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Legislature consents to up to $25.1 million in tax-exempt bonds for Adirondack Medical Center; one abstention
Summary
After a public hearing, Franklin County legislators approved a resolution allowing the Franklin County Civic Development Corporation to issue up to $25.1 million in tax-exempt revenue bonds to refund prior debt and finance facility renovations and equipment for Adirondack Medical Center; the measure passed with one abstention.
The Franklin County Legislature on Aug. 18, 2016, approved a resolution consenting to the proposed issuance of Multi-Mode Tax-Exempt Revenue Bonds (Adirondack Medical Center Franklin County Project), Series 2016, by the Franklin County Civic Development Corporation in an aggregate principal amount not to exceed $25,100,000.
The resolution summarizes the Project as financing or refinancing a number of previously financed facilities and capital projects for Adirondack Medical Center, including refunding prior issues, renovating and expanding facilities on the Saranac Lake campus (a surgical suite expansion with six operating rooms, one hybrid operating room, procedure rooms, a replacement MRI suite and central sterile processing), refinancing a 2007 project that included nursing-home renovations and an outpatient services relocation in Tupper Lake, and reimbursing certain capital expenditures including a wound therapy and hyperbaric center. The financing may also include funding a debt service reserve account and paying issuance costs. The resolution states that the bonds, if issued, would be special obligations of the issuer and not debts of Franklin County.
The board record shows notice of a public hearing was published in the Malone Telegram on July 15, 2016, and in the Adirondack Daily Enterprise on July 18, 2016, and that the issuer held a public hearing on Aug. 2, 2016. The resolution sought to allow interest on the Bonds to be treated as excludable from gross income for federal income tax purposes under Internal Revenue Code provisions cited in the resolution.
The resolution was offered by the Economic Development & Planning Committee and moved by Legislator Maroun, seconded by Legislator Dabiew. According to the minutes, the measure passed with six ayes; Legislator Rice abstained from the vote. The resolution includes the issuer's determination that the Project will not have a "significant impact on the environment" under State Environmental Quality Review Act procedures as summarized in the issuer’s record.
The approved resolution does not itself issue bonds; it consents to and authorizes the issuer to proceed with issuance within the stated cap and notes that neither the bonds nor other obligations of the issuer shall be a debt of the County.
