HomeMy WebLinkAboutResolution 04-06 02/17/2004
RESOLUTION NO. 04-06
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A RESOLUTION DISSOLVING THE HOSPITAL FACILITY AUTHORITY
OF THE CITY OF SPRINGFIELD, OREGON
WHEREAS, on the 6th day of June 1977 the City Council of the City of Springfield, Oregon
adopted its Resolution No. 77-139 providing for a public hearing to determine the advisability of
creating a public authority for the purpose of providing hospital facilities; and,
WHEREAS, the public hearing was duly held before the Council on the 20th day of June 1977,
and all persons desiring to be heard in connection with the proposed creation of the authority did
appear and were heard; and
WHEREAS, on the 2th day of June 1977 the City Council of the City of Springfield adopted its
Resolution No. 77-169 creating, pursuant to ORS 441.525-0RS 441.595, a public authority to be
known as the "Hospital Facility Authority of the City of Springfield, Oregon" (Authority); and,
WHEREAS, since its creation the Authority has issued revenue bonds to finance hospital
facilities for McKenzie- Willamette Hospital (Hospital); and,
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WHEREAS, the most recent revenue bonds were issued on March 30, 1994 as the Refunding and
Equipment Revenue Bonds, Series 1994 (Bonds) which were used to advance refund bonds
issued in 1977 and 1989 and to provide funds for Information Management Systems for the
Hospital; and,
WHEREAS, in order to facilitate a joint venture between McKenzie- Willamette Hospital and
Triad Hospitals, Inc., (Triad) the Hospital requested the Authority to authorize the defeasance of
the bonds; and,
WHEREAS, after the transaction between the Hospital and Triad closed the existing hospital
facility will operate as a for-profit entity for which the assistance of the Authority would not be
appropriate; and,
WHEREAS, the Authority will continue to exist unless dissolved by the City of Springfield
pursuant to ORS 441.535(4); and,
WHEREAS, the final payments on the Bonds are due in February and August 2004; and,
WHEREAS, those final payments due on the Bonds in February and August 2004 were defeased
on September 29,2003, a Defeasance Escrow was established among the Authority, US Bank
National Association (Bank) as escrow agent and Hospital as borrower; and,
WHEREAS, the Bank in its Trustee's Defeasance Certificate stated that government obligations
. have been irrevocably deposited in an Escrow Deposit Account established in the Escrow
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Defeasance Agreement and that the Authority and the Hospital shall be released from any lien or
claim under the Bonds and the Hospital shall have no further obligation to make principal and
interest payments from any source except from the government obligations deposited in the
Escrow Deposit Account;
WHEREAS, the Authority has no bonds outstanding because all but the Bonds have been paid
and the Bonds are not outstanding because the Bonds have been defeased; and,
WHEREAS, the Authority has no other assets and liabilities.
NOW THEREFORE, based on the foregoing recitals the Common Council of the City of
Springfield hereby declares:
1. The Hospital Facility Authority of the City of Springfield, Oregon be and hereby is
dissolved.
2. This Resolution shall take effect upon enactment by the Council and approval by the
Mayor.
ADOPTED by the Common Council of the City of Springfield this 17th day ofFebruary2004,
by a vote of ~ for and ~ against.
Council President
APPROVED by the-Mayor of the City of Springfield this 17 thday OfFebruary2004.
~~
Mayor Cou . Presldent
ATTEST:
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City Rec~er
REVIEWED (1 ~1?P~OVED
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C!'~:':!CE or= CITY ATTC';-';'.;,,:'
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