- Last Updated on Monday, 29 June 2020 22:34
The Washington County Industrial Development Authority (WCIDA) announced that it will provide Encore Living Group, Inc., an entity affiliated with Presbyterian Senior Care Network, the ability to borrow $32.0 million from a private financial institution at a tax-exempt interest rate.
Encore will utilize the financing to construct an 80-unit, four story independent living facility for the elderly on a 6.8-acre parcel in North Strabane Township near Canonsburg Lake. The WCIDA will not lend the money itself, but issue a bond note which will allow the company to obtain bank or other financial institution funding at a lower interest rate.
Diana Irey Vaughan, Chairman of the Washington County Board of Commissioners noted that this project will be a significant economic and social driver for the county. Chairman Irey Vaughan stated, “The Board of Commissioners was pleased to approve the WCIDA’s request for a tax-exempt note for the new Encore Living Group, Inc. facility in North Strabane Township. As an affiliate of Presbyterian Senior Care Network-a non-profit, faith-based provider of senior care services-we are excited to support their expansion in Washington County and increase the care and service options for older adults in our community. It is also extremely encouraging for the economic development and job creation opportunities for our county. We want to thank them for their investment in our area.”
Jeff Kotula, Executive Director of the WCIDA also noted that the bond note is not a cash outlay nor will any WCIDA or taxpayer monies go to the project. “The WCIDA has the ability, under existing IRS rules, to provide bond notes that enable banks or other financial institutions to lend money to non-profits at lower interest rates. The approval of this tax-exempt note will allow the company to borrow $32.0 million from a private financial institution at a reduced interest rate. The WCIDA and/or county will not make the loan to the non-profit, but this action allows the WCIDA to serve as a conduit for Encore Living Group, Inc. to borrow the money at more favorable terms, which in turn provides them with more flexibility to carry out their mission of providing safe and secure housing for our senior population,” Kotula relayed.