Medical Clinic Board approves request to issue bonds to help purchase of Riverchase Senior Living Community
The Medical Clinic Board of the City of Hoover has approved a request to issue tax-exempt bonds, which will be used to help Omega Communities LLC buy the Riverchase Senior Living Community.
Omega Communities, whose leadership team is from metro Birmingham, wants the city to serve as conduit issuer of $13 million in bonds. The company would use the bonds, as well as $5 million of its own investment, to buy and renovate the 125-bed senior citizens facility located at 1851 Data Dr.
The matter now goes before the Hoover City Council for consideration.
On June 5, 2015, Omega entered an Asset Purchase Agreement with Riverchase Village ADK, a Georgia company that owns the Riverchase facility. Omega Communities is an affiliate of Omega Capital Enterprises LLC, which began in 1986 as Capital Strategies Partners, an investment company based in Birmingham.
Omega would generate tax savings in using the medical clinic board to issue the bonds instead of doing the purchase on its own, company lawyer Doug Williams, of Maynard Cooper & Gale, told the Medical Clinic Board. Hoover would benefit from the project because immediately after the purchase is completed, Omega will begin substantial upgrades to the property and expand its services to low- to moderate-income senior citizens in Hoover, Williams said.
According to a package presented to the board, Omega will update 16 of the existing assisted living beds in order to be eligible to serve as a specialty care assisted living facility (SCALF) for residents with Alzheimer’s, dementia and other memory-affecting disorders. Omega has begun the process of obtaining necessary licenses to convert those beds to SCALF beds and expects to get approval within a year.
Williams said Omega will provide the Medical Clinic Board post-renovation renderings when available. Omega has three other senior citizens projects underway: Fountains of Hope in Sarasota, Fla.; The Springs at Biscayne in North Port, Fla.; and Cypress Point in Fort Myers, Fla.
As with prior projects, Omega expects to enter into an arrangement with a “high-impact local church” in order to expand the reach of the Riverchase Senior Living Community, Williams said. Omega’s model has found that many large churches are excited about the prospects of expanding their ministry to include safe, affordable housing options for senior citizens.
“There are many successful models for optimizing this synergy, and Omega has been successful in customizing each affiliation to match the needs and goals of the local church,” Williams said. “Omega has identified several local churches that may be a good fit for the community” and is ready to begin those discussions.