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HomeMy WebLinkAboutMO #3079MUNICIPAL ORDER NO. 3079 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 fall force and effect from and after the date of its adoption. tBray, Mayor A�T: ri dsa� City lerk Adopted by the Board of Commissioners, July 22, 2025 Recorded by Lindsay Parish City Clerk, July 22, 2025 MO\Baptist Health Bonding Certificate of Approval No. 2 - 2025 CERTIFICATE OF APPROVAL BY THE MAYOR OF THE CITY OF PADUCAH, KENTUCKY OF THE ISSUANCE OF BONDS BY THE KENTUCKY BOND DEVELOPMENT CORPORATION FOR THE BENEFIT OF BAPTIST HEALTHCARE SYSTEM, INC. WHEREAS, Kentuckiana Sustainable Energy Partners LLC, a Delaware limited liability company and a disregarded entity (the "Borrower"), the sole member of which is Genesis Capital Finance Corporation, a Delaware 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 accordance with Chapter 103 of the Kentucky Revised Statutes in an aggregate principal amount up to $450,000,000 (the "Bonds"); and WHEREAS, the Borrower will transfer all or a portion of the proceeds of the Bonds to Baptist Healthcare System, Inc. ("Baptist Health"), a Kentucky not-for-profit corporation and an organization described in Section 501(c)(3) of the Code, and the Borrower or Baptist Health will use the proceeds of the Bonds to (1) pay or reimburse the prior payment of all or a portion of the costs of acquiring, constructing, renovating, equipping, or otherwise implementing certain energy- related improvements at certain Baptist Health hospitals and other healthcare facilities (collectively, the "Energy Projects"), as further described in the public hearing notice attached as Exhibit A hereto (the "TEFRA Notice"); (2) to pay or reimburse the prior payment of all or a portion of the costs of acquiring, constructing, renovating, equipping, or otherwise improving certain Baptist Health hospitals and other healthcare facilities, as further described in the TEFRA Notice (collectively, the "Non -Energy Projects" and together with the Energy Projects, the "Projects"); (3) pay interest on the Bonds as permitted by the Code; (4) pay or reimburse the prior payment of certain costs of issuing the Bonds; and WHEREAS, the TEFRA Notice describes the portion of the Projects located within the jurisdictional boundaries of the City of Paducah, Kentucky (the "Paducah Projects") and the maximum amount of the Bonds to be used to finance the costs of the Paducah Projects; and WHEREAS, Baptist Health will own and use the Paducah Projects as described in the TEFRA Notice; and WHEREAS, Section 147(f) of the Code requires a public approval for the Bonds, given that the Bonds will be issued as qualified 501(c)(3) bonds, and the City of Paducah, Kentucky (the "City") must approve the Bonds given that 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 regarding the plan of financing for the Bonds and the Projects; 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 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 hereby certifies as follows: 1. I am the Mayor of the City, being its chief elected executive officer, and I am duly empowered to execute this certificate. 2. I have been informed of the purposes for which the Bonds are proposed to be issued and that the Issuer, at 10:00 a.m. Eastern Standard Time on July 28, 2025, held a public hearing via toll-free telephone, at which time interested individuals were provided a reasonable opportunity to express their views, both orally and in writing, on the plan of financing for proposed issuance of the Bonds for the Projects. 3. Attached hereto as Exhibit B, and made a part hereof by reference, is a copy of an Affidavit of Publication which reflects that the TEFRA Notice was published not less than seven days before the scheduled date of the public hearing in THE PADUCAH SUN, which is in general circulation in the City. A-1 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 over the area in which the Paducah Projects are located, the plan of financing for the issuance of Bonds by the Issuer in one or more series for the Paducah Projects, as set 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 (including the Paducah 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: July 28, 2025. FEW CITY OF PADUCAH, KENTUCKY IN Mayor