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Committee signs off on Roswell Development Authority conduit bonds to refinance Wellstar debt; city and RDA bear no liability, officials say
Summary
The Roswell City Council committee approved Feb. 25 a resolution acknowledging the Roswell Development Authority’s issuance of conduit revenue bonds to refinance about $100 million of Wellstar Health System debt, a move officials said will not create city liability.
The Roswell City Council committee on Feb. 25 approved a resolution acknowledging the Roswell Development Authority’s plan to issue revenue bonds as a conduit to refinance approximately $100 million of Wellstar Health System debt.
Joe Cusack, chair of the Roswell Development Authority, told the committee the financing will refinance about $100 million in debt and will save roughly $1 million per year in interest costs for Wellstar. “There is no financial impact to the city,” Cusack said, and he emphasized that neither the city nor the RDA would be liable if Wellstar defaulted on the bonds.
Cusack said the RDA voted to move forward on Dec. 17 and that the process includes a TEFRA hearing; a Fulton County Superior Court judge will give final approval after public notice and if there are no objections. He described the council’s role as the local legislative body acknowledging the transaction is taking place in the community, not as assuming financial responsibility.
Council member Sarah Beeson asked whether the refinancing would affect the city’s bonding capacity; Cusack replied it would not. The committee voted unanimously to approve the resolution. The motion was made by Council member William Northland and seconded by Council member Alan Sells.
Votes at a glance: Motion to adopt a resolution acknowledging Roswell Development Authority revenue bonds to refinance Wellstar Health System obligations (TEFRA process) — Motion: Council member William Northland; Second: Council member Alan Sells; Outcome: approved (unanimous).
