The Masonic Home issued the bonds through the county to take advantage of the county’s tax exempt status and will save about 30 percent on interest, County Administrator Nathan Kennedy said.
Clark County commissioners Wednesday voted unanimously to refinance the bonds at a lower interest rate, Kennedy said.
White said the repayment plan for the bonds issued was for 20 years with the remaining balance as of Sept. 1 of more than $43 million.
“The home will convert the underlying interest rate structure on these bonds, which will result in an annual savings to the organization of approximately $250,000 to $300,000, depending on the underlying interest rate,” he said. “These savings will allow the home to further it’s charitable mission of being the trusted partner to help people age respectfully, how they want, where they want.”
Kennedy said the county has issued and refinanced bonds for other hospitals and nursing homes. He also noted that doing so does not create a legal or financial obligation for the county.
The Masonic Home first borrowed money for campus expansion in the late 1990s, then issued more bonds in the early 2000s to acquire campuses in Waterville and Medina, White said.
Officials refinanced their debt in 2009 with US Bank as a result of the economic crisis, White said.
“(It’s) kind of like refinancing your mortgage,” White said.
The Masonic Home is currently undergoing a $15 million renovation and expansion.
The facility has broken ground on 65 new independent living apartments and renovating an existing building used for common space to create a health, wellness and fitness facility that will include space for an art gallery and a new entrance into the facility.
Greg Hensley, president of aging services for the Masonic Home, said construction crews are working to complete utility work and have started on the foundation of the facility. In about a month and a half, they should begin putting up the structure, he added.
Hensley said the independent living apartments will allow residents to age in place and remain there through assisted living.
“The goal would be that most people wouldn’t need to move to any other level of care in the future unless dementia care or nursing care would be needed,” Hensley said. “As their needs change, we would add as much assistance as they may need.”
The growing population of seniors, along with the increased and changing needs from customers, are reasons for the expansion.
“That’s part of the idea of helping people age in place … that services will be connected to them so they won’t have to travel across campus to them; they would be available to them in their own building,” Hensley said.
Hensley said construction is expected to be completed in September of 2015.
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