HomeMy WebLinkAboutR-96-0918J-96-1261
12/03/96
RESOLUTION N0.
6-91
A RESOLUTION, WITH ATTACHMENT (S), APPROVING
FOR PURPOSES OF SECTION 147(f) OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, A
TAX-EXEMPT LEASE AMONG THE CITY OF MIAMI,
FLORIDA HEALTH FACILITIES AUTHORITY,
GE CAPITAL PUBLIC FINANCE, INC. AND PAN
AMERICAN HOSPITAL CORP., PROVIDING FOR THE
LEASE AND SUBLEASE OF CERTAIN CAPITAL
EQUIPMENT WITH PRINCIPAL COMPONENTS OF LEASE
PAYMENTS OF NOT TO EXCEED $2,500,000;
APPROVING THE MINUTES OF THE PUBLIC HEARING
HELD BY THE AUTHORITY PURSUANT TO SAID
SECTION 147(f) OF THE CODE; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the City of Miami, Florida Health Facilities
Authority (the "Authority") was created by Resolution No. 79-93,
as amended, adopted on February 22, 1979 by the City Commission
of the City of Miami, Florida (the "Commission"), all pursuant to
the Florida Health Facilities Authorities Law, Chapter 154,
Part III, Florida Statutes; and
WHEREAS, on October 30, 1996, the Authority held a public
hearing, notice of which hearing was published on October 17,
1996 in The Miami- H_rald (a copy of which notice is attached
hereto as Exhibit "A" and incorporated herein), for the purpose
of giving all interested persons an opportunity to express their
views, either orally or in writing, as required by Section 147(f)
A`o'TACHMENT(S)
CONTAINED
CITY COMMISSION
MEETING OF
DEC 12 1996
Resolution No.
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of the Internal Revenue Code of 1986, as amended (the "Code"), in
connection with a proposed tax-exempt lease (the "Lease") among
the Authority, GE Capital Public Finance, Inc. and Pan American
Hospital Corp., providing for the lease and sublease of certain
capital equipment with principal components of lease payments of
not to exceed $2,500,000; and
WHEREAS, after reviewing a copy of the minutes of the
Authority's public hearing held on October 30, 1996 in respect of
the Lease, a copy of which minutes is attached hereto as
Exhibit "B" and incorporated herein, the Commission desires to
approve the execution and delivery of the Lease for the purpose
of complying with Section 147(f) of the Code;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The execution and delivery of the Lease, with
principal components of lease payments of not to exceed
$2,500,000, is hereby in all respects approved for purposes of
Section 147(f) of the Code.
Section 3. The Commission hereby approves the minutes of
the public hearing held on October 30, 1996 by the Authority with
respect to the Lease, in accordance with Section 147(f) of the
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J 6- J 1 V
Code, the transcript of which minutes was presented at this
meeting.
Section 4. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 12th day of December 1996.
ATTEST:
WALTER F EMAN
CITY CLERK
PREPARED AND APPROVED BY:
IRIAM MAER
CHIEF ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
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"•;nt the state.
flue fighting to
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nit nd,nt3 for social services.
n,nved this year to replace FIRS,
hato ,�`tCSt social services agency in the nation,
wo smaller departments: a new Ucpartment
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"I think changinE thc name is like pertunling a
noxious odor,' said Sen_ John Ostalkjcwicz, R-Or-
lando.
BUt another lZeplibi,_ n Oil the Senate Health
and Rehabilitative SC.-ViCes C0I1111litlCe, Sen. Jim
Horne of Jacksonville. said he favored the name
Change evert if spending increases.
NOTICE OF PUBLIC HEARING
REGARDING THE PROPOSED LEASE
BY THE CITY OF MIAM1, FLORIDA
HEALTH FACILITIES AUTHORITY OF A
PROJECT OF PAN AMERICAN HOSPITAL
CORP WITH PRINCIPAL COMPONENTS OF
LEASE PAYMENTS OF UP TO $2,500,000
Notice is hereby given that in order to comply with Section 147(f) of the Internal
Revenue Code of 1986, as amended (the "Code"). the City of Miami, Florida
Health Facilities Authority (the "Authority") will hold a public hearing, commencing
`'at 5:00 p.m., in the Commission Chambers at City Hall, 3500 Pan American Drive.
Miami, Florida 33133, for the purpose of providing a reasonable opportunity for
interested persons to express their views both orally and in writing on the
proposed financing o1 the cost of a project (the "Project") of Pan American Hospital
Corp. (the "Institution"), a not-for-prolit corporation organized under the laws of the
State of Florida. The Authority intends to lease property pursuant to a capital lease
(the `Lease") from G.E. Capital Public Finance, Inc., the principal component of
the lease payments of which will not exceed S2,500,000.
--. The Lease will be used to finance the cost of the Project, which consists of
',,equipment relating to the provision of health care, including but not limited to
radiology equipment (including a CT Scan Unit), surgical equipment, a mobile
diagnostic center and certain management information system -related equipment.
The property leased will be subleased by the Institution.
All of the equipment to be financed pursuant to the Lease will be utilized in
connection with the health care facilities owned and operated by the Institution, he
main entrance of which is located at 5959 N.W. 71h Street, Miami, Florida 33128.
The payments pursuant tv the Lease shall be limited obligations of the Authority
;payable solely from the revenues pledged therefore under the Lease, and shall not
constitute a debt, liability or obligation of the City of Miami or of the State of Florida
or of any political subdivision thereof, or a pledge of the faith and credit or the
taxing power of the City of Miami or the State of Florida or any political subdivision
thereof. The Lease shall not directly, indirectly or contingently obligate the City of
Miami or the State of Florida or any political subdivision thereof to levy or pledge
any form of taxation whatever therefore or to make any appropriation for the lease
payments. The Authority has no taxing power.
Persons wishing to express their views regarding the proposed plan of financing
and the Lease may appear at the hearing or may submit their views in writing.
,Viritlen comments should be submitted to the Authority, Go Mr. Pete Ctiircut, City
of Miami Finance Department, Suite 240, DuPont Plaza Center, 300 Biscayne
Boulevard Way, Miami, Florida, 33131, and should be mailed in sufficient time to
be received on or before October 30. 1996, the date of the hearing. Should any
person decide to appeal any decision made by the Authority at this hearing, he or
6he will need a record of the proceedings and he or she may need to assure that a
verbatim record of the proceedings be made, which record includes the testimony
and evidence upon which the appeal is to be heard. Subsequent to the hearing, in
accordance with Section 147(f) o1 the Code, the Authority will make a
recommendation to the City Commission of the City of Miami for the approval or
disapproval of the lease financing.
CIS, o CITY OF MIAMI, FLORIDA
�z4 HEALTH FACILITIES AUTHORITY
7 �
Dated October 16, 1996
Ad No. 2661
-A.A.
EXHIBIT "A"
CITY OF CAI
HEALTH FACILI
Notice Of
ease take notice that in order to e(
Re. =nue Gode of 1986, as amended (the
Fa: -,lies Authonty (the "Authority") will hi
p.-. on October 30, 1996; in the Comn
A' :rican Drive. Miami, Florida 33133,
A; .-orily's Health Facilities Revenue Bor
t,= Agee;, Inc. Project), Series 1996, in an
5::.000.000 (,he "Bonds"), to be issued
Je .,sh liome and Hospital for the Age(
-h Bonds will be used (a) to refiner
-ice of the Authority's Health Faciliti
a-.- Hospital for the.Aged Project), issu
,-_:standing in the aggregate principal an
f - nce costs of construction, acquis
i=rovements to be located on the Comp
N =. 2nd Avenue, Miami, Florida, 33137,
r•e:; entrance to the campus; a perimeti
I -dscaping and irrigation; and all attc
(:,-,)ether, the "Project"), including reir
e-o-enditures anticipating the issuance of
issuance of the Bonds. The proceeds (
certain capital improvements to the Fa(
re -,ovations to then existing buiidin
i—provements. The Facility, as improved
c-erated and managed by the Compai
c:-erations located at 5200 N.E. 2nd Aver
The Bonds shall be limited obligation:
.enues pledgea therefore under a trust
tt,ority and a bond trustee, and shall r
c the City of Miami or of the State of Fic
a pledge of the faith and credit or the
_:ate of Florida or any political subdivis
-directly or contingently obligate the Ci
=.litical subdivision thereof to levy or
77erefore or to make any appropriation
:axing power.
Persons wishing to express their view,
and issuance of the Bonds may appear t
;ruing. Written comments should be
:>ircut, City of Miami Finance Departm
aiscayne Boulevard Way, Miami, Florida,
-..me to be received on or before October
any person decide to appeal any decisioi
or she will need a record of the proceedi
a verbatim record of the proceedings be i
and evidence upon which the appeal is I
accordance with Section 147(f) of '
-commendation to the City Commissio
disapproval of the issuance of the Bonds
Dated: October 16. 1996
Ad Pro. 2659
CITY OF MIAMI, FLORIDA
HEALTH FACILITIES AUTHORITY
SCRIPT FOR TEFRA HEARING
relating to
PAN AMERICAN HOSPITAL CORP.
October 30._ 1996
CHAIR: We will now conduct the public hearing on the
proposed tax-exempt lease financing of the cost of
a project to be located in the City of Miami, Dade
County, Florida, on behalf of Pan American Hospital
Corp. This public hearing is being conducted
pursuant to the requirements of the Federal Tax
Equity and Fiscal Responsibility Act of 1982, as
amended by the Tax Reform Act of 1986, together
referred to for purposes of this hearing as TEFRA
and embodied in Section 147(f) of the Internal
Revenue Code of 1986, as amended (the "Code").
TEFRA requires that in order for the interest on
501(c)(3) hospital revenue bonds and other
obligations, such as the proposed lease financing,
to be exempt from federal income tax, such bonds or
other obligations and the projects which they will
finance must be approved by either a voter
referendum or by an applicable elected legislative
body after a public hearing following reasonable
public notice.
A transcript of the testimony given at this hearing
will be provided to the City Commission of the City
of Miami at a regular meeting of the Commission, at
which time the Commission will, for purposes of
Section 147(f) of the Code, approve or disapprove
the lease financing to be undertaken by the
Authority for the benefit and on behalf of Pan
American Hospital.
It should be noted that the proceedings of this
public hearing are being recorded and will be
maintained as a permanent record.
Will the Debt Service Coordinator please introduce
the required notice of public hearing.
MR. CHIRCUT: The Notice of Public Hearing was published in The
Miami Herald on October 17, 1996, advising that the
Authority would hold a public hearing, on October
30, 1996, at 5:00 p.m., in the City Commission
Chambers, on the proposed financing to be
D09:[04547.DOCS.MIA2001181TEFRA-HEAR-SCRIPT-2.
EXHIBIT "B"
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undertaken by the Authority for the benefit and on
behalf of Pan American Hospital. The location of
the meeting was subsequently changed, pursuant to
due notice, to the City Manager's Conference Room
on the 2nd Floor of City Hall.
CHAIR: We will now commence the public hearing. The
hearing will be conducted in the following format:
First, Bond Counsel will provide a brief synopsis
of the proposed financing and the project. Second,
testimony from anyone desiring to speak or submit
written testimony on the proposed project will be
heard. Anyone wishing to speak or submit written
testimony should give his or her name and address
for the record.
Will Bond Counsel please introduce the project for
consideration.
BOND
COUNSEL: The proposed project consists of the acquisition
from G.E. Capital Public Finance, Inc. ("G.E.
Capital") of certain equipment relating to the
provision of health care by Pan American Hospital,
including, but not limited to, radiology equipment
(including a CT Scan Unit), surgical equipment, a
mobile diagnostic center and certain management
information system -related equipment. The Auth-
ority, the Hospital and G.E. Capital will enter
into a master lease and sublease agreement pursuant
to which the Authority will lease the capital
equipment comprising the project from G.E. Capital.
The Authority will then sublease the equipment to
Pan American Hospital and the Hospital will make
rental payments which will be paid to G.E. Capital.
The principal component of the lease payments under
the lease will not exceed $2,500,000.
Any final approval of the Authority is conditional
upon the Authority's approval of the plan of
financing and approval of the financing documents.
.CHAIR: Testimony will now be heard by anyone desiring to
speak on the proposed project. The record
indicates that Mr. Robert Tejidor, Chief Financial
Officer of Pan American Hospital, is in attendance
representing the Hospital.
Is there anyone who wishes to speak or file written
testimony on this matter?
CHAIR: Let the record reflect that Mr. Elliot Kalus,
representing Clearlake Financial Corp., addressed
the Authority. Mr. Kalus introduced his company to
the Authority and indicated its desire to be
D09:[04547.DDCS.MIA2001181TEFRA-HEAR-SCRIPT-2. 2
d avr
r
1 included in Request for Proposals for future
financings. He complimented the Authority on its
work and the significance of providing tax exempt
j financing to health care facilities located within
the City.
This concludes the public hearing scheduled for
today.
f D09:[04547.DOCS.MIA2001181TEFRA-HEAR-SCRIPT-2.
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171
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and Members DATE : OEC S .96
of the City Commission
SUBJECT: Agenda Item
9 j G"
FROM : Edward Mar uv REFERENCES
City Manager
ENCLOSURES:
RECOMMENDATION:
1)
FILE :
It is respectfully recommended that the City Commission adopt the attached resolution
with attachments, authorizing a tax-exempt lease financing among the City of Miami,
Florida Health Facilities Authority, GE Capital Public Finance, Inc. and Pan American
Hospital Corp. Providing for the lease and sublease of certain capital equipment with
principal components of lease payments of not to exceed $2,500,000, for the purposes of
Section 147 (f) of the Internal Revenue Code of 1986, as amended; approving the minutes
of the public hearing held by the Authority pursuant to the Tax Equity and Fiscal
Responsibility Act of 1982; and providing an effective date.
BACKGROUND:
The City of Mianu, Florida Health Facilities Authority has held a public hearing for the
purpose of giving interested persons an opportunity to express their views in connection
with the Authority's proposed issuance of not to exceed $2,500,000 City of Miami,
Florida Health Facilities Authority tax-exempt lease financing (Pan American Hospital
Corp.) as required by Section 147 (f) of the Internal Revenue Code of 1986.
At this time, the City Commission must confirm and approve the actions of the Authority
in authorizing the tax-exempt lease financing and the holding of the public hearing.
The lease will not constitute a debt or liability of the City of Miami or the City of Miami,
Florida Health Facilities Authority. It is payable solely out of the revenues of the Pan
American Hospital Corp., on whose behalf the lease financing bonds is issued. Florida law
prohibits the lease financing from being an obligation of the City, the State of Florida, or
any political subdivision thereof
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96 - 9181