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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM FILE ID: 01--0 1 3 b (� Date: 11/19/2007 Commission Meeting Date: 12/13/2007 Type: ® Resolution Other I Requesting Department: Finance District Impacted: Ordinance n Emergency Ordinance Discussion Item Subject: $120,000,000 Health Facilities Authority Revenue Refunding_Bonds, Catholic Health East Issue Purpose of Item: It is respectfully recormnended that the City Commission adopt the attached resolution authorizing the issuance of not exceeding $120,000,000, Health Facilities Revenue Refunding Bonds, in one or more series pursuant to a plan of finance (the "Bonds"), which approval is required pursuant to the provisions of Section 147(f) of the Internal Revenue Code of 1986, as amended ratifying, confirming and approving prior resolutions and actions of the Authority; providing for an effective date Background Information: 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 $120,000,000 City of Miami, Florida Health Facilities Authority Health Facilities Revenue Refunding Bonds, in one or more series pursuant to a plan of finance (the "Bonds") as required by Section 147(f) of the Internal Revenue Code of 1986, as amended. Continued.. Budget Impact Analysis NO Is this item related to revenue? NO Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: CEP Final Approvals (SIGN AND DATE) Budget If using or receiving capital funds Grants Risk Manageme Purchasin 4 Dept. DirectorL. Chief`'. t City Manager Continuation: Agenda Item Summary Form The proceeds of the Bonds will be used to (a) to refund (i) the Authority's outstanding Health System Revenue Bonds, Catholic Health East Issue, Series 2003B and Series 2003C, the proceeds of which bonds financed the cost of health care facilities for Mercy Hospital in Miami and Holy Cross Hospital in Fort Lauderdale, both of which hospitals are owned and operated by affiliates of Catholic Health East, and (ii) the City of Tampa, Florida, Health System Revenue Bonds, Catholic Health East Issue, Series 1998, the proceeds of which bonds financed the cost of other health care facilities for Holy Cross Hospital, (collectively, the "Refunded Bonds") (b) finance the cost of certain capital improvements more particularly described below (the "Project") and (c) to pay issuance costs with respect to the Bonds. The proceeds of the Bonds will be loaned by the Authority to Catholic Health East, a Pennsylvania non-profit corporation, (or, in lieu thereof, loaned directly to Holy Cross Hospital or Mercy Hospital, as applicable) and will be used to prepay obligations under the Refunded Bonds governing documents, thereby effecting a refunding of the Refunded Bonds, and to finance the cost of the Project. The Authority contemplates entering into an Interlocal Agreement with the City of Fort Lauderdale with respect to the issuance of the portion of the bonds being issued to refinance debt for the facilities owned by Holy Cross Hospital in Fort Lauderdale, in substantially the same form as was entered into in connection with the issuance of the Authority's Series 2003B Bonds. Having the Authority serve as the conduit issuer for both facilities provides for more efficient and cost effective financing. The approval of the City of Fort Lauderdale is required before the Authority can issue any bonds for the Holy Cross Hospital facilities. The Miami facilities being refinanced by the Bonds are owned and operated by Mercy Hospital and are or will be located on or contiguous to the Mercy Hospital facilities at 3663 South Miami Avenue, Miami, Florida 33133. The Project will consist of (i) the construction of parking facilities at Mercy Hospital, including a multi -story parking garage containing approximately 825 parking spaces, and (ii) renovations and improvements to existing Mercy Hospital facilities and the acquisition and installation of equipment used in or useful in connection with the operation of Mercy Hospital. The Bonds will not be a debt, liability or obligation atilt Authority, the City of Miami or the State of Florida or any political subdivision thereof, but shall be payable solely from payments made by Catholic Health East. These bonds 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 Mercy Hospital on whose behalf the bonds are issue. Florida law prohibits the bonds from being an obligation of the City, the State of Florida, or any political subdivision thereof. The City will receive a fee in the amount of $30,000 for this issue which will cover the cost incurred by the City for legal counsel and financial services.