DELAWARE — The Delaware County Commissioners approved a health care facility revenue bond of up to $20 million to Ohio Living Powell LLC to refinance its purchase of the Ganzhorn Suites.
The bond allows the non-profit to replace a short-term bridge loan that initially funded Ohio Living’s purchase of Ganzhorn Suites with lower-cost, tax-exempt financing.
Ohio Living acquired the Ganzhorn Suites, located at 10272 Sawmill Parkway in Powell, in February.
As part of the arrangement, the county will briefly take ownership of the property and lease it back to Ohio Living — a common structure that allows the organization to qualify for tax-exempt financing.
Ohio Living Powell will remain responsible for repaying the loan, with WesBanco serving as the lender.
Ben Kitto, a partner at Ice Miller LLP providing legal and consulting services, emphasized the county is not financially responsible for the bond.
“It’s not a debt of the county,” he said. “If Ohio Living were to fail to pay for some reason, which is not anticipated, the county would not be on the hook. The lender would go after Ohio Living.”
Kitto said the financing will allow Ohio Living Powell to lower its interest costs by converting part of its existing loan to tax-exempt financing. He added that the structure is similar to a 2016 financing used for the Sarah Moore facility.
According to the resolution, commissioners can issue these types of bonds if they determine the project serves a public purpose, such as improving the health and well-being of residents at the facility.
Ohio Living plans continued expansion in Central Ohio
Ohio Living is a Westerville-based, faith-based organization offering independent living, assisted living, long-term care and other services to older individuals at 11 healthcare facilities across Ohio.
The organization acquired Delaware’s Ohio Living Sarah Moore after the independent facility needed financial assistance, Ohio Living CFO Bob Stillman said.
The move to acquire the Ganzhorn Suites reflects Ohio Living’s strategic plan to expand the number of facilities in central Ohio, he said.
“Also as a part of our strategic plan, we have really enhanced our memory care services at our existing sites because we have an aging society in the state of Ohio and greater central Ohio, and we wanted to be a first in class,” Stillman said.
Stillman said Ganzhorn Suites was developed with memory care as a top priority, and because of that, the facility will not require any changes to services offered to more than 60 residents.
