City of San Antonio - File #: 19-8040

• File #: 19-8040
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 11/14/2019
• Posting Language: Ordinance approving a financing by the New Hope Cultural Education Finance Corporation to finance and refinance certain health facilities located within the City of San Antonio, Texas for Morningside Ministries for purposes of Section 147(f) of the Internal Revenue Code. An administrative fee of $2,500.00, payable by the New Hope Cultural Education Finance Corporation, will be deposited into the General Fund in accordance with the FY 2020 Adopted Budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer].

Date	Ver.	Action By	Action	Result
11/14/2019	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of tax-exempt financing for purposes of the Internal Revenue Code


SUMMARY:

This Ordinance approves a financing by the New Hope Cultural Education Finance Corporation to finance and refinance certain health facilities located within the City of San Antonio, Texas for Morningside Ministries for purposes of Section 147(f) of the Internal Revenue Code.


BACKGROUND INFORMATION:

Section 147(f) of the Internal Revenue Code (the "Code") requires that the issuance of any tax-exempt "qualified 501(c)(3) obligations" be approved by an applicable elected representative of the governmental unit in which the project is located after a public hearing following reasonable public notice.

The City was contacted regarding Morningside Ministries (the "Borrower"), a Texas nonprofit corporation and 501(c)(3) organization that is financing and refinancing through the New Hope Cultural Education Finance Corporation (the "Issuer") certain health care facilities for the Borrower located in Cities of San Antonio and Boerne. Specifically with respect to the City of San Antonio, the Borrower will use proceeds of bonds to be issued by the Issuer (the "Bonds") in order to refinance approximately $35 million of outstanding obligations originally issued in 2013 and 2014 to finance certain improvements at the Borrower's facilities known as Morningside Ministries at the Meadows (located at the 600 and 700 blocks of Babcock Road in District 7) and Morningside Ministries at the Chandler Estate (located at 1502 and 1510 Howard Street and 135 and 137 West French Place in District 1). Approximately $10 million of the proceeds of the Bonds also will be used to finance improvements to the Borrower's Meadows facilities. A public hearing with respect to the San Antonio projects and the issuance of the Bonds was held in Morningside Ministries' offices located in the City of San Antoni...