County Would be Liable for LifeWays Building Bond, Says Bond Counsel

If LifeWays were to default, according to Bond Counsel, Hillsdale County would be on the hook.

Hillsdale County—At a Monday consultation with Bond Counsel, the Hillsdale County Board of Commissioners learned that Hillsdale County would be liable if LifeWays were to default on its prospective building bond.

Last week the Board of Commissioners met to discuss the potential issuance of a building bond on behalf of LifeWays using the county’s “full faith and credit.” Over extensive public opposition, they passed the motion to move forward with a Bond Counsel consultation in a 3-2 vote.

But at Monday’s consultation, after some board members said otherwise before, the Commissioners learned with certainty that the county would be responsible for the bond payments should LifeWays default. The building bond under consideration is estimated at $18.2 million over 20 years.

If the county backed the bond rather than the commercial alternative, the organization would save itself between 0.059% and 0.141% of its annual operating budget of approximately $120 million over the bond’s term.

District 4 Commissioner Brad Benzing told the Hillsdalian that he was “not surprised” by the answers received. According to Benzing, supporting the building bond makes little sense.

“Lifeways has both the resources and revenue to do this on their own,” he said, citing other “major projects on the horizon,” including a new district court location and, potentially later on, a new jail.

District 2 Commissioner Kevin Collins, who brought the bond proposal to the floor at the 22 April meeting, appeared to be on the fence, and indicated in the past that he would vote against any proposal that would leave the county liable.

When asked whether he thought the LifeWays building bond issue would be brought back for consideration, despite the liability, Benzing said that he anticipated it would.

“I do believe that this issue will be back before the commissioners in the near future,” he said.

The proposed office building would cover 28,000 square feet and include a “Crisis Stabilization Unit” and an “Integrated Health Clinic.” These services would allow LifeWays to become a “Certified Community Health Clinic.”

Jacob Bruns

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