HomeMy WebLinkAboutItem 04 - Baylor Medical Center at GrapevineA resolution concerning the use of proceeds of bonds issued by the North Central Texas Health Facilities Development Corporation
for the benefit of Baylor Medica Center at Grapevine
BAYLOR
Regional Medical Center
at Grapevine
AMBASIM.
Mr. Bruno Rumbelow
City Manager
City of Grapevine
Post Office Box 95104
Grapevine, Texas 76099
Laura J. Lycan
President
1650 West College Street
Grapevinejexas 76051
(817) 329-2500 Direct Line
(817) 481-2962 Fax
lauraly@BaylorHealth.edu
SUBJECT: BOND SALE FOR BAYLOR REGIONAL m[EDICAL CENTER AT
GRAPEVINE'S CAPITAL 1WROVEMENTS
k - -
r"Vara 0 meeting with you on April 4, 2006, to present our financing plans and
to answer any questions you may have about projects at Baylor Regional Medical Center at
Grapevine that will be financed with bond proceeds.
In May, 2006, Baylor Health Care System intends to issue approximately $225 million of tax-
exempt debt through the North Central Texas Health Facilities Development Corporation
(NCTliTDC). Seventy-five million will be used to refinance outstanding higher rate debt, and
$150 million is earmarked for new qualifying projects.
The new money portion of the financing will be used to help Baylor Health Care System and its
community health facilities fund a variety of projects in Dallas and Tarrant Counties, including
projects on the Baylor Regional Medical Center at Grapevine campus. Growth and maintenance
needs will require that Baylor Regional Medical Center at Grapevine spend almost $200 million
over the next five years, including expansion of our Emergency Department, finish out of new
patient floors in existing towers, and the potential for additional building construction to meet a
growing population base.
In regards to this planned financing, projects being contemplated for funding include:
* $9.3 million for renovation and expansion of the Emergency Department
* $6.8 million to finish out the 5th floor of the new patient tower
$9.5 million to add and finish out the 5th and 6th floors of the old patient tower
Other potential renovations, construction and equipment as plans are developed.
Mr. Bruno Rumbelow
-C- r-qj,
Page 2
March 27, 2006
Your consent to this financing will allow Baylor Regional Medical Center at Grapevine to
continue to grow and to serve the Grapevine population. We appreciate your consideration and
Ih
look forward to meeting with you at the City of Grapevine Council meeting on April 4
President
W
FULBRIGHT & J L.L.P.
A REGISTERED LIMITED LIABILITY PARTNERSHIP
FULBRIGHT TOWER
1301 McKINNEY, SUITE 5100
HOUSTON, TEXAS 7 7 01 0-309 5
WWW.FULBRIGHT.COM
JECKERT(9?FULBRIGHT.COM TELEPHONE: (713) 6551-5151
DIRECT DIAL: (713) 651-5622 FACSIMILE: (713) 651-5246
Mr. Bill Gaither
Director of Administrative Services
City of Grapevine, Texas
Thank you for taking the time to visit with me last Friday. Enclosed for your reference is
a draft of the resolution we propose for adoption in connection with the 2006 financing by the
North Central Texas Health Facility Development Corporation ("NCTHFDC").
State law allows counties, cities and hospital districts to establish health facilities
development corporations to issue bonds for the benefit of, among others, charitable hospitals.
Baylor Health Care System and its affiliate, Baylor Medical Center at Grapevine, are eligible for
this type of financing.
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NCTHFDC will loan the bond money to Baylor Health Care System, which will then
distribute the money among various affiliates, including Baylor Medical Center at Grapevine.
State law requires that NCTHFDC must obtain the consent of the City of Grapevine, the Tarrant
County Commissioners Court and the Tarrant County Hospital District to the use of that bond
money for a project in Grapevine. The statute that imposes the requirement is Health Facilities
#• Act, Chapter 221.030, Texas Health and Safety Code.
Please note that Section 3 of the proposed resolution specifies that the resolution is not to
be construed as an undertaking of the City of Grapevine and that the bonds will not constitute an
obligation of the City of Grapevine. Additionally, the bonds will be approved by the Attorney
General of the State of Texas, providing further assurance that all legal procedures will be
correctly followed.
HOUSTON ® NEW YORK - WSHINGTON DC . (AUSTIN - DALLAS - Los ANGELES ® MINNEAPOLIS - SAN ANTONIO
DUSAI o HONG KONG • LONDON v MUNICH o RIYADH
Mr. Bill Gaither
March 8, 2006
Page 2
We request that the enclosed resolution be put on the agenda for the City Council
meeting scheduled for April 4, 2006. A representative from Fulbright and Jaworski L.L.P. and
from Baylor Health Care System plan to attend the meeting to answer any questions that may
arise.
Upon adoption and execution by the City, we ask that you please return four originally
executed copies to us. We appreciate your assistance in this matter. Please let me know if you
have any questions.
/-V�e truly yours,
osel.Eckert
•
cc: Mr. John Miller (Baylor Health Care System)
Mr. Fredric A. Weber (firm)
Mr. John C. Boehm, Jr. (firm)
45726551.1
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RESOLUTION NO,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, CONCERNING THE USE OF THE
PROCEEDS OF BONDS ISSUED BY THE NORTH CENTRAL
TEXAS HEALTH FACILITIES DEVELOPMENT
CORPORATION FOR THE BENEFIT OF BAYLOR
REGIONAL MEDICAL CENTER AT GRAPEVINE AND
OROVIDING AN EFFECTIVE DATE
TT'HEREAS, the North Central Texas Health Facilities Development Corporation (the
"Issuer") was created by Dallas County, Texas, pursuant to the provisions of the Health
Facilities Development Act, Chapter 221, Texas Health and Safety Code (the "Act"); and
WHEREAS, it has been proposed that the Issuer issue its limited obligation hospita
revenue bonds (the "Bonds") and it the proceeds to Baylor Health Care System, a
Texas non-profit corporation, to finance and refinance certain costs of acquisition,
improvement, construction, equipping and furnishing (the "Costs") a health facility which
is located within the territorial limits of the City of Grapevine, Texas (the "City"), namely
Baylor Regional Medical Center at Grapevine (the "Facility"); and
WHEREAS, the City is a "sponsoring entity" within the meaning of the Act,- and
WHEREAS, under the Act, use of the proceeds of 1k to pay the Costs of the
Facility which is located outside the limits of Dallas County, Texas, and within the limits
of the City, requires the consent of the City's governing body (the "City Council"); and
WHEREAS, it is deemed necessary and advisable that this Resolution be adopted.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That this Resolution is adopted for the purpose of satisfying the
conditions and requirements of Section 221.030 of the Act.
Section 2. That the City hereby consents, within the meaning of Section 221.030
of the Act, to the use by the Issuer of the proceeds of the Bonds to finance and refinance
the Costs of the Facility.
Section 3. That this Resolution is not to be construed as an undertaking by the
City, and the Bonds shall never constitute an indebtedness or pledge of the City within the
meaning of any constitutional or statutory provision, and the owners of the Bonds shall
never be paid in whole or in part out of any funds raised or to be raised by taxation or any
other revenues of the City.
Section 4. That the Mayor, City Secretary, each member of the City Council and
the City Manager are hereby authorized, jointly and severally, to execute and deliver such
endorsements, instruments, certificates, documents, or papers as are necessary or
advisable to carry out the intent and purposes of this Resolution.
Section 5. This Resolution shall take effect immediately from and after its
adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 4th day of April, 2006.
"190-1XV39M
RES. NO. 2