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)