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AGENDA MEMORANDUM
MEETING DATE: February 21, 2011
FROM: Fred A. Morrison, City Attorney
SUBJECT: LRMC Bond Issue
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Staff recommendation:
Staff recommends approval of the proposed resolution authorizing the Sumter County Industrial Development Authority to act as conduit for issuance of bonds by Leesburg Regional Medical Center.
Analysis:
Leesburg Regional Medical Center (“LRMC”) desires to issue bonds for the purpose of refinancing certain of its outstanding bond debt and to obtain new funds. LRMC has determined that it is in its best interests to issue the new bonds utilizing the Sumter County Industrial Development Authority (“SCIDA”) as a conduit. However, since a portion of the infrastructure to be constructed using the new funds lies within the City of Leesburg, it is necessary for the City to enter into an interlocal agreement with SCIDA to authorize it to issue the bonds. The City has done this on one other occasion and SCIDA, in turn, has entered into a similar agreement with Leesburg for issuance of bonds on behalf of LRMC where the proceeds were to be used at the Villages facilities lying in Sumter County. The City must also hold a TEFRA (Tax Equity and Fiscal Responsibility Act) hearing as a condition precedent to the issuance of the bonds because part of the proceeds will be used within the geographical boundaries of Leesburg.
Options:
1. Hold the TEFRA hearing and approve execution of the interlocal agreement, or
2. Take such other action as the City Commission deems appropriate following the hearing.
Fiscal Impact:
There will be no fiscal impact on the City from approving the interlocal agreement. LRMC has committed to reimburse the City for the minimal legal and financial expenses it will incur in connection with the agreement.
Submission Date and Time: 2/24/11 4:17 PM____
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Department: ___Legal__ Prepared by: __Fred A. Morrison Attachments: Yes____ No __X____ Advertised: ____Not Required ______ Dates: __________________________ Newspapers: _________________________________ _________________________________ Revised 6/10/04 |
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________ Submitted by: City Manager ___________________ |
Account No. _________________
Project No. ___________________
WF No. ______________________
Budget ______________________
Available _____________________ |
a resolution of the CITY OF LEESBURG, FLORIDA approving the form of and authorizing the execution and delivery of an interlocal Agreement between the Sumter County Industrial Development Authority and the City of Leesburg, Florida and to be acknowledged and joined in by Leesburg Regional Medical Center, Inc. and The Villages Tri-County Medical Center, Inc., Authorizing the SUMTER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY to operate within the jurisdiction of the CITY OF LEESBURG, FLORIDA to issue its Hospital Revenue REFUNDING AND IMPROVEMENT Bonds to finance the acquisition, construction and equipping improvements to LEESBURG REGIONAL MEDICAL CENTER and to refund the outstanding CITY OF LEESBURG, FLORIDA HOSPITAL REVENUE REFUNDING BONDS (THE VILLAGES REGIONAL HOSPITAL PROJECT), SERIES 2008C AND THE OUTSTANDING CITY OF LEESBURG, FLORIDA TAXABLE HOSPITAL REVENUE REFUNDING BONDS (THE VILLAGES REGIONAL HOSPITAL PROJECT), SERIES 2009B; APPROVING the issuance of such Bonds for purposes of section 147(f) of the internal revenue code; and providing an effective date.
WHEREAS, The Villages Tri-County Medical Center, Inc. d/b/a The Villages Health System("TVHS"), joining together with Leesburg Regional Medical Center, Inc. ("LRMC" and, together with "Villages Medical Center," the "Obligated Group"), desires to finance the acquisition, construction and equipping of improvements to and expansion of the hospital facilities known as The Villages Regional Hospital and Leesburg Regional Medical Center and the refunding of the outstanding City of Leesburg, Florida Hospital Revenue Refunding Bonds (The Villages Regional Hospital Project), Series 2008C (the "2008C Bonds") and the outstanding City of Leesburg, Florida Taxable Hospital Revenue Refunding Bonds (The Villages Regional Hospital Project), Series 2009B (the "2009B Bonds" and, together with the 2008C Bonds, the "Refunded Bonds"); and
WHEREAS, the improvements and expansions to Leesburg Regional Medical Center, shall include, but not be limited to, renovations to the west lobby and construction of improvements to the west entrance, construction of a walkway to attach the main building of Leesburg Regional Medical Center to the proposed cancer center, renovations to the kitchen facilities, renovations to the first floor of the main building, renovation of the lab, completion of exterior renovations and construction of a conference center (collectively, the "Leesburg Project"); and
WHEREAS, the Leesburg Project is located in the City of Leesburg, Florida (the "City"); and
WHEREAS, the Obligated Group has requested the Sumter County Industrial Development Authority (the "Authority") to issue its Hospital Revenue Refunding and Improvement bonds (Central Florida Health Alliance Projects), Series 2011A in one or more series in an aggregate face amount not to exceed $75,000,000 (the "Bonds"); and
WHEREAS, in order to authorize the Authority to serve as the issuer of the Bonds as a matter of efficiency and convenience and in order to realize cost and time savings and other efficiencies, the Obligated Group has requested the City to enter into an Interlocal Agreement with the Authority, a proposed form of which is attached hereto as Exhibit "A" (the "Interlocal Agreement") and to conduct a public hearing with respect to and approve the issuance of the Bonds to finance the Leesburg Project and the refunding of the Refunded Bonds for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code").
Now, therefore, be it resolved by the City Commission of the City of Leesburg, Florida as follows:
AUTHORITY.
This Resolution is adopted pursuant to the Constitution of the State of Florida, Chapter 166, Florida Statutes, Part II of Chapter 159, Florida Statutes, Part I of Chapter 163, Florida Statutes, and other applicable provisions of law.
FINDINGS
The City, through its City Commission, hereby finds, determines and declares as follows:
A Notice of Public Hearing noticing a public hearing to be conducted by the City on the date hereof concerning the issuance of the Bonds to finance the Leesburg Project and the refunding of the Refunded Bonds was published in the Daily Commercial, a newspaper of general circulation in the City at least 14 days prior to this date (the "Public Notice").
On the date hereof, at the time and location provided in the Public Notice, the City conducted a public hearing concerning the issuance of the Bonds to finance the Leesburg Project and the refunding of the Refunded Bonds, during which comments and discussions from interested parties were solicited and heard.
The Leesburg Project is appropriate to the needs and circumstances of and shall make a significant contribution to the economic growth of the City, shall provide or preserve gainful employment, and shall serve a public purpose of advancing the public health and general welfare of the State of Florida and its people.
The City will be able to cope satisfactorily with the impact of the Leesburg Project and will be able to provide or cause to be provided, when needed, the public facilities, including utilities and public services, that will be necessary for the construction, operation, repair and maintenance of the Leesburg Project and on account of any increases in population or other circumstances resulting therefrom.
Neither the provisions, covenants or agreements contained in the Interlocal Agreement, nor the Bonds issued pursuant to the Interlocal Agreement shall constitute an indebtedness, liability or pledge of the faith and credit of the City or Lake County, Florida. The issuance of the Bonds pursuant to the Interlocal Agreement shall not directly, indirectly or contingently obligate the City or Lake County, Florida to levy or pledge any form of taxation whatsoever therefor or to make any appropriations for their payment.
AUTHORIZATION AND APPROVAL OF INTERLOCAL AGREEMENT.
To authorize the Authority to operate within the City to issue the Bonds to finance the Leesburg Project and the refunding of the Refunded Bonds, at the request and as an accommodation to the Obligated Group to allow it to realize cost, time and other efficiencies, the City hereby authorizes and approves the Interlocal Agreement to be entered into between the City and the Authority and joined in by the Obligated Group, substantially in the form attached hereto as Exhibit "A." The Mayor or Mayor Pro Tem and the City Clerk or any Assistant City Clerk of the City are hereby authorized to execute and deliver the Interlocal Agreement on behalf of the City in substantially the form attached hereto with such changes, insertions, deletions and filling of blanks therein as shall be approved by such officers of the City, execution and delivery thereof by such officers to be conclusive evidence of such approval.
APPROVAL FOR PURPOSES OF THE CODE.
For purposes of Section 147(f) of the Code, the City hereby approves the issuance of the Bonds in an aggregate face amount not to exceed $75,000,000, a portion of the proceeds of which will be used to finance the Leesburg Project and the refunding of the Refunded Bonds. This approval is solely for purposes of Section 147(f) of the Code and shall not be construed as an approval of any zoning application or any regulatory permit required in connection with the Leesburg Project, nor creating any vested rights with respect to any land use regulations, and the City shall not be construed by virtue of its adoption of this Resolution to have waived, or be estopped from asserting any authority or responsibilities it may have in that regard. Nothing contained in this approval shall be deemed to create any obligation or obligations of the City or the City Commission.
AUTHORIZATIONS
The Mayor or the Mayor Pro Tem and the City Clerk or any Assistant City Clerk of the City and the City's attorney, and such other officers and employees of the City as may be designated by the Mayor or the Mayor Pro Tem, are each hereby authorized on behalf of the City to take such actions, execute such instruments and agreements, whether or not expressly contemplated hereby, and to do all acts and things as shall be necessary or appropriate to carry out and implement the Interlocal Agreement and the transactions contemplated thereby, including, without limitation, the refunding of the Refunded Bonds.
EFFECTIVE DATE.
This Resolution shall become effective immediately upon its passage.
PASSED AND ADOPTED in public session of the City Commission of the city of Leesburg, Florida this 28th day of February, 2011.
CITY OF LEESBURG, FLORIDA
By:
Mayor
(SEAL)
ATTEST:
By:
City Clerk
APPROVED AS TO FORM
AND CORRECTNESS:
By:
City Attorney
exhibit "A"
INTERLOCAL AGREEMENT