CITY OF HOPE - SUMMARY LETTER.PDF
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3824567.1 046787 CORR Writer’s direct contact: Phone: 973-642-8682 Fax: 973-642-6773 E-mail: kflynn@hawkins.com August 9, 2023 The Industrial Development Authority of the County of Maricopa Maricopa County Board of Supervisors Re: Host Community Public Approval Request Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as Amended, for Issuance of Tax-Exempt Bonds by the Illinois Finance Authority to Refinance Certain Hospital and Health Care Facilities Located in Maricopa County, Arizona Our firm serves as bond counsel to City of Hope, a California nonprofit public benefit corporation. City of Hope is a National Cancer Institute-designated comprehensive cancer center with facilities in California, Illinois, Arizona and Georgia. Through its related affiliates, City of Hope specializes in the treatment of cancer and other life-threatening illnesses, as well as research, academics and training in these specialties. City of Hope is undertaking a tax-exempt revenue bond financing in the maximum principal amount of $350,000,000 (the “Series 2023 Bonds”) through the Illinois Finance Authority (the “Issuer”) to refinance certain taxable indebtedness incurred by City of Hope and its affiliates to finance certain acquisition costs associated with the acquisition of the assets and facilities of the former Cancer Treatment Centers of America. Proceeds of the Series 2023 Bonds will be used by City of Hope to refinance the acquisition costs of facilities in Illinois, Georgia and Maricopa County, Arizona. City of Hope expects to apply proceeds of the Series 2023 Bonds in a maximum principal amount of up to $140,000,000 to refinance certain indebtedness incurred to acquire hospital and health care facilities located in Maricopa County, Arizona in the localities of Goodyear, Phoenix, Gilbert and Scottsdale. The Issuer has statutory authority to issue its revenue bonds for projects located outside of the State of Illinois. The issuance of the Series 2023 Bonds for the projects located in Illinois, Georgia and Maricopa County as part of a single transaction through the Illinois Finance Authority will afford significant economies of scale and efficiencies for the City of Hope and its PHONE: 212-820-9300 FAX: 212-514-8425 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK, NY 10007 WWW.HAWKINS.COM NEW YORK WASHINGTON NEWARK HARTFORD LOS ANGELES SACRAMENTO SAN FRANCISCO PORTLAND ANN ARBOR Page 2 3824567.1 046787 CORR constituent health care and hospital facilities. In order for the Series 2023 Bonds to be issued as tax-exempt obligations under the Internal Revenue Code of 1986, as amended (the “Code”), the approval of the highest elected official(s) of each jurisdiction in which bond-financed facilities are located must be obtained, following public hearing, as required by Section 147(f) of the Code (hereinafter referred to as the “TEFRA Approval”). Solely in order to satisfy the requirements of the Code, City of Hope is seeking TEFRA approval of the Maricopa County Board of Supervisors as to the issuance of the portion of the Series 2023 Bonds that are to be issued to refinance the projects located in Maricopa County, Arizona. At the request of the City of Hope, The Industrial Development Authority of the County of Maricopa (the “Maricopa IDA”) has given Notice of Public Hearing at the time and in the manner required by the Code, and will hold the public hearing required by the Code with respect to the Series 2023 Bonds and the Maricopa County projects to be refinanced thereby on August 17, 2023. The Series 2023 Bonds will not constitute a debt or obligation of the Maricopa IDA, the County of Maricopa, or the State of Arizona or any other agency or political subdivision thereof. Neither the Maricopa IDA, nor the County of Maricopa, nor the State of Arizona will have any obligations whatsoever with respect to the Series 2023 Bonds. The Series 2023 Bonds will constitute special, limited obligations of the Issuer, payable solely from debt service payments to be made by City of Hope and other funds pledged and assigned for the payment of the Series 2023 Bonds in accordance with their terms and the terms of the related bond documents. Please let me know if you have any questions or if you need anything further from our firm or from City of Hope. City of Hope greatly appreciates the assistance from the Maricopa IDA and from the Maricopa County Board of Supervisors in this matter, all of which will help City of Hope to continue its mission of service to the community. Very truly yours, Kristine L. Flynn