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HomeMy WebLinkAboutR-96-0919J-96-1263 12j03j96 RESOLUTION NOD " an 9 A RESOLUTION, WITH ATTACHMENT(S), APPROVING FOR PURPOSES OF SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, A TAX-EXEMPT FINANCING AMONG THE CITY OF MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY, GE CAPITAL PUBLIC FINANCE, INC. AND MERCY HOSPITAL, INC., PROVIDING FOR A TAX-EXEMPT LOAN IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,000,000, THE PROCEEDS OF WHICH WILL BE USED TO ACQUIRE CERTAIN ENERGY MANAGEMENT EQUIPMENT; 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 Herald (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) ATTACHMEHi (5) CONTAINED. CITY COMMISSION MEETING OF, DEC 1 2 1996 Resolution No. ni an V 19 of the Internal Revenue Code of 1986, as amended (the "Code"), in connection with a proposed tax-exempt financing, in the aggregate principal amount of not to exceed $7,000,000, among the Authority, GE Capital Public Finance, Inc. and Mercy Hospital, Inc., the proceeds of which will be used to acquire certain energy management equipment; and WHEREAS, after reviewing a copy of the minutes of the Authority's public hearing held on October 30, 1996 in respect of the proposed financing, a copy of which minutes is attached hereto as Exhibit "B" and incorporated herein, the Commission desires to approve the proposed financing 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 proposed tax-exempt financing, in the aggregate principal amount of not to exceed $7,000,000, to be evidenced by a master financing agreement and the Authority's obligation to repay (but solely from moneys provided by Mercy Hospital, Inc.) amounts loaned thereunder, 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 - 2 - 96 - 919 respect to the proposed financing, in accordance with Section 147(f) of the 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 this12th day of December , 1996. ATTEST: - 5�J4- WALTER 0 ' CITY CLERK PREPARED AND APPROVED BY: )�N �\ RM G. MIRIAM MAER I CHIEF ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: - 3 - g6-919 ;r JaIlIeSIONVII, Nk— I-CCJ has been Without P1701- dent since C11,11-les SIM)CC resigned nine months a90- The 11-uslees, who voted Oct. I to hire Cameron, will resume their search for a 1)resi- dent. I. ME 1 aU Ai, FLORRIDA NOTICE OF PUBLIC HEARING NES Null THORITY REGARDING THE PROPOSED LEASE lH ic earing BY THE CITY OF MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY OF A nply .!::) Section 147(f) of the Interpol ..), PROJECT OF MERCY HOSPITAL INC. G000 ttie C,ty of Miami, Florida Health d I Put:,1!c hearing to commence at 5:00 WITH PRINCIPAL COMPONENTS OF ssion Chambers at City Half, 3500 Pan • issuance LEASE PAYMENTS OF UP TO $7,000,000 - garciinq the proposed of the o 4S Jevosh Home and Hospital for ggregne principal 3111OLint not to exceed Notice is hereby given that in order :o comply with section 1--7(f) of the Internal' i one cr more series, on behalf of Miami ; of Miami. Florida.. Revenue Code of 1986, as amended (the "Code"), the City • Inc. (.ne "Company"), the proceeds of Health Facilities Authority (the *'ALIUIONZY") will hold a public hearing. commencing. - -e and refurd the outstanding principal at 5:00 p.m., in the Commission Chambers at City Half, 3500 Pan American s Revenue Bonds (Miami Jev;ish Home Drive, Miami, Florida 33133, for the purpose of providing a reasonable d in 198a (the "Prior Bonds"), currently opportunity for interested persons to express their views both orally and in writing unt of approximately $10,700,000: (b) to on the proposed financing of the cost of a project (the -Project") of Mercy ion and equipping of certain capital Hospital, Inc. (the "Institution"), a not -for -profit corporation organized under the my's main campus (the "Facility") at 5200 laws of the State of Florida. The Authority intends to lease property pursuant to a onsisiing of an assisted living facility; a lease (the "Lease") from G.E. Capital Public Finance, Inc., the principal viati: and relocation of existing utilities, component of the lease payments of which will not exceed S7,000,000. dant furniture, fixtures and equipment The property leased will be subleased by the Institution, The Lease will be used bursement to the Company for prior to finance the cost of the Project, which consists of energy management he Bonds; and (c) to pay certain costs of equipment for a new central plant for the Institution. the Prior Bonds were used to finance All of the equipment to be financed pursuant to the Lease will be utilized in ity, consisting of health care buildings, connection with the health care facilities owned and operated by the Institution, s, surface parking, road and other the main entrance of which is located at 3663 South Miami Avenue, Miami, -y the Project, will continue to be owned, Florida 33133. as -art of its existing health facilities The payments pursuant to the Lease shall be limited obligations of the Authority o. Miami, Florida 33137. payable solely from the revenues pledged therefor under the Lease, and shall not of the Authority payable solely from the constitute a debt, liability or obligation of the City of Miami or of the State of nden:ure to be entered into betvie-en the Florida or of any political subdivision thereof, or a pledge of the faith and credit or I constitute a debt, liability or obligation the taxing power of the City of Miami or the State of Florida or any political i I c, of any political Ca subdivision thereof, subdivision thereof. The Lease shall not directly, indirectly or contingently obligate taxirg po-,-,or of the City of Miami or t ie the City of Miami or the State of Florida or any political Subdivision thereof to levy D11 tv-recl. The Bonds sha!l not dire directly or pledge any form of taxation whatever therefor or to make any appropriation for whateverof K. Yiarni or the State of Florida or any the lease payments. The Authority has no taxing power, Dlecge any form of taxa:ion whatever Persons wishing to express their views regarding the pro:)osed plan of for t-eir Payment. The Authority has no financing and the Lease may appear at the hearing or may subn,.;t lheir views in writing. Written comments should be submitted to the Aulhow.% c10 Mr. Pete tog,,: -,ding the proposed plan of financing Chircut, City of Miami Finance Department, Suite 240, DuPont Plaza Center, 300 Biscayne Boulevard Way, Miami, Florida, 33131, and should be mailed in 'ne hearing or may submit their views in sufficient time to be received on or before October It), 1996, :he date of the nm tied to the Authority. c/o Mr. Pete hearing. Should any person decide to appeal any decision made by the Authority nt, Suite 240, DuPont Plaza Center, 300 at this hearing, he or she will need a record of the proceedings and he or she may 313 1, and should be mailed in sufficient need to assure that a verbatim record of the proceedings be made, which record 30, 1996, the date of the hearing. Should includes the testimony and evidence upon which the appeal is to be heard. made by the Authority at this hearing, he Subsequent to the hearing, in accordance with Section 147(f) of the Code, the s and he or she may need to assure that Authority will make a recommendation to the City Commission of the City of ade, which record includes the testimony Miami for the approval or disapproval of the lease financing. be neatd. S61bsequent to the hearing, in e Code, the Authority will make a 0 CITY OF MIAMI, FLORIDA of the City of Miami for the approval or C, HEALTH FACILITIES AUTHORITY Ci-,Y OF twit 3111 MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY Dated October 16, 1996 Ad No. 2660 ilk 96 EXHIBIT "All lvk r CITY OF MIAMI, FLORIDA HEALTH FACILITIES AUTHORITY MINUTES OF TEFRA HEARING relating to MERCY HOSPITAL, INC. FINANCING 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 Mercy Hospital, Inc. 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 Mercy 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.MIA2001041TEFRA-HEAR-SCRIPT-2. undertaken by the Authority for the benefit and on behalf of Mercy 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 energy management equipment for a new central plant for Mercy Hospital. The Authority, the Hospital and G.E. Capital will enter into a master lease and sublease agreement pursuant to which the Authority will lease the equipment comprising the project from G.E. Capital. The Authority will then sublease the equipment to Mercy 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 $7,000,000. 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. Jerry Mashburn, Chief Financial Officer of Mercy 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 included in Request for Proposals for future financings. He complimented the Authority on its work and the significance of providing tax exempt D09:[04547.DOGS.MIA2001047TEFRA-HEAR-SCRIPT-2. 2 g6919 financing to health care facilities located within the City. This concludes the public hearing scheduled for today. D09:[04547.DOCS.MIA2001041TEFRA-HEAR-SCRIPT-2. �i R CITY OF MIAMI, FLORIDA I INTER -OFFICE MEMORANDUM TO : Honorable Mayor and Members DATE : DEC 3 of the City Commission SUBJECT : Agenda Item FROM : Edward Marque REFERENCES: City Manager ENCLOSURES: RECOMMENDATION: 9 FILE : It is respectfully recommended that the City Commission adopt the attached resolution with attachments, approving a tax-exempt financing among the City of Miami, Florida Health Facilities Authority, GE Capital Public Finance, Inc. and Mercy Hospital, Inc. providing for a tax-exempt loan in the aggregate principal amount of not to exceed $7,000,000, for the purposes of Section 147(f) of the Internal Revenue Code of 1996, as amended; approving the minutes of the public hearing held by the Authority pursuant to the Tax Equity and Fiscal Responsibility Act of 1992; and providing an effective date. BACKGROUND: The City of Miami, 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 $7,000,000 City of Miami, Florida Health Facilities Authority tax-exempt loan (Mercy Hospital Inc.) as required by Section 147 (f) of the Internal Revenue Code of 1996. The Authority has also adopted a resolution expressing its intent to issue such tax-exempt loan. At this time, the City Commission must confirm and approve the actions of the Authority in authorizing the issuance of the tax-exempt loan and the holding of the public hearing. This loan will not constitute a debt or liability of the City of Miami or the City of Miami Health Facilities Authority. They are payable solely out of the revenues of the Mercy Hospital Inc., on whose behalf the loan is issued. Florida law prohibits the bonds from being an obligation of the City, the State of Florida, or any political subdivision thereof. a 1