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R-25-05
<br />A RESOLUTION EXPRESSING THE CONCURRENCE OF THE CITY COUNCIL OF
<br />THE CITY OF PORTSMOUTH, VIRGINIA WITH THE INDUCEMENT RESOLUTION
<br />ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF HENRICO
<br />COUNTY, VIRGINIA AND APPROVING THE ISSUANCE OF REVENUE BONDS FOR
<br />THE BENEFIT OF BON SECOURS MERCY HEALTH, INC. AND MARYVIEW
<br />HOSPITAL.
<br />WHEREAS, Bon Secours Mercy Health, Inc. ("BSMH") is a Maryland nonstock
<br />nonprofit membership corporation, and which has facilities located in the City of Portsmouth,
<br />Virginia including Maryview Hospital, LLC (d/b/a Maryview Medical Center and Bon Secours
<br />Maryview Behavioral Medical Center ("Maryview") located at 3636 High Street, Portsmouth,
<br />Virginia 23707; and
<br />WHEREAS, on January 16, 2025, the Economic Development Authority of Henrico
<br />County, Virginia (the "Henrico Authority") adopted an inducement resolution (the "Inducement
<br />Resolution") (a copy of which is attached hereto as Attachment A) relating to the issuance of its
<br />Hospital Facilities Revenue Bonds (Bon Secours Mercy Health, Inc.) (the "Bonds") in one or more
<br />series to, among other things, (i) finance or refinance the costs of certain capital expenditures,
<br />including the acquisition, construction, equipping, expansion, enlargement and improvement of
<br />certain hospital facilities, including reimbursement, (ii) pay a portion of the interest on the Bonds,
<br />if deemed necessary, (iii) establish one or more debt service reserve funds, if deemed necessary,
<br />and (iv) pay certain expenses incurred in connection with the issuance of the Bonds (collectively,
<br />the "Financing Purposes"), all pursuant to a master financing plan for certain health care facilities
<br />affiliated with BSMH, which plan includes the above-described financing by the Henrico
<br />Authority for the benefit of BSMH and its nonprofit affiliates, including Maryview; and
<br />WHEREAS, the portion of the Bonds to be issued for the benefit of the Maryview facilities
<br />shall not exceed $30,000,000; and
<br />WHEREAS, the Bonds will be issued pursuant to the Virginia Industrial Development and
<br />Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as amended (the "Act"), and
<br />will be limited obligations of the Henrico Authority payable solely from the revenues and receipts
<br />derived from payments provided by BSMH; and
<br />WHEREAS, the facilities of Maryview to be financed or refinanced are located within the
<br />boundaries of the City of Portsmouth, Virginia, which, pursuant to the Act, has created the
<br />Economic Development Authority of the City of Portsmouth, Virginia (the "Portsmouth
<br />Authority") and Section 15.2-4905 of the Act permits the issuance of the Bonds by the Henrico
<br />Authority for the benefit of BSMH and its nonprofit affiliates, including Maryview, if the
<br />governing body of the City of Portsmouth, Virginia concurs in the Inducement Resolution adopted
<br />by the Henrico Authority; and
<br />WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the
<br />"Code"), provides that an "applicable elected representative" of the governmental unit having
<br />jurisdiction over the area in which any facility financed or refinanced with the proceeds of the
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