BCC Public Hearing - Infirmary Health System - Issuance of Bonds
05 January 2016 - 09:00 AM
Notice is hereby given that the County Commission of Baldwin County will conduct a public hearing in the Baldwin County Administration Building, in the County Commission Chambers at 322 Courthouse Square, in the City of Bay Minette, Alabama at 9:00 a.m. on Tuesday, January 5, 2016, concerning the proposed issuance of up to $250,000,000 aggregate face amount of revenue bonds (the “Bonds”), to be issued by Infirmary Health System Special Care Facilities Financing Authority of Mobile, a public corporation organized under the laws of the State of Alabama (the “Authority”). If approved, the Bonds may be issued in a single series or in two or more series over a period ending December 31, 2018 pursuant to the authority of Chapter 62, Title 11 (Section 11 62 1 et seq.) of the Code of Alabama 1975. The Bonds are being issued to provide financing for the benefit of Infirmary Health System, Inc. (“IHS”) and its affiliates, Mobile Infirmary Association (“Mobile Infirmary”), Gulf Health Hospitals, Inc. (“Gulf Health”) and Infirmary Health Hospitals, Inc. (“Infirmary Hospitals”). IHS and its affiliates (collectively referred to as the “IHS System Affiliates”) operate health care facilities in Mobile and Baldwin Counties.
Proceeds of the Bonds will be used for the following purposes: (i) to finance the costs of acquiring, constructing and equipping a free-standing emergency room facility (the “ER Facility”) to be located on the southwestern quadrant of the intersection of Alabama Highway 181 and U.S. Highway 90 in unincorporated Baldwin County; (ii) to finance the costs of renovating, improving, expanding and equipping IHS’s oncology facilities (the “Oncology Facilities”) located at Mobile Infirmary Medical Center, Thomas Hospital and North Baldwin Infirmary; (iii) to finance the costs of acquiring, constructing and equipping certain diagnostic and other health care facilities (the “Diagnostic Facilities”) to be located in a medical office building being constructed on the northwest corner of Alabama Highway 158 and U.S. Interstate 65 in Saraland, Alabama; (iv) to finance the costs of acquiring, constructing, improving, expanding, renovating, equipping or furnishing the various existing acute care hospital and outpatient facilities (collectively the “Existing System Facilities”) of the IHS System Affiliates; and (v) to refund certain outstanding debt or bonds of the IHS System Affiliates incurred or issued to finance the Existing System Facilities.
The Existing System Facilities include: (i) Mobile Infirmary Medical Center and Infirmary LTAC Hospital located at 5 Mobile Infirmary Circle (near Springhill Avenue and Mobile Infirmary Boulevard), in Mobile, Alabama; (ii) Thomas Hospital, located at 750 Morphy Avenue in Fairhope, Alabama; (iii) Thomas Medical Center located at 27961 U.S. Highway 98 in Daphne, Alabama; (iv) North Baldwin Infirmary located at 1815 Hand Avenue in Bay Minette, Alabama; and (v) Infirmary Eastern Shore Outpatient Center located at 7101 Highway 90 in Daphne, Alabama.
The Existing System Facilities, the ER Facility, the Oncology Facilities and the Diagnostic Facilities are referred to collectively herein as the “Bond-Financed Facilities.” The Bond-Financed Facilities will be owned and operated by the IHS System Affiliates.
The proceeds of the Bonds will be loaned to one or more of the IHS System Affiliates pursuant to one or more loan agreements between the Authority and IHS System Affiliates. The loan agreements will provide for loan payments by one or more of the IHS System Affiliates in amounts sufficient to pay debt service on the Bonds when due. The Bonds will be limited obligations of the Authority and will be payable solely from the loan payments by the IHS System Affiliates to the Authority. The Bonds will not be general obligations of the Authority and will not in any way constitute a debt, liability or obligation of the State of Alabama, Baldwin County, Alabama, or any other political subdivision of the State of Alabama, including without limitation the political subdivision holding the hearing described above or the political subdivisions where the Bond-Financed Facilities are located. The Bonds will not be payable from any tax revenues.
The public hearing will provide an opportunity for persons with different views on the proposed issuance of the Bonds and the location and nature of the Bond-Financed Facilities to express their views, both orally and in writing.