HomeMy WebLinkAbout2011/03/21 RESOLUTION APPROVING THE ISSUANCE BY THE PUBLIC FINANCE AUTH OF BONDS ON BEHALF OF HARNETT HEALTH SYS INCA RESOLUTION OF THE BOARD OF COMMISSIONERS
OF HARNETT COUNTY, NORTH CAROLINA APPROVING
THE ISSUANCE BY THE PUBLIC FINANCE AUTHORITY OF BONDS
ON BEHALF OF HARNETT HEALTH SYSTEM, INC.
WHEREAS, Harnett Health System, Inc. (the `Borrower "), has requested that the Public
Finance Authority (the "Authority ") issue bonds (the "Bonds ") in an amount not to exceed
$25,000,000 to (a) refund all of the North Carolina Medical Care Commission's FHA Insured
Mortgage Revenue Bonds (Betsy Johnson Regional Hospital Project), Series 2003, originally
issued in the aggregate principal amount of $24,770,000, the proceeds of which were loaned to,
and used by, the Borrower to finance the acquisition, construction, renovation and equipping of
various hospital facilities, including, without limitation, (i) a four -story addition to the existing
hospital facility providing space for a main lobby, administrative offices, dining room,
laboratory, pharmacy, medical records, radiology and mechanical space, (ii) the construction of a
women's unit with 18 private beds, (iii) the construction of 50 private medical /surgical rooms,
(iv) the renovation of six private labor, delivery, recovery (LDR) rooms and a new Level I
nursery with 20 bassinets, (v) the renovation of a six -bed intensive care unit and a six -bed
medical /surgical unit and (vii) the acquisition of equipment and furnishings (collectively, the
"Prior Project") located on the Borrower's campus at 800 Tilghman Drive, Dunn, North Carolina
28335 (the "Existing Campus "), the portion of Bonds used for such refunding not expected to
exceed $24,000,000, (b) fund the costs of acquisition and installation of various equipment items
and miscellaneous routine capital expenditures at the Existing Campus and /or at the Borrower's
new hospital campus to be located at 215 Brightwater Drive, Lillington, North Carolina 27546,
in an amount not expected to exceed $1,000,000 (the "New Project" and, together with the Prior
Project, the "Project "), (c) fund a debt service reserve fund for the Bonds and (d) pay certain
expenses incurred in connection with the issuance of the Bonds; and
WHEREAS, upon issuance of the Bonds, the Project will be owned and operated by the
Borrower; and
WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes
of the Internal Revenue Code of 1986 (the "Code "); and
WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private
activity bonds are required to be approved by the "applicable elected representative" of a
governmental unit having jurisdiction over the entire area in which any facility financed by such
bonds is to be located, after a public hearing held following reasonable public notice; and
WHEREAS, the members of this Board of Commissioners (the "Governing Body ") of
Harnett County, North Carolina (the "County ") are the applicable elected representatives of the
County; and
WHEREAS, the Borrower has requested that the Governing Body approve the financing
and refinancing of the Project and the issuance of the Bonds in order to satisfy the public
approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the
Amended and Restated Joint Exercise of Powers Agreement Relating to the Public Finance
Authority, dated as of September 28, 2010 (the "Joint Exercise Agreement ") and Section
66.0304(11)(a) of the Wisconsin Statutes; and
WHEREAS, pursuant to Section 147(f) of the Code, the Governing Body or its designee
has, following notice duly given in the form attached hereto as Exhibit A (the " TEFRA Notice "),
held a public hearing regarding the financing and refinancing of the Project and the issuance of
the Bonds, and now desires to approve the refinancing and the issuance of the Bonds; and
NOW, THEREFORE, BE IT RESOLVED BY THE ABOVE -NAMED GOVERNING
BODY AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. The form and publication of the TEFRA Notice is approved.
Section 3. The Government Body hereby approves the issuance of the Bonds by the
Authority for financing and refinancing the Project. It is the purpose and intent of the Governing
Body that this resolution constitute approval of the issuance of the Bonds by the applicable
elected representative of the governmental unit having jurisdiction over the area in which the
Project is located, in accordance with Section 147(f) of the Code and Section 66.0304(11)(a) of
the Wisconsin Statutes and Section 4 of the Joint Exercise Agreement.
The Bonds will be limited obligations of the Authority payable only from the loan
repayments to be made by the Borrower to the Authority, and certain funds and accounts
established by the bond indenture for the Bonds. THE BONDS SHALL NOT REPRESENT OR
CONSTITUTE A DEBT OR PLEDGE OF THE FAITH AND CREDIT, MONIES, OR THE
TAXING POWER OF HARNETT COUNTY, THE STATE OF NORTH CAROLINA, OR
ANY POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA.
Section 4. The County Manager is hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents that they
deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this resolution and the financing approved hereby.
Section 5. The foregoing resolutions be adopted and shall be filed with the records of
the County.
The undersigned hereby certifies the foregoing to be a true, correct and complete copy of
the Resolutions adopted by the Board of Commissioners on March 21, 2011.
This, the 21" day of March, 2011.
` oop GoMiySS/ HARNETT COUNTY BOARD OF COMMISSIONERS
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y I� 7 By:
ATTEST:
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Clerk
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Timothy . cNeill, Chairman