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03/19/1985CLEARWATER HEALTH FACILITIES AUTHORITY March 19, 1985 The City of Clearwater Health Facilities Authority met in the Mayor's Conference Room, City Hall on Tuesday, March The following members were C. J. Wollett George Bouse, Jr. Ruth Condon Clinton Holden Frank George, Jr. Also present were: John Gray Emil C. Marquardt, Jr Spencer Kisby Grant Hurst Thomas Bustin Lucille 'Williams present: Chairman Vice - Chairman in special 19, 1985. session Administrator, Morton Plant Hospital Attorney for Morton Plant Hospital Finance Director, Morton Plant Hospital Director, Non - profit Hospital Venture Group City Attorney City Clerk The meeting was called to order at 4:33 p.m. by Chairman C. J. Wollett. He presented the minutes of the April 18, 1984 meeting which had been mailed to the members of the Authority. Upon hearing no corrections or additions, he declared the minutes approved. The Chairman read into the record the purpose of the meeting, which was to consider an interlocal agreement for joint participation with Orange County Health Facilities Authority for a pooled hospital loan program to finance the cost of qualifying projects or to refinance outstanding principal indebtedness of Morton Plant Hospital. E. C. Marquardt, Jr., Attorney for the Hospital, stated the Authority is not being asked to approve a bond issue. There is no financial or legal responsibility attached to this program. It is simply a matter of courtesy of the public agency in the county or municipality where the hospital is located to permit Morton F. Plant to enter into a program which, while sponsored by another Health Facilities Authority, would drastically reduce the cost to Morton F. Plant of financing its capital needs. This bond issue, in the amount of $94,000,000 by the Orange County Health Facilities Authority may be used to finance, refinance and reimburse the cost of qualifying projects for private non- profit hospitals located outside of Orange County. By signing the interlocal agreement, the Clearwater Health Facilities Authority finds that there is a need for financing and /or refinancing and that the municipality and county in which the hospital is located will be benefited therefrom. The two projects that Morton Plant would refinance are: 1) the Adler Building, on which $1,235,496 has been expended; and 2) the Witt Addition and Ambulatory Surgery unit, costing $3,989,257. Spencer Kisby distributed an exhibit which outlines in detail the estimated expenditures and the total proposed amount to be financed. The exhibit is attached for the record and includes land purchases and improvements, building iprovements and a proposed parking deck. The bond issue allows expenditures made after January, 1983, to be recovered by the participating hospital. The interest cost for the loan as of February 28, 1985 was 5.47 %. Artists renderings of the proposed and partially constructed projects were displayed. The Adler building has been completed. It included an additional 25,000 sq ft. and the renovation of additional space for laboratories. There are ancillary services on the second floor. The Witt Addition is finished but not occupied. This building contains seven stories and provided 24 private rooms, as well as extra meeting room space. The Ambulatory Surgery wing is under construction and projected completion date is June, 1985. He reported the hospital had recently purchased the Sheppard Dental Clinic and they are in the process of renovating the site. The proposed seven -story parking deck will have the capacity to park 1,000 employee cars. The current parking lots will b.3 ceveloped for additional buildings after the construction of the parking garage. The hospital will need $15,271,147 for all of the proposed construction and renovations, which they will be able to obtain through the interlocal agreement. He estimated the ambulatory surgery unit would be open in October and the estimated expenditure needed by that time. The building improvements for a number of projects should be completed in approximately one year. They are ready to file a certificate of need for the proposed parking deck and are awaiting approval for the certificate of need for a rehabilitation and behavioral center. A construction time -table is set and as areas are cleared, construction will commence. Mr. Marquardt reported this is a seven year program and approximately $20,000,000 has already been committed to various hospitals. This is not a bond issue, it is commercial paper which is issued for from 1 to 180 days. Discussion ensued on the $1.8 million bond issue the Authority had approved in 1982 for the acquisition of health care equipment. The bond issue has since been paid, without the City's knowledge, in September 1984. The Authority requested a letter from the hospital noting repayment of the debt. The Chairman expressed concerns on losing the support of local banks if this proposal is accepted. Mr. Marquardt stated there was no indication of opposition. Mr..Kisby noted the $7,654,075 will be drawn down immediately and placed with the local banks for investment purposes. The City Attorney stated Chapter 163 F.S. allows the Clearwater Hospital Facility Authority to enter into an interlocal agreement and that there would be no obligation to the City. Clinton Holden moved to enter into the interlocal agreement and that the appropriate officials be authorized to execute same. lotion was duly seconded and carried unanimously. Special thanks and best wishes were extended to City Attorney, Thomas Bustin, who is leaving the City to become County Attorney in Alachua County. Meeting adjourned at 5:20 p.m. I MORTON F. PLANT HOSPITAL PROPOSED BORROWINGS ORANGE COUNTY T.E.C.P. PROGRAM 3/19/85 ESTIMATED EXPENDED FUTURE ESTIMATED After 1/1/83 EXPENDITURES TOTAL MAJOR CONSTRUCTION PROJECTS Adler Building 41,235,496 $1,235,496 Witt Addition and Ambulatory Surgery 3,989,257 1,099,459 5,088,716 LAND AND IMPROVEMENTS Land Purchases and Improvements BUILDING IMPROVEMENTS PROPOSED PARKING DECK TOTAL * C.O.N Being prepared. 1,115,928 1,096,270 1,115,928 1,634,737 2,731,007 217,124 4,882,876 "5,100,000 $7,654,075 $7,617,072 415,271047 == = ==m =a:= :: = =auras: