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January 28, 2025
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<br /> The Maryview improvements to be funded by the bonds include relocation of the
<br />existing radiology interventional suite, relocation and renovation of the endoscopy suites,
<br />replacement of the nurse call system and interventional radiology equipment, general
<br />facilities infrastructure and maintenance improvements, improvements to medication
<br />dispensing equipment, renovation and restoration of specified interior and exterior areas,
<br />and purchase of various clinical equipment.
<br />
<br />Discussion:
<br />
<br /> For the type of bonds being issued by the Henrico EDA, state and federal law
<br />require that the governing bodies of the localities where funds will be spent adopt a
<br />resolution approving the issuance of the bonds. They also require that a public hearing
<br />be held in the locality. The Portsmouth EDA held the required public hearing on Tuesday
<br />st
<br />January 21 and the required resolution is now being presented for City Council’s
<br />consideration.
<br />
<br /> Neither the City nor the Portsmouth EDA will have any liability related to the bond
<br />issuance or any obligation to repay the bonds. The bonds will not be debt of the City or
<br />the Portsmouth EDA, nor shall they count against the City’s statutory debt limit.
<br />
<br />Financial Impact:
<br />
<br /> The bonds will allow Maryview to fund improvements, and the City will have no
<br />liability arising from or related to the bonds.
<br />
<br />Recommended Action:
<br />
<br /> Adoption of the resolution.
<br />
<br />Next Steps Following Council Action:
<br />
<br /> The City will provide the adopted resolution to bond counsel for Bon Secours
<br />Mercy Health, Inc.
<br />
<br />Motion by Mr. Moody, and seconded by Mr. Thomas, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />“RESOLUTION EXPRESSING THE CONCURRENCE OF THE CITY 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 FOR
<br />THE BENEFIT OF BON SECOURS MERCY HEALTH, INC. AND MARYVIEW
<br />HOSPITAL.
<br />
<br />WHEREAS,
<br /> Bon Secours Mercy Health, Inc. (“BSMH”) is a Maryland nonstock
<br />nonprofit membership corporation, and which has facilities located in the City of
<br />Portsmouth, Virginia including Maryview Hospital, LLC (d/b/a Maryview Medical Center
<br />and Bon Secours Maryview Behavioral Medical Center (“Maryview”) located at 3636 High
<br />Street, Portsmouth, Virginia 23707; and
<br />
<br />WHEREAS,
<br /> on January 16, 2025, the Economic Development Authority of
<br />Henrico 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 Hospital Facilities Revenue Bonds (Bon Secours Mercy Health, Inc.)
<br />(the “Bonds”) in one or more series to, among other things, (i) finance or refinance the
<br />costs of certain capital expenditures, including the acquisition, construction, equipping,
<br />expansion, enlargement and improvement of certain hospital facilities, including
<br />reimbursement, (ii) pay a portion of the interest on the Bonds, if deemed necessary,
<br />(iii) establish one or more debt service reserve funds, if deemed necessary, and (iv) pay
<br />certain expenses incurred in connection with the issuance of the Bonds (collectively, the
<br />“Financing Purposes”), all pursuant to a master financing plan for certain health care
<br />facilities affiliated with BSMH, which plan includes the above-described financing by the
<br />Henrico Authority for the benefit of BSMH and its nonprofit affiliates, including Maryview;
<br />and
<br />
<br />WHEREAS,
<br /> the portion of the Bonds to be issued for the benefit of the Maryview
<br />facilities shall not exceed $30,000,000; and
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