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County Administrator's Report 10. 30.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning the Resolution Approving the Escambia Health Facilities Authority Health Care Bonds - Richard Lott, Partner, McGuireWoods, LLP
That the Board adopt, and authorize the Chairman to execute, the Resolution approving for federal income tax purposes the allocation of certain disposition proceeds from the sale substantially of all the assets of The Baptist Manor, Inc. (the “Manor”), a wholly owned subsidiary of Baptist Health Care Corporation (“Baptist Health Care”). Certain improvements to the Manor facilities were refinanced with proceeds of the outstanding Escambia County Health Facilities Authority (the “Authority”) Health Care Facilities Revenue Bonds (Baptist Hospital, Inc., Project) Series 2010A (the “Bonds”). The Bonds were not issued by the County and will not obligate the credit of the County or pose any obligation or liability for the County. |
| BACKGROUND: |
| On February 10, 2010, the Authority issued the Bonds, a portion of the proceeds of which were used for the Manor. Baptist Health Care, the parent corporation for the Manor, has determined to sell substantially all of the assets of the Manor, which, for federal income tax purposes, requires certain remedial actions to be taken with respect to the Bond proceeds which were applied for improvements at the Manor (the “Disposition Proceeds”).
Baptist Health Care has requested approval of the use of the Disposition Proceeds up to $10,000,000 for the cost of certain renovations, upgrades and improvements to Baptist Hospital (the “Hospital”), including infrastructure and equipment (the “Facilities”) at the main campus of the Hospital (the “New Project”) located at 1000 West Moreno Street, Pensacola, Florida 32501. The allocation for federal income tax purposes of the Disposition Proceeds to the New Project requires public approval by an applicable elected representative of the governmental unit on behalf of which such Bonds were issued following a public hearing. The Authority has conducted the public hearing and is requesting that the Board approve the new allocation.
Additional details of the proposed allocation of Disposition Proceeds are found in the Report of Hearing Officer.
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| BUDGETARY IMPACT: |
| The Bonds are special, limited obligations of the Authority payable solely out of the revenues derived from one or more loan agreements with the Corporation or its affiliates. The Bonds and interest thereon shall never constitute the debt or indebtedness of the Authority, Escambia County, the State of Florida or any political subdivision or municipality thereof within the meaning of any provision or limitation of the statutes or Constitution of the State of Florida.
The Authority does not receive funds from the County, and no funds of the County are expended in connection with the New Project or the Bonds.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| In accordance with Chapter 46, Article VII of the Escambia County Code of Ordinances, Richard I. Lott, McGuireWoods LLP, bond counsel for the Authority and the County, will review the documents on behalf of the County to insure that the County does not have any liability or obligation arising out of the approval contemplated herein and in the Resolution. |
| PERSONNEL: |
| None. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Project in the community improves the prosperity and welfare of the State of Florida and its inhabitants; improves education, living conditions, and health care; increases opportunities for gainful employment and otherwise contributes to the welfare of the State and its inhabitants. |
| IMPLEMENTATION/COORDINATION: |
| None needed. The approval by the County of the Project will not affect the obligation of the Project to conform to all County zoning, development, land use and other permitting requirements. The County will be fully entitled to address such issues, if any, in the normal course of development of the Project. |
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