Travis County Commissioners Court
August 2, 2005
Health Facilities Development Corporation
Now let's call to order the Travis County health facilities development corporation, one item. Discuss presentation regarding issuance of bonds to finance the querencia --
>> querencia I believe is how you pronounce it.
>> it is.
>> I don't need my spanish accent on that pronunciation. Querencia at Barton Creek life community. This is posted for presentation and discussion today. It will be back for action at the appropriate time in the future.
>> right.
>> and I have with us from graystone, who is the developer of this project, cole gray and nancy hilmer, who would like to make an introductory presentation of this project. They have submitted an application today to -- for the corporation to issue the bonds for it. So if it's okay with you, judge, I値l let them make their presentation.
>> the timing on this will be, I think the plan now is to come back before the board on August 30th for the public hearing and the adoption of the bond resolution with a currently scheduled closing of the bonds the last week of September.
>> last week in September?
>> yes, sir.
>> okay.
>> thank you, and we represent graystone communities out of dallas, Texas. We have been engaged by the sponsor, who is senior quality lifestyles, to be the developer and the manager of querencia at Barton Creek. Querencia at Barton Creek is the third community that is ccrc, continuing care retirement community, that is being developed by senior quality lifestyles. The first community that senior community lifestyles is calls edgemere, located in dallas. There's a picture of edgemere on page 4 of your handout. And the other community is buckingham, which is located in houston, Texas. So this is the third community that will be part of the senior quality of lifestyles family. The actual corporation is Barton Creek senior living center, inc, and senior living quality lifestyles will be the sole corporate rate member of Barton Creek.
>> so the name querencia goes away?
>> the name querencia is the name for the community. The name for the corporation will stay the same. Querencia is the name nor marketing purposes.
>> okay.
>> querencia will be a continuing care retirement community consisting of about 168 independent living apartments and villas. Also will be 40 assisted living apartments, 20 specialized living apartments and 44 skilled nursing beds. So it will offer a full continuum of care on campus with the idea seniors will as their needs change will transfer through the various levels of care. The project budget is expected to be about $120 million. It will be a life care community meaning that whether a senior transfers to the next level of care whether it's assisted living or skilled nursing, their monthly fees don't go up. So that's a key economic benefit to the senior families in Austin. It will have a full service resident program. Lots of common areas such as dining rooms, activity spaces, wellness centers. They will get one meal per day, house keeping, linen service. Property taxes will be included in the monthly fee. Utilities, transportation and underground parking. So it's a full resident program. We started the marketing process of querencia in December of 2004 when we we started taking 10% deposits of the entrance fee. So far we are almost 90% pre-sold of the independent living apartments. 70% is typically required by the capital markets to achieve a bond financing so whaoef exceeded that goal in very rapid time. Page 9 has a summary project budget. We're looking for about 110 to $120 million of tax exempt debt. The overall construction costs are about $60 million for this project. And the other soft costs included in there bring the total project budget up to about $119 million. The project schedule and some of the key highlights of the project on the next two pages, the project will be about 400,000 square feet not including the parking garage. The project is currently zoned. We are expecting site plan approval from the city of Austin this month. The design is complete and we are getting a guaranteed maximum price construction contract negotiated right now with the contractor. And we expect that to be done by the end of this month as well. So the overall project time line, we would hope to send a preliminary official statement for the bond financing to the capital markets at the end of this month with a target to close on the bond financing on September 30th. We expect the construction period to be about 20 months to first occupancy and independent living so that would be may 1, 2007 and we normally budget about two years to fill up the community.
>> I notice that you did suggest that you would have to require zoning before the city council of Austin. And I guess my question is that looking at this and then looking at the timing of when this will be looked at again, is there any conflict with the proper zoning that will be required in the schedule that you have set forth in place as you have given your deliberations to us today? You can have that question first and I may have another.
>> my understanding that appropriate zoning is already in place.
>> it's already in place. Okay. That is your understanding.
>> yes.
>> no if, and, but about it. You won't have no quirk down at the city council if maybe there is some zoning questions.
>> no, the zoning is in place. The only thing we're waiting on this point is the site plan approval.
>> so there's still -- okay.
>> they are still working through that process, but every indication is we should have that in the next two or three weeks.
>> okay. And this will still be taxable property, taxable property on the tax roll.
>> right. We anticipate paying property taxes.
>> because every once in a while we run into [inaudible] and this is not one but where a property is actual taken off the tax rolls or a percentage of the property being taken off the tax rolls.
>> right.
>> the last, final question is that you gave some illustrations in here that depicted your other ventures in dallas and also harris county. Is there any more definite, I guess, definitive support that needs to be maybe displaced, can you tell me a little more, and I guess maybe not today, but I壇 like to hear a little more about your model that you have in place right now to make me feel a little more comfortable in what we're doing. The thing is we'll actually be able to get the benefit that we're talking about. And, of course, I知 kind of concerned -- I知 concerned about a lot of things, but that is one I知 concerned about. Is that the other ventures that you have in place right now are adequately doing what you suggested they are doing. And I guess today, in my opinion, again, wouldn't be the time to go through all of that, but I壇 like to know about it.
>> sure.
>> do you understand what I知 saying?
>> yes, and graystone has been managing senior living communities for about 20 years, and the edgemere community in dallas is almost 100% occupied and we have very high resident satisfaction there. The buckingham opened up recently. I believe it opened up this -- in June. So tonight's a fill-up mode right now, but we still have high pre-sales and good customer feedback at this point.
>> I知 trying to get comfort so that's why I知 asking those questions is to acquire confidence. I知 sorry, go ahead.
>> excuse me, sir, and edgemere in dallas has been operating five years. So the next time we gather, I知 sure we'll have a good -- a history for you to review.
>> I壇 like to have it.
>> okay.
>> thank you.
>> can somebody remind me what fees, applications, et cetera, et cetera, related to the corporation to issue all of this? I did not see that in the backup. Remind me.
>> the fees, they pay an application fee of $9,000, of which $2,000 comes to the corporation. They pay a fee of -- a closing fee of 10 basis points for the first $50 million of bonds issued and then five basis points for bonds that are issued over and above 50 million. So I would just offhand, if they issued $120 million, the fee would be around 80,000.
>> this is going to be coming under our new way we're doing this in a sense that all of the fees that would be expected by the corporation will be paid up front at closing as opposed that there is something at closing and then it's like whatever the length of the term of the debt.
>> that's right.
>> very good. Thank you.
>> has that one meal a day worked out all right in dallas? [laughter]
>> of course, the communities all serve dining events three times a day. It's included in their monthly fee is one of those.
>> we are fighting obesity in our community, but trying to start at a little younger age. Questions, comments?
>> judge?
>> yes, sir.
>> I don't know, I知 sure that there is some reason as to why I need to weigh in on this since my in-laws have bought into this thing. I will assure you that this does not seem to be anything that will do anything other than fill up, and as I have watched all of the marketing and things take place out in the Barton Creek area and have seen the project in houston, I mean these things really work. You know, obviously I mean marketing to some of the probably upper echelon folks, I mean because -- I mean it's a great facility. But we probably have a good opportunity from here or with our participation. Is this something that I need to not weigh in on given that there is family -- that I have family members that are participating in this? I need to know that now.
>> [inaudible].
>> I知 sorry?
>> close family?
>> my in-laws. They are pretty close to me the last couple of days.
>> we'll have cliff research that for you.
>> today is not a voted.
>> I knew it wasn't an action item, but I need to know. Do I need to stop getting this stuff from you or --
>> I don't believe it will be a problem, but I値l find out before the 30 tho . Don't you all go raise the minimum age just because Commissioner Daugherty likes the project.
>> and it is going to the property tax rolls so there will be an ongoing good thing happening for all jurisdictions in Travis County.
>> so if we stick to the August 30th action date, you will let us know and we'll have it back on.
>> yes, sir.
>> thank you.
>> thank you.
>> thank you all very much. And we did get a presentation and another booklet prior to today so we know a little bit more about the project than we heard today. Thank you very much.
>> if you would get me that other information, some history.
>> we sure will.
>> thank you.
>> Commissioner Sonleitner moves adjournment.
>> second.
>> discussion? All in favor? That passes by unanimous vote.
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Last Modified:
Wednesday, August 2, 2005 10:01 AM