First Community Village pulled from bankruptcy through bond sale, investment
Upper Arlington-based National Church Residences today completed the sale of $52.405 million in bonds and invested another $10 million in First Community Village to pay off the retirement community’s bankruptcy debts.
First Community Village has entered a “new era of financial stability,” according to its nonprofit sponsor, National Church Residences.
In a press release issued Feb. 21 by National Church Residences, the national nonprofit senior services organization, announced it sold $52.405 million in bonds and spent $10 million of its own money to resolve First Community Village’s financial debts.
"We've made a big investment in the Tri-Village area," said Joe Kasberg, chief financial officer for National Church Residences.
"It's our intention for First Community Village to stay there forever."
National Church Residences took control of First Community Village, a continuing care retirement community also in Upper Arlington, as part of First Community Village’s 2010 reorganization after falling into financial hardship.
In January 2012, a bankruptcy court made National Church Residences the sole sponsor of First Community Village.
As such, National Church Residences was granted authority to elect First Community Village’s board of directors.
According to a press release, the Franklin County Hospital Commission approved issuing the health care facilities revenue refunding bonds for First Community Village last month.
The original reorganization plan called for a lump $54 million payment in 2015 to banks to satisfy debts from construction of luxury apartments at First Community Village.
"We decided to sell the bonds now rather than two years from now because of the current operating performance and today’s low interest rate environment," Kasberg stated in the release.
In a telephone interview Thursday, Feb. 21, Kasberg said, “We’ve been successful in operating (First Community Village) more profitably than it was.
"We're on better financial footing … so we could go out and borrow this $52 million," Kasberg said
National Church Residences also will use $2 million from the bond sale to complete renovations of the skilled nursing unit at First Community Village, including bathroom and shower upgrades and cosmetic renovations.
Construction on an additional 12 manor homes also will begin.
Additional details about the bond sale and National Church Residence’s plans for renovations at First Community Village, as well as expansion at its own Upper Arlington headquarters will be posted online at thisweeknews.com and in upcoming editions of the ThisWeek Upper Arlington News and affiliated ThisWeek Community News publications.