Ave.
i 717 North Harwood
Two Allen Center
112 F Pecan Street
SLAfte, 2150
Suite 900
1200 Smith Street, Suite 1550
Suite 1310
Austin, Texas 78701
Dallas, Texas 75201
Houston, Texas 77002
San Antonio, Texas 78205
T 512.4783805
1. 214,754,9200
T 713.980 0500
T 2101252800
F 512,472.0871
F 214 754.9250
F 713:980,0510
F 210,225,2984 www.mp�ilega.coo
similar to the approval given by the City of Georgetown on November 12, 2019 for the initial
issuance of t�e Bo -ids.
This approval is required solely for the purposes of satisfying the Code. This approval in
no way imposes any payment or other obligations on the City of Georgetown in connection
with the Bonds, the Skilled Nursing Facility or the Replacement Facilities. The City of
Georgetown will continue to have no liability with respect to the Bonds or the facilities
financed thereby.
Therefore, on behalf of the Issuer and Wesleyan, we respectfully request that consideration
of adoption of the enclosed consent resolution be placed on the agenda of the City Council of
Georgetown, Texas at its earliest available meeting, and that the City Council approve and adopt
such resolution. Upon such approval, please email a scan of the executed resolution to me at the
contact information below.
Please do not hesitate to contact me at (214) 754-9266 should you have any questions,�
Thank you very much for your assistance.
Contact:
Abe Benavides
(214) 754-9266
abenavides@mphlegal.com
McCall- Parkhurst & Horton L.L.P.
717 North Harwood, Suite 900
Dallas, Texas 75201
cc: Bethany Sisneroz, President and CEO of Wesleyan (via email)
Cory Macdonald, counsel to Wesleyan (via email)