A nonprofit organization got one step closer to obtaining the money it needs to purchase Independence Village of Waterstone, a senior living community, while Oxford Township received a written guarantee that it won’t lose any property tax revenue as a result of the pending acquisition.

That was the end result at the Feb. 13 township board meeting.

Officials voted 7-0 to approve the issuance of up to $400 million in tax-exempt private activity bonds by the Arizona Industrial Development Authority (AZIDA), the proceeds of which would be loaned to the nonprofit Great Lakes Senior Living Communities (GLSLC) so it can purchase eight senior living facilities in Michigan and Ohio.

AZIDA is a nonprofit corporation that’s designated as a political subdivision of the State of Arizona. It issues both taxable and tax-exempt bonds, the latter of which are used by private borrowers to lower their financing costs as the bond interest is exempt from federal income tax.

Of the $400 million requested, up to $47.3 million would be used to buy Independence Village of Waterstone at 701 Market St., west of M-24. The facility contains 145 units and currently has an occupancy rate of 97.25 percent.

Five of the other facilities are located in the Michigan communities of Midland, Grand Ledge, Plymouth, White Lake and Bear Creek. The remaining two are in Ohio.

In order for the interest to be tax-exempt, federal law mandates issuance of the bonds must be approved by AZIDA and all of the local government units in which the senior living facilities are located.

“This is the last (approval needed in Michigan),” said attorney Eric McGlothlin, a partner in the law firm Dickinson Wright, which is representing GLSLC. “All (of) the previous five (communities) have approved the issuance of the bonds.”

The attorney noted AZIDA’s approval was granted on Dec. 19, 2018.

McGlothlin told the board GLSLC is “not expecting to do any new construction” with the bond proceeds.

“Through this process, they are expecting to just simply  transfer the ownership,” he said.

McGlothlin assured officials that approving the issuance of these bonds “does not in any way obligate the township to pay any part of the debt service.”

“Great Lakes will be solely responsible for repaying that debt . . . There’s no hit to the township’s debt limit. There’s no security pledge by the township. And you wouldn’t be pledging the township’s full faith and credit,” he explained.

Although Independence Village would have a new owner, it would continue to be operated by Senior Village Management, which is owned by the Brighton-based Common Sail Investment Group (CSIG) Holding Company.

“Our residents there will receive the same care?” asked township Treasurer Joe Ferrari.

“Absolutely. 100 percent,” replied Andrew Kilbride, a representative of CSIG Holding Company.

As part of the bond approval, township officials also OKed a four-page agreement, drafted by Ferrari. He said it guarantees “everything will remain the same” when it comes to the property tax revenue currently generated by Independence Village.

As a nonprofit entity, GLSLC could potentially qualify for a tax exemption. Under its current ownership, Independence Village is not eligible for such an exemption.

Ferrari’s agreement requires GLSLC to maintain its status as a taxpayer going forward.

It goes on to state that “if there is a future change in law or use of (Independence Village) that would afford GLSLC an exemption,” the nonprofit “would make payments in lieu of taxes, so that the township received the same yearly tax revenue as it would have received . . . if (Independence Village) had no property tax exemption.”

“We lose absolutely nothing,” Ferrari said. “We negotiated that. That’s in writing.”

Independence Village is the township’s ninth largest taxpayer. Its 2018 summer and winter tax bills for its real property, which includes land and buildings, totalled $244,904. Its personal property tax bills amounted to $4,581.

Those amounts represent state, regional, county, school district and township taxes combined.

Prior to the agreement’s approval, GLSLC sent the township a letter assuring it would not seek an exemption.

“The purpose of this letter is to confirm that GLSLC (including any affiliate, subsidiary, or a to-be-formed limited liability company related thereto) will not apply for or otherwise claim an exemption from the collection of property taxes,” wrote GLSLC representative Steve E. Hicks, chief executive officer of Provident Resources Group, in a Jan. 11 letter to the township.

“We provided the same letter to all the other communities,” McGlothlin told the board. “Oxford is the only one that we actually have a two-party agreement (with) to continue paying taxes.”

Given Independence Village has been open since June 2002, Ferrari asked if there are any plans to “rehab” the facility.

“I’m sure some of these units need some work,” he said.

To illustrate his point, Ferrari pointed to senior care facilities in Detroit that “started off great,” but then deteriorated as there was “less and less” money available to maintain them.

“I don’t want that to happen to Independence Village,” he said.

“Today, the community’s in good shape,” replied Kilbride, but going forward, improvements will be need to be made.

“We’ll have (the) ability to do that,” he said.

According to Kilbride, it’s anticipated that because of the savings garnered from using tax-exempt bonds, there should be excess capital available to invest in the facilities.

“We have a plan . . . It’s in place,” he said.

During the discussion, Oxford Fire Chief Pete Scholz stepped to the podium and raised the issue of lift assists.

Lift assists involve firefighters helping a person, typically a senior citizen, who has fallen and is uninjured, but cannot get back into their bed, chair or wheelchair without help.

According to Scholz, the fire department responded to 257 calls at Independence Village last year. Of those, 188 were medical calls, 63 were lift assists and six were fire calls. The number of lift assists increased from 22 in 2017 and 21 in 2016.

Scholz explained that under Independence Village’s current policy, whenever a resident falls, staff members “will sit there and hold their hand (and) call the fire department.”

“They do not lift anybody,” he said.

The problem is, according to Scholz, lift assists take valuable time and manpower away from other calls and “there’s no cost recovery” for the department. Neither Independence Village nor insurance companies reimburse the department for these calls.

Scholz pointed out that Rochester Hills enacted an ordinance whereby facilities are charged for lift assists.

In response to the fire chief’s comments, Kilbride said, “(Falls are) something that we grapple with, too, because we are there. Our employees are loving and caring for these people. Those are difficult situations when that happens. Our hands are kind of tied. If we were to try and assist and injure that person . . .  there’s bad outcomes.”

“We’d be happy to entertain any suggestions on solutions for that,” he added.

Township Supervisor Bill Dunn asked Kilbride to explain what he meant by “entertain” because that term seemed broad to him.

Kilbride said if the township or fire department puts forward “some solution that we can legally” do, Independence Village would “listen to that and if it makes sense,” implement it.

“We’re always looking for ways to care for folks better,” he said.

Scholz told the board that if an ordinance or policy regarding charging senior living facilities for lift assists were developed, it would have to be applied equally “across the board.

The fire department would not charge seniors living outside of such facilities for lift assists because they’re not in a place where they’re paying to receive care, Scholz told this reporter.

Ferrari asked the chief if such charges would apply to folks living at Hope Senior Apartments on W. Drahner Rd.

Scholz said they would not be charged because “they’re living there on their own.”

“There is no care (provided by Hope),” he said.