Minutes 06/11/2013 - Laserfiche WebLink

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June 11, 2013 • The facilities of Maryview to be financed or refinanced are located within the boundaries of the City of Portsmouth, Virginia, which, pursuant to the Act, has created the Economic Development Authority of the City of Portsmouth, Virginia (the "Portsmouth Authority"), and Section 15.2-4905 of the Act permits the issuance of the Bonds by the Henrico Authority for the benefit of BSHSI and Maryview if the governing body of the City of Portsmouth, Virginia concurs in the Inducement Resolution adopted by the Henrico Authority. • Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the highest elected governmental official of the governmental unit having jurisdiction over the area in which any facility financed with the proceeds of the Bonds is located must approve the issuance of the Bonds in order for the interest on the Bonds to be entitled to certain exemptions from taxation provided by the Code, and the City Council of the City of Portsmouth, Virginia constitutes such highest elected governmental official within the meaning of the Code. • The Portsmouth Authority held a public hearing concerning the proposed issuance of the Bonds and adopted a resolution approving the issuance of the Bonds by the Henrico Authority and recommending that the City Council of the City of Portsmouth, Virginia concur in the Inducement Resolution of the Henrico Authority and approve the issuance of the Bonds by the Henrico Authority to comply with Section 147(f) of the Code and Section 15.2-4905 of the Act. Discussion: • With the issuance of the Bonds, BSHSI will be able to diversify the variable rate structures utilized in its bond portfolio, limit its exposure to banks providing credit support for its bonds and reduce the frequency with which letters of credit need to be renewed or replaced. Financial impact: • No City funds are involved. Neither the City nor its EDA guarantee the bonds and neither has any financial obligation for their repayment. Recommended Action: • Adoption of the resolution. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action: • Send a copy of the City Council's resolution to Amy Curran, bond counsel. Motion by Mr. Edmonds, and seconded by Mr. Meeks, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION EXPRESSING THE CONCURRENCE OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA WITH THE INDUCEMENT RESOLUTION ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF HENRICO COUNTY, VIRGINIA AND APPROVING THE ISSUANCE OF REVENUE BONDS FOR THE BENEFIT OF MARYVIEW HOSPITAL AND BON SECOURS HEALTH SYSTEM, INC. WHEREAS, Maryview Hospital ("Maryview"), is snot-for-profit Virginia nonstock corporation, which is affiliated with Bon Secours Health System, Inc. ("BSHSI"), a Maryland nonstock nonprofit membership corporation, and which has facilities located in the City of Portsmouth, Virginia; and