Res 1842 - Hospital Facility Bonds
COUNCIL BILL NO. 2644
RESOLUTION NO. 1842
A RESOLUTION Of THE CITY COUNCIL Of THE CITY Of WOODBURN, OREGON APPROVING
THE ACTIONS OF THE BOARD Of DIRECTORS OF THE HOSPITAL FACILITY AUTHORITY OF THE
CITY OF SILVERTON, OREGON; AND RELATED MAnERS.
WHEREAS, the City Council of the City of Woodburn, Oregon makes the following
findings based on representations made by the Hospital Facility Authority of the City of
Silverton, Oregon {the "Authority"} and Silverton Hospital, a nonprofit corporation
organized and existing under the laws of the state of Oregon (the "Borrower"):
A. The Authority has received a request from the Borrower to issue a Health
facilities Revenue Note {Silverton Hospital Project}, Series 2006 {the "2006 Bond"}, in a
principal amount not exceeding $11,000,000 to finance or refinance the costs of the
following projects: (i) to refund all or a portion of the Authority's Promissory Note, Series
A (Silverton Hospital Project). dated December 29, 2000 and originally issued in the
aggregate principal amount of $10.000.000; (ii) to finance the costs of the acquisition of
equipment, software and other intellectual property to provide and support patient
care at Silverton Hospital and at the Tukwila Center for Health and Medicine and the
Wellspring Medical Center; and (iii) to pay certain costs of issuance relating to the 2006
Bond (collectively, the "Project").
B. Section 147 of the Internal Revenue code of 1986 (the "Code"). requires
that qualified 501 (c}(3) bonds, such as the 2006 Bond, be approved (1) by the
applicable elected representatives of the governmental unit having jurisdiction over
the area in which Project is located; and (2) by the applicable elected representatives
of the governmental unit issuing such bonds. The proposed Projects are located inside
the municipal boundaries of the Cities of Woodburn and Silverton, Oregon. As a result,
the Cities of Woodburn and Silverton, Oregon must each approve of the issuance of
the 2006 Bond by the Authority.
C. On September 27, 2006 the Authority adopted a Bond Resolution
approving the issuance of the 2006 Bond and the loan of the proceeds to the Borrower.
D. The Authority conducted a public hearing on September 27, 2006
regarding the issuance and sale of the 2006 Bond. A copy of the Public Hearing Report
is attached hereto as Exhibit A (the "Public Hearing Report"). Notice of the public
hearing was pUblished in the Silverton Appeal and the Woodburn Independent on
September 13. 2006. Affidavits of publication are attached hereto as Exhibit B. The
public hearing is intended to provide a reasonable opportunity for members of the
publiC to be heard by the Authority regarding the Project.
E. The Authority and the Borrower have requested that the City Council
approve the issuance of the 2006 Bond by the Authority to satisfy the public approval
requirements of Section 147(f) of the Code.
Page 1 - COUNCIL BILL NO. 2644
RESOLUTION NO. 1842
...
F. The City Council has been advised by bond counsel to the Authority that
the principal of and interest on the 2006 Bond will not constitute a debt of the City of
Woodburn, Oregon, and the Authority will structure the 2006 Bond so that the 2006
Bond will not be payable from a tax of any nature levied upon any property within the
City of Woodburn, Oregon or any other political subdivision of the state of Oregon. The
2006 Bond will be payable only from the revenues and resources provided by the
Borrower.
G. The City has reviewed the Affidavits of Publication and the Public Hearing
Report attached hereto as Exhibit A. The Public Hearing Report indicates that no written
comments were received and no members of the public appeared at the public
hearing to express their views on the proposed Project.
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
The City Council hereby approves of the issuance, sale, execution and delivery
of the 2006 Bond by the Hospital Facility Authority of the City of Silverton, Oregon for
purposes of Section 147 of the Code.
This Resolution shall take effect immediately upon its adoption by the City
Council.
City Attorney
Approved as to form:
?7.CYa~
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
11,
Filed in the Office of the Recorder
ATTEST: !!1
Mary T e~ant City Recorder
City of Woodburn, Oregon
October 11. 2006
Page 2 - COUNCIL BILL NO. 2644
RESOLUTION NO. 1842
-
BXHlBlT A.
REPORT TO THE CITY COUNCIL
OF THE CITY 0. WOODBURN. OJtEGON
1m: Public Hc.cu, It.epIdifta the
HOlpini FKmty Authority of die a" 01 SDveftOD, Oteeoe
H.eaIIb. Pac:i1itia 1lcveaue Note
(SiIYtttoo Ho.pitaI Pmfect)
Saia ~
OIl Slptanber 1.7. 2006. the !oud of Directoa of the Hospitsl ~ Autho.rity of the
City of Silvettl:lft, Otepl (me "AutboUty") bckl a p\IbK harina at Si1venoo Holpitll, eafe
Contenoc:e loom. 342 Fainiew Street. Silvutoa, Otegoa 97381 punu&ftt to the prcwiaiou of
Scc:tioD 147(~ of the lcltea2al RcYeoue Code of 1986. Tbe Seaetuy ot tbt. Board of Ditectors DE
!hit Authodty c:onducted IUCh haq m.c and 04 behalf of die Authority.
Notice oE tbc public hc:uins." ~bed Scptcmb<< 13, 2006 in SiIwrlIIIf .AppuJ lAd the
"'...... r".,."tIMI. n.. purpoee of the public heaI:iDg '\VIS to R:ceive on! 01: writtCG commcnlll
&om the public ~. the propoted iaumce, sale, execution 8I1d de1i'lUY of a Health Facl.1itiea
Reveauc No,- (Silvonon Hoepibl Pl:Ojecr), Saiea 2006 (the "2006 Hoodj, in . princ;qa.l &mOUDt
nat to cu.eed SU .000,000,
At 4:12 p.m. the Secretary convened the public: heuina Ind Wiuestt..d .11J o~ W writt:cA
comments.
No c:ownen" WIittd QC oa.L wac lubmit:ted to the Secrewy othe.t tbaa cOlntDen~ of
teprelel1rstiv.. of Ouick, Herrinston" Sutcliffe lLP, Bond Counsel UId Special CoUOMl to the
Autl1omy, and Silvutoll Hotpital who made pretentadoas in support of the 2006 Bond. At
appa:ndmttely 4:18 p.m. the public bcui.ag wu adjourned.
R.eapectEully submitted,.
HOSPITAL PAClUTY AUTHOlUTY OP
~%r?:
Sea:ctU)', Board oC DirectoD
DATED: So!pteDbe% 2:1, 2006.
EXijIB..rr B,-l
Affidavit of Publication
STATE OF OREGON,
ss.
County of Marion
I, Nichole Lee DeBuse, being first duly sworn. depose and
say I am General Manager, Woodburn Independent, a
newspaper of general circulation u defined by ORS
193.010, and 193.020 printed and published at Woodburn
in the aforesaid county and state, that the Notice of Public
Hearing, a printed copy of which is hereto annexed, was
published in the entire issue of said newspaper for the
following issues: September 13, 2006.
~ Ru .kL&~
Subscribed and sworn to before me this 13th
day of September, 2006
~_~_ Go, ~~.i_
Notary Public for Oregon
(My Commission Expires 9/12107)
-~....
(j _ OFFICIAl.. SEAL
MARIE C. BERNARD
, NOTARY PUBllC-OREGON
; '",' COMMISSION NO. 371289
. !If COMMISSION EXP1RES SEPTEMBER 12,2001
,'.- :~:-;.~
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www.wooo.u............HIIT.CO..
.....SDAy. APT..... t~ 20M
Legal Notices
NOTICE OF
PUBLIC HEARING
Authority of the City of Silverton,
Oregon (the "Issucr") of its Rev-
enue and Refundinl Bonds, Se-
ries 2006 (Silverton Hospital ~
jeet) in an aggregate principal
amount not to exceed
Sll.OOO,OOO (the "Bonds"). The
issuance of the Bonda is subject to
final approval by the Issuer and
approvals by the City Councils of
the cities of Silverton and Wood-
burn, Oregon.
The proceeds of the Bonds wiD
be used to make a loan to the Sit-
vetton Hospital (the "Borrower")
for the projects described below.
(1) RefundIng Componelll: An
amount not exceeding $4.500,000
to refund the Issuer's outstanding
Credit Agreement and Promissory
Note, Series A (Silvenon Hospital
Project), which fmanced or refi-
nanced construction, improve-
ment and equipping of the Bor-
rower's health care facilities and
related equipment (the "2000 Pro-
ject"), located at the Borrower's
campus at 342 Fairview Street.
Silvmon. Oregon 97381; and
(2) New Money COmpoMlIl: A
total amount not exceeding
$6,500,000 for the acquisition of
equipment, software and other in-
tellectual property to provide and
support patient care (collectively,
the "New Projects") at the follow-
ing locations: (a) Silverton Hospi-
tal located at 342 Fairview Street.
Silvenon. Oregon 97381; (b) Tuk-
wila Center for Health and Medi-
cine located at 690 Glatt Circle.
Woodburn, Oregon 97071; and
(c) Wellspring Medical Center.
. 1475 ML Hood A\'enue, Wood-
burn, Oregon 97071. Up to
$60500,000 of bonds may be is-
sued to fmance assets at eacb of
the locations indicated above, but
not more than S6,500,OOO in the
aggregate will be issued for the
three locations C<lllectively.
The Borrower will be the initial
owner of all assets financed and
refinanced by the Bonds.
Section 147(0 of the Internal
Revenue Code of 1986, as
amended, requires that the is-
suance of the Bonds be approved
by the applicable elected repre-
sentatives of (I) the governmental
unit issuing the Bonds and (2) the
governmental unit(s) having juris-
diction over the area in whi(:h the
Projecu are located. For the Is-
suer to issue the Bonds. it is nec-
essary that issuance of the Bonds
be approved by boch the City
Council of the City of Silverton,
Oregon, as the elccted rqxcsenta-
tivea of the governmental unit that
is both issuing the Bonds and a
governmental unit with jurisdic-
tion over the area in which the
2000 Project and a portion of the
New Projects arc located, and the
City Council of the City of Wood-
burn. OreiOn. as a governmental
unit having jurisdiction over the
area in which a portion of the
New Projects are located.
The principal of and intereit OIl
the Bonds wiD not constitute a
debt of the cities of Silnrton 01'
Woodburn. Oregon. nor shall the
Bonds be payable from a tax of
any nature levied upon any prop-
erty within the cities of Silvenon
or Woodburn. Oregon, nor within
any other political subdivision of
the State of Oregon. The Bonds
will be payable only from the rev-
enues and resources provided by
the Borrower.
The purpose of the public bear-
ing win be to provide a reason-
able opportunity for members of
the public to express their views,
orally or in writing, regarding the
issuance of the Bonds and the
uses and purposes of the proceeds
of the Bonds. The hearing wiD be
conducted in a manner that pro-
vides a reasonable opportunity for
persons with differing views to be
heard on the question of the is-
suance of the Bonds. Written
cOnUnenu also may be delivered
at the public hearing or mailed to
the Authority at the address indi-
cated above.
This notice is published pur-
suant to the public approval re-
quirements of Section 147(f) of the
Internal Revenue Code of 1986, as
amended and the regulations and
rulings issued thereunder.
HOSPITAL FACILITY
AUTHORITY OF THE CITY
OFSaVERTON,OREGON
Published September 13. 2006
in the Woodburn Independent and
The Silverton Appeal not less
than 14 days prior to the meeting
date.
September 27. 2006
4:00 p.m.
Silvertoo Hospital
Cafe Conference Room
341 Falnlew Street
SUverton, Orecon !n381
A public hearing will be held
011 Wednesday, September 21,
~. at 4;00 p.rn. at Sil\lcrton
Hospital. Cafe Conference Room.
342 Fairview Street. Silverton.
Oregon 97381. with respect to the
issuance by the Hospital Facility
, ..'
Septal..... 17, 10M
4;. ....
....... .......
C... c:..tenMe ......
3U ...... .....
SIhwtN, ana- mJl
~ public ..... will be hckI 011 ~ SCpanbar
III 4:00 p.... .. SilnrtaD ~ Cafe QJlo._
342 FIiniew .... S~ Orep mil. .
'. to dill -- '" dill HOIpitaIPIlllilil;.~ oI1IIe
City , .silvwtoa, ~ (die ~ of itI R.,.. ....
BaedI. s.n..3006 (Sl1v""'~ Project) is.
pribdpM imouat DOt .. aaed'Sll.ooo.ooo (tbe
, n........ ct.. .. ildja to ftaIllppl'OVal
... .,pronIa by the at, ('~... 01.. citiea of
S' 1DIl~ Orcp-. . .
'.' . -'. : ..., .: .:: '. " '. ....... .
1t.e~ fit.. BoodI wiiI '- .......... ."'.to
the stver- Hoephd: (dMt ~"'1'''' "'.'projlIcta
dcecrillcd. below.' '. . .
d)Itaa.6.a~~~ Aluma.'~aQUIl";~ '.
=..... ............ .......... .' ."...... :.._",.Cl'edIt.:. '. .
. . . .....~~s.ne.A(S~ .'
.. ~).~"""'or~~~
. . .. equjppq t)f.. Bol1oweI'I bedl c:a
. . 1IIIt.-...t~~ (dw"2OOQ Pioj~ IotWed
.. ~ Borrowen CIDIpU&._ 342 Fairvin ..... ~ilvertaa,.
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nD ~~.wliI>>'tba bUd!il ow-.:ot.ia ....
fiDaoca4"'~bytlAc.BoadL" " .'
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~147(t),;,...~~~9(1'_. ,
~ .....lbItdal........of........ _~.,w..,
dIo applicable cklcted ICp.c-iWi...a of 0) tW &tm:fnmcnIa1
UIIit lauIn,the BondIIIDd (2) the aovemiDeotal UDiI(I} baviol
;w ~ CMll' the .... ill wIricJJ the Ptojec:a. lie Ioeated. For
~~'~J"'~~J,~e"~""~tbe .
~ lie. ~ed bJi hoda Ilia cuY -~-~ i. cn;;c'
SiJvw1Iaia. 0Np.. .. .. ...... Rtn~"Q 01_ ~...
IIIIIIfal _k ..... bodl ~.. BondI ancl. pe.ddmQ!
uIliI"'~ 1Mr......hI wbtdI1be 2000 Project and
· -por-aa. oldie N_ PIojeo:ta _ IocaW; ....s .... CIty Council
~!b'.CIty ofWoodbum, Orep,.. JDYtIID1IentII UIlit havin,
JwiIdic:doe OVS' the _ ill which. pc:lI'tjon of the New Projects
are I~
'"'- PI'ind.... 01 met int.e.t OD the Bandt win DOt conati-
lUle . debt of tile cftfes of Silverton or Woodburn. On!a0ll, nor
W1J the Solidi bo ~Je Iha . to of any lJIhU'llft'/ed Upoa
any ~ widiba the croce ofSilvatoa or Woodburn. Oreaoa.
norwltNn any other political aubd1viaioa oflbe State ofOrcgoo.
The ~ncU wiJ/ be payable only &om the revenues and resource8
pnmdecl by the Borrower.
~a1tit of JubIltathm
STATE OF OREGON. }
Co""ty of Marion, sa.
I .. . Leala Thibeau.. .......... ............................ ..being Fint duly
sworn, dispose and say that I am the principal clerk of the East Valley
Newspapers, publisher of The Silverton Appeal, a newspaper of
general circulation as defined by OR S 192.0\ 0 and 193.0210; printed
and Published at Silverton in the aforesaid county and state; that the
RE: PUBLIC NOTICE - SIL VERTON HOSPITAL - Revenue
Bond Hearing
Sherrl Grave.
Ad II 1l31~;r
a printed copy of which is hereby annexed, was published in the entit.
issue of said newspaper for.........ONE........successive and
consecutive times in the following issues - September 13, 1006
y- o-J
~
Day of
2006
My Commission expires ~J ,t!:. -<: :<41.
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