Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bond Financing topic
No spam. Unsubscribe anytime.
Council authorizes EDA conduit bonds up to $285 million for Valley Health projects
Summary
Council approved R-2024-18 authorizing the Economic Development Authority to issue up to $285,000,000 in conduit revenue bonds for Valley Health; presenters said the EDA acts as a conduit with no financial obligation to the city and projects in Winchester include a behavioral health pavilion and a rehab facility at Winchester Medical Center.
Winchester City Council authorized R-2024-18 on Tuesday, allowing the Economic Development Authority (EDA) to issue revenue bonds in an aggregate principal amount not to exceed $285,000,000 as conduit financing for Valley Health projects.
Mike Craft, a bond lawyer with Maguire Woods, told council the city's EDA has historically served as the conduit issuer for Valley Health financings and that the arrangement allows Valley Health to access tax-advantaged financing for projects in the city and the surrounding Valley. "Valley Health has made the decision and, over time, been a good partner with the city and the city's EDA," Craft said.
A Valley Health presenter said the EDA conduit provides fee income to the EDA and imposes no obligation on the city. Councilors asked about project timing; presenters said work on Winchester projects (a behavioral health pavilion and a rehab facility at Winchester Medical Center) is expected to begin soon after closing, with construction and spending anticipated over the next two to three years.
Councilor discussion affirmed city staff and bond counsel's statements that the bonds create no liability for the city. A motion to approve the resolution carried on roll-call vote.
The authorization allows the EDA to serve as a conduit issuer; it does not itself appropriate city funds for the projects. Additional details about project scopes, budgets and timelines will be available when Valley Health and the EDA finalize financing documents.
