HomeMy WebLinkAboutR-82-0353RESOLUTION NO. 3 2— 3 5 3
A RESOLUTION APPROVING IN PRINCIPLE THE
APPLICATION FOR THE RELOCATION AND
EXPANSION OF CHRISTIAN HOSPITAL AND
DIRECTING THE CITY MANAGER TO PROCEED
WITH THE CITY'S APPLICATION FOR AN URBAN
DEVELOPMENT ACTION GRANT FROM THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOP-
MENT FOR THIS NOT -FOR -PROFIT, ACUTE
CARE, COMMUNITY HOSPITAL.
WHEREAS, Christian Hospital, Inc. intends to finance a
project for the purpose of replacement and relocation of a
40 bed hospital with an addition of 110 beds on a 7.73 acre
site bounded by Northwest 7th Avenue, I-95, Northwest 60th
Street, and Northwest 58th Street; and
WHEREAS, the Florida Department of Health and Rehabila-
t ive Services issued Certificate of Need No. 1520 in April,
1981 for the aformentioned project; and
WHEREAS, in March 1982, the Florida Planning and Devel-
opment Clearinghouse, in compliance with the U.S. Office of
Management and Budget Circular A-95, has found the aforemen-
tioned project to be in compliance with State plans, pro-
grams, and objectives; and
WHEREAS, the proposed location of the project is in the
Neighborhood Strategy Area of the Model City Community Devel-
opment Target Area; and
WHEREAS, the project is expected to generate approxi-
mately 400 net new permanent jobs and 500 permanent jobs in
total; and
WHEREAS, the total cost of the project is $24,650,000
of which $3,000,000 is proposed to be funded from an Urban
Development Action Grant from the U.S. Department of Housing
and Urban Development; and
WHEREAS, the $3,000,000 Urban Development Action Grant
will be loaned by the City to Christian Hospital (the pro-
ject) at 3% interest for a period of 20 years the yearly
debt service from which will be used for.employment training
CITY COMMISSION
MEETING OF
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programs for health facility personnel in the service area
of the hospital; and
WHEREAS, the Board of Directors of Christian Hospital
unequivocably states that unless the proposed Urban Develop-
ment Action Grant, or comparable funding, is received the
Is new Christian Hospital cannot be completed.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The Application for the relocation and
expansion of Christian Hospital is hereby approved in prin-
ciple and the City Manager is directed to proceed with the
City's application for an Urban Development Action Grant
from the U.S. Department of Housing and Urban Development
for this not -for -profit, acute care community hospital.
PASSED AND ADOPTED this 22 day of APRIL , 1982.
MAURICE A. FERRE
MAURICE A. FERRE, Mayor
ATTEST:
RALP G. ONGIE
'ty Clerk
PREPARED AND APPROVED BY:
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TERRY V. PERCY
Deputy City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
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GEORGE F. KNOX, JR.
City Attorney
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82-353
"10 Jim Reid
Assistant City Manager
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se h W. McManus
ting Director
Planning Department
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
DATE- April 7, 1982 FILE
Christian Hospital UDAG
City's Liability
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YCLOSURFS,
The City of Miami Health Facilities Authority exists
as an autonomous entity. The City of Miami proper,
therefore, cannot be held liable in a court of law
for tax exempt revenue bonds the Authority sees fit
to authorize. The Authority, however, cannot be held
liable for bonds it authorizes because it exists merely
as a "shell" with no income producing assets against
which recourse may be taken. Therefore, unless the
"lessee" can obtain a committment to finance an unrated
bond, secured only by the project and the underlying
land, additional security commensurate with the desired
rating must be provided by the lessee.
In the case of the proposed Christian Hospital project,
the investment banking firm of Henderson and Few has
apparently committed to finance an unrated bond issue.
Therefore, no secondary financing is being provided by
nor required of the hospital. The unrated revenue bonds
with a high risk attached, will sell in today's market
at 16 1/2% per annum. Given this interest rate the,
preliminary feasibility study performed by Laventhol and
Horwath, CPA, indicates that the project is still feasi-
ble (debt service ratio = 1.58x).
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