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HomeMy WebLinkAboutR08-Redevelopment Agency REbIwELoPMENT M2NCt-Ib=QUEST FOR ~ISSION/COUNCIL At.11ON Subject: CONSIDER SETTING PUBLIC HEARING FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS, SERIES 1983a, SCH HEALTH CARE SYSTEM REVENUE BONDS (SISTERS OF CHARITY OF THE INCARNATE WORD. HOUSTON. TEXAS). SERIES 1987A. From: Glenda Saul, Executive Director ",ept: Redevelopment Agency Date: December 16, 1986 Synopsis of Previous Commission/Council ection: 6/21/82 11/22/82 11/22/82 11/22/82 11/22/82 12/8/86 12/8/86 Resolution 82-269 authorizing approval of bond application. Income Families Ordinance MC-226 - amending Ordinance #3815 relating to financing. Resolution 82-475 authorizing approval of trust indenture. Resolution 82-476 authorizing approval of a loan agreement. MC-225 established a home financing program for low and moderate income housing. Resolution 86-483 authorizing acceptance of contract for legal services for bond refunding. Resolution 86-484 approving preliminary official statement. Recommended motion: (KAYOR AND COMMON COUNCIL)) MOVE TO ADOPT RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING REGARDING THE PROPOSED ISSUANCE OF ITS "CITY OF SAN BERNARDINO, CALIFORNIA, SCH HEALTH CARE SYSTEM REVENUE BONDS (SISTERS OF CHARITY OF THE INCARNATE WORD, HOUSTON, TEXAS), SERIES 1987A" FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS, SERIES 1983A. ~Af . Signature Contact person: Glenda Saul Phone: 383-5081 2nd Ward: IDB Refunding Project: N/A Date: December 22, 1986 YES Supporting data attached: Amount: $ FUNDING REQUIREMENTS: ",>uncil Notes: No adverse Impact on City: 1 90RG/.TAT 12/22/86 f) g Agenda Item No.t:-- ...... - -..-I ...... REDEVELOPMENT AGIENCY'.ABQUEST FOR ~ISSION/COUNCIL ACTION STAFF REPORT On November 20, 1986, staff received a recommendation from the Redevelopment Committee for approval of the Sister's of Charity of the Incarnate Word, Houston, Texas (SCH) bond refunding request for the previously funded 1983 bond issue. Additionally, on December 8, 1986, your Honorable Body authorized a contract for legal services with James Warren Beebe for said bond refunding, as well as approving a Preliminary Official Statement and authorizing its use in connection with the prospective issuance. Past memorandum of November 26, 1986 advised your Honorable Body that refunding bonds required no TEFRA Public Hearing through the year ending, December 1, 1986. The relevant transition rule from the 1986 Tax Bill requires refunding bonds to have a public hearing after December 31, 1986. The applicant is now ready to pursue refunding, in which a Public Hearing is necessary to fulfill TEFRA requirements (Tax Equity and Fiscal Responsibility Act). It is requested that the Public Hearing be set for 11:00 a.m., January 19, 1987 (the second meeting in January, 1987). The following is a recap of SCH's application and their proposed funding: PRINCIPALS: SHC - a non-profit corporation - approximately 17 health care institutions in five (5) states, an aggregate of 4,863 licensed beds. SCH controls 9 affiliates, including St. Bernardine Hospital, San Bernardino, California, a non-profit corporation. PROJECT & LOCATION: City of San Bernardino. Additions to health facilities. FUNDING: $29,900,000 (32 years) Series 1982B Bonds to be sold to Underwood, Neuhaus & Co., Inc., and Merrill Lynch White Weld Capital Markets Group. TRUSTEE: Texas Commerce Bank, National Association, Houston, Texas. INTEREST RATE: Interest - estimated 9.75%. ESTIMATED JOBS: Approximately 100 RESERVE & DEVELOPMENT FUND: 1% of $29,900,000 - $299,000. Sister's of Charity Benefits Achieving a lower bond interest rate. City Benefits The City will see continued growth in economic development upon the transfer of the required bond issue, 1% IDB Reserve and Development fee ($299,000) from the Agency to the Economic Development Council. (Continued on Page 2 Staff Report) 1908G/JAT 12/22/86 REb.EVELOPMENT AGENCY.R.QuEST FOR ~ISSION/COUNCIL ActION STAFF REPORT There will be no impact of the City's IDB allocation under the new 1986 Tax Act, as the refunding bonds would be issued under the original Inducement Resolution. All costs of said bond refunding will be incurred by the Sister's of Charity from the provided bond refunding Cost of Issuance. Staff recommends approval of the setting of the Public Hearing for the aforementioned bond refunding. - 2 - 1908G/JAT 12/22/86 - ._- .-.. . -...................r I ~r< 0<:::10 ----_...._------~-~ l~- ~-~b; 5:39 PM; .. 71488e9413 ; _ 2 P.-=".:z 09-22-00 MON 06:26 San Bernardino 60,009-59-1 RtSOLUTIOM .0. 16- - RESOWTION OF THJ: MAYOR AJlD aJIDCON COUNCIL OF THE CITY OF SAN IEJUIARDllfO, CALtFOlUllA, AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING IlEGARDllfQ THE PJtOPOSED ISSUANCE OF ITS .CITY 'Or SAN BERNARDIN'O, CALIFORNIA, SCH HEALTH CARE SYSTEM REVENuE BONOS (SISTERS OP CHARITY 'OP THE INCJUUfATJ: WORD, HOUSTON, TEXAS), SDIES 19871.,. POR THE PURPOSE 'OF RtFUNDING CERTAIN 'OUTSTANDING BONDS, SERIES 19831. ~ t (SISTERS OF CHARITY 'OF THE INCJUUfATE W'ORD, H'OUST'ON, TEXAS, S'OLE CORPORATE KEMBER 'OF ST. BERNARDIN! H'OSPITAL 'OP SAN BERNARDIN'O) WHEREAS, the City 'Of San Bernardin'O (the "City") is a "hellle rule ci~y" duly 'Organized and exbting under and pur.uant t'O a Charter adepted under the provisien. 'Of the Censtitutien 'Of the State 'Of Califernia, and WHEREAS, pursuant te it. hellla rule powers, the City duly and regularly enacted 'Ordinance Ne. 3815, as llII\ended, (the "'Ordinance") to finance varieu. type. 'Of projects, a. defined in the 'Ordinance, and te i..ue its .pecial revenue bend. fer the purpe.e 'Of paying the cest 'Of f1nancinq .uch prejects; and WHEREAS, there was filed with the City an Applica- tien (the "Applicatien") pursuant to the previ.ien. 'Of the 'Ordinance by Sisters 'Of Charity 'Of the Incarnate Werd, Heuston, Texa., Sele Corperate Member 'Of st. Bernardine -1- 00100:517.9 l2-0t~86 (JWBlld) . 09-22-00 MON 06:26 P.03 San Bernardino 450,009-59-1 Hospital of San Bernardino, (referred to herein a. the "Company" or "Sisters of Charity Hospital") reque.tin; the i.suance of revenue ~onde for the purpose of financinq the cost and expense of: (i) additions to and improvements of its hospital facilities as more partiCUlarly descri~ed in said Application; and (ii) the refinancin; of certain outstandinq obligations of said Sisters of Charity Hospital; and WHEREAS, the Application was reviewed and the plan of finanCing was found to comply with the spirit, intent and provisions of the ordinance, as amended, and the city determined to proceed with the financinql and WHEREAS, the refinancin; of certain outstandinq obliqations of said Sisters of Charity Hospital was accom- pliShed in a different manner and the final financ!n; furnished funds for additions to and improvements of its hospital facilities, and WHEREAS, for the above purpose, the City issued its $29,900,000 City of San Bernardino, California, SCH Health Care System Revenue Bonds (Sisters of Charity of the Incarnate Word, Houston, Texas) Series 1983A (the "Bonds, Series 1983A") and the same are presently outstandinq; and -2- ,00100:517.9 12-09-86 (JWB:ld) __-r San Bernardino 60,009-59-1 WHEREAS, the Sisters of Charity Hospital has requested that the City participate in a refundinq of the out.tanding Bond., Series 1983A, through the i..uance of its City of San Bernardino, california, SCH Health System Revenue Bonds (Sister. of Charity of the Incarnate Word, Houston, Texas) Series 1987A (the "Bonds, Series 1987A")I and WHEREAS, Ordinanoe No. 3815, a. a.ended, provides for .uch a refunding; and WHEREAS, the Internal Revenue Code of 1986 (the "Code") require. that the i..uance of the Bonds, Series 1987A be approved by an elected representative of the city after a public hearing; and WHEREAS, the city Cler~ mu.t cau.e notice of such Hearing to be publi.hed once (giving at lea.t fourteen day.' noUce) . NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY FIND, RESOLVE, DETER- MINE AND ORDER AS FOLLOWS: -3- .D0100:517.9 12-09-86 (JWB:ld) 09-22-00 MON 06:27 P.05 San Bernardino 60,00'-5'-1 Seotion 1. The reoital. .et forth hereinabove are true and oorrect in all re.pects. section 2. Pursuant to the Code, the Notice of Public He.rinq, attached hereto and hereby aade a part hereof, i. authorized and directed to be publi.hed once (qivinq at least fourteen day.' notioe) in the The Sun. Section 3. Thi. ae.olution ahall take effect immediately upon adoption. -4- .00100:517.9 12-09-86 (JWBlld) 09-22-00 MON 06:26 San 8emarc!1no 60,009-59-1 I HEREBY CERTIFY that the foregoing re.olution va. 4uly adopted by the Mayor and C~on Council of the city of San 8emar4ino at a reqular .eeting thereof, hel4 on the 4ay of to vit: , 19 , by the folloving vote, AYES: Councilmen NOES: ABSENT : ABSTAIN: City Clerk The foregoing resolution is hereby approved pursuant to the Internal Revenue Code of 1986 as of this 4ay of , 1986. Mayor of the City of San Bernardino -5- DOIOO:!17.9 12-09~86 (JWB:ld) P.06 ~ I , j i , : San Bernardino 60,009-59-1 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO ) ) SS. ) I, SHAUNA CLARK, city Clerk in and for the city of San Bernardino, DO HEREBY CERTIFY that the foreqoinq and attached copy of San Bernardino city Re.olution No. i. a full, true and correct oopy of that now on tile in thi. office. IN WITNESS WHEREOF, and affixed the official a.al this _ day of I have hereunto .et my hand of the city of San Bernardino , 19_. city Clerk -6- D0100:517.9 12-09-86 (JWB:1d) San Bernardino 60,009-59-3 CITY OF SAN BERNARDINO NOTICE OF PUBLIC HEARING ON PROPOSED BOND ISSUED BY THE CITY OF SAN BERNARDINO TO ASSIST IN THE REFUNDING OF A CERTAIN HOSPITAL FACILITY LOCATED IN THE CITY OF SAN BERNARDINO, PURSUANT TO THE INTERNAL REVENUE CODE OF 1986 (SISTERS OF CHARITY OF THE INCARNATE WORD, HOUSTON, TEXAS) NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino (the "City"), pursuant to the Internal Revenue Code of 1986 (the "Code"), will hold a public hearing (the "Hearing") on: Date: Monday, January 19, 1987 Time: 11:00 a.m. Place: Council Chambers city Hall 300 North "D" Street San Bernardino, California 92418 Subject matter of the Hearing will be the proposed assistance by the City, pursuant to Ordinance No. 3815, as amended (the "Ordinance"), with the refunding of the City of San Bernardino, SCH Health Care System Revenue Bonds (Sisters of Charity of the Incarnate Word, Houston, Texas) Series 1983A (the "1983A Bonds"), which were used to assist in the financing of st. Bernardine Hospital of San Bernardino (the "Project"). -1- 00100:517.8 12-09-86 (JAS:ld) San Bernardino 60,009-59-3 The initial owner, operator or manager of the Project is the Sisters of Charity of the Incarnate Word, Houston, Texas. The city intends to issue its bonds, initially designated "city of San Bernardino, SCH Health Care System Revenue Bonds (Sisters of Charity of the Incarnate Word, Houston, Texas) Series 1987A" in a principal amount not to exceed $40,000,000 (the "Bonds"), to assist in refunding the 1983A Bonds. The details of the issue may be changed from those set forth above as the result of the hearing noticed hereby. At the time and place above stated, the financing will be presented and any and all persons may appear and be heard. Given by order of the Mayor and Common Council of the City of San Bernardino. /s/Shauna Clark City Clerk of the city of San Bernardino -2- DOlOO:517.8 12-09-86 (JAS:ld)