Pella Chronicle

Local News

December 11, 2012

Council approves sales of Healthcare Facilities Revenue Bonds

Pella — The Pella City Council approved a resolution during last week's regular meeting authorizing the Issuance and Sale of Healthcare Facilities Revenue Bonds (Hearthstone Project).

This resolution authorizes the issuance and sale of conduit revenue bonds for the Hearthstone Project in the principal amount of not to exceed $10,000,000, in addition, the resolution also approves the loan agreement and pledge agreement and directs the Mayor and City Clerk to execute and deliver all other documents required for the purpose of the Hearthstone project.

On November 20, 2012, a public hearing was held, and Council approved a resolution for the issuance and sale of revenue bonds for the Hearthstone Project, in addition, the Council also authorized proceeding with all necessary agreements to issue conduit revenue bonds for the project.

The purpose of the conduit bond issue is to fund a senior retirement community Hearthstone is constructing on 50 acres directly north of the Pella Country Club at 1620 Main Street. This development will consist of 64 nursing beds and up to 34 one and two bedroom assisted living units. To finance the project. Hearthstone would like to issue tax-exempt bonds to fund the estimated construction cost of $20 million. The advantage of tax exempt financing is that it will allow the project to have a lower interest rate than taxable bonds. In order to accomplish Hearthstone's financing needs, they have made a request to the City of Pella to issue a $10 million Conduit Revenue Bond issue for the project.

This bond issue is a 'conduit' issuance because the City acts as conduit between the purchasers of the bonds and Hearthstone. Under this arrangement, the bonds are issued by the City and the proceeds of the bonds are then loaned to Hearthstone through a loan agreement in which Hearthstone agrees to repay the bondholders. It is important to note the following in issuing Conduit Bonds: the bonds do not constitute a liability or indebtedness of the City; the bonds do not count against the City's 5% constitutional debt limit; and the bonds will count against the City's bank qualified issue limits of $10 million per calendar year.

Staff performed a review of Hearthstone's financial plan to fund the project and feels Hearthstone has the ability to repay a conduit bond issue on a timely basis, in addition, staff also believes the proposed bond issue is in accordance with the City's Conduit Revenue Bond Policy which is enclosed for Council's review. Finally, it is important to note the City's bond counsel has reviewed the loan and pledge agreements.

Text Only
Local News
  • 93.jpg Pella Community Calendar of Events

    April 24 - May 4

    April 24, 2014 1 Photo

  • Change order approved for the Pella Sports Park A resolution approving Change Order #2 in the amount of $47,604 with Todd Hackett Construction Co. for the Pella Sports Park was approved last week by council. Listed below is a summary of the change order: Change Order Summary 1. Warning Track & Fou

    April 24, 2014

  • Parks photo1 The tulips are blooming ... As of this writing, on the south side of the Information Windmill in Central Plaza there are a few yellow tulips that have bloomed. And I have it on good authority that with the warmer temperatures (especially the overnight temperatures) this week th

    April 24, 2014 2 Photos

  • Pella Farmer's Market ready to go in 2014 For 2014, the Pella Farmer's Market would like to continue holding the Farmer's Market in the parking area at First Reformed Church, 603 Broadway on Thursdays from 3-6 p.m. The Market is scheduled to run from April 24 - October with no event held the

    April 24, 2014

  • Trail photo New section of the Volksweg now open The 1.25 mile newly constructed section of the paved Volksweg Trail between Fifield Recreation Area and the new Robert's Creek Trailhead has been opened. The new section of The Robert's Creek Trailhead has additional work to be completed before it ca

    April 24, 2014 1 Photo

  • Historic Preservation Committee During last week's regular meeting, the Pella City Council approved an ad hoc Historic Preservation Committee. At the February 18, 2014 City Council meeting, the Pella Historic Trust presented a proposal for consideration of the establishment of a hi

    April 24, 2014

  • Tulip Time schedule

    Tulip Time is just around the corner. Here's the complete schedule for events.

    April 23, 2014

  • Central College hosts STEM fest and town hall meeting with lieutenant governor

    April 22, 2014

  • Store front compressed.jpg The Mango Tree opens tomorrow in Pella

     Located at 720 Main St.

    April 21, 2014 1 Photo

  • 0422 Eagle photo On a wing and a prayer

    LAKE RED ROCK — Protective gloves aren’t uncommon when dealing with a sick patient, though they’re not usually heavy, leather welder’s gloves. But, then, the patient usually doesn’t have toenails designed to puncture flesh. Or a sharp beak. Diane Mas

    April 19, 2014 1 Photo

AP Video
Raw: Obama Tours Gyeongbok Palace Swimmer Michael Phelps Back in Competition Raw: Obama Lays Korean War Memorial Wreath Obama Leads Naturalization Ceremony in Seoul Calif. School Bus Crash Hurts Driver, 11 Kids Country Club for Exotic Cars Little Science Behind 'Pollen Vortex' Prediction US Proposes Pay-for-priority Internet Standards Wife Mourns Chicago Doctor Killed in Afghanistan FDA Proposes Regulations on E-cigarettes Kerry Warns Russia of Expensive New Sanctions Mideast Peace Talks Stall on Hamas Deal Cody Walker Remembers His Late Brother Paul Grieving South Korea Puts Up Yellow Ribbons Raw: Kerry Brings His Dog to Work Raw: Girls Survive Car Crash Into Their Bedroom Three U.S. Doctors Killed by Afghan Security Yankees' Pineda Suspended 10 Games for Pine Tar Colleagues Mourn Death of Doctors in Afghanistan Ukraine Launches Operation Against Insurgents
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide