Department: Resource Management
Staff Contact: Dianna Wright/Emily Vincent
Subject: Consideration of Ordinance No. 19-72 approving the issuance of health facility revenue bonds in the amount of $30,000,000 on behalf of Olathe Medical Center, Inc, Series 2019B (Medical Office Building project.)
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Item Description:
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Consideration of Ordinance No. 19-72 approving the issuance of health facility revenue bonds in the amount of $30,000,000 on behalf of Olathe Medical Center, Inc, Series 2019B (Medical Office Building project.).
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Summary:
The City has received a $30,000,000 health facilities revenue bond application from Olathe Medical Center, Inc. (Attachment A)
This project is related to the Series 2019A bonds that were issued earlier this year and included funding for the medical office project. The bonds will be issued to fund additional costs related to the medical office building project as well as miscellaneous capital improvements and refund Series 2017B previously issued.
It is intended that the interest on the bonds be exempt from federal and state income taxation.
A TEFRA (Tax Equity and Fiscal Responsibility) hearing will be held on November 6th.
Attached is the Ordinance (Attachment B) prepared by Gilmore & Bell, P.C. the City’s bond counsel, authorizing the issuance of the bonds and the execution of the lease agreement and the other documents related to the issuance of the bonds.
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Financial Impact:
All costs related to the issuance of the bonds will be paid by OMC.
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Action Needed:
Approve Ordinance No. 19-72
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Attachment(s):
Attachment A: Application Attachment B: Ordinance No. 19-72