HomeMy WebLinkAbout1986-037RESOLUTION 86-37
A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY BY
INDIAN RIVER COUNTY, FLORIDA OF A LETTER OF INTENT AND
INDUCEMENT AGREEMENT TO FLORIDA CONVALESCENT CENTERS,
INC., WITH RESPECT TO THE COUNTY'S ISSUANCE OF NOT TO
EXCEED $4,800,000 IN PRINCIPAL AMOUNT OF ITS REVENUE
BONDS TO FINANCE THE COST OF A SKILLED AND INTERMEDIATE
CARE NURSING HOME FACILITY
WHEREAS, Florida Convalescent Centers, Inc., the
"Company") wishes to acquire and construct a skilled and
intermediate care nursing home facility and wishes to have
Indian River County, a political subdivision of the State of
Florida (the "County"), issue its revenue bonds to provide the
necessary financing for such facility; and
WHEREAS, the County has determined that its issuance of
such obligations to assist the Company will serve a public
purpose by contributing to the prosperity of the State and its
people; and
WHEREAS, the Company has requested the County to
indicate to the Company its intentions in this respect in order
to induce the Company to proceed with such project and incur
expenses for its initiation and its financing.
NOVI, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, as follows:
1. "rhe Chairman or Vice Chairman of the Board of
County Convnissioners are hereby authorized to execute, and the
Clerk of the Board of the County is hereby authorized to attest,
the County's letter addressed to the Company or its affiliates in
substantially the form attached to this Resolution as Exhibit "A"
and incorporated herein, with respect to the issuance of not
0
exceeding $11,800,000 in principal amount of its industrial
development revenue bonds on behalf of the Company, with such
changes therein as shall be approved from time to time by such
officers executing the same, such approval to be conclusively
evidenced by their execution thereof.
2. Such officers and all other officers and employees
of the County are hereby authorized to execute such further
agreements and take such further action as shall be necessary to
carry out the intent and purposes expressed in the letter attached
as Exhibit "A", upon its becoming an agreement on its execution
by the Company, and are further authorized to take such other
steps and actions as may be required and necessary in order to
issue such bonds.
3. This Resolution is an affirmative action of the
County toward the issuance of its bonds in accordance with the
purposes of the laws of the State of Florida and the applicable
United States Treasury Regulations.
4. Approved and adopted by The Board of County
Commissioners of Indian River County, this 25th day of June,
1986.
ATTEST;.,r; BOARD OF COUNTY COMMISSIONERS OF
INDIAN IVER COUNTY, FLORIDA
4; m
IX / By :
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(SEAL)-
Approved
SEAL) Approved as to Form and
Legal Sufficiency
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veer BOARD OF COUNTY COMMISSIONERS CHARLES P. VITUNAC
1890 25th Street, Vero Reach, Florida 32960 County Attorney
Telephone: (30.5) 567.8000
• • Suncom: 929.192.5 JAMES P. WILSON
Asst. County Attorney
BRUCE BARKETT
Asst. County Attorney
Re: Proposed Construction and Development of a
Skilled and Intermediate Care Nursing Home
Facility for Florida Convalescent Centers,
Inc., in_Indian_River_County__Florida
June 25, 1986
David Evans
Vice President
Florida Convalescent Centers, Inc.
I-loneywe I I Center
Suite 1111
1111 Mockingbird Lane
Dallas, Texas 75247
Dear Mr. Evans:
It is the understanding of Indian River County, Florida
the 111ssuer"), that Florida Convalescent Centers, Inc., (the
"Company") is currently considering the establishing of a skilled
and intermediate care nursing home facility within the
territorial limits of the Issuer, that the current estimated
capital cost of such facility including land for the proposed
site is approximately $4,800,000, that such facility will provide
additional employment in the community of the Issuer for
approximately 100 people, and that the willingness of the Issuer
to issue and sell industrial development revenue bonds for the
purpose of financing the acquisition, construction and equipping
of such facility is an important fact under consideration by the
Company in determining the feasibility of such proposed project.
The Issuer has determined that the issuance of its
bonds to assist the Company in locating such facility in the
Issuer's community will result in a substantial increase of
employment in such community and that the issuance of such bonds
will serve a public purpose by increasing the purchasing power
and improving the living conditions of the citizens and
inhabitants of the Issuer and will contribute to the prosperity
and welfare of the State and its inhabitants.
Accordingly, in order to induce the Company to locate
and establish its facility in the Issuer's Lommunity and incur
expenses for the initiating of such project and its financing,
the Issuer hereby makes the following proposal:
C:
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Mr. David Evans
Page 2
June 25, 1986
1. The Issuer will issue its industrial development
revenue bonds in such principal amount as necessary to finance
the acquisition, construction and equipping of the contemplated
industrial facility including land for the proposed site, such
capital cost of facilities and land presently estimated to be not
more than $4,800,000 for the purpose of paying the cost of the
acquisition, construction and equipping of a skilled and
intermediate care nursing home facility.
2. The Issuer and the Company will enter into a Loan
Agreement which shall provide for the loan of the proceeds of the
bonds from the Issuer to the Company. Tile loan payments shall be
pledged and applied pursuant to the Agreement, and shall be
sufficient to make the payment of the principal of, interest on
and redemption premium, 1f any, applicable to the bonds and such
other fees and costs as provided in the Agreement.
3. The Issuer will cooperate in the prompt preparation
of the Agreement and the necessary resolutions for the
authorization and sale of the bonds and, if requested, will
promptly proceed with validation of the bonds in the Circuit
Court for Indian River County, pursuant to the provisions of
Chapter 75, Florida Statutes.
4. Upon delivery of the bonds, the provisions of this
proposal and the agreement resulting from its acceptance by the
Company shall have no further effect, and in the event of any
inconsistency between the terms of this proposal and the terms of
the Agreement in the form in which it shall be finally approved
by resolution of the Issuer, the provisions of the Agreement as
so approved shall control.
5. The Issuer shall keep open and outstanding this
commitment and inducement to the Company for a reasonable time so
long as the Company shall be proceeding with appropriate efforts
toward conclusion of any arrangements necessary to the project;
provided, however, if for any reason the bonds are not authorized
by June 25, 1987, for issuance in one or more installments
thereafter, then the provisions of this proposal and the
Agreement resulting from its acceptance by the Company shall be
cancelled unless extended by mutual agreement of the Issuer and
the Company. In such event, or in the event of its earlier
cancellation by agreement between the Company and the Issuer,
neither party shall have any rights against either party except:
(a) The Issuer will transfer and convey to the Company
all the project components (and sites, if any)
which shall have been acquired by the Issuer;
(b) The Company wi I I pay to the Issuer the amount of
all expenses which shall have been incurred by the
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• • Mr. David Evans
Page 3
June 25, 1986
Issuer in connection with the project and which were
authorized by the Company;
(c) The Company will assume and be responsible for all
contracts entered into by the Issuer at the
request of the Company in connection with the
project; and
(d) The Company will pay the out-of-pocket expenses of
officials and representatives of the Issuer and
counsel for the Issuer incurred in connection with
the project.
6. The Company, in accepting this proposal, will
thereby agree to indemnify, defend and hold harmless the Issuer
against any loss or damage to property or any injury or death of
any person or persons occurring in connection with the
construction, equipping and operating of the project. This
indemnity shall be superseded by a similar indemnity in the
Agreement and, in the event the bonds are not delivered, this
indemnity shall survive the termination of the agreement
resulting from the Company's acceptance of this proposal.
7. All the commitments of the Issuer hereunder are
subject to the following:
(a) The review and approval by the County Attorney of
the Resolution authorizing the Industrial Bond
Issue, and review and approval of the Agreement
and other bond closing documents;
(b) Investigation, review and approval by County of
matters of financial condition of the Company and
any Guarantors, and local impact on the area and
its resources as required by Section 159.29 of the
Florida Industrial Revenue Bond Financing Act;
(c) Indication from any municipality in which the
Project is to be located that such municipality
has no objection to the issuance of the bonds by
the Issuer;
(d) The effect of legislation presently pending in the
United States Congress regarding the issuance of
industrial revenue bonds.
If this proposal shall be satisfactory to the Company,
please have the acceptance statement which follows this proposal
executed by the proper officers of the Company duly authorized
and provide an accepted copy to the Issuer, whereupon this
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' Mr. David Evans
Page 4
June 25, 1986
proposal will constitute an agreement in principal with respect
to the matters herein contained.
ATTEST:
---IFrec7a"Wr i t , Te7k------
(SEAL)
Very truly yours,
BOARD 01= COUNTY COVIMI SS I ONERS OF
INDIAN RIVER COUNTY, FLORIDA
B
rP c ons, - ---
Vice Chairman
The terms and conditions contained in the foregoing
proposal by Indian River County, Florida, are hereby accepted by
Florida Convalescent Centers, Inc., this day of
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1986. ----
ATTEST: FLORIDA CONVALESCEI4T CENTERS,
INC.
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6avTa-Evans,--OTcc-FresTaent-