GEORGETOWN, Del., Nov. 15, 2005 – A new retirement community for Sussex County’s burgeoning senior citizen population is one step closer to reality, thanks to a multi-million-dollar borrowing plan approved by Sussex County Council on Tuesday, Nov. 15.
Sussex County Council, at its morning meeting, gave its blessing for developers of the Cadbury at Lewes project to borrow up to $49.5 million under the county’s industrial revenue bond program. It is one of the largest bond issuances Sussex County government has ever sponsored.
The developer, Cadbury Senior Services, will borrow the money by selling low-interest, tax-exempt bonds, and then pay back the loan over a roughly 30-year period. Cadbury Senior Services plans to build a continuing care retirement community that will include at least 80 independent-living units, 40 assisted-living units and 40 skilled-nursing beds. The project will be built along Gills Neck Road near Lewes.
The project, once completed, is expected to employ more than 100 full-time employees.
Council had previously approved a $45 million bond issuance for Cadbury, but adjusted it to $49.5 million on Tuesday at the organization’s request. The increase was needed, Cadbury officials said, to compensate for the recent rise in construction costs.
With industrial revenue bonds, the borrower must be an entity that is either an employer whose project will result in large-scale economic benefit to the county – through the creation of jobs, for example – or a not-for-profit group. Cadbury at Lewes qualifies because Cadbury Senior Services is non-profit.
Sussex County lends its name and good standing for the issuance of the bonds, but assumes no risk and is not liable for paying back the loan. The borrower receives a low-interest rate, typically lower than conventional interest rates on mortgages and other loans, said David B. Baker, finance director for Sussex County.
Investors who buy the bonds, thereby putting up the money the borrower needs, pay no federal taxes on any revenues they realize.
Developers of the project said County Council’s decision would allow them to provide much-needed senior housing for the county.
“We’re within days of seeing some big activity on the site,” said Victor D. Amey, president and CEO of Cadbury Senior Services. “This approval will allow us to bring the project in on budget, and get the project moving shortly.”
Sussex County will see not just new housing for senior citizens as a result of the bond approval Tuesday, but as much as $247,500 in fees for allowing Cadbury to use the industrial revenue bond program.
That’s more good news for Sussex County.
“That $247,500 in additional money is funding that will be rolled over and used in the future for other economic development projects,” said County Administrator Robert L. Stickels. “This all results in a win, with more housing for senior citizens and the additional funding which we’ll use to help the county attract more business.”