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<br />November 27,2007
<br />
<br />Discussion:
<br />. The Series 2008 Bonds to be issued for the benefit of Maryview shall not exceed
<br />$30,000,000.
<br />. The bond proceeds will:
<br />(i) Payor reimburse, or refinance certain indebtedness the proceeds of which were
<br />used by Maryview for the payment of the cost of acquiring, constructing, equipping,
<br />expanding, enlarging and improving the acute care hospital and related facilities of
<br />Maryview;
<br />(ii) Provide working capital for BSHSI and Maryview, if deemed necessary or
<br />desirable by BSHSI and Maryview;
<br />(iii) Pay a portion of the interest on the Series 2008 Bonds, if deemed necessary or
<br />desirable by BSHSI and Maryview;
<br />(iv) Establish a debt service reserve fund, if deemed necessary or desirable by
<br />BSHSI and Maryview; and
<br />(v) Pay certain costs, including the costs of credit enhancement or a liquidity facility,
<br />incurred in connection with the issuance of the Series 2008 Bonds, all pursuant to a
<br />master financing plan for certain health care facilities affiliated with BSHSI, which plan
<br />includes the above-described financing by Henrico Authority for the benefit of Maryview.
<br />
<br />Financial Impact:
<br />. There is no financial impact.
<br />
<br />Staff Recommends:
<br />Adoption of proposed resolution. Vision Principle: Thriving Neighborhoods and a Sense
<br />of Community.
<br />
<br />Next Steps Following Council Action:
<br />. No further action required
<br />
<br />Motion by Mr. Heretick, and seconded by Mr. R. Smith, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"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 MARYVIEW HOSPITAL AND BON SECOURS HEALTH SYSTEM,
<br />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 nonstock membership corporation, and which has facilities located in the City
<br />of Portsmouth, Virginia; and
<br />
<br />WHEREAS, on October 18, 2007, 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 2008 (Bon Secours Health
<br />System, Inc.) (the "Series 2008 Bonds") in one or more series to, among other things, (i)
<br />payor reimburse, or refinance certain indebtedness the proceeds of which were used
<br />by, Maryview for the payment of the costs of acquiring, constructing, equipping,
<br />expanding, enlarging and improving the acute care hospital and related facilities of
<br />Maryview (the "Project"), (ii) provide working capital for BSHSI and Maryview, if deemed
<br />necessary or desirable by BSHSI and Maryview, (iii) pay a portion of the interest on the
<br />Series 2008 Bonds, if deemed necessary or desirable by BSHSI and Maryview, (iv)
<br />establish a debt service reserve fund, if deemed necessary or desirable by BSHSI and
<br />Maryview, and (v) pay certain costs, including the costs of credit enhancement or a
<br />liquidity facility, incurred in connection with the issuance of the Series 2008 Bonds
<br />(collectively, the "Financing Purposes"), all pursuant to a master financing plan for
<br />certain health care facilities affiliated with BSHSI, which plan includes the above-
<br />described financing by the Henrico Authority for the benefit of Maryview; and
<br />
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