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July 25, 2000
<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. Robinett, and seconded by Mr. Whitehurst, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"A RESOLUTION APPROVING ISSUANCE OF REVENUE BONDS FOR BON
<br />SECOURS HEALTH SYSTEM, INC., AND RELATED ENTITIES.
<br />
<br /> WHEREAS, there has been described to the Industrial Development Authority of
<br />the City of Portsmouth, Virginia (the "Authority"), the plans of Bon Secours Health System,
<br />Inc. ("BSHSI"), a Maryland not-for-profit membership corporation, and certain of its related
<br />entities (the "Related Entities"), including Maryview Hospital ("Maryview"), a not-for-profit
<br />Virginia nonstock corporation, for the Economic Development Authority of Henrico
<br />County, Virginia (the "Issuer"), to lease certain capital improvements and additions for the
<br />Related Entities' hospital facilities located in the cities of Portsmouth, Newport News and
<br />Norfolk, with the Issuer's limited payment obligations under such lease being obligations
<br />that constitute "Bonds" (the "Bonds") under the Virginia Industrial Development and
<br />Revenue Bond Act (the "Act"); and
<br />
<br /> WHEREAS, the principal amount of the Bonds is now estimated not to exceed
<br />$6,000,000; and
<br />
<br /> WHEREAS, Maryview owns and operates the hospital facilities known as
<br />Maryview Medical Center (the "Medical Center"), located at 3636 High Street,
<br />Portsmouth, Virginia 23707, which is also the address of the corporate offices of
<br />Maryview; and
<br />
<br /> WHEREAS, a portion of the proceeds of the Bonds now estimated not to exceed
<br />$2,275,000, will be used to finance the costs of the acquisition, construction, equipping
<br />and installation of (a) certain capital improvements and additions for the Medical Center,
<br />including without limitation its heating and air conditioning system, lighting system,
<br />energy system and water system, and (b) a building addition to the existing heat plant at
<br />the Medical Center to contain the medical waste system; and
<br />
<br /> WHEREAS, BSHSI has requested the City Council (the "Council") of the City of
<br />Portsmouth (the "City"), to approve the issuance of the Bonds to comply with Section
<br />15.2-4905 of the Virginia Industrial Development and Revenue Bond Act, as amended
<br />(the "Act"); and
<br />
<br /> WHEREAS, a copy of the Issuer's resolution of June 15, 2000, approving the
<br />issuance of the Bonds has been filed with the Council; and
<br />
<br /> WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended
<br />(the "Code"), requires in this case that the governmental unit having jurisdiction over the
<br />area in which any facility financed with the proceeds of the Bonds is located approve the
<br />issuance of such bonds; and
<br />
<br /> WHEREAS, the Authority on June 20, 2000, held a public hearing on the issuance
<br />of the Bonds; and
<br />
<br /> WHEREAS, the Authority has recommended that the Council approve the issuance
<br />of the Bonds to comply with Section 147(0 of the Code; and
<br />
<br />
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