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CITY COUNCIL MEMORANDUM <br /> November 10,2021 <br /> TO: Honorable Mayor Julie Moore Wolfe and City Council <br /> FROM: Scot Wrighton, City Manager <br /> Wendy Morthland, Corporation Counsel <br /> SUBJECT: Resolution Approving, for the Purpose of Section 147(f)of the Internal Revenue Code <br /> of 1986,the Issuance by the Public Finance Authority of One or More Series of Senior Living Revenue <br /> Bonds (QSH/Midwest Project)Not to Exceed$50,090,000. <br /> RECOMMENDATION: Staff recommends approval of the Issuance by the Public Finance <br /> Authority of One or More Series of Senior Living Revenue Bonds (QSH/Midwest Project) Not to <br /> Exceed $50,090,000. <br /> BACKGROUND: <br /> Several existing Randall Residence communities, including facilities located in Decatur, <br /> Illinois,are to be acquired by a not-for-profit company,QSH/Midwest,LLC. QSH/Midwest LLC was <br /> formed for the purpose of acquiring the Communities. The mission of QSH/Midwest LLC is <br /> furthering the not-for-profit's objective of owning residential facilities designed to meet the housing, <br /> health,personal needs and financial security needs of the elderly and other special populations. <br /> Quality Senior Housing Foundation, Inc., a 501(c)(3) corporation, is the sole member of <br /> QSH/Midwest LLC. Stan Brading and Mack Leath serve as board members of other nonprofit <br /> corporations that have acquired or constructed facilities for elderly or low income residents beginning <br /> in 1999. Randall Residence, current manager of the community, will remain manager after the <br /> acquisition. <br /> QSH/Midwest LLC has requested the assistance of the Public Finance Authority of Wisconsin <br /> ("PFA") in the issuance of Federally tax-exempt bonds to provide the necessary funding for the <br /> acquisition, including the costs of financing and related issuance costs. PFA is a political subdivision <br /> of the State of Wisconsin. Tax-exempt bonds are permitted to be issued to finance acquisitions by <br /> 501(c)(3) entities to further their purposes. <br /> Federal tax law requires that the type of bonds being issued by the PFA first receive local <br /> jurisdiction approval, following a publicly-noticed tax-exempt bond hearing. Each local jurisdiction <br /> (Mentor, Lawton and Decatur) will need to conduct a "TEFRA" hearing, which simply allows <br /> members of the public to comment on the proposed bond financing, after public notice has been <br /> published at least 7 days prior to the hearing. The purpose of the TEFRA hearing is to determine <br /> whether there is any local objection or concerns to the proposed financing. Following the hearing,the <br />