HomeMy WebLinkAboutR2013-024S:Iegal\Our Documenls \Rcsolutions \13\GaodSamarilan- Resolution — OCS changes.dou
RESOLUTION NOP%-2013-024
A RESOLUTION APPROVING THE ISSUANCE OF REVENUE BONDS BY THE
COLORADO HEALTH FACILITIES AUTHORITY ON BEHALF OF THE EVANGELICAL
LUTHERAN GOOD SAMARITAN SOCIETY IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $115,000,000; RECOGNIZING THAT THE CITY OF DENTON IS NOT
RESPONSIBLE FOR ISSUING THE REVENUE BONDS AND HAS NO FINANCIAL
OBLIGATION TO PAY ANY PRINCIPAL OF OR INTEREST ON THE REVENUE BONDS;
MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas (the "City ") is a duly organized and validly existing
municipal corporation under the laws and Constitution of the State of Texas; and
WHEREAS, The Evangelical Lutheran Good Samaritan Society (the "Society "), a North
Dakota nonprofit corporation, owns and operates two long -term healthcare facilities, including
related senior housing facilities, within the boundaries of the City; and
WHEREAS, the Society wishes to issue Revenue Bonds (the "Bonds ") in an amount not to
exceed $800,000 that will be used to finance the acquisition, construction, improvement and
equipping of skilled nursing facility upgrades at the Good Samaritan Society — Lake Forest
Village, located at 3901 Montecito Drive, Denton, Texas, 76201 -5557 (the "Project "). The
remainder of the proceeds of the Bonds will be used to (i) finance and refinance the cost of the
acquisition, construction, improvement and equipping of certain skilled nursing facility and other
health care and senior living facility improvements of the Society in various locations outside of
the State of Texas, (ii) refund certain outstanding bonds of the Society which financed capital
projects outside of the State of Texas, (iii) establish a reserve fund for the Bonds, and (iv) pay
certain costs of issuing the Bonds; and
WHEREAS, the Society has proposed that the moneys to fund the Project come from the
proceeds of the Bonds to be issued by the Colorado Health Facilities Authority (the "Colorado
Authority ") in a multi -state offering authorized by Colorado state law; and
WHEREAS, such multi -state offering is economically efficient and cost - saving for the
Society, thereby reducing operating costs for the Society and therefore tending to reduce the
necessity for increases of charges at its Denton facilities, thereby benefiting the residents of the
City; and
WHEREAS, the Bonds will be payable solely from revenues of the Society, and the City
will have no obligation whatsoever for payment of the Bonds; and
WHEREAS, as a prerequisite for the issuance of the Bonds by the Colorado Authority, a
public hearing was held within the City at the Good Samaritan Society — Lake Forest Village on
August 15, 2013 after publication in the Denton Record Chronicle of a Notice of Public Hearing
(the "Notice "), NOW, THEREFORE,
S:U.egahOur Da menls lResolutions1131GoodSamarimn- Resolution — GCS chang -d-
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by
reference into the body of this Resolution as if fully set forth herein.
SECTION 2. The City of Denton hereby approves the issuance of the aforesaid Bonds by
the Colorado Authority in an aggregate principal amount not to exceed $115,000,000 for the
Society, and further approves the Project as described in the Notice relating to the public hearing
for the Bonds, and such approval shall be solely for the purposes of Section 147(f) of the Internal
Revenue Code of 1986 and the City shall have no liabilities for the payment of the Bonds nor shall
any of its assets be pledged to payment of the Bonds.
SECTION 3. Further, it is recognized by the City that the instruments which authorize the
issuance of bonds, notes or obligations by the Colorado Authority will specifically state that the
City is not obligated to pay the principal of or interest on the bonds, notes or obligations proposed
to be issued by the Colorado Authority. Nothing in this resolution shall be construed as an
indication by the City that it will pay or provide for the payment of any obligations of the said
Colorado Authority whether theretofore or hereafter incurred; and in this connection, attention is
called to the Constitution of the State of Texas, wherein it is provided that a City may incur no
indebtedness without having made provisions for its payment, and the City Council of the City
hereby specifically refuses to set aside any present or future funds, assets or money for the
payment of any indebtedness or obligation of the Colorado Authority.
SECTION 4. This Resolution shall become effective immediately, upon its passage.
PASSED AND APPROVED this the
ATTEST:
JE IFER WALTERS, ITY SECRETARY
BY:
APP ED A-PrO LEGAL FORM:
ANITA BURGESS, CATTY ATTORNEY
BY:
day of AWLA 2013.
r /
ARK A. B O I GHS, MAYOR