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RESOLUTION NO. R2O15 -017
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 $4,200,000; 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 aggregate
principal amount not to exceed approximately $300,000,000. A portion of Bond proceeds in a
principal amount not to exceed $4,200,000 will be used for the acquisition, construction,
improvement and equipping of home health agency operations in the City of Denton, Texas at
ARC Home Healthcare, 2277 Masch Branch Rd., Denton, TX 76207 (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 City of Denton, (ii) refund certain outstanding bonds of the Society which financed capital
projects outside of the City of Denton, (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 (the "Bonds "); 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 2277 Masch Branch Rd., Denton, TX 76207, on June
11, 2015 after publication in the Denton Record- Chronicle of a Notice of Public Hearing (the
"Notice "), and a report on the hearing has been presented to the City Council; NOW,
THEREFORE,
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s: \legal \our documents \resolutions \15 \society 2015 tefra resolution - denton texas.docx
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 hereby approves the issuance of the aforesaid Bonds by the
Colorado Authority in the maximum aggregate principal amount of $4,200,000 for The
Evangelical Lutheran Good Samaritan 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 day of� _�� , 2015.
CHRIS NVA° 'I'S, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ..9.
AIIPI1 (Y AS " `O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
2
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