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Board approves up to $42 million in tax-exempt bonds to refinance North Bay Health purchase
Summary
The board held a TEFRA hearing Feb. 28 and approved a resolution allowing the issuance of up to $42 million in tax-exempt revenue bonds through the California Municipal Finance Authority to refinance North Bay Health's recent land and building purchase in Fairfield/Suisun Valley.
The Solano County Board of Supervisors on Feb. 28 conducted a TEFRA hearing and voted 4-0 to approve the issuance of up to $42 million in tax-exempt revenue bonds through the California Municipal Finance Authority for North Bay Health.
Chuck Lomelli, the county treasurer-tax collector and clerk, explained that the TEFRA hearing allows community members to comment on the use of tax-exempt financing by a nonprofit and that the county bears no obligation for repayment; the bonds would be issued by CMFA and are the sole responsibility of the borrower.
Joseph D'Angie, chief financial officer at North Bay Health, said the organization purchased 30.02 acres on Suisun Valley Place and a 72,000-square-foot building in Fairfield using taxable financing earlier in the year and now seeks to refinance that debt using tax-exempt bonds. D'Angie described a recent financial turnaround, citing a 0.8% net operating margin in 2023 and about a 1.5% margin in 2024 (unaudited), and said the refinancing supports organizational stability and strategic growth.
Supervisors asked about the intended use of the land and contingency plans if development does not proceed; D'Angie described a facility master plan process to test possible health-care uses and said the property could be sold if plans change. No public speakers opposed the bond issuance; the board adopted the resolution approving the bonds by a 4-0 vote.
