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HomeMy WebLinkAboutOrder 078 - Hospital Revenue BondsDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of August 27, 2008 Please see directions for completing this document on the next page. DATE: August 21, 2008 FROM: Marty Wynne Finance (541) 388-6559 TITLE OF AGENDA ITEM: A public hearing and consideration of Order No. 2008-078 relating to the Hospital Revenue Bonds for Cascade Healthcare Community Inc. PUBLIC HEARING ON THIS DATE? YES BACKGROUND AND POLICY IMPLICATIONS: The Hospital Facility Authority of Deschutes County (the "Authority") has received a request from Cascade Healthcare Community, Inc., an Oregon nonprofit corporation to issue its Hospital Revenue Bonds, Series 2008 in an aggregate principal amount not to exceed $90,000,000 to financf or refinance the costs of the following projects: (i) to fully refund, defease and redeem the Authority's Hospital Revenue Bonds, Series 2005A (Cascade Healthcare Community, Inc.) (the "2005A Bonds") and (ii) to use proceeds of the 2008 Bonds to pay costs, including financing and legal expenses related to the refunding of the 2005A Bonds including without limitation, paying any required termination payments in connection with the termination of an agreement for the exchange of interest rates related to the 2005A Bonds, funding a debt service reserve fund, if necessary and paying fees and expenses related to any bond insurance or any credit support facility, if any. FISCAL IMPLICATIONS: None for the County RECOMMENDATION & ACTION REQUESTED: Adoption of Order No. 2008-078 ATTENDANCE: Marty Wynne DISTRIBUTION OF DOCUMENTS: Marty Wynne, Finance Department 388-6559 REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order approving the issuance, sale, execution and Delivery of Hospital Revenue Bonds, Series 2008 (Cascade Healthcare Community Inc.), in an aggregate Principal amount not exceeding $90,000,000 issued by The Hospital Facility Authority of Deschutes County, Oregon * * ORDER NO. 2008-078 WHEREAS, it appearing before the Board of County Commissioners (the "Board") of Deschutes County, Oregon (the "County") that The Hospital Facility Authority of Deschutes County, Oregon (the "Authority") has received a request from Cascade Healthcare Community, Inc., a nonprofit corporation duly organized and validly existing under the laws of the State of Oregon (the "Borrower") to issue one or more series of hospital revenue bonds (the "2008 Bonds"), in an aggregate principal amount not to exceed $90,000,000 to finance or refinance the costs of the following projects: (i) to fully refund, defease and redeem the Authority's Hospital Revenue Bonds, Series 2005A (Cascade Healthcare Community, Inc.) (the "2005A Bonds") and (ii) to use proceeds of the 2008 Bonds to pay costs, including financing and legal expenses related to the refunding of the 2005A Bonds including without limitation, paying any required termination payments in connection with the termination of an agreement for the exchange of interest rates related to the 2005A Bonds, funding a debt service reserve fund, if necessary and paying fees and expenses related to any bond insurance or any credit support facility, if any (collectively, the "Project") and, WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that qualified 501(c)(3) bonds be approved by the applicable elected representatives of the governmental unit issuing such bonds and the applicable elected representatives of the governmenta unit having jurisdiction over the area in which any portion of the Project is located. The Board of County Commissioners of Deschutes County, Oregon are the applicable elected representatives of ti Le governmental unit having jurisdiction over the Project located in Deschutes County, Oregon and, WHEREAS, the Code authorizes the issuance of revenue bonds for a "qualified 501(c)(3) entity" such as the Borrower and, WHEREAS, the principal of and interest on the 2008 Bonds will not constitute a debt of Deschutes County, Oregon or the Authority, nor shall the 2008 Bonds be payable from a tax of any nature levied upon any property within Deschutes County, Oregon nor any other political subdivision of the State of Oregon. The Authority has no taxing power. The 2008 Bonds will be payable only from the revenues and resources provided by the Borrower and its affiliates and from any credit enhancement arranged by the Borrower and, WHEREAS, the Board, as the applicable elected representatives of the governmental unit having jurisdiction over the area in which the Project is located, has been requested to conduct a pi blic hearing and approve of the issuance of the 2008 Bonds by the Authority. Notice of the public hea ring PAGE 1 OF 2 — ORDER NO. 2008-078 (08/27/08) held by the Board was published August 12, 2008 in the Bend Bulletin. An affidavit of publication of the Notice is attached hereto as Exhibit A. The public hearing is intended to provide a reasonable opportunity for members of the public to be heard by the Board regarding the Project. The Board has conducted the public hearing regarding the issuance of the 2008 Bonds and invited oral and written comments from the public and, WHEREAS, the Board finds that it would be in the best interest of the County to approve the issuance of the 2008 Bonds in one or more series by the Authority pursuant to the requirements of Section 147(f) of the Code. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: As the applicable elected representatives of the governmental unit having jurisdiction over the area in which the Project is located, and having held the public hearing, the Board approves the issuance of the 2008 Bonds in one or more series by the Authority in an aggregate principal amount not exceeding $90,000,000. DATED this day of August, 2008. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, Chair TAMMY (BANEY) MELTON, Vice Chair ATTEST: Recording Secretary MICHAEL M. DALY, Commissioner PAGE 2 OF 2 — ORDER NO. 2008-078 (08/27/08) Exhibit A to Board of County Commissioners of Deschutes County Board Order Affidavit of Publication and Notice of Public Meeting Published in the August 12, 2008 Bend Bulletin Affidavit of Publication STATE OF OREGON, COUNTY OF DESCHUTES I, Katelynd Perkins, a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not party to or interested in the above -entitled matter. I am the principal clerk of the printer of The Bulletin a daily newspaper of general circulation, published in the aforesaid county and state as defined by ORS 193.010 and ORS 193.020, that Acct Name: CASCADE HEALTHCARE COMMUNITY, Legal Description: LEGAL NOTICE NOTICE OF PUBLIC HEARING August 27, 2008 a printed copy of which is hereto affixed was published in each regular and entire issue of the said newspaper and not in any supplement thereof on the following dates, to wit: 08/12/2008 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Bend, Oregon, this 13 day of August, 2008. )- • Signature ��"• OFFICIAL SEAL LORI LAMONT NOTARY PUBLIC -OREGON COMMISSION NO. 394626 MY COMMISSION EXPIRES JULY 05, 2009 No. In the Court of the STATE OF OREGON for the COUNTY OF DESCHUTES AFFIDAVIT OF PUBLICATION Filed By From the Office of Attorney for 008 The ,lay A.L.J,JS: 12 2U08• T -a 9'._.• LAW 0101 : ,0101, 009.11.n.ulrl'ade ne Werr:a1awl ,nr'In wrIo ti1601 1.1 0,;13..0,0 o.l JNS /66 /5)wu A"T 9ur•Nab r.9Y9.y O�611 Uma6a4y1 IM)) pmn 0 M 5 •]51.Y 04172) '1411.1 lar 21 :.410. ..' Nam, s Cary • LEGAL NOME VOICE O/ OUILIC NEARING 'oo *12/ 20111 10.00am. 'Ns 2/400 I'9ady 041010Me19, NOM* Nu1O Menn9 RD. 1100 w1( WNSnaet gent Olegon 97701 M00514 15 MENET LOMN dud a 9w00t Merino *AM Mrd by W Da7LMIa County mrd 4 Commitments (u. ' 00d 4 M.nuY4 Cary th LmaneenWi) un *0Cn4a?. August 27 2006, al 1000 .Mont, !mum 3 m 4 e Do.*.o COunto Ad Mnk*alias Iulld9y RW 0 34.60,11 1. 1 II? 166134/ Rouen 1'3001000 WN SOUL Med, 10 97701. 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