Agenda Item 8EAGENDA ITEM # 8E
JANUARY 28, 2013
AGENDA ITEM N _
DATE:
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Proposed City of Atlantic Beach, Florida Healthcare Facilities Revenue
and Refunding Bonds (Fleet Landing Project), in an aggregate principal
amount not to exceed $46,000,000
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: January 18, 2013
STRATEGIC PLAN LINK: Not Applicable
BACKGROUND: Joshua A. Ashby, the Chief Executive Officer of the Naval Continuing
Care Retirement Foundation, Inc. has made application to the City to issue on its behalf, Florida
Healthcare Facilities Revenue and Refunding Bonds in the form of Industrial Development
Revenue Bonds conduit debt. The primary purpose of these bonds is to refinance at more
favorable rates the previous bonds issued by Atlantic Beach in 1999 and 2006. The will also use
a small amount to reimburse themselves for land purchased for the new maintenance facility.
It is understood that all costs associated with the issuance of the bonds will be the responsibility
of Borrower. The borrower will indemnify the City against any liabilities, claims and expenses
incurred by the City in any way relating to the issuance of the bonds.
Conduit financing is an arrangement whereby a city can issue tax exempt bonds for a third party
entity without obligation to itself, as long as the proceeds are to be used to serve a public interest.
Fleet Landing is a health care facility that qualifies as a public purpose which benefits the entire
community. This is to be a tax exempt financing at more favorable rates resulting in savings to
Fleet Landing at around $300,000 per year.
Fleet Landing will then again return to the City with a request for additional bonds later this year
to develop the site vacated by the old maintenance facility for the construction of new units.
BUDGET: There is no budget impact
RECOMMENDATION: Authorize the City Manager to help facilitate the issuance of the
Bonds
ATTACHMENTS: Application for Approval Summary prepared by Fleet Landing
AGENDA ITEM # 8E
JANUARY 28, 2013
Application for Approval
Of
Proposed City of Atlantic Beach, Florida
Health Care Facilities Revenue and Refunding Bonds
(Fleet Landing Project)
Summary
Bonds: Not to exceed $46,000,000.
Borrower: Naval Continuing Care Retirement Foundation, Inc., a Florida
not for profit corporation, which owns and operates an existing
continuing care retirement facility known as "Fleet Landing."
Facility Site: Fleet Landing campus located at One Fleet Landing Boulevard,
Atlantic Beach, Florida, on a site containing approximately 100
acres (the "Existing Campus "), and approximately two (2)
additional acres of land (the "Additional Land ") immediately
adjacent to the Existing Campus.
Project/ Refunding: (1) Reimbursing the Borrower for the costs of acquiring the
Additional Land and (2) refunding the outstanding City of
Atlantic Beach, Florida Health Care Facilities Revenue Bonds
(Fleet Landing Project), Series 1999, and the outstanding City
of Atlantic Beach, Florida Variable Rate Demand Revenue
Bonds (Fleet Landing Project), Series 2006 (collectively, the
"Refunded Bonds "). Proceeds of the Refunded Bonds were
loaned to the Borrower for the purpose of financing or
refinancing various capital improvements to the Existing
Campus. The Project will be owned and operated by the
Borrower.
Project/Refunding Approximately $52,050,000. Costs in excess of Series 2013
Cost: Bond proceeds will be paid from moneys held in funds for the
Refunded Bonds and an equity contribution of the Borrower.
Security for the Loan repayments by the Borrower pursuant to a Loan
Bonds: Agreement between the Borrower and the City. The obligations
under the Loan Agreement will be secured by master note of the
Borrower issued in favor of the bond trustee for the Series 2013
Bonds, pursuant to and in accordance with a Master Trust
Indenture, to be entered into between the Borrower, as obligor,
and the master trustee, and further secured by a mortgage on the
Fleet Landing campus.
4813 - 5395 - 5858.2
AGENDA ITEM # 8E
JANUARY 28, 2013
Conduit Financing: Any pecuniary liability or obligation of the City shall be limited
solely to amounts received by the City from the revenues and
other funds derived by the City from the Borrower with respect
to the Project, including loan repayments received under the
fmancing agreements.
No Expense to City: The Borrower will pay all costs and expenses of the City
relating to the issuance of the Bonds, and will indemnify the
City against any liabilities, claims and expenses incurred by the
City in any way relating to the issuance of the Bonds.
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