HomeMy WebLinkAboutAPPROVAL OF THE ISSUANCE OF REVENUE BONDS FOR THE BENEFITS OF AU HEALTH SYSTEM, INC. APPROVAL OF THE ISSUANCE OF
REVENUE BONDS
FOR THE BENEFIT OF
AU HEALTH SYSTEM,INC.
WHEREAS,the Development Authority of Augusta,Georgia(the"Issuer")proposes
to issue its Revenue Bonds(AU Health System,Inc.)Series 2018 in an aggregate principal amount
not to exceed$230,000,000(the"Bonds");and
WHEREAS,the proceeds of the Bonds will be loaned to AU Health System, Inc.
("AUHS") for one or more of the following purposes: (a) refunding a loan (the "Loan"), the
proceeds of which were used to make improvements to AU Medical Center(the"Medical Center")
and acquire equipment for the Medical Center,(b)financing or refinancing certain improvements to
the Medical Center and equipment for the Medical Center(the"2018 Projects"),(c)refunding the
Authority's Revenue Bonds (MCG Health, Inc.), Series 2014, (d)paying the costs of terminating
interest rate swaps relating to the Series 2014 Bonds and(e)paying the costs of issuing the Bonds;
and
WHEREAS,the Augusta-Richmond County Commission(the"Commission")has
been advised by AUHS that the 2018 Projects and all assets financed or refinanced with the proceeds
of the Loan and the Series 2014 Bonds(collectively,the"Projects")will be located on the campus of
the Medical Center(a)which is bounded by Walton Way to the north,Laney-Walker Boulevard to
the south, St. Sebastian Way to the east and Emmett Street to the west and (b) consists also of a
corridor on the east and west side of 15th Street.2 miles north of the intersection of 15"'Street and
Walton Way,that the principal address of the Medical Center campus is 112015t Street,Augusta,
Georgia, that the Projects will be owned by the Board of Regents of the University System of
Georgia(the"Board of Regents")or AU Medical Center,Inc.("AUMC")and that the Projects will
be operated by AUMC; and
WHEREAS,the Commission has also been advised by AUHS that the Bonds will not
constitute an indebtedness of the State of Georgia or Augusta,Georgia,that no tax revenues or other
revenues of the State of Georgia or Augusta, Georgia will be used to pay the Bonds and that the
Bonds will be payable solely from moneys received by the Issuer from AUHS; and
WHEREAS,Section 147(f)of the Internal Revenue Code of 1986,as amended(the
"Code")requires that the governmental unit having jurisdiction over the conduit issuer of the Bonds
and over the area in which any facility financed or refinanced with the proceeds of the Bonds is
located approve the issuance of such Bonds following a public hearing;and
WHEREAS,the duly appointed hearing officer of the Issuer(the"Hearing Officer")
conducted a public hearing(the"Hearing")on behalf of the Issuer concerning the issuance of the
Bonds and the Projects to be financed and refinanced with the proceeds of such Bonds following the
publication of a notice of the Hearing(the"Notice");and
WHEREAS, the Hearing Officer has presented a report to the Commission to the
effect that the Hearing and the Notice complied with Section 147(f)of the Code; and
WHEREAS,the Hearing Officer recommends and requests that the Commission give
the approval required by Section 147 of the Code.
NOW,THEREFORE,BE IT RESOLVED by the Augusta-Richmond Commission,as
follows:
1. The issuance of the Bonds and the Projects are hereby approved to the extent
required by Section 147(f) of the Code,as follows:
(a) The Projects are described above and each of the components of the Projects
will be located at the address listed above;
(b) The Projects will be owned by the Board of Regents or AUMC, and the
Projects will be operated by AUMC; and
(c) The maximum amount of Bonds that will be issued is$230,000,000.
2. This approval is solely for the purposes of complying with Section 147(f)of
the Code. This approval does not constitute an endorsement to a prospective purchaser of the Bonds
or of the creditworthiness of AUHS. This approval shall not result in or impose any pecuniary
liability on the part of Augusta, Georgia.
2
Adopted and approved this 18th day of September,2018.
AUGUSTA-RICHMOND COUNTY
COMMISSION
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By:
Mayor
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CLERK'S CERTIFICATE
STATE OF GEORGIA
COUNTY OF RICHMOND
The undersigned Clerk of the Augusta-Richmond County Commission (the
"Commission"),DOES HEREBY CERTIFY that the foregoing pages constitute a true and correct
copy of the resolution adopted by the Commission on September 18,2018 at a meeting which was
duly called and at which a quorum was present and acting throughout,authorizing the issuance up to
$230,000,000 in aggregate principal amount of Development Authority of Augusta, Georgia
Revenue Bonds (AU Health System, Inc.) Series 2018,that the original of said resolution is duly
recorded in the Minute Book of the Commission,which Minute Book is in my custody and control,
and that said resolution was duly adopted by a vote of:
Aye fo Nay ® Abstain 0
WITNESS my hand and the official seal of Augusta, Geor ihs 18t day of
September,2018. 'TN�`� � --
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