Resolution 243-1992
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RESOLUTION NO.
243 - 1992
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA, AUTHORIZING THE ISSUANCE
OF $3,000,000 INDUSTRIAL DEVELOPMENT REFUNDING.
REVENUE BONDS, SERIES 1992 (PLANTATl$NKE1S
CONVALESCENT CENTER, INC. PROJECT), OF~MdNROE
COUNTY, FLORIDA; APPOINTING A TRUSTEE, ?PAYIN~
AGENT, REGISTRAR AND AUTHENTICATING AGENT FOR TH~
BONDS; AUTHORIZING EXECUTION AND DELIVERY OF ~
TRUST INDENTURE, LOAN AND SECURITY AGREEMENTAND,~
ASSIGNMENT OF MORTGAGE WITH RESPECT TO THE BONDSP;
AWARDING THE BONDS AT NEGOTIATED SALE ,TO THEn
PURCHASER; AND PROVIDING AN EFFECTIVE DATE. ~;
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BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS (the
"Board") OF MONROE COUNTY, FLORIDA (the "Issuer"):
SECTION 1. AU'l'HORITY FOR RESOLUTION. This resolutlon
is adopted pursuant to Chapter 159, Part II, Florida Statutes,
and other applicable provisions of law (collectively, the "Act").
SECTION 2. DEFINITIONS. Unless the context otherwise
requires, the terms used in this resolution shall have the
meanings specified in the Trust Indenture (the "Indenture") and
Loan and Security Agreement (the "Loan Agreement") attached
hereto as exhibits.
SECTION 3. FINDINGS. It is hereby ascertained,
determined and declared as follows:
A. Monroe County, Florida (herein, the "Issuer"), is
authorized by the Act to make and execute financing agreements,
contracts, deeds and other instruments necessary or convenient
for the purpose of facilitating the financing and/or refinancing
of certain projects, including machinery, equipment, land, rights
in land and other appurtenances and facilities related thereto,
to the end that the Issuer may be able to promote the economic
development of the State of Flori.da (the "State"), increase
opportunities for gainful employment and otherwise aid ln
improving the prosperity and welfare of the State and its
inhabitants; and to provide such financing through the issuance
of industrial development revenue bonds.
B. The refunding by the Issuer of the outstandlng
Industrial Development Revenue Bond (Plantation Key Convalescent
Center, Inc. Project), Series 1984, of the Monroe County
Industrial Development Authority, originally issued to finance a
"health care facility" (the "projectW), as defined in the Act,
owned by Plantation Key Convalescent Center, Inc., through the
issuance of $3,000,000 Industrial Development Refunding Revenue
'Bonds, Series 1992 (Plantation Key Convalescent Center, Inc.
Project), of the Issuer (the "Bonds"), is appropriate to the
needs and circumstances of, and will make a significant
contribution to the economic growth of the Issuer; will preserve
gainful employment; and will serve a public purpose by advancing
the economic prosperity and the general welfare of the state and
its people.
C. Based upon (1) the review by Public Financial
Management, Inc. ("PFM"), financial advisor to the Issuer, of the
"Plantation Key Convalescent Center, Inc. Financial Forecast for
the Operations of the Facility for the Years Ending March 31,
1993 Through 1996," dated March 3, 1992 (the "Financial Report"),
prepared by Mauldin & Jenkins, the independent feasibility
consultant retained by the Borrower with respect to the Project
and the proposed Bonds; (2) the report of PFM regarding the same
(and its recommendations to the Issuer contained in paragraphs C,
D, E and F of its letter to the Board dated May 4, 1992, which
have been approved by the Issuer) which included consideration of
factors such as the ratio of the Borrower's current assets to its
current liabilities, the net worth and earnings trends of the
Borrower, coverage of all its fixed charges, the nature of the
business involved, its inherent stability, and all other factors
determinative of the Borrower's capabilities, financial and
otherwise, of fulfilling its obligations consistently with the
purposes of the Act; and (3) the representation by the Purchaser,
defined below, that it has conducted its own financial review of
the Borrower and the Project in connection with the purchase of
the Bonds; the Borrower has represented to the county that the
Borrower is financially responsible and fully capable and willing
to fulfill its obligations under the Loan Agreement, including
the obligation to make payments thereunder in the amounts and at
the times required pursuant to the terms of the Loan Agreement,
and the obligation to operate, repair and maintain the Project at
its own expense, and that the Borrower is desirous of fully
performing all other obligations and responsibilities imposed
upon it pursuant to the provisions of the Loan Agreement.
D. All the necessary public facilities, utilities and
services that will be necessary for the construction, operation,
repair and maintenance of the Project and on account of any
increase in population or other circumstances resulting by reason
of the location of the Project within the jurisdictional
territorial limits of the Issuer, have been or will be provided
by the Borrower when needed.
E. Adequate provision is made under the provisions of
the Loan Agreement for the operation, repair and maintenance of
the Project at the expense of the Borrower, and for the payment
of the principal of, premium, if any, and interest on the Bonds.
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3247/MON59005/AD2
F. The principal of, premium, if any, and interest on
the Bonds and all payments required under the Loan Agreement and
the Indenture shall be payable from the proceeds derived by the
Issuer under the Loan Agreement, including the Loan payments
required to be made by the Borrower in connection with its use
and operation of the Project; and the Issuer shall never be
required to (1) levy ad valorem taxes on any property within its
jurisdictional territorial limits to pay the principal of,
premium, if any, and interest on the Bonds or to make any other
payments provided under the Loan Agreement and the Indenture, or
(2) pay the same from any funds of the Issuer other than those
derived by the Issuer under the Loan Agreement and any third
party guaranty agreement; and such Bonds shall not be or
constitute a lien upon any other property owned by or situated
within the jurisdictional territorial limits of the Issuer.
G. The payments to be made by the Borrower to the
Trustee under the Loan Agreement will be sufficient to pay all
principal of, premium, if any, and interest on the Bonds, as the
same shall become due, and to make all other payments required by
the Loan Agreement and the Indenture.
H. The costs to be
will be costs of refinancing
the Act.
paid from the proceeds of the Bonds
the Project, within the meaning of
I. Industrial development revenue bonds are
traditionally sold on a negotiated basis; consequently, a
competitive sale of the Bonds would in all probability not
produce better terms than a negotiated sale, particularly in view
of the timing of such an offering.
J. The Bonds are payable from the Loan payments;
therefore, the Issuer does not have a direct interest in the
terms of sale. The Borrower has expressed its unwillingness to
undertake the risks and expenses attendant to a public sale of
the Bonds.
K. The complex nature of the security for payment of
the Bonds requires a lengthy review of the credit of the Borrower
which would be financially impractical for bidders to undertake
in a competitive sale context.
L. Nursing Homes of Tennessee, Ltd. a Delaware limited
partnership, and INVESTCO, Inc., a Delaware corporation
(collectively, the "Purchaser"), through their authorized agent,
Bond, Johnson & Bond, Inc., have offered to purchase the Bonds at
the price of $2,940,000, and upon the remaining terms and
conditions of the purchase commitment letter of Bond, Johnson &
Bond, Inc., dated March 19, 1992, with respect to the Bonds (the
"Commitment"), the provisions of which are incorporated herein by
reference. Certain of the provisions of the Commitment, not
relating to the purchase price for the Bonds, may continue to be
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3247/MON59005/AD2
'negotiated between the Purchaser
approval by bond counsel to the
issuance of the Bonds.
and the Borrower, subject to
Issuer and PFM, prior to the
SECTION 4. AUTHORIZATION OF BONDS; REMAINING DETAILS.
Subject to compliance by the Borrower with those recommendations
of PFM described in clause (2) of Section 3C hereof, the issuance
of "Industrial Development Refunding Revenue Bonds, Series 1992
(Plantation Key Convalescent Center, Inc. Project)," of the
Issuer, in the aggregate principal amount of $3,000,000, is
hereby authorized. The Bonds will be dated the date of their
delivery and will mature in such years and amounts, will contain
such redemption provisions and will bear interest at such rate or
rates, all as provided in the Indenture and the Commitment (as it
may be revised under the circumstances described in Section 3L
hereof) .
SECTION 5. AUTHORIZATION OF EXECUTION AND DELIVERY OF
BOND DOCUMENTS. The Loan Agreement, Indenture and Assignment of
Mortgage (collectively, the "Bond Documents"), in substantially
the form attached hereto as Exhibits A, Band C, respectively,
with such changes, insertions and corrections as may be approved
by the Mayor of the Board (the "Mayor"), upon the recommendation
of bond counsel to the Issuer and PFM, such approval to be
presumed by her execution thereof, is hereby approved; and the
Board hereby authorizes and directs the Mayor and the Clerk of
the Circuit Court, ex officio Clerk of the Board of County
Commissioners of the Issuer (the "Clerk"), to execute and attest
under the official seal of the Issuer, such Bond Documents, all
of the provisions of which, when executed and delivered by the
Issuer as authorized herein and by the other parties thereto,
shall be deemed to be a part of this resolution as fully and to
the same extent as if incorporated verbatim herein.
SECTION 6. TRUSTEE, PAYING AGENT, REGISTRAR AND
AUTHENTICATING AGENT. The Issuer hereby appoints First Union
National Bank of Florida, Miami, Florida, as Trustee, Paying
Agent, Registrar and Authenticating Agent (collectively, the
"Trustee") with respect to the Bonds.
SECTION 7. SALE OF BONDS. The Bonds are hereby awarded
and sold to the Purchaser at the price of $2,940,000, and upon
the remaining terms and conditions in the Indenture and the
Commitment (as it may be revised under the circumstances
described in Section 3L hereof).
SECTION 8. NO PERSONAL LIABILITY. No covenant,
stipulation, obligation or agreement herein contained or
contained in the Bond Documents shall be deemed to be a covenant,
stipulation, obligation or agreement of any member, agent or
employee of the Issuer or the Board in his individual capacity,
and neither the members of the Board nor any officer of the
Issuer executing the same shall be liable personally thereon or
on the Bonds or be subject to any personal liability or
accountability by reason of the issuance of the Bonds.
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3247/MON59005/AD2
SECTION 9. NO THIRD PARTY BENEFICIARIES. Except as
herein or in the Bond Documents otherwise expressly provided,
nothing in this resolution or in the Bond Documents, expressed or
implied, is intended or shall be construed to confer upon any
person or firm or corporation other than the Issuer, the
Borrower, the holders of the Bonds and the Trustee any right,
remedy or claim, legal or equitable, under and by reason of this
resolution and the Bond Documents; this resolution, the Bond
Documents intended to be and being for the sole and exclusive
benefit of the Issuer, the Borrower, the holders from time to
time of the Bonds and the Trustee.
SECTION 10. GENERAL AUTHORITY. The members of the
Board and the officers, attorneys or other agents or employees of
the Issuer are hereby authorized to do all acts and things
required of them by this resolution and the Bond Documents, or
desirable or consistent with the requirements hereof or such
documents, for the Bond closing and the full, punctual and
complete performance of all the terms, covenants and agreements
contained in the Bonds, the Bond Documents and this resolution.
SECTION 11. SEVERABILITY OF INVALID PROVISIONS. If any
one or more of the covenants, agreements or provisions herein
contained shall be held contrary to any express provisions of law
or contrary to the policy of express law, though not expressly
prohibited, or against public policy, or shall for any reason
whatsoever be held invalid, then such covenants, agreements or
provisions shall be null and void and shall be deemed separable
from the remaining covenants, agreements or provisions and shall
in no way affect the validity of any of the other provisions
hereof or of the Bonds.
SECTION 12. REPEALING CLAUSE. All resolutions or parts
thereof of the Board in conflict with the provisions herein
contained are, to the extent of such conflict, hereby superseded
and repealed.
SECTION 13. EFFECTIVE DATE.
effect immediately upon its adoption.
This resolution shall take
Mayor Harvey
Mayor Pro Tern London
Commissioner Cheal
Commissioner Jones
Commissioner Stormont
Yes
No
Yes
Yes
Absent
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3247/MON59005/AD2
Passed and adopted by
of Monroe county, Florida, at
May 5, 1992.
(SEAL)
ATTEST: DANNY L r,""("'T TT" ~
. . . f"!~. CIeri
3247/MON59005/AD2
the Board of County Commissioners
a regular meeting of the Board on
MONROE COUNTY, FLORIDA
By L~".".II ~ -: ~. ~~ i~
Mayor, Board of Coun y
Commissioners
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
)~~c?~
~Coun y tto ney
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