Subject:
Title
Resolution approving the issuance by the Orange County Health Facilities Authority of Hospital Revenue Bonds (Orlando Health Obligated Group), in one or more series in an aggregate principal amount not exceeding $325,000,000
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Fiscal Impact:
None.
Dept/Office:
County Attorney’s Office
Requested Action:
Recommendation
The Orange County Health Facilities Authority (the “Authority”) requests that the Board approve a Resolution to allow the issuance by the Authority of tax-exempt revenue bonds (Orlando Health Obligated Group), in one or more series to refinance the acquisition of hospital facilities in Brevard County.
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Summary Explanation and Background:
The Orange County Health Facilities Authority (the “Authority”) was created pursuant to the Health Facilities Authorities Law, Part III of Chapter 154, Florida Statutes (the “Act”) upon a determination of a need for the Authority by the Board of County Commissioners of Orange County, Florida under Section 154.207(1) of the Act. The primary function of the Authority is to issue its revenue bonds to finance and to refinance health facilities for not-for-profit organizations, which bonds are payable solely from the revenues of such health facilities.
Orlando Health, Inc. (herein “Orlando Health”), a Florida not-for-profit corporation, has requested the Authority issue its tax-exempt health facilities revenue bonds in an amount not to exceed $325,000,000 (the “Bonds”), to assist Orlando Health to (1) refund all or a portion of the outstanding Orange County Health Facilities Authority Taxable Hospital Revenue Bonds (Orlando Health Obligated Group), Series 2024B, the proceeds of which were used to finance the costs of acquiring a 119-bed acute care hospital and related medical clinics, offices, parking, and ancillary facilities located at 246-250 N. Wickham Road, Melbourne, Florida, and a 298-bed acute care hospital and related medical clinics, offices, warehouse and ancillary facilities located 110 Longwood Avenue, Rockledge, Florida, (2) provide a debt service reserve fund, (3) pay a portion of the interest to accrue the Bonds, (4) pay certain working capital expenditures, and (5) pay costs of issuance of the Bonds.
The bonds will be payable solely from revenues of the Orlando Health and certain of its affiliates, will bear one or more fixed rates of interest, subject to adjustment from time to time in accordance with the documents pursuant to which they are issued, and will be rated by one or more national rating agencies in the “A” category. The bonds will not pledge the revenues or ad valorem taxes of the County.
The designated hearing officer held a public hearing on November 21, 2024, following proper publication of notice, for the purpose of receiving public input on the proposed issue, a report on which is attached to the proposed Resolution. The proposed Resolution acknowledges the public hearing and authorizes the issuance by the Authority of the bonds. In order to issue tax-exempt bonds, the Authority must receive the limited approval of the Board of County Commissioners. The Board's approval of the issuance of the Bonds by the Authority for the above-described purposes is required by applicable federal tax law.
Cost Benefit Analysis provided by Brevard County Health Facilities Authority:
This issue will reduce interest expenses and provide funds to refinance the costs of acquiring the above-described health facilities which will be available to citizens of Brevard County. There is no fiscal impact to the County or the Board of County Commissioners. The County is authorizing the Authority to issue its bonds solely to satisfy federal income tax law requirements and the County shall be indemnified by Orlando Health Obligated Group with respect to the issuance of the bonds.
The County’s outside bond counsel has reviewed the project and provided the following statement: “The resolution proposed to be adopted by the BOCC satisfies the pertinent federal and state law requirements and provides that neither the County nor any of the elected officials or staff of the County will have any obligation or liability, financial or otherwise, with respect to the Project or the Bonds.” (See attachment.)
Contact Person: Angela A. Abbott, 264-0334, angelaabbott@cfl.rr.com
Clerk to the Board Instructions:
Return a signed Resolution to the County Attorney’s Office