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2022-10 RESOLUTION APPROVING THE PLAN OF FINANCING OF HEALTH CARE FACILITIES WITH PROCEEDS OF TAX-EXEMPT BONDSEXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS The Board of Commissioners for the County of Harnett, North Carolina (the "County") held a regular meeting in the Board of Commissioners Meeting Room on the second floor of the Harnett County Resource Center and Library, 455 McKinney Parkway, Lillington, North Carolina 27546, the regular place of meeting, at 6:00 p.m. on May 16, 2022. The following Commissioners were: Present: Chairman Lewis Weatherspoon, Vice Chairman Matt Nicol, Commissioner Barbara McKoy, Commissioner Mark Johnson and Commissioner Brooks Matthews Absent: RESOLUTION NO. 2022-10 WHEREAS, at 6:21 p.m., the Chairman announced that the Board of Commissioners (the "Board") would proceed to hold a public hearing and would hear anyone who wished to be heard on the proposed issuance by the Public Finance Authority (the "Authority"), a unit of government and a body corporate and politic of the State of Wisconsin, of its revenue bonds in one or more series (the "Bonds") in an aggregate principal amount not to exceed $267,250,000 pursuant to the plan of financing described herein; WHEREAS, the Authority has been requested to issue the Bonds and to lend the proceeds from the sale thereof to Cumberland County Hospital System, Inc. d/b/a Cape Fear Valley Health System (the "Corporation") or Harnett Health System, Inc. ("Harnett Health"), each a North Carolina nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), pursuant to the plan of financing described herein; WHEREAS, the plan of financing calls for the proceeds of the Bonds to be used for the purpose of (a) financing capital expenditures for health care facilities, including but not limited to paying the costs of (i) acquiring, constructing, equipping and furnishing (A) a 100 -bed expansion of the Valley Pavilion Tower (the "Pavilion Tower Project") at Cape Fear Valley Medical Center located at 1638 Owen Drive, Fayetteville, North Carolina ("Cape Fear Valley Medical Center") and (B) a new medical office/cancer center building (the "2022 Harnett Project") at Central Harnett Hospital located at 215 Brightwater Drive, Lillington, North Carolina ("Central Harnett Hospital"), and (ii) acquiring and installing medical, computer, office and capital equipment for use at Cape Fear Valley Medical Center and Central Harnett Hospital (the "2022 Equipment," and collectively with the Pavilion Tower Project and the 2022 Harnett Project, the "2022 Projects"); (b) refunding all or a part of the Public Finance Authority Health Care Facilities Revenue Refunding Bonds (Cape Fear Valley Health System) Series 2020 (the "2020 Bonds"); (c) refunding all or a part of the taxable Harnett Health Adjustable Rate Hospital Bonds Series 2011A (the "Harnett Health 2011 Taxable Bonds"); (d) refunding all or a part of the taxable Harnett Health Hospital Notes, Series 2013 numbered R-1 through R-8 (collectively, the "Harnett Health 2013 USDA Notes"); (e) paying a portion of the interest accruing on the Bonds; and (f) paying certain expenses incurred in connection with the issuance of the Bonds; 14961383v2 24227.00019 WHEREAS, the proceeds of the 2020 Bonds were used to refund a portion of the Public Finance Authority Health Care Facilities Revenue Refunding Bonds (Cape Fear Valley Health System), Series 2017 (the "2017 Bonds"). The proceeds of the 2017 Bonds were used to refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System), Series 2008A (the "2008A Bonds"). The proceeds of the 2008A Bonds were used with certain other bond proceeds to, among other things, (1) refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System) Series 2006B (the "2006B Bonds") and (2) reimburse the Corporation for the cost of acquiring certain equipment for the Health System (as defined in the hereinafter defined TEFRA Notice) (the "2008 Project"); WHEREAS, the proceeds of the 2006B Bonds were used to finance the acquisition of the Health System by the Corporation from the County of Cumberland, North Carolina and the construction, improvement and equipping of certain health care facilities (the "2006B Project"), as more particularly described in the notice of public hearing published on May 9, 2022 in The Fayetteville Observer (the "TEFRA Notice"), a copy of which is attached hereto and incorporated herein; WHEREAS, the proceeds of the Harnett Health 2011 Taxable Bonds were used to refund the North Carolina Medical Care Commission FHA Insured Mortgage Revenue Bonds (Betsy Johnson Regional Hospital Project), Series 2003 (the "2003 Bonds"). The proceeds of the 2003 Bonds were used to finance a four-story addition to the existing acute care hospital facility located at 800 Tilghman Drive, Dunn, North Carolina known as Betsy Johnson Hospital that included space for a new main lobby, administrative offices, dining room, laboratory, pharmacy, medical records, radiology, and mechanical space and other renovations to Betsy Johnson Hospital (the "2003 Betsy Johnson Project"); WHEREAS, the proceeds of the Harnett Health 2013 USDA Notes were used to pay-off an interim construction loan that was used to finance the construction and equipping of the then new Central Harnett Hospital (the "Central Harnett Project," and collectively with the 2003 Betsy Johnson Project, the 2006B Project, the 2008 Project and the 2022 Projects, the "Project"); WHEREAS, pursuant to Section 66.0304(11)(a) of the Wisconsin Statutes and 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"), prior to the Authority issuing bonds to finance a capital improvement project, the financing of such project must be approved by the governing body or highest ranking executive or administrator of the political jurisdiction within whose boundaries such project is located, which with respect to the 2022 Projects includes the County; WHEREAS, the Corporation has requested that the Board approve the plan of financing of the health care facilities described herein to be financed or refinanced with the issuance of the Bonds and the issuance of the Bonds pursuant to the plan of financing described herein in an amount not to exceed $267,250,000 in order to satisfy the public approval requirement of Section 147(f) of the Code and approve the financing of the 2022 Projects located in the County in order to satisfy the requirements of Section 4 of the Joint Exercise Agreement and Section 66.0304(11)(a) of the Wisconsin Statutes; 14961383v2 24227.00019 WHEREAS, the Corporation will agree to repay the principal, premium, if any, and interest on the Bonds and the County will have no liability whatsoever for the payment of principal of, premium, if any, or interest on the Bonds, and the Bonds will not affect the County's debt ratios or legal debt limit and the County will not incur any liability for repayment of the Bonds by approving the Bonds for purposes of Section 147(f) of the Code; WHEREAS, the Board has determined that approval of the plan of financing of the health care facilities described herein to be financed or refinanced with the issuance of the Bonds and the issuance of the Bonds pursuant to the plan of financing described herein is solely to satisfy the requirements of Section 147(f) of the Code and the approval of the financing of the 2022 Projects located in the County is solely to satisfy the requirements of Section 4 of the Joint Exercise Agreement and Section 66.0304(11)(a) of the Wisconsin Statutes and shall in no event constitute an endorsement of the Bonds or the Project or the creditworthiness of the Corporation, nor shall such approval in any event be construed to obligate the County for the payment of the principal of or premium or interest on the Bonds or for the performance of any pledge, mortgage or obligation or agreement of any kind whatsoever which may be undertaken by the Authority, or to constitute the Bonds or any of the agreements or obligations of the Authority an indebtedness of the County, within the meaning of any constitutional or statutory provision whatsoever; WHEREAS, the TEFRA Notice was published on May 9, 2022 in The Fayetteville Observer and sets forth a general, functional description of the type and use of the facilities to be financed and refinanced with the proceeds of the Bonds pursuant to the plan of financing, the maximum principal amount of the Bonds to be issued, the initial owner and operator of the facilities and the location of the facilities, among other things; WHEREAS, the names, address and testimony of the persons who were present and who offered comments on the proposed issuance of the Bonds or who responded in writing to the notice of public hearing are as follows: None. WHEREAS, the Chairman of the Board inquired elsewhere in and around the meeting room to determine whether there were any other persons who wished to speak at the public hearing and the Chairman of the Board determined that no other persons who wished to speak at the public hearing were found; and WHEREAS, a purpose of the above-described public hearing and this resolution is to satisfy the public approval requirement of Section 147(f) of the Code, in order to qualify the interest on the Bonds for exclusion from the gross income of the owners thereof for federal income tax purposes pursuant to the applicable provisions of the Code; After the Board had heard all persons who had requested to be heard, Chairman Lewis Weatherspoon closed the public hearing. Commissioner Brooks Matthews introduced the following resolution, a copy of which had been distributed to each Commissioner: 3 14%1383v2 24227.00019 RESOLUTION APPROVING THE PLAN OF FINANCING OF HEALTH CARE FACILITIES WITH PROCEEDS OF TAX-EXEMPT BONDS TO BE ISSUED BY THE PUBLIC FINANCE AUTHORITY FOR THE BENEFIT OF CUMBERLAND COUNTY HOSPITAL SYSTEM, INC. D/B/A CAPE FEAR VALLEY HEALTH SYSTEM AND HARNETT HEALTH SYSTEM, INC. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR THE COUNTY OF HARNETT, NORTH CAROLINA: Section 1. For the purpose of qualifying the interest on the Bonds for exclusion from the gross income of the owners thereof for federal income tax purposes pursuant to the applicable provisions of the Code and to satisfy the public approval requirement of Section 147(f) of the Code, the Board hereby approves the plan of financing of the health care facilities described herein to be financed and refinanced with the issuance of the Bonds and the issuance of the Bonds by the Authority pursuant to the plan of financing described herein in an amount not to exceed $267,250,000, provided that in no event shall the County or any political subdivision thereof be liable for such Bonds nor shall the Bonds constitute a debt of the County or any political subdivision thereof. Additionally, it is the purpose and intent of the Board that this resolution also constitute approval by the Board of the financing of the portion of the 2022 Projects that is located in the County in accordance with Section 66.0304(11)(a) of the Wisconsin Statutes and Section 4 of the Joint Exercise Agreement. The Board is the governing body of the political jurisdiction within whose boundaries a portion of the 2022 Projects is located. Section 2. This resolution shall take effect immediately upon its passage. Commissioner Barbara McKoy seconded the motion and the motion was adopted by the following vote: AYES: Chairman Lewis Weatherspoon, Vice Chairman Matt Nicol, Commissioner Barbara McKoy, Commissioner Mark Johnson and Commissioner Brooks Matthews NAYS: 4 14961383v2 24227.00019 STATE OF NORTH CAROLINA ) COUNTY OF HARNETT ) I, Melissa Capps, Clerk to the Board of Commissioners of the County of Harnett, DO HEREBY CERTIFY as follows: 1. A meeting of the Board of Commissioners of the County of Harnett, located in the State of North Carolina, was duly held May 16, 2022, such meeting having been noticed, held and conducted in accordance with all requirements of law (including open meetings requirements), and minutes of that meeting have been or will be duly recorded in the Minute Book kept by me in accordance with law for the purpose of recording the minutes of the Board of Commissioners. 2. The attached extract accurately reflects the actions taken by the Board of Commissioners with respect to the matters therein. 3. The attached extract correctly states the time when the meeting was convened and the place where the meeting was held and the members of the Board of Commissioners who attended the meeting. IN WITNESS WHEREOF, I have hereunto set my hand and have hereunto affixed the seal of the County of Harnett as of May 16, 2022. (SEAL � 14961383v2 24227.00019 Clerk 6 the Board of Commissioners [Attach TEFRA Notice] 14961383v2 24227.00019 NOTICE OF PUBLIC HEARING BY THE BOARD OF COMMISSIONERS FOR THE COUNTY OF HARNETT, NORTH CAROLINA REGARDING THE PLAN OF FINANCING OF HEALTH CARE FACILITIES WITH PROCEEDS OF TAX- EXEMPT BONDS TO BE ISSUED BY THE PUBLIC FINANCE AUTHORITY FOR THE BENEFIT OF CUMBERLAND COUNTY HOSPITAL SYSTEM, INC. D/B/A CAPE FEAR VALLEY HEALTH SYSTEM AND HARNETT HEALTH SYSTEM, INC. NOTICE IS HEREBY GIVEN to all interested persons that the Board of Commissioners for the County of Harnett, North Carolina (the "County") will hold a public hearing in the Board of Commissioners Meeting Room on the second floor of the Harnett County Resource Center and Library, 455 McKinney Parkway, Lillington, North Carolina 27546, at 6:00 p.m., on May 16, 2022, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), with respect to the proposed issuance by the Authority (as defined below) of its revenue bonds in one or more series (the "Bonds") pursuant to the plan of financing described in this notice. The Bonds are expected to be issued, in one or more series, pursuant to 66.0304 of the Wisconsin Statutes, as amended, by the Public Finance Authority (the "Authority"), a commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin Statutes, as amended, and the proceeds from the sale of the Bonds will be loaned to Cumberland County Hospital System, Inc. d/b/a Cape Fear Valley Health System (the "Corporation") or Harnett Health System, Inc. ("Harnett"), each a North Carolina nonprofit corporation and an organization described in Code Section 501(c)(3), pursuant to the plan of financing described herein. The Bonds will be qualified 501(c)(3) bonds as defined in Code Section 145. The maximum stated principal amount of Bonds to be issued is $267,250,000. The plan of financing calls for the proceeds of the Bonds to be used for the purpose of (a) financing capital expenditures for health care facilities, including but not limited to paying the costs of (i) acquiring, constructing, equipping and furnishing (A) a 100 -bed expansion of the Valley Pavilion Tower (the "Pavilion Tower Project") at Cape Fear Valley Medical Center located at 1638 Owen Drive, Fayetteville, North Carolina ("Cape Fear Valley Medical Center") and (B) a new medical office/cancer center building (the "2022 Harnett Project") at Central Harnett Hospital located at 215 Brightwater Drive, Lillington, North Carolina ("Central Harnett Hospital"), and (ii) acquiring and installing medical, computer, office and capital equipment for use at Cape Fear Valley Medical Center and Central Harnett Hospital (the "2022 Equipment," and collectively with the Pavilion Tower Project and the 2022 Harnett Project, the "2022 Projects"); (b) refunding all or a part of the Public Finance Authority Health Care Facilities Revenue Refunding Bonds (Cape Fear Valley Health System) Series 2020 (the "2020 Bonds"); (c) refunding all or a part of the taxable Harnett Adjustable Rate Hospital Bonds Series 2011A (the "Harnett 2011 Taxable Bonds"); (d) refunding all or a part of the taxable Harnett Hospital Notes, Series 2013 numbered R-1 through R-8 (collectively, the "Harnett 2013 USDA Notes"); (e) paying a portion of the interest accruing on the Bonds; and (f) paying certain expenses incurred in connection with the issuance of the Bonds. The maximum stated principal amount of Bonds to be issued to finance the Pavilion Tower Project is $111,500,000, the 2022 Harnett Project is $21,500,000 and the 2022 Equipment is $11,000,000. The maximum stated principal amount of Bonds to be issued to refund the 2020 Bonds is $51,000,000. The maximum stated principal amount of Bonds to be issued to refund the Harnett 2011 Taxable Bonds is $16,500,000. The maximum stated principal amount of Bonds to be issued to refund the Harnett 2013 USDA Notes is $55,750,000. 14947013v1 24227.00019 The proceeds of the 2020 Bonds were used to refund a portion of the Public Finance Authority Health Care Facilities Revenue Refunding Bonds (Cape Fear Valley Health System), Series 2017 (the "2017 Bonds"). The proceeds of the 2017 Bonds were used to refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System), Series 2008A (the "2008A Bonds"). The proceeds of the 2008A Bonds were used with certain other bond proceeds to, among other things, (1) refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System) Series 2006B (the "2006B Bonds") and (2) reimburse the Corporation for the cost of acquiring certain equipment for the Health System (as defined below) (the "2008 Project"). The proceeds of the 2006B Bonds were used to finance (1) the acquisition of the following facilities (collectively, the "Health System") by the Corporation from the County of Cumberland, North Carolina: (a) an 800,000 square feet, 472 -bed acute care hospital and related facilities known as Cape Fear Valley Medical Center and located at 1638 Owen Drive; (b) an 81,000 square feet, 112 -bed long term acute care hospital and related facilities known as Highsmith -Rainey Memorial Hospital and located at 150 Robeson Street; (c) a 67,000 square feet, 32 -bed behavioral health care facility with outpatient practice, known as Behavioral Health Care of CFVHS and located at 3425 Melrose Road; (d) 35,122 square feet of various suites comprising of outpatient services and administrative offices known as the Medical Arts Center and located at 101 Robeson Street; (e) a 4,362 square feet primary care physician building known as Cape Fear Valley Internal Medicine and located at 1262-A Oliver Street; (f) a 4,362 square feet pediatric care physician building known as Melrose Pediatric Care and located at 1262-B Oliver Street; (g) a 8,086 square feet primary care physician building known as Cape Fear Valley OB -GYN and located at 1320 Medical Drive; (h) a 10,798 square feet primary care physician building known as Hope Mills Family Care and located at 4092 Professional Drive, Hope Mills, NC; (i) a 5,014 square feet primary care physician building known as North Ramsey Family Care and located at 3412 Ramsey Street; 0) a 4,454 square feet primary care physician building known as Westside Medical Care and located at 1463 Pamalee Drive; (k) a 18,070 square feet primary care physician building known as the Diagnostic Center and located at 524 Beaumont Road; (1) a 3,350 square feet pediatric care physician building known as Highland Valley Pediatric Care and located at 1219 Walter Reed Road; (m) an 18,567 square feet ambulance maintenance facility, known as Ambulance Non -Emergency Operations and located at 610 Gillespie Street; (n) a 65,261 square feet medically oriented fitness center known as Healthplex and located at 1930 Skibo Road; (o) 3,314 square feet of lodging for patient's relatives known as Stanton Hospitality House and located at 1617 Roxie Avenue; (p) 1,247 square feet of lodging for patient's relatives known as Cape Fear Valley Medical Center Foundation, Inc. and located at 3533 Furman Drive; (q) a 1,664 square feet ambulance service known as Cape Fear Valley EMS and located at 1126 Cedar Creek Road; 2 14947013x1 24227.00019 (r) a 2,889 square feet administrative office known as Patient Financial Services and located at 1641 Owen Drive; (s) a 8,006 square feet primary care physician building known as the Sleep Center and located at 1213 Walter Reed Road; (t) a 3,213 square feet physician practice that is no longer in use and had been located at 3318 Melrose Road; (u) a 4,295 square feet administrative office known as the Pediatric Acute Care Administration and located at 3322 Melrose Road; and (v) an 18,000 square feet primary care physician building known as Hoke Family Medical Center and located at 4056 South Main Street Raeford, NC (Hoke County); (2) the construction of a patient care tower, attached to and integrated with the then -existing structure at Cape Fear Valley Medical Center at all levels; (3) the construction of a 5 level parking deck along with new and reconfigured ground level parking at Cape Fear Valley Medical Center; (4) renovations of existing space at Cape Fear Valley Medical Center, including the then -current Emergency Department and Imaging Department to be the primary Outpatient Diagnostic and Treatment Facility, with new construction for an outpatient entrance; first floor renovation of Outpatient Registration, Sleep Lab and Outpatient Rehabilitation; and second floor renovation of Outpatient Surgery; (5) the acquisition of 100% of the membership interest in a limited liability company that was constructing an outpatient facility known as "Health Pavilion North' located at the corner of Ramsey Street and Andrews Road in Fayetteville, North Carolina, including the payment of the construction loan therefor and completion of the facility; (6) the acquisition of additional equipment for the Health System, including particularly for the Health Pavilion North and the Cape Fear Valley Medical Center (collectively, the "2006B Project"); (7) the payment of interest on the 2006B Bonds during completion of the 2006B Project; and (8) the payment of certain expenses incurred in connection with the issuance of the 2006B Bonds, including the premium for the financial guaranty insurance policy for the 2006B Bonds. The proceeds of the Harnett 2011 Taxable Bonds were used to refund the North Carolina Medical Care Commission FHA Insured Mortgage Revenue Bonds (Betsy Johnson Regional Hospital Project), Series 2003 (the "2003 Bonds"). The proceeds of the 2003 Bonds were used to finance a four-story addition to the existing acute care hospital facility located at 800 Tilghman Drive, Dunn, North Carolina known as Betsy Johnson Hospital that included space for a new main lobby, administrative offices, dining room, laboratory, pharmacy, medical records, radiology, and mechanical space and other renovations to Betsy Johnson Hospital (the "2003 Betsy Johnson Project"). The proceeds of the Harnett 2013 USDA Notes were used to pay-off an interim construction loan that was used to finance the construction and equipping of the then new Central Harnett Hospital (the "Central Harnett Project," and collectively with the 2003 Betsy Johnson Project, the 2006B Project, the 2008 Project and the 2022 Projects, the "Project"). The Project is or will be owned and operated by the Corporation and Harnett. The Bonds will be special limited obligations of the Authority payable solely from the loan repayments to be made by the Corporation to the Authority, and certain funds and accounts established by the documents for the Bonds. The principal of, premium, if any, and interest on the Bonds will not constitute an indebtedness or liability of the County of Harnett, the State of North Carolina, or any political subdivision of the State of North Carolina, or a charge against their general credit or any taxing powers. The hearing will provide a reasonable opportunity to be heard for persons wishing to express their views on the merits and locations of the 2022 Projects, the issuance of the Bonds pursuant to the plan of 149470130 1 2422 7.00019 financing described herein or related matters. Any person wishing to comment in writing should do so prior to such meeting to the Board of Commissioners for the County of Harnett, North Carolina, Post Office Box 759, Lillington, North Carolina, 27546, Attention: Clerk to the Board of Commissioners. BOARD OF COMMISSIONERS FOR THE COUNTY OF HARNETT, NORTH CAROLINA By: Melissa Capps Clerk to the Board of Commissioners Dated: May 9, 2022 4 14947013v1 24227.00019 LOCAU0 Star -News I The Dispatch I limes -News Sun Journal I The Daily News I The Star The Free Press I Gaston Gazette The Fayetteville Observer PROOF OF PUBLICATION Robinson, Bradshaw & Hins Terry Robinson, Bradshaw & Hins 101 NORTH TRYON ST SUITE 1900 Charlotte NC 28246 STATE OF NORTH CAROLINA, COUNTY OF HARNETT The Fayetteville Observer, a newspaper distributed in the counties of Harnett and Cumberland, published in the City of Fayetteville, County of Cumberland, State of North Carolina printed and published and personal knowledge of the facts herein state and that the notice hereto annexed was Published in said newspapers in the issues dated on: 05/09/2022 and that the fees charged are legal. The Fayetteville Observer was a newspaper meeting all the requirements and qualifications prescribed by Sec. No. 1-597 G.S. of N.C. Sworn to and subscribed before on 05/09/2022 Notary, Sur c of '� C'�iunt���,t'liru }h�� My commision expires Publication Cost: $1491.12 Order No: 7252580 # of Copies: Customer No: 510895 1 PO #: 24748.00011 TH[S IS NOT AN INVOICE! Please do not use this form for payment remittance. VicKY FELTY Notary Public State of Wisconsin PO Box 631245 Cincinnati, OH 45263-1245 Page 1 of 6 Page 1 of'5 NOTICE OF PUBLIC HEARING BY THE BOARD OF COMMISSIONERS FOR THE COUNTY OF HARNETT,NORTH CAROLINA REGARDING THE PLAN OF FINANCING OF HEALTH CARE FACILITIES WITH PROCEEDS OF TAX- EXEMPT BONDS TO BE ISSUED BY THE PUBLIC FINANCE AUTHORITY FOR THE BENEFIT OF CUMBERLAND COUNTY HOSPITAL SYSTEM, INC. D/B/A CAPE FEAR VALLEY HEALTH SYSTEM AND HARNETT HEALTH SYSTEM, INC. NOTICE ISHEREBY GIVEN to all Interested persons that the Board of Commissioners for the County of Harnett, North Carolina (the "County") will hold a public hearing in the Board of Commissioners Meeting Room on the second floor of the Harnett County Resource Center and Library, 455 McKinney Park- way, Lillington, North Carolina 27546, at 6:00 p.m., on May 16, 2022, as required by Section 147(f) of the Inter. nal Revenue Code of 1986, as amended (the "Code"), with respect to the proposed issuance by the Authority (as defined below) of its revenue bonds in one or more series (the "Bonds") pursuant to the plan of financing described in this notice. The Bonds are expected to be issued, in one or more series, Pursuant to 66.0304 of the Wisconsin Statutes, as amended, by the Public Finance Authority (the "Authority"), a commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin Statutes, as amended, and the proceeds from the sale of the Bonds will be loaned to Cumberland County Hospital System, Inc. d/b/a Cape Fear Valley Health System (the "Corporation") or Harnett Health System, Inc. ("Harnett'), each a North Carolina nonprofit corpora- tion and an organization described in Code Section 501(c)(3), pursuant to the plan of financing described herein. The Bonds will be qualified 501(c)(3) bonds as defined in Code Section 145. The maximum stated Princi- pal amount of Bands to be issued is $267,250,000. The plan of financing calls for the proceeds of the Bonds to be used for the purpose of (a) financing capital expen- ditures for health care facili- ties, including but not limited to paying the costs of (i) acquiring, constructing, equipping and furnishing (A) a 100 -bed expansion of the Valley Pavilion Tower (the "Pavilion Tower Proiect") at Cape Fear Valley Medical Center located at 1638 Owen Drive, Fayetteville, North Carolina ("Cape Fear Valley Medical Center") and (B) a new medical office/cancer center building (the "2022 Harnett Protect') at Central Harnett Hospital located at 215 Brightwater Drive, Lillington, North Carolina ("Central Harnett Hospi- tal"), and (11) acquiring and installing medical, computer, office and capital equipment for use at Cape Fear Valley Medical Center and Central Harnett Hospital (the "2022 Equipment," and collectively with the Pavilion Tower Page 2 of S Project and the 2022 Harnett Project, the "2022 Projects"); (b) refunding all or a part of the Public Finance Authority Health Care Facilities Revenue Refunding Bonds (Cape Fear Valley Health System) Series 2020 (the "2020 Bonds"); (c) refunding all or a part of the taxable Harnett Adjustable Rate Hospital Bonds Series 2011A (the "Harnett 2011 Taxable Bonds"); (d) refunding all or a part of the taxable Harnett Hospital Notes, Series 2013 numbered R-1 through R-8 (collectively, the "Harnett 2013 USDA Notes"); (e) paying a portion of the Interest accru- ing on the Bonds; and (f) paying certain expenses incurred in connection with the issuance of the Bonds. The maximum stated princi- pal amount of Bonds to be issued to finance the Pavilion Tower Project is $111,500,000, the 2022 Harnett Project is $21,500,000 and the 2022 Equipment is $11,000,000. The maximum stated principal amount of Bonds to be issued to refund the 2020 Bonds is $51,000,000. The maximum stated principal amount of Bonds to be issued to refund the Harnett 2011 Taxable Bonds is $16,500,000. The maximum stated principal amount of Bonds to be Issued to refund the Harnett 2013 USDA Notes is $55,750,000. The proceeds of the 2020 Bonds were used to refund a portion of the Public Finance Authority Health Care Facili- ties Revenue Refunding Bonds (Cape Fear Valley Health System), Series 2017 (the "2017 Bonds"). The Proceeds of the 2017 Bonds were used to refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System), Series 2006A (the 112008A Bonds"). The proceeds of the 2008A Bonds were used with certain other bond proceeds to, among other things, (1) refund the North Carolina Medical Care Commission Health Care Facilities Revenue Bonds (Cape Fear Valley Health System) Series 2006B (the "20068 Bonds") and (2) reimburse the Corporation for the cost of acquiring certain equipment for the Health System (as defined below) (the "2008 Project"). The proceeds of the 20068 Bonds were used to finance (1) the acquisition of the following facilities (collec- tively, the "Health System") by the Corporation from the County of Cumberland, North Carolina: (a) an 800,000 square feet, 472 -bed acute care hospital and related facilities known as Cape Fear Valley Medical Center and located at 1638 Owen Drive; (b) an 81,000 square feet, 112- bed long term acute care hospital and related facilities known as Highsmith -Rainey Memorial Hospital and located at 150 Robeson Street; (c) a 67,000 square feet, 32 - bed behavioralhealth care facility with outpatient prac- tice, known as Behavioral Health Care of CFVHS and located at 3425 Melrose Road; (d) 35,122 square feet of vari- ous suites comprising of Outpatient services and administrative offices known as the Medical Arts Center Page 3 of S and located at 101 Robeson Street; (e) a 4,362 square feet primary care physician building known as Cape Fear Valley Internal Medicine and located at 1262-A Oliver Street; (f) a 4,362 square feet pedi- atric care physician building known as Melrose Pediatric Care and located at 1262-B Oliver Street; (g) a 8,086 square feet primary care physician building known as Cape Fear Valley OB -GYN and located at 1320 Medical Drive; (h) a 10,798 square feet primary care physician building known as Hope Mills Family Care and located at 4092 Professional Drive, Hope Mills, NC; (i) a 5,014 square feet primary care physician building known as North Ramsey Family Care and located at 3412 Ramsey Street; (1) a 4,454 square feet primary care physician building known as Westside Medical Care and located at 1463 Pamolee Drive; (k) a 18,070 square feet primary care physician building known as the Diag- nostic Center and located at 524 Beaumont Road; (1) a 3,350 square feet Pedi- atric care physician building known as Highland Valley Pediatric Care and located at 1219 Walter Reed Road; (m) an 18,567 square feet ambulance maintenance facility, known as Ambu- lance Non -Emergency Oper- ations and located at 610 Gillespie Street; (n) a 65,261 square feet medically oriented fitness center known as Healthplex and located at 1930 Skibo Road; (o) 3,314 square feet of lodg- ing for patient's relatives known as Stanton Hospitality House and located at 1617 Roxie Avenue; (p) 1,247 square feet of lodg- ing for patient's relatives known as Cape Fear Valley Medical Center Foundation, Inc. and located at 3533 Furman Drive; (q) a 1,664 square feet ambu- lance service known as Cape Fear Valley EMS and located at 1126 Cedar Creek Road; (r) a 2,889 square feet administrative office known as Patient Financial Services and located at 1641 Owen Drive; (s) a 8,006 square feet primary care physician building known as the Sleep Center and located at 1213 Walter Reed Road; (t) a 3,213 square feet Physi- cian practice that is no longer In use and had been located at 3318 Melrose Road; (u) a 4,295 square feet administrative office known as the Pediatric Acute Care Administration and located at 3322 Melrose Road; and (v) an 18,000 square feet primary Care physician building known as Hoke Family Medical Center and located at 4056 South Main Street Raeford, NC (Hoke County) ; (2) the construction of a patient care tower, attached to and integrated with the then -existing structure at Cape Fear Valley Medical Center at all levels; (3) the construction of a 5 level parking deck along with new and reconfigured ground Page 4 of S level parking at Cape Fear Valley Medical Center; (4) renovations of existing space at Cape Fear Valley Medical Center, including the then - current Emergency Depart- ment and Imaging Depart- ment to be the primary Outpatient Diagnostic and Treatment Facility, with new construction for an outvo- tient entrance; first floor renovation of Outpatient Registration, Sleep Lab and Outpatient Rehabilitation; and second floor renovation of Outpatient Surgery; (5) the acquisition of 100% of the membership interest in a limited liability company That was constructing an outpatient facility known as "Health Pavilion North" located at the corner of Ramsey Street and Andrews Road in Fayetteville, North Carolina, Including the payment of the construction loan therefor and completion of the facility; (6) the acqui- sition of additional equip- ment for the Health System, including Particularly for the Health Pavilion North and the Cape Fear Valley Medical Center (collectively, the "2006B Prolect" ); (7) the payment of interest on the 2006B Bonds during comple- tion of the 2006B Proiect; and (8) the payment of certain expenses incurred in connection with the Issuance of the 20068 Bonds, Including the premium for the finan- cial guaranty insurance policy for the 2006B Bonds. The proceeds of the Harnett 2011 Taxable Bonds were used to refund the North Carolina Medical Care Commission FHA Insured Mortgage Revenue Bonds (Betsy Johnson Regional Hospital Proiect), Series 2003 (the "2003 Bonds"). The proceeds of the 2003 Bonds were used to finance a four- story addition to the existing acute care hospital facility located at 800 Tilghman Drive, Dunn, North Carolina known as Betsy Johnson Hospital that included space for a new main lobby, administrative offices, dining room, laboratory, pharmacy, medical records, radiology, and mechanical space and other renovations to Betsy Johnson Hospital (the "2003 Betsy Johnson Proiect"). The proceeds of the Harnett 2013 USDA Notes were used to pay-off an interim construction loan that was used to finance the construc- tion and equipping of the then new Central Harnett Hospltal (the "Central Harnett Proiect," and collec- tively with the 2003 Betsy Johnson Proiect, the 20066 Proiect, the 2006 Proiect and the 2022 Projects, the "Proiect"). The Project is or will be owned and operated by the Corporation and Harnett. The Bonds will be special limited obligations of the Authority payable solely from the loan repayments to be made by the Corporation to the Authority, and certain funds and accounts estab- lished by the documents for the Bonds. The principal of, premium, if any, and inter- est an the Bonds will not constitute an indebtedness or liability of the County of Harnett, the State of North Carolina, or any political subdivision of the State of North Carolina, or a charge against their general credit or any taxing powers. Page S of S The hearing will provide a reasonable opportunity to be heard for persons wishing to express their views on the merits and locations of the 2022 Prolects, the Issuance of the Bonds pursuant to the plan of financing described herein or related matters. Any person wishing to comment In writing should do so prior to such meeting to the Board of Commission- ers for The County of Harnett, North Carolina, Post Office Box 759, Lllling- ton, North Carolina, 27546, Attention: Clerk to the Board of Commissioners. BOARD OF COMMISSION- ERS FOR THE COUNTY OF HARNETT, NORTH CAROLINA By: Melissa Capps Clerk to the Board of Commissioners Dated: May 9, 2022 May 9, 2022 #7252580