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To express the concurrence of the Council with the inducement resolution adopted by the Economic Development Authority of Henrico County and to approve the issuance of revenue bonds in an amount not to exceed $15,000,000 for the benefit of Bon Secours Mercy Health, Inc. and Richmond Community Hospital.
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WHEREAS, Bon Secours Mercy Health, Inc. is a Maryland nonstock nonprofit membership corporation, and which has facilities located in the City of Richmond including Richmond Community Hospital located at 1500 North 28th Street; and
WHEREAS, on January 16, 2025, the Economic Development Authority of Henrico County adopted an inducement resolution (the “Inducement Resolution”), a copy of which is attached to this resolution and entitled Attachment A, relating to the issuance of its Health Facilities Revenue Bonds (Bon Secours Mercy Health, Inc.) (the “Bonds”) in one or more series to, among other things, (i) finance or refinance the costs of certain capital expenditures, including the acquisition, construction, equipping, expansion, enlargement and improvement of certain hospital facilities, including reimbursement, (ii) pay a portion of the interest on the Bonds, if deemed necessary, (iii) establish one or more debt service reserve funds, if deemed necessary, and (iv) pay certain expenses incurred in connection with the issuance of the Bonds (collectively, the “Financing Purposes”), all pursuant to a master financing plan for certain health care facilities affiliated with Bon Secours Mercy Health, Inc., which plan includes the above-described financing by the Economic Development Authority of Henrico County for the benefit of Bon Secours Mercy Health, Inc. and its nonprofit affiliates, including Richmond Community Hospital; and
WHEREAS, the portion of the Bonds to be issued for the benefit of the Richmond Community Hospital facilities shall not exceed $15,000,000; and
WHEREAS, the Bonds will be issued pursuant to the Virginia Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as amended (the “Act”), and will be limited obligations of the Economic Development Authority of Henrico County payable solely from the revenues and receipts derived from payments provided by Bon Secours Mercy Health, Inc.; and
WHEREAS, the facilities of Richmond Community Hospital to be financed or refinanced are located within the boundaries of the City of Richmond, which, pursuant to the Act, has created the Economic Development Authority of the City of Richmond; and
WHEREAS, Section 15.2-4905 of the Act permits the issuance of the Bonds by the Economic Development Authority of Henrico County for the benefit of Bon Secours Mercy Health, Inc. and its nonprofit affiliates, including Richmond Community Hospital, if the Council concurs in the Inducement Resolution adopted by the Economic Development Authority of Henrico County; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), provides that an “applicable elected representative” of the governmental unit having jurisdiction over the area in which any facility financed or refinanced with the proceeds of the Bonds is located must approve the issuance of the Bonds in order for the interest on the Bonds to be entitled to certain exemptions from taxation provided by the Code, and the City Council of the City of Richmond, as elected legislative body, constitutes such applicable elected representative within the meaning of the Code; and
WHEREAS, on February 27, 2025, pursuant to the requirements of Section 147(f) of the Code and the Act, the Economic Development Authority of the City of Richmond held a public hearing concerning the proposed issuance of the Bonds; and
WHEREAS, on February 27, 2025, the Economic Development Authority of the City of Richmond adopted a resolution approving the issuance of the Bonds by the Economic Development Authority of Henrico County and recommending that the City Council of the City of Richmond concur in the Inducement Resolution of the Economic Development Authority of Henrico County and approve the issuance of the Bonds by the Economic Development Authority of Henrico County to comply with Section 147(f) of the Code and Section 15.2-4905 of the Act; and
WHEREAS, a copy of the Economic Development Authority of the City of Richmond Resolution and a Summary of the statements expressed at the public hearing have been filed with the Council;
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
1. The recitals made in the preamble to this Resolution are hereby adopted as a part of this resolution.
2. The Council hereby approves the issuance of the Bonds by the Economic Development Authority of Henrico County for the benefit of Bon Secours Mercy Health, Inc. and its nonprofit affiliates, including Richmond Community Hospital, and concurs in the Inducement Resolution adopted by the Economic Development Authority of Henrico County for all purposes for which such concurrence and approval is required, including without limitation, Section 147(f) of the Code and Section 15.2-4905 of the Act.
3. The approval of the issuance of the Bonds, as required by Section 147(f) of the Code, and the concurrence in the Inducement Resolution adopted by the Economic Development Authority of Henrico County as required by Section 15.2-4905 of the Act, does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of Bon Secours Mercy Health, Inc., nor does it constitute indebtedness of or a pledge of contributions from the City of Richmond or the Economic Development Authority of the City of Richmond. Neither the faith and credit nor the taxing power of the City of Richmond is pledged to the payment of the principal or interest on such Bonds or any other costs related thereto. Neither the Economic Development Authority of the City of Richmond nor the City of Richmond nor any of their representatives, commissioners, officers or employees shall have any liability for or related to the Bonds.
4. The City Clerk is hereby instructed to forward a copy of this resolution to the Economic Development Authority of the City of Richmond, the Economic Development Authority of Henrico County and representatives of Bon Secours Mercy Health, Inc.
5. This Resolution shall take effect on the date of its adoption.