Hawthorn Services to Purchase Adult Day Health Center with $925,000 MassDevelopment Bond
December 9, 2009
FOR IMMEDIATE RELEASE
Kelsey Abbruzzese, MassDevelopment, 617-330-2086
MassDevelopment announced today that the Agency is issuing $925,000 in tax-exempt bonds on behalf of Hawthorn Services, Inc., which works to integrate mentally ill older adults back into the community. Hawthorn plans to use bond proceeds to purchase a 5,000-square foot office condominium unit in Springfield that the organization has been renting for use as an adult day health center. The financing package also includes a $97,500 mortgage insurance guarantee on behalf of Berkshire Bank.
“Hawthorn Services has shown its commitment to caring for the elderly and disabled in the Pioneer Valley,” said Robert L. Culver, President and CEO of MassDevelopment. “We’re pleased that this financing can help Hawthorn purchase this property that is serving many people in need.”
Hawthorn also plans to use bond proceeds to refinance existing mortgage debt on its main office building in Chicopee. Since opening in 1979, Hawthorn has grown from an initial program that provided residential housing for 12 older adults to an enhanced residential program for 32. The organization has also added four adult day health centers in Chicopee, West Springfield, Springfield, and Ware that serve 200 people, plus various outreach and training support programs.
“This project exemplifies community development, from a social, economic, and cultural standpoint,” said Jim Callahan, Executive Director of Hawthorn Services, Inc. “We know it takes more than just bricks and mortar to help a community grow. It takes a real commitment from compassionate individuals to push the vision of a caring, integrated community. MassDevelopment has sent a strong statement that people care and the community really matters.”
MassDevelopment, the state’s finance and development authority, works with businesses, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2009, MassDevelopment financed or managed 229 projects statewide representing the investment of nearly $1.2 billion in the Massachusetts economy. These projects are supporting the creation of 1,488 new housing units and 8,232 jobs: 3,362 permanent and 4,870 construction-related.