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HomeMy WebLinkAboutMO #3001MUNICIPAL ORDER NO. 3001 A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO EXECUTE THE CERTIFICATE OF APPROVAL FOR A PLAN OF FINANCING FOR THE ISSUANCE OF BONDS BY THE KENTUCKY BOND DEVELOPMENT CORPORATION FOR THE BENEFIT OF BAPTIST HEALTHCARE SYSTEM, INC. AND ITS AFFILIATES BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Mayor is hereby authorized to execute a certificate of approval and all other documents necessary for a Plan of Financing for the issuance of bonds by the Kentucky Bond Development Corporation for the benefit of Baptist Healthcare System, Inc. and its affiliates. SECTION 2. This Order will be in full force and eAct from and after the date of its adoption. George P. Bray, Mayor ATTEST: mdsay Parish 10ity Cleric Adopted by the Board of Commissioners, January 13, 2025 Recorded by Lindsay Parish City Clerk, January 13, 2025 MO\Baptist Health Bonding Certificate of Approval 2025 CERTIFICATE OF APPROVAL BY THE MAYOR OF THE CITY OF PADUCAH, KENTUCKY OF A PLAN OF FINANCING FOR THE ISSUANCE OF BONDS BY THE KENTUCKY BOND DEVELOPMENT CORPORATION FOR THE BENEFIT OF BAPTIST HEALTHCARE SYSTEM, INC. AND ITS AFFILIATES WHEREAS, Baptist Healthcare System, Inc. (the "Borrower"), a Kentucky nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has requested the Kentucky Bond Development Corporation (the "Issuer") to issue one or more series of revenue bonds in an aggregate principal amount up to $500,000,000 (the "Bonds"), and to use the proceeds of the Bonds to finance, refinance, or reimburse a portion of the costs of the purchase, acquisition, construction, enlargement, remodeling, renovation, improvement, furnishing, or equipping of the hospitals, other health facilities and their related facilities, including land, owned and operated by the Borrower or Baptist Health Medical Group ("BHMG"), an affiliate of the Borrower and an organization described in Section 501(c)(3) of the Code, all located within the Commonwealth of Kentucky; and WHEREAS, the portion of the facilities to be financed by the Bonds located within the jurisdictional boundaries of the City of Paducah, Kentucky (the "City") and the maximum principal amount of Bonds to be issued for such facilities (collectively, the "Project'), are as follows: Construction, renovation and equipping of improvements to Baptist Health Paducah, generally located at 2501 Kentucky Avenue, Paducah, McCracken County, Kentucky, including, but not limited to, improvements to the imaging department ($3,000,000 maximum principal amount) WHEREAS, the Project will be owned and principally used by the Borrower or BHMG; and WHEREAS, the Issuer will issue the Bonds as qualified 501(c)(3) bonds under the Code, and under Section 147(f) of the Code, the issuance of qualified 501(c)(3) bonds must be approved by the governmental unit having jurisdiction over the area in which any facility financed with the proceeds of bonds is located; and WHEREAS, the Mayor of the City is the chief executive officer of the City elected at large and is thereby an "applicable elected representative" permitted to approve the Bonds under Section 147(f) of the Code; and WHEREAS, under Section 147(f) of the Code, the Issuer has, following due notice, held a public hearing, through a duly appointed hearing officer, regarding the plan of financing for the Bonds and the Project; and WHEREAS, the Bonds will be special and limited obligations of the Issuer payable solely from certain revenues duly pledged therefor and generally representing amounts paid by the Borrower and BHMG, and the principal of and interest on the Bonds will not constitute obligations of the Commonwealth of Kentucky or any political subdivision thereof, including the City. NOW, THEREFORE, the undersigned, being the chief executive officer of the City, the governmental unit over the area in which the Project to be financed with the proceeds of the Bonds is located, hereby certifies as follows: 1. I am the Mayor of the City, the chief elected executive officer of the City, and have been duly empowered to execute this certificate. 2. I have been informed of the purpose, as set forth above, for which the Bonds are proposed to be issued and that the Issuer, at 10:00 a.m. (Eastern Standard Time) on January 10, 2025, held a public hearing via toll-free telephone, at which time interested individuals were provided a reasonable opportunity ity to express their views, both orally and in writing, on the plan of financing for proposed issuance of the Bonds for the Project. 3. Attached hereto as Exhibit A, and made a part hereof by reference, is evidence that notice of the public hearing was published not less than seven days before the scheduled date of the public bearing in the Paducah Sun, which is in general circulation in the City. 4. For the purpose of complying with the requirements of Section 147(f) of the Code with respect to approval by an applicable elected representative of the governmental unit having jurisdiction -2- over the area in which the Project is located, the plan of financing for the issuance of Bonds by the Issuer in one or more series for the Project in the City, asset forth above, is hereby approved; provided, however, that in no event shall the City, the Commonwealth of Kentucky, or any other political subdivision thereof be liable for such Bonds, nor shall the Bonds constitute a debt of the City, the Commonwealth of Kentucky, or any other political subdivision thereof. This approval is made solely for the purpose of satisfying Section 147(f) of the Code and shall not be deemed to constitute an approval of the projects financed by the Bonds for any other purpose of the City. 5. The execution and delivery of this approval shall not be construed to impose any liability or responsibility, financial or otherwise, upon the City, and this approval is issued solely as an accommodation by the City to satisfy the requirements of Section 147(f) of the Code. Dated: January 11, 2025. -3- CITY OF PADUCAH, KENTUCKY Mayor EXHIBIT A TO CERTIFICATE OF APPROVAL PROOF OF PUBLICATION (See attachment) A-1