Financing entity approves $1.2M in bonds for assisted living facility
Jan. 14, 2014 at 11 p.m.
Up to $1.2 million in revenue bonds approved Tuesday by a Longview finance corporation will allow an assisted living facility to finish construction.
Longview's Cultural Education Facilities Finance Corp. approved a resolution to allow Fountainview Estates, an assisted living facility, to issue up to $1.2 million in revenue bonds. The money will allow the facility, which is owned by a group of investors in Longview, to finish construction.
The developer, LV Medical Properties III, would be the guarantor of the bonds that will go to the nearly 52,000-square-foot Fountainview Estates, and the city has no obligation to repay the debt.
In April 2012, LV Medical Properties III asked the Longview City Council to create the finance corporation to issue $10.3 million in bonds for development of Fountainview Estates. The council took the necessary action to create the entity and issue the original bonds.
Investor Mike Clowers said Tuesday that since building started, there have been almost 90 days in which construction was rained out, and the developer needed the additional revenue bonds to finish paying the contractor for the work.
The resolution adopted Tuesday was the second such action the Cultural Education Facilities Finance Corp. has taken since it was formed in 2012.
Cultural education facilities finance corporations are used by many cities to facilitate funding for nonprofit groups as well as for-profit facilities. The state law allows the city finance corporations to issue bonds for health care facilities, charter schools, private schools, museums and galleries, performing arts and educational associations.
Fountainview Estates, at 1408 Lago Trail, consists of 52 assisted living units and 22 memory care apartments. Its first residents moved into the facility in December.