Agenda 04/24/2018 Item #16K 904/24/2018
EXECUTIVE SUMMARY
Request by the Collier County Health Facilities Authority for approval of a resolution authorizing
the Authority to issue revenue bonds for healthcare facilities at Moorings Park and Moorings Park
at Grey Oaks.
_____________________________________________________________________________________
OBJECTIVE: To accomplish the necessary approvals to authorize a proposed revenue bond issue by the
Collier County Health Facilities Authority (the “Authority”) to be used by The Moorings, Incorporated,
(“The Moorings”), the owner and operator of Moorings Park and Moorings Park at Grey Oaks, to pay a
portion of the costs to construct and/or renovate and equip continuing care residential facilities located at
Moorings Park, and to refinance all or a portion of two series of bonds previously issued by the Authority
for The Moorings at Grey Oaks.
CONSIDERATIONS: The Moorings is a life care retirement community, initially constructed in 1980
with 168 independent living units and a 60-bed skilled nursing facility at its location on Moorings Park
Drive. Subsequent construction and renovation at Moorings Park has added additional independent living
units (for a current total of 402), assisted living units (for a current total of 76), and a 106 -bed skilled
nursing facility. More recently, The Moorings has constructed additional residential facilities at
Moorings Park at Grey Oaks, located on the NW corner of Airport Road and Golden Gate Parkway. The
Grey Oaks facility consists of 109 independent living units, 38 assisted living units, a wellness center, and
a clubhouse. Most of these facilities were financed by bonds issued by the Authority over the past 38
years. Moorings Park is extremely strong financially and has a stand-alone investment grade rating of
A+, the only life care center in the United States to have such a rating by both Standard & Poor’s and
Fitch Ratings.
As noted above, the 2018 bonds are proposed to be issued for the following purposes:
1. To pay, or reimburse The Moorings for previously paid, a portion of the costs to acquire, construct,
and equip a new independent living residential building consisting of 18 units and located at Moorings
Park. This building was completed in 2018 at a cost of $25 million, and is fully o ccupied. The project
also includes major renovations to two residential buildings originally constructed in 1980 and 1981,
containing 183 independent living units, and the renovation of the clubhouse originally constructed in
1980. The cost of the renovation project, when complete, is expected to be approximately $70 million.
2. To refinance all or a portion of two series of bonds previously issued by the Authority in 2015 in an
original principal amount of $71 million. The proceeds of these bonds (designated in the 2015
documentation as Series 2015B and Series 2015C), were used by The Moorings to acquire, construct, and
reimburse itself for costs incurred in connection with a portion of the construction cost of the Grey Oaks
facilities. The 2015 Bonds were approved by the Board by Resolution 2015-48, adopted March 10, 2015
and were privately placed with, and are held by, a commercial bank. [Note: The remainder of the 2015
Bonds (Series A, in principal amount of $63 million), were used to refund four older Moorings bond
issues, and were publicly sold.]
The 2018 bonds are anticipated to be issued in June, 2018, and it is expected that approximately
50% of the bonds will be fixed-rate bonds with a maturity of up to 30 years. These bonds will be sold via
a public underwriting by the Underwriter, BB&T Capital Markets, and will carry an investment -grade
rating. The remainder of the bonds will be in the form of variable rate debt to be privately placed with,
and held by, one or more financial institutions (the AInstitutional Debt@).
The Authority met on April 3, 2018, and heard presentations from Moorings Park officials in
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addition to the written application and supporting documentation that had been filed. The meeting was
noticed by publication in the Naples Daily News in accordance with the regulations for such notice
contained in the Internal Revenue Code, inviting attendance, participation, and comments from members
of the public. No members of the public attended the meeting or submitted comments in advance of the
meeting. The notice published in the Naples Daily News is attached as Exhibit A to the Authority
Resolution, described below.
As in all financing applications, the Authority considers a number of factors in reaching a
determination to finance a project. Here, the fixed-rate bonds are being publicly sold and are investment-
grade rated bonds. The remainder of the bonds, which are not rated securities, will be sold to a qualified
institutional buyer that has done its own credit risk analysis, will be held by the institution for its own
portfolio, and will not be sold to members of the public. A further consideration is whether the project
serves a public need. Beyond the fact that the statute authorizing the establishment of a health facilities
authority (Chapter 154, Part III, Florida Statutes) declares that there is a public need for the facilities
authorized by the law, is the fact that Moorings Park has been an integral part of the Naples and Collier
County community for more than 38 years. The Moorings, Inc. was founded by long-term County
residents who recognized the need for a facility to allow residents to remain in our community as they
reach the stage of life where a life care community becomes necessary. That this go al is still being
reached today is evidenced by the fact that, according to data presented to the Authority, of the 195 move -
ins between 2015 and 2017, 91.8% were residents of Naples, Collier County, or Marco zip codes prior to
moving to The Moorings.
Other Authority considerations:
a. Fiscal impact on the community. The Moorings is one of the largest private employers in the
County, having over 800 employees, with a payroll of over $28 million per year. Local purchases by the
facility amount to an additional $30 million per year, and the continuing construction of new or renovated
facilities over the years has put many millions of dollars into the local economy.
b. Availability of public services and infrastructure. The project is located within the City of Naples,
in the case of Moorings Park, and in the Grey Oaks PUD/DRI in the case of the Grey Oaks project. The
facilities are served by existing public infrastructure that is in place.
c. Other public benefits derived by the community. The Moorings presented information to
Authority about its social accountability program, which provides community benefits ranging from
grants to community benefit organizations, to staff volunteerism, to donating the use of meeting space for
community organizations. Also presented was information concerning the employment of sustainable
solutions to minimize waste and stress on the environment.
After considering all of the above, at the conclusion of the public hearing the Authority
determined to proceed with the financing, subject to Board approval, and adopted a resolution evidencing
such approval (the “Authority Resolution”, attached).
Federal tax law requires two approvals for the issuance of the bonds. First, the Authority must
hold a public hearing, and must adopt a resolution in favor of issuing the bonds, as described above.
Following this approval, the governing body of the issuer’s jurisdiction must also approve the bond issue.
Here, the issuer (the Authority) has county-wide jurisdiction, and therefore, the Board of County
Commissioners, as the governing body of the entire county, must approve the issuance of the bonds.
Board approval does not have to be a specially advertised hearing, but must be done at a regularly noticed
and held meeting. A Resolution for the Board to adopt (the “County Resolution”) is attached, and the
Authority Resolution is attached to the proposed County Resolution as an exhibit.
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As are all revenue bonds of this type, these bonds are based on revenues of the project and are not
obligations of the County. There is no pledge of any taxes, nor a pledge of any revenues except the
revenues of The Moorings, Inc. Neither the County, the Board, nor any officer of the County is liable for
their payment. Further, the County Resolution expressly provides that this approval by the Board does
not abrogate any County regulations, including land use regulations.
FISCAL IMPACT: This program does not require any contribution from the Board of County
Commissioners or any other County agency.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. The length of
these considerations is in response to several queries I have received by Commissioners as to the
relationship between various authorities and the County, as well as what liability the County has, if any,
with respect to bonds issued by these authorities.
The Collier County Health Facilities Authority was created by the Board of County Commissioners by
the enactment of Ordinance No. 79-95, as authorized by Chapter 154, Part III, Florida Statutes. The
Authority’s purpose and powers are set forth in Florida Statutes Sec. 154.209. The purpose of the
Authority is “to assist health facilities in the acquisition, construction, financing, and refinancing of
projects in any incorporated or unincorporated area within the geographical limits of the local agency.”
To meet this purpose, the statute grants the Authority broad powers, including the power to bond.
Revenue bonds that are issued by the Authority do not obligate the County in any manner; put another
way, the County in no way “back-stops” these bonds. As set forth in Florida Statute Sec. 154.223:
154.223 Payment of bonds.-Revenue bonds issued under the provisions of this part shall
not be deemed to constitute a debt, liability, or obligation of the local agency or the state
or any political subdivision thereof, or a pledge of the faith and credit of the local agency
or the state or any political subdivision thereof, but shall be payable solely from the
revenues provided therefor. All such revenue bonds shall contain on the face thereof a
statement to the effect that the authority shall not be obligated to pay the same or the
interest thereon except from the revenues of the project or the portion thereof for which
they are issued and that neither the faith and credit nor the taxing power of the local
agency or of the state or of any political subdivision thereof is pledged to the payment of
the principal of or the interest on such bonds. The issuance of revenue bonds under the
provisions of this part shall not directly, indirectly, or contingently obligate the local
agency or the state or any political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their payment.
A more detailed description of the Authority (which is taken from the Collier County main website),
together with the ordinance creating the Authority, is attached. With the above noted, this item is
approved as to form and legality, and requires majority vote of the Board for approval. -JAK
GROWTH MANAGEMENT IMPACT: The adoption of the attached resolution will have no adverse
growth management consequences. The existing facilities were constructed in accordance with all
County (or City, as applicable) growth management regulations, and are subject to the LDC, the Growth
Management Plan, concurrency requirements, and the payment of impact fees. The Grey Oaks project is
part of a PUD/DRI that authorizes these uses.
RECOMMENDATION: The Board of County Commissioners adopt the attached Resolution.
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Prepared by: Donald A. Pickworth, Counsel
Collier County Health Facilities Authority
ATTACHMENT(S)
1. Resolution - Health Facility (PDF)
2. Authority Reso w Affid of Pub Attached (PDF)
3. THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY (DOCX)
4. Ordinance 79-095 (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.9
Doc ID: 5357
Item Summary: Request by the Collier County Health Facilities Authority for approval of a
resolution authorizing the Authority to issue revenue bonds for healthcare facilities at Moorings Park and
Moorings Park at Grey Oaks.
Meeting Date: 04/24/2018
Prepared by:
Title: Legal Assistant/Paralegal – County Attorney's Office
Name: Virginia Neet
04/12/2018 10:16 AM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
04/12/2018 10:16 AM
Approved By:
Review:
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/12/2018 10:49 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/12/2018 11:03 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 04/12/2018 11:19 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 04/16/2018 7:51 AM
Board of County Commissioners MaryJo Brock Meeting Pending 04/24/2018 9:00 AM
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Packet Pg. 1299 Attachment: Resolution - Health Facility (5357 : Health Facilities Authority)
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Packet Pg. 1300 Attachment: Resolution - Health Facility (5357 : Health Facilities Authority)
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Packet Pg. 1301 Attachment: Resolution - Health Facility (5357 : Health Facilities Authority)
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Packet Pg. 1302 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
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Packet Pg. 1303 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
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Packet Pg. 1304 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
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Packet Pg. 1305 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
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Packet Pg. 1306 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
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Packet Pg. 1307 Attachment: Authority Reso w Affid of Pub Attached (5357 : Health Facilities Authority)
THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY
The authority was established by the Board of County Commissioners on November 20, 1979. This five member
authority is to assist Health Care Facilities in the acquisition, construction, financing and refinancing of projects.
Members must be Collier County residents. Terms are four years.
General Information
1. Full Name: Collier County Health Facilities Authority.
2. Public Purpose: To provide capital financing for health care facilities. “Health Care Facilities” are defined
under Florida Law as property operated in the private sector, used for the diagnosis, treatment, therapy,
rehabilitation, housing, or care of or for the aged, sick, ill, injured, infirm, impaired, disabled or handicapped; or
for the prevention, detection and control of disease, including with limitation, hospital, clinic emergency,
outpatient, and intermediate care, facilities for the elderly such as nursing homes, assisted living facilities, day
care and share-a-home facilities; and related property such as laboratory, research, pharmacy, laundry, health
personnel training and lodging; patient, guest and health personnel food service facilities; and offices and office
buildings for persons engaged in health care professions or services.
3. Boundaries: Collier County, and in other locations in the State of Florida as may be approved by interlocal
agreement approved by Collier County.
4. Services Provided: Issuance of revenue bonds to finance the cost of acquisition, construction, equipping, or
rehabilitation of Health Care Facilities.
5. Authorizing statutes and Creation Documents: Chapter 154, Part III, Florida Statutes, authorizes the
creation of educational facilities authorities within the State of Florida, and the Board of County Commissioners
of Collier County adopted Ordinance 79-95 on November 20, 1979 creating the Authority and authorizing it to
act.
Chapter 154, Part III, Florida Statutes
Ordinance 79-95
Contact Information:
1. Contact Person Information
Donald A. Pickworth, Executive Director/General Counsel
5100 Tamiami Trail North
Suite 103
Naples, FL 34103
picklaw@earthlink.net
239.263.8060
2. Governing Body Information
a. Appointing Authority: Board of County Commissioners of Collier County
b. Authority Members:
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Packet Pg. 1308 Attachment: THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY (5357 : Health Facilities Authority)
District Name Current Term Ending Date
4 Timothy J. Reidy, Chair 07/28/2021
2 Robert H. Chalhoub, Vice Chair 05/15/2021
5 Allison K. Harrison, Secretary 02/09/2018
1 Edward Morton 10/09/2019
4 George Russell Weyer 05/15/2021
Addresses for all members:
[Member Name]
c/o Donald A. Pickworth, Executive Director
5100 Tamiami Trl N Ste 103
Naples, FL 34103
c. Registered Agent: Donald A. Pickworth [address as above]
Financial Information:
1. The Authority’s fiscal year is from October 1 to the following September 30.
2. The Authority has no taxing power. Its revenues are derived from bond issuance fees paid by project applicants.
The statutory authority for these fees is Chapter 154, Part III, Florida Statutes.
3. Final adopted budget:
Ethics:
The Authority and its members operate under, and are subject to the applicable “Ethics Laws” as provided by
the Florida Commission on Ethics. These laws are set forth on the website of the Florida Commission on Ethics.
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Packet Pg. 1309 Attachment: THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY (5357 : Health Facilities Authority)
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Packet Pg. 1310 Attachment: Ordinance 79-095 (5357 : Health Facilities Authority)
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Packet Pg. 1311 Attachment: Ordinance 79-095 (5357 : Health Facilities Authority)
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Packet Pg. 1312 Attachment: Ordinance 79-095 (5357 : Health Facilities Authority)