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November 27, 2012
<br />WHEREAS, on October 18, 2012, the Economic Development Authority of Henrico
<br />County, Virginia (the "Henrico Authority") adopted an inducement resolution (the
<br />"Inducement Resolution") (a copy of which is attached hereto as Attachment A) relating
<br />to the issuance of its Revenue Bonds (Bon Secours Health System, Inc.) (the "Bonds")
<br />in one or more series to, among other things, (i) refund all or a portion of the Economic
<br />Development Authority of Henrico County, Virginia Revenue Bonds, Series 2002A (Bon
<br />Secours Health System, Inc.) (the "Series 2002A Bonds"), (ii) pay or reimburse, or
<br />refinance certain indebtedness the proceeds of which were used by, Maryview for the
<br />payment of the costs of acquiring, constructing, equipping, expanding, enlarging and
<br />improving certain of its medical facilities (the "Project"), (iii) pay a portion of the interest
<br />on the Bonds, if deemed necessary, (iv) establish a debt service reserve fund, if
<br />deemed necessary, and (v) pay certain costs incurred in connection with the issuance
<br />of the Bonds and the refunding of the Series 2002A Bonds (collectively, the "Financing
<br />Purposes"), all pursuant to a master financing plan for certain health care facilities
<br />affiliated with BSHSI, which plan includes the above-described financing by the Henrico
<br />Authority for the benefit of Maryview; and
<br />WHEREAS, the portion of the Bonds to be issued for the benefit of Maryview shall
<br />not exceed $61,000,000; and
<br />WHEREAS, the Bonds will be issued pursuant to the Virginia Industrial
<br />Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950,
<br />as amended (the "Act"), and will be limited obligations of the Henrico Authority payable
<br />solely from the revenues and receipts derived from payments provided by BSHSI,
<br />Maryview and certain related corporations; and
<br />WHEREAS, the facilities of Maryview to be financed or refinanced are located
<br />within the boundaries of the City of Portsmouth, Virginia, which, pursuant to the Act, has
<br />created the Economic Development Authority of the City of Portsmouth, Virginia (the
<br />"Portsmouth Authority"), and Section 15.2-4905 of the Act permits the issuance of the
<br />Bonds by the Henrico Authority for the benefit of BSHSI and Maryview if the governing
<br />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
<br />(the "Code"), provides that the highest elected governmental official of the governmental
<br />unit having jurisdiction over the area in which any facility financed with the proceeds of
<br />the Bonds is located must approve the issuance of the Bonds in order for the interest on
<br />the Bonds to be entitled to certain exemptions from taxation provided by the Code, and
<br />the City Council of the City of Portsmouth, Virginia constitutes such highest elected
<br />governmental official within the meaning of the Code; and
<br />WHEREAS, on November 20, 2012, pursuant to the requirements of Section 147(f)
<br />of the Code and the Act, the Portsmouth Authority held a public hearing concerning the
<br />proposed issuance of the Bonds; and
<br />WHEREAS, on November 20, 2012, the Portsmouth Authority adopted a resolution
<br />approving the issuance of the Bonds by the Henrico Authority and recommending that
<br />the City Council of the City of Portsmouth, Virginia concur in the Inducement Resolution
<br />of the Henrico Authority and approve the issuance of the Bonds by the Henrico
<br />Authority to comply with Section 147(f) of the Code and Section 15.2-4905 of the Act;
<br />and
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />1. The recitals made in the preamble to this Resolution are hereby adopted
<br />as a part of this resolution.
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