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October 29, 2002
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<br />These bonds require the approval of the local governing body but represent no
<br />financial liability to the City of Portsmouth or the Portsmouth Industrial
<br />Development Authority.
<br />
<br />Recommendation:
<br />
<br />· Adoption of a resolution to approve the issuance of revenue bonds by the Economic
<br />Development Authority of Henrico County, Virginia, to pay costs of the acquisition,
<br />construction, equipping and installation of certain capital improvements and additions
<br />for, among others, Maryview Medical Center located at 3636 High Street, Portsmouth,
<br />Virginia 23707.
<br />
<br />Purpose and Need:
<br />
<br />· The financing will benefit the Commonwealth of Virginia and its inhabitants by
<br />providing modern and efficient medical services and lowering the cost of the provision of
<br />such services.
<br />
<br />Financial Impact:
<br />
<br />· Neither the City nor the Industrial Development Authority of the City of Portsmouth,
<br />Virginia makes any financial commitment or is in any way legally obligated to the
<br />repayment of the bonds. The bonds will not be considered against or included in the
<br />City's debt capacity. A Fiscal Impact Statement is attached which outlines the fiscal
<br />benefits to the City.
<br />
<br /> Motion by Mr. Benn, and seconded by Mr. Moody, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"A RESOLUTION EXPRESSING THE CONCURRENCE OF THE COUNCIL OF THE
<br />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
<br />FOR THE BENEFIT OF MARYVIEW HOSPITAL AND BON SECOURS HEALTH
<br />SYSTEM, INC.
<br />
<br /> WHEREAS, Maryview Hospital ("Maryview"), is a Virginia nonstock, non-profit
<br />corporation which is affiliated with Bon Secours Health System, Inc. ("BSHSI"), a
<br />Maryland nonprofit corporation, and which has facilities located in the City of
<br />Portsmouth, Virginia; and
<br />
<br /> WHEREAS, on September 19, 2002, the Economic Development Authority of
<br />Henrico County, Virginia ( the "Henrico Authority") adopted an inducement resolution
<br />(the "Inducement Resolution") (a copy of which is attached hereto as Attachment A)
<br />relating to the issuance of its Revenue Bonds, Series 2002 (Bon Secours Health
<br />System) (the "Series 2002 Bonds") in one or more series to, among other things, (i) pay
<br />or reimburse, or refinance certain indebtedness the proceeds of which were used by,
<br />Maryview for the payment of the costs of acquiring, constructing, equipping, expanding,
<br />enlarging and improving the approximately 346 bed acute care hospital and related
<br />facilities of Maryview (the "Project"), (ii) refund all or a portion of the Henrico Authority's
<br />outstanding $72,200,000 Health Care Revenue Bonds, Series 1992A, 1992B and
<br />1992C (Bon Secours Health System Project) (the "Series 1992 Bonds"), (iii) refund all
<br />or a portion of the Henrico Authority's outstanding $23,585,000 Hospital Revenue
<br />Refunding Bonds, Series 1993 (Bon Secours Health System Project) (the "Series 1993
<br />Bonds"), (ii) refund all or a portion of the Henrico Authority's outstanding $44,700,000
<br />Revenue Bonds, Series 2000 (Bon Secours Health System, Inc.) (the "Series 2000
<br />Bonds"), (iii) provide working capital for BSHSI and Maryview, (iv) pay a portion of the
<br />interest on the Series 2002 Bonds, (v) establish a debt service reserve fund, and (vi)
<br />pay certain costs, including the costs of credit enhancement or a liquidity facility,
<br />incurred in connection with the issuance of the Series 2002 Bonds (collectively, the
<br />"Financing Purposes"), all pursuant to a master financing plan for certain health care
<br />facilities affiliated with BSHSI, which plan includes the above-described financing by the
<br />Henrico Authority for the benefit of Maryview; and
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