A proposed senior living facility first presented to the public in February is asking the city commission to bond up to $40 million for its project, a proposition discussed at the city commission’s Monday meeting.
The facility projects to include about 120 units for seniors. The city commission previously OK’d a zoning change to allow the development of the property, a 42-acre site which was purchased by Prescient Frankfort 1 LLC for $750,000.
No action was taken on Monday night, as it was first presented to the commission then.
Tim Eifler, an attorney with Stoll Keenon Ogden, said that under this bond arrangement the city would act as a “conduit” through which the project could finance itself via government bonds, whose interest rates are often lower than private financing methods.
In response to a question from Mayor Layne Wilkerson, Eifler said that there is “no risk to the city” if it floats the company the several million dollar bond.
The one hit to the city would come via the tax rolls. The company’s land would be become exempt from property tax because the city would hold title to the project and lease it to the company.
Per calculations from Stoll Keenon Ogden, who presented on the incentive for the company, the city would lose out on about $78,000 in property tax revenue annually but collect a total of about $95,000 in other taxes every year— namely through net profits and occupational taxes.
The presentation on the bonding method, known as industrial revenue bonds, emphasized that the bonds would not be a general obligation of the city and is not backed by its credit or taxing power. The maximum term for the bond is 40 years.
Commissioner Kyle Thompson expressed pause at the arrangement, on which no action was taken, by suggesting that the city’s projected $18,000 annual tax revenue from the project might be too slim for his liking.
The presentation also included a section on the benefits of the project from developer Proclivity Senior Living’s CEO Stephen Bolt.
He stressed that the project would provide several ancillary benefits to the community, largely in the form of an increased workforce that would make their homes in Frankfort. He said that while executives and medical professionals would be employed by the company, the median worker there would be “middle to low” income.
In a February presentation to the Kentucky Capital Development Corporation, Bolt said that the project would include over 100,000 square feet of indoor space. He also mentioned that the company completed a market study that showed the need for such a facility in the Frankfort area.
“What we’re developing is way more than just a place for people to come and enjoy the rest of the years that they have,” Bolt said. “We’re way more than that.”
Organizers listed for Prescient Frankfort 1 are Bolt, Troy Williams, Jimmy Bevins, Michael Smithson and Steve Hall.
Smithson and Hall are both local health care professionals. Bevins is an entrepreneur and former chairman of Kentucky Department of Fish and Wildlife.