City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 22, 2016
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution Authorizing the Issuance of Refunding Bonds by the Fairfax County Economic Development Authority for Goodwin House Incorporated. [ROLL-CALL VOTE]
BODY
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ISSUE: Resolution approving the issuance of refunding bonds by the Fairfax County Economic Development Authority (FCEDA) to assist Goodwin House Incorporated (Goodwin) in refunding all or a portion of certain outstanding revenue bonds.
RECOMMENDATION: That City Council adopt the attached Resolution (Attachment 1) as recommended by the Alexandria Industrial Development Authority (AIDA).
BACKGROUND: Goodwin owns and operates two continuing care retirement communities in Northern Virginia: Goodwin House Alexandria (GHA) located in the City of Alexandria and Goodwin House Bailey's Crossroads located in Fairfax County. Goodwin has utilized tax-exempt bonds issued by FCEDA and AIDA to finance and refinance improvements to its facilities.
In 2005, AIDA issued $53,290,000 million of AIDA bonds (2005 Bonds) to finance improvements to GHA and refinance certain indebtedness. When the 2005 Bonds were issued, City Council voted to approve the financing, as required by the Virginia Industrial Development and Revenue Bond Act (IDB Act) and the Internal Revenue Code (IRC). In 2007, FCEDA issued $143,155,000 of its bonds (2007 Bonds) to finance improvements to Goodwin's facility in Fairfax County and also to refund a portion of the 2005 Bonds. The Fairfax County Board of Supervisors approved the 2007 Bonds, but City Council approval was not obtained because the refunded 2005 Bonds were redeemed within 90 days of the issuance of the 2007 Bonds and, therefore, did not constitute an advance refunding for w...
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