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Council approves EDA-backed hospital revenue bonds for Carilion; Councilor Nash recuses
Summary
Roanoke City Council on Sept. 2 approved a resolution supporting issuance of up to $400 million in hospital revenue bonds for Carilion. Council member Nash recused himself, saying he receives more than $5,000 from Carilion and would not participate in the vote.
Roanoke City Council on Sept. 2 approved a resolution supporting the issuance by the Economic Development Authority (EDA) of up to $400 million in hospital revenue bonds for Carilion. The resolution passed on a recorded roll call after Councilor Nash publicly recused himself from the discussion and vote.
At the start of the agenda item Councilor Nash stated he has business ties to Carilion and said, in part, "I stand to receive more than $5,000 in compensation from Carilion this year... I therefore believe I may have a personal interest in this matter... I will not participate in voting in this matter." He then moved to the audience seating area and did not take part in the roll-call.
Michael W. S. Lochabee, counsel to the Economic Development Authority, was present for the item; Vice Mayor Terry Maguire confirmed for the record that the bond issuance would be secured on Carilion's credit and would not place the City of Roanoke or its taxpayers on the hook for repayment. The council adopted the resolution on a roll call with all participating members voting yes.
The resolution authorizes the city to approve, among other things, issuance of up to $400,000,000 aggregate principal amount of hospital revenue bonds for the Carilion Clinic obligated group for projects at Carilion facilities. Counsel and staff did not propose changes to the city's legal obligations; the record indicates the bonds would be issued by the EDA with repayment dependent on Carilion's obligations to bondholders.
Council did not take additional substantive debate or amendment during the item. Nash's recusal was entered into the public record and the resolution passed.
