Notice of Public Hearing on the Issuance of Limited Obligation Revenue Refunding bonds by the Economic Development Corporation of the City of Chelsea for the Benefit of Silver Maples of Chelsea.

The City Council of the City of Chelsea, Washtenaw County, Michigan (the “City”) will hold a public hearing at 7:00 p.m., prevailing Eastern Time, on May 20, 2024 in City Council Chambers in the Chelsea Municipal Building located at 311 S. Main Street, Chelsea, Michigan 48118, on the proposed issuance by The Economic Development Corporation of the City of Chelsea (the “EDC”) of limited obligation revenue refunding bonds (the “Bonds”) for the benefit of Silver Maples of Chelsea, Inc. (the “Corporation”).  The EDC proposes to issue the Bonds in the aggregate principal amount of not to exceed Ten Million Dollars ($10,000,000). 

The proceeds of the Bonds will be used by the EDC to make one or more loans to the Corporation.  The Corporation will use the proceeds of the loan from the EDC, together with other available funds, to (i) refund all of the outstanding EDC Variable Rate Limited Obligation Revenue Refunding Bonds (Silver Maples of Chelsea Project), Series 2013B (as originally issued, the “2013B Bonds”) and (ii) pay the costs of issuing the Bonds.

The 2013B Bonds were originally issued as a single issue, for federal tax purposes, with the EDC Variable Rate Limited Obligation Revenue Refunding Bonds (Silver Maples of Chelsea Project), Series 2013A (the “2013A Bonds,” and as originally issued as a single issue with the 2013B Bonds, the “2013AB Bonds”).  On September 28, 2017, as a result of certain amendments to the terms of the 2013AB Bonds, the 2013AB Bonds were reissued as a single issue, for federal tax purposes.  Subsequently, on June 30, 2023, as a result of certain amendments to the terms of the 2013B Bonds, the 2013B Bonds were reissued, for federal tax purposes. The proceeds of the 2013AB Bonds, in an amount equal to $19,000,000, were used to currently refund the EDC’s Variable Rate Demand Limited Obligation Revenue and Revenue Refunding Bonds, Series 2006 (the “2006 Bonds”). 

The proceeds of the 2006 Bonds were used, together with other available funds, to (i) in an amount approximately equal to $10,150,000, finance the acquisition, construction, furnishing and equipping of 28 living units at the Corporation’s facility located at 100 Silver Maples Drive, Chelsea, Michigan 48118 (the “Main Facility”), renovate, improve, furnish and equip certain existing living units and common areas at the Main Facility; and (ii) in an amount approximately equal to $10,600,000, currently refund the outstanding portion of the Issuer’s Variable Rate Demand Limited Obligation Revenue Bonds, Series 1996 (Silver Maples of Chelsea), dated as of June 12, 1996 (the “1996 Bonds”). 

The proceeds of the 1996 Bonds, together with other available funds, to (i) in an amount approximately equal to $13,500,000, finance the acquisition, construction and equipping of an independent and assisted living units at the Main Facility; (ii) fund a debt reserve and (iii) pay capitalized interest on the 1996 Bonds.

The foregoing projects refinanced with the proceeds of the Bonds have been and will continue to be owned and operated by the Corporation.  

The Bonds will be limited obligations of the EDC, payable only from loan repayments to be made by the Corporation to the EDC.  The Bonds will not constitute an indebtedness of the EDC, the City, the State of Michigan or any political subdivision thereof within the meaning of any constitutional or statutory provision and will not constitute or give rise to a charge against the general credit of the EDC or the credit or taxing power of the City or the State of Michigan or any political subdivision thereof.  The EDC has no taxing power.  The hearing shall provide the fullest opportunity for expression of opinion, for arguments on the merits and for introduction of documentary evidence pertaining to the proposed issuance of the Bonds.  Written comments will be accepted by the City at the City offices located at 311 S. Main Street, Chelsea, Michigan 48118, but must be received on or before the date and time of the hearing.

Lyn Sebestyen, Clerk

                                                                        City of Chelsea
                                                                        305 S. Main Street, Suite 100
                                                                        Chelsea, Michigan 48118

                                                                        Telephone: (734) 475-1771

Dated: May 7, 2024