HomeMy WebLinkAboutPublic Financing Authority - 2017-53 RESOLUTION NO. 2017-53
RESOLUTION OF CITY OF HUNTINGTON BEACH, CALIFORNIA APPROVING A
TAX EXEMPT BOND FINANCING TO BE UNDERTAKEN BY THE PUBLIC
FINANCE AUTHORITY WITH RESPECT TO CERTAIN PROJECTS OF
PRIME HEALTHCARE HUNTINGTON BEACH, LLC
LOCATED IN THE CITY OF HUNTINGTON BEACH, CALIFORNIA
WHEREAS, Prime Healthcare Foundation, Inc., a Delaware nonprofit, nonstock
corporation (the `Borrower"), has requested the Public Finance Authority (the "Issuer"), a
Wisconsin bond issuing commission created under Sections 66.0301, 66.0303 and 66.0304 of the
Wisconsin Statutes to issue revenue bonds to pay for the costs of certain projects of the Borrower
and/or certain of the Borrower's affiliates, located in the states of California, Georgia, Ohio and
Texas; and
Pursuant to Section 66.0304(11)(a) of the Wisconsin Statutes, prior to their issuance,
bonds issued by the Issuer must be approved by the governing body or highest ranking executive
or admir;;strator of the political jurisdiction within whose boundaries the project is to be located;
and
The Borrower is the sole corporate member of Prime Healthcare Huntington Beach, LLC,
a Delaware limited liability company, which owns certain hospital, healthcare and related
facilities located in the City of Huntington Beach, California (the "City"); and
The Borrower has requested the assistance of the Issuer to finance and/or refinance
(including reimburse) eligible costs of the acquisition, construction, equipping and improvement
of certain hospitals, other healthcare facilities, and their related facilities, including land, located
within the geographical boundaries of the City and owned by Prime Healthcare Huntington
Beach, LLC (the "Projects"); and
rho Borrower has requested the Issuer to issue revenue bonds (the "Bonds"), in an
aggregate principal amount of not to exceed $387,000,000 to finance and refinance projects in
California, Georgia, Ohio and Texas, of which not to exceed $20,000,000 is expected to be used
to finance and/or refinance the Projects in the City; and
The Borrower has requested that the City approve the financing and/or refinancing of the
Projects and the issuance of the Bonds in order to satisfy the requirements of Section 4 of the
Amended and Restatea Joint Exercise of Powers Agreement Relating to the Issuer, dated as of
September 28, 2010 (the "Joint Exercise Agreement"), and Section 66.0304(11)(a) of the
Wisconsin Statutes; and
Furthermore, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (tree
"Code"), the issuance of the Bonds requires approval, following a public hearing, by the
applicable elected representative of the governmental unit having jurisdiction over the area in
which the Projects are located; and
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RESOLUTION NO. 2017-53
A notice of public hearing with respect to the proposed issuance of the Bonds and
meeting the requirements of Section. 147(f) of the Code was published in a newspaper of general
circulation in the City and a copy of such notice is attach-d hereto as Exhibit A; and
The City Council conducted the public hearing, at which time an opportunity was
provided to present arguments both for and against the issuance of the Bonds and the nature and
location of the Projects to be financed and refinanced; and
The City Council now desires to approve the financing and/or refinancing and the
issuance of the Bonds,
NOW, THEREFORE, BE IT RESOLVED by the City Council, as follows:
Section 1. The City Council hereby approves the issuance of the Bonds by the Issuer
for the Borrower in a total amount not to exceed $387,000,000, and approves an amount not to
exceed $20,000,000 which is expected to be used to finance and/or refinance the Projects in the
City. It is the purpose and intent of the City Council that this Resolution constitutes approval of
the financing and/or refinancing and the issuance of the Bonds for that portion of the Bonds
which is expected to be used to finance and/or refinance Projects in the City for the purposes of
Section 147(f) of the Code by the applicable elected representative of the governmental unit
having jurisdiction over the area in which the Projects are located, in accordance with said
Section 147(f) of the Code. It is also the purpose and intent of the City Council that this
Resolution constitute approval of the issuance of the Bonds by the City, which is the (or one of
the) governmental unit(s) having jurisdiction over the area in which the Projects are located, in
accordance with Section 66.0304(11)(a) of the Wisconsin Statutes and Section 4 of the Joint
Exercise Agreement.
Section 2. The Mayor and all other officials of the City are hereby authorized and
directed, jointly and severally, to do any and all things and to prepare or cause to be prepared,
negotiate, execute and deliver any and all documents which they deem necessary or advisable in
order to carry out, give effect to and comply with the terms and intent of this Resolution and the
financing transaction approved hereby.
Section 3. Nothing in this Resolution shall be construed to create any obligations of
the City or any City officials or employees with respect to the repayment of the Bonds. Neither
the Bonds nor the interest thereon shall ever constitute an indebtedness or a charge against the
general credit or taxing powers of the City within the meaning of any constitutional or charter
provision or statutory limitation and neither shall ever give rise to any pecuniary liability of the
City. The owners of the Bonds shall never be paid in whole or in part out of any funds raised or
to be raised by taxation or any other revenues of the City.
Section 4. This Resolution shall take effect immediately upon its passage.
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RESOLUTION NO. 2017-53
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the day of ► - , 2017.
ejj���Ak- As�A"
Mayor
REVIEWED AND APPROVED: APPROVED AS T nRM:
. i Manager — City Attorney kjw
Dg'v TIATED AND APPROVED:
Deputy Director ofconomic Development
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Res. No. 2017-53
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an Regular meeting thereof held on
November 6, 2017 by the following vote.-
AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson
NOES: None
ABSENT: None
ABSTAIN: None
Gq""v �&4W4,&J
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California