Legislation # 06-0580 Enactment Number none
Type Resolution Effective Date 10/11/2006
Introduction Date 10/11/2006
Title Resolution Concurring With and Approving the Issuance by the Industrial Development Authority of the City of Suffolk Virginia, of its Revenue and Refunding Bonds in an Amount Not to Exceed $175,000,000 for Sentara Healthcare.
 
Legislation History 06-0580
DateNotice Of ActionDescription
10/11/2006 Approved - Carol Johnson, Bond Attorney with Kaufman and Canoles, provided information on this item.
9/30/2006 Received By Clerk's Office
 
View Attachments 06-0580
FileTypeSizeDescription
SUMMARY_OF_PUBLIC_HEARING.DOC Other 22K Summary of Public Hearing Statements
SENTARA_HAMPTON_RESOLUTION.DOC IDA Resolution 51K Resolution of the Hampton IDA
FISCAL_IMPACT_STATEMENT.DOC Exhibit 41K Fiscal Impact Statement
SUFFOLK_SENTARA_RESOLUTION_(INDUCEMENT).DOC Other 46K Resolution of the Suffolk IDA
 
Legislation Text 06-0580

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 06-0580

 

Enactment Number: -

 

Resolution Concurring With and Approving the Issuance by the Industrial Development Authority of the City of Suffolk Virginia, of its Revenue and Refunding Bonds in an Amount Not to Exceed $175,000,000 for Sentara Healthcare.

 

RESOLUTION

WHEREAS, the Industrial Development Authority of the City of Suffolk (the Suffolk Authority), has considered the plans of financing of Sentara Healthcare (the Company), whose principal place of business is located at 6015 Poplar Hall Drive, Suite 214, Norfolk, Virginia 23502, for the issuance by the Authority of its revenue and refunding bonds (the Series 2006 Sentara Bonds) in an amount not to exceed $175,000,000 to assist the Company in (a) (i) financing and refinancing (1) certain costs incurred by the Company in connection with the acquisition of Louise Obici Memorial Hospital, located at 2800 Godwin Boulevard, Suffolk, Virginia 23434 (Obici Hospital), (2) certain other assets of Obici Health System (Obici) also located at 2800 Godwin Boulevard, Suffolk, Virginia 23434 (collectively, the Obici Assets), and (ii) financing working capital in an amount not to exceed $2,500,000 for use by the Company in connection with the Companys acquisition of the Obici Assets; (b) currently refunding the outstanding principal amount of certain bonds of Obici, the proceeds of which were used by Obici to finance the acquisition, construction and/or equipping of improvements to Obici Hospital, located at 2800 Godwin Boulevard, Suffolk, Virginia 23434, which bonds were assumed by the Company in connection with the acquisition described in clause (a) above (the Obici Refunded Bonds), comprised of (1) Industrial Development Authority of the County of Sussex, Virginia $10,000,000 2000 Hospital Revenue Bond (Louise Obici Memorial Hospital), and (2) Industrial Development Authority of the City of Suffolk, Virginia $9,880,000 Hospital Revenue and Refunding Bonds (Louise Obici Memorial Hospital Project) Series 2004; (c) refinancing a portion of a taxable loan in the original principal amount of $11,000,000, dated as of September 1, 2004, from Bank of America, N.A. to Obici (the Refinanced Obici Debt), which was assumed by the Company in connection with the acquisition described in clause (a) above; (d) currently refunding the outstanding principal amount of certain bonds of the Company, comprised of (1) $11,800,000 Industrial Development Authority of the City of Hampton, Virginia Hospital Facilities Revenue and Refunding Bonds (Sentara Health System Obligated Group) Series 1997B (the Series 1997B Sentara Bonds) and (2) $54,435,000 Economic Development Authority of the City of Norfolk Hospital Facilities Revenue and Refunding Bonds (Sentara Healthcare) Series 2004D (Indexed Put Bonds)(the Series 2004D Sentara Bonds); (e) refinancing up to $29,450,000 in principal amount of capital expenditures incurred by the Company in the Cities of Norfolk and Hampton, Virginia, and financed by the Company under its commercial paper program (the Sentara CP Debt); and (f) paying all or a portion of the costs associated with the issuance of the Series 2006 Sentara Bonds;

 

WHEREAS, the Obici Assets and the facilities initially financed with the proceeds of the Obici Refunded Bonds, the Refinanced Obici Debt, the Series 1997B Sentara Bonds, the Series 2004D Sentara Bonds and the Sentara CP Debt (collectively, the Facilities) are located in the Cities of Suffolk, Norfolk and Hampton, Virginia, and accordingly the Series 2006 Sentara Bonds will constitute a multi-jurisdictional issue requiring concurrences and approvals from the City Councils of the Cities of Norfolk and Hampton, Virginia, under Chapter 49 of Title 15.2 of the Code of Virginia of 1950, as amended (the Virginia Code);

 

WHEREAS, the largest portion of principal amount of the Series 2006 Sentara Bonds will relate to Facilities physically located in the City of Suffolk, Virginia (the City), and accordingly the Company has requested that the Authority issue the Series 2006 Sentara Bonds

 

WHEREAS, the Suffolk Authority held a public hearing with respect to the Series 2006 Sentara Bonds on September 13, 2006, and adopted an inducement resolution (the Suffolk Authority Resolution) with respect thereto;

 

WHEREAS, the Industrial Development Authority of Hampton, Virginia (the Hampton Authority), held a public hearing with respect to the Series 2006 Sentara Bonds on September 19, 2006, and adopted a resolution (the Hampton Authority Resolution) recommending that the City Council of the City of Hampton, Virginia (the Council), concur with the Suffolk Authority Resolution and approve the issuance of the Series 2006 Sentara Bonds;

 

WHEREAS, the Internal Revenue Code of 1986, as amended (the Code), provides that the highest elected governmental officials of the governmental unit having jurisdiction over the area in which any facility financed with the proceeds of private activity bonds is located shall approve the issuance of such bonds;

 

WHEREAS, the members of the Council constitute the highest elected governmental officials of the City of Hampton, Virginia; and

 

WHEREAS, a copy of the Suffolk Authority Resolution, the Hampton Authority Resolution, a reasonably detailed summary of the comments expressed at the public hearing with respect to the Series 2006 Sentara Bonds held by the Hampton Authority and a statement in the form prescribed by Section 15.2‑4907 of the Virginia Code have been filed with the Council;

 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HAMPTON, VIRGINIA:

 

1. The City Council of the City of Hampton, Virginia, concurs with the adoption of the Suffolk Authority Resolution and approves the issuance of the Series 2006 Sentara Bonds by the Suffolk Authority to the extent required by the Code and Section 15.2‑4905 of the Virginia Code.

 

2. The approval of the issuance of the Series 2006 Sentara Bonds, as required by the Code and Section 15.2‑4905 of the Virginia Code, does not constitute an endorsement to any purchaser of the Series 2006 Sentara Bonds of the creditworthiness of the Company and the Series 2006 Sentara Bonds shall provide that neither the Commonwealth of Virginia nor any political subdivision thereof shall be obligated to pay the Series 2006 Sentara Bonds or the interest thereon or other costs incident thereto and neither the faith or credit nor the taxing power of the Commonwealth of Virginia or any political subdivision thereof shall be pledged thereto.

 

3. This resolution shall take effect immediately upon its adoption.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on October 11, 2006.

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council