NOTICE
OF PUBLIC HEARING
ON
PROPOSED MODIFICATIONS TO BONDS
NOTICE IS HEREBY GIVEN that a public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") will be held by the County of Saratoga Industrial Development Agency (the "Agency") on August 24, 2009 at 8:00 o'clock, a.m., local time, at the Malta Town Hall, Route 9, Malta, New York, in connection with the following matters:
The
Agency has previously issued its Tax-Exempt
Civic Facility Revenue Refunding Series 2006A Bonds (American Housing
Foundation, Inc. Project - Letter of Credit Secured), Series 2006A in the
aggregate principal amount of $4,495,000 and having a current outstanding
principal amount of $4,495,000 (the “Series 2006A Bonds”) upon application of American Housing Foundation, Inc., a New York
not-for-profit corporation having its principal office at 100 State Street, Albany,
New York 12207 (the "Company") in connection with the undertaking of a
project (the “Project”) consisting of (A) the refinancing of the following transaction
previously undertaken by the Agency: (1)
the acquisition of an interest in an approximately 6.04 acre parcel of land
located on Route 9 and Cramer road in the Town of Malta, Saratoga County, New
York (the “Land”), (2) the construction on the Land of an 82 unit senior
citizen residential rental facility (the “Facility”) and (3) the acquisition
and installation in the Facility of certain machinery and equipment (the
“Equipment” and together with the Land and the Facility, the “Project
Facility”), (B) fund a portion of the costs associated with such refinancing
and (C) fund certain capital costs associated with the initial development of
the Project Facility.
The
Agency is considering the entering into of certain modifications to the
financing documents related to the Bonds (collectively, the “Modifications”). If the Modifications are approved, (A)
interest on the Bonds will continue to be exempt from federal income taxation
pursuant to Sections 103(a) and 145 of the Code, (B) the Project Facility will continue
to be sold on an installment sale basis by the Agency to the Company pursuant
to a project agreement (the "Agreement") requiring the Company or its
designee to make payments equal to debt service on the Bonds and make certain
other payments, (C) the Company and the occupants of the Facility will continue
to be the initial users of the Project Facility, and (D) the Bonds will continue
to be a special obligation of the Agency payable solely out of certain of the
proceeds of the Agreement and certain other assets of the Agency pledged to the
repayment of the Bonds. THE BONDS SHALL
NOT BE A DEBT OF THE STATE OF
The
Agency will at said time and place hear all persons with views on the entering
into of the Modifications.
A
report of the hearing will be made available to the Board of Supervisors of
Saratoga County. Approval of the
issuance of the Bonds by Saratoga County, acting through its elected Board of
Supervisors, is necessary in order for the interest on the Bonds to continue to
qualify for exemption from federal income taxation.
Copies
of the application relating to the Project are available for public inspection
during business hours at the offices of the Agency located at the Saratoga
County Planning Department,
Dated: August
5, 2009
DEVELOPMENT
AGENCY
Raymond
F. Callanan, Chairman