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PUBLIC HEARING AND RESOLUTION APPROVING THE ISSUANCE OF REVENUE BONDS FOR THE BENEFIT OF CATHOLIC CARE CENTER AND VIA CHRISTI HOSPITAL ON ST. TERESA BY THE WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY.
Presented By: Chris Chronis, Chief Financial Officer.
RECOMMENDED ACTION: Open hearing and receive public comment, close the public hearing, and adopt the resolution.
Body
Since 1989, the County has been the issuer of health care facilities revenue bonds for the benefit of Catholic Care Center, Inc., which bonds have been used to acquire, construct, and remodel the nursing home and assisted living facility known as the "Catholic Care Center" located at 6700 East 45th Street North, now within the city limits of the City of Bel Aire. Most recently, the County issued its Health Care Facilities Refunding Revenue Bonds, Series 2010 (Catholic Care Center, Inc.) (the "2010 Bonds") which are the only bonds currently outstanding with respect to these facilities. Catholic Care Center, Inc. is a joint venture between Via Christi Health, Inc. and the Catholic Diocese of Wichita.
In addition, Via Christi Hospital Wichita St. Teresa, Inc., a wholly-owned subsidiary of Via Christi Health, Inc., operates certain hospital and related facilities located at 14800 W. St. Teresa, and the Northeast Corner of 151st Street West and 21st Street North, in the County, known as "Via Christi Hospital on St. Teresa." The City of Wichita, Kansas previously issued certain revenue bonds (the "Wichita Bonds"), a portion of the proceeds of which were used to acquire, construct, equip, and furnish Via Christi Hospital at St. Teresa, which is located in the unincorporated area of the County, outside the Wichita city limits.
Recently, Ascension Health Alliance ("Ascension") became the 100% member of Via Christi Health, Inc. In connection with this change in control, Ascension intends to have the Wisconsin Health and Educational Facilities Authority issue revenue bonds (the "New Bonds") in an amount not to exceed $888,000,000, a portion of the proceeds of which will be used to redeem, provide for the payment of, and/or defease, all of the outstanding 2010 Bonds and Wichita Bonds. Of the total amount of the New Bonds, not to exceed $19,000,000 will be allocated to the Catholic Care Center and not to exceed $104,000,000 will be allocated to the Via Christi Hospital on St. Teresa.
Pursuant to Section 147(f) of the Internal Revenue Code, prior to their issuance of the New Bonds, the County must hold a public hearing regarding the issuance thereof by the Wisconsin Health and Educational Facilities Authority and the Board must specifically approve said issuance because the Catholic Care Center and Via Christi Hospital on St. Teresa are located within the territorial limits of the County.
Alternatives:
Financial Considerations:
The Catholic Care Center and Via Christi Hospital on St. Teresa are exempt from property taxes pursuant to their ownership by 501(c)(3) entities and their nature as hospital and adult care home facilities. No property tax abatement was granted in connection with either the 2010 Bonds or Wichita Bonds; therefore, the redemption and/or defeasance of the 2010 Bonds and Wichita Bonds will have no effect upon the taxation of the Catholic Care Center or Via Christi Hospital on St. Teresa.
The 2010 Bonds are special limited obligations of the County payable only from revenues received from the Catholic Care Center and its facilities. The proposed New Bonds will not impose any obligation on the County to pay the principal of, premium or interest on the New Bonds whatsoever. Ascension will pay any and all costs associated with the New Bonds.
Legal Considerations:
Section 147(f) of the Internal Revenue Code requires a public hearing and the approval by the Board of the issuance of the New Bonds before the Wisconsin Health and Educational Facilities Authority can issue the New Bonds. Notice of the public hearing was published in The Wichita Eagle on May 21, 2013, which was at least 14 days prior to the date of the public hearing. J.T. Klaus of Triplett, Woolf & Garretson, LLC has prepared a Resolution for the Board to approve the issuance of the New Bonds. The Resolution has also previously been provided to Joe Norton, the County's Bond Counsel, for his review and comment.
Policy Considerations:
The New Bonds are being issued by the Wisconsin Health and Educational Facilities Authority for the purposes of consolidating the debt of Via Christi Health, Inc. and it subsidiaries with the debt of Ascension. As the County will not accept any obligations or liabilities in connection with the New Bonds, approving the New Bonds is compatible with the County's policy of supporting health care facilities within the County.
Outside Attendees: J.T. Klaus, Triplett, Woolf, Garretson, LLC, representing Catholic Care Center and Via Christi Hospital on St. Teresa
Joe L. Norton, Gilmore & Bell, PC, Bond Counsel
Multimedia Presentation: