Agenda 12/09/2025 Item #16K10 (issue revenue bonds to be used to finance the construction of the NCH Heart, Stroke, and Vascular Institute, the NCH Orthopedic Center, and other NCH capital projects)12/9/2025
Item # 16.K.10
ID# 2025-4814
Executive Summary
Request by the Collier County Industrial Development Authority for approval of a Resolution authorizing the Authority
to issue revenue bonds to be used to finance the construction of the NCH Heart, Stroke, and Vascular Institute, the NCH
Orthopedic Center, and other NCH capital projects in Collier County and the refunding of certain bonds issued in 2024.
OBJECTIVE: To accomplish the necessary approvals to authorize a proposed revenue bond issue by the Collier
County Industrial Development Authority (the "Authority") to be used to finance the construction of certain facilities at
the NCH Baker Hospital campus (downtown), the NCH North Naples Hospital campus, and at other NCH facilities
including Marco Island and Ave Maria.
CONSIDERATIONS:
The Authority received an application for financing from Naples Community Hospital, Inc., ("NCH")
requesting that the Authority issue its revenue bonds for the Heart and Vascular Center located at the
Downtown campus, the Orthopedic Center located at the North Naples Hospital campus, and various
other capital improvements to NCH's facilities located at the Downtown Campus, the North Naples
Hospital campus, and other NCH properties throughout the county as described below and to refund all
or a portion of the Series 2024C bonds described below.
Background:
In March 2024 the Authority issued its Series 2024 Healthcare Facilities Revenue Bonds for the
heart center, orthopedic center, and other related projects in the original principal amount of
$157,710,000 (tax-exempt) and $42,290,000, (taxable). The projects for which bond proceeds are
authorized to be used are largely the same as those included in the 2024 issue. The 2026 Bonds will be
used to complete the Heart and Vascular Center, and finance new projects such as the expanded
gynecologic oncology service and new facilities at other NCH properties throughout Collier County such
as Ave Maria where NCH plans to build a 150-bed hospital, with the first phase to start construction in
2027. Other factors include increased construction costs, some caused by permitting delays, additional
equipment and facilities, and the need to refund the 2024 taxable bonds Series 2024C) with tax-exempt
bonds.
The Projects
The Projects for which the bonds are proposed to be issued include the following:
(a) an approximately 200,000 square foot, five-story, comprehensive heart and vascular center, including
a three-level parking structure, and certain other capital improvements related thereto, to be known as the
NCH Heart, Vascular and Stroke Institute, to be located on the NCH Baker Hospital downtown campus
(the "Downtown Campus"), adjacent to the existing hospital, located at 350 7th Street North, Naples,
Florida 34102;
(b) an approximately 92,000 square foot, three-story, orthopedic medical and surgery center, and certain
other capital improvements related thereto, to be known as the NCH/HSS Orthopedic Center (the
"Orthopedic Center"), to be located on the North Naples Hospital campus (the "North Naples Hospital"),
located at 11190 Health Park Boulevard, Naples, Florida 34110; and
(c) various other capital improvements to the Hospital's facilities located at the Downtown Campus, the
Orthopedic Center, the North Naples Hospital and at the following campuses of the Hospital: (i) Lutgert
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Item # 16.K.10
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Center West, located at 681 4th Avenue North, Naples, Florida 34102, (ii) Lutgert Center East, located at
733 4th Avenue North, Naples, Florida 34102, (iii) the NCH Medical Plaza Building, located at 311 9th
Street North, Naples, Florida 34102, (iv) the NCH Business Center, located at 1100 Immokalee Road,
Naples, Florida 34110, (v) NCH Marco Island Health Center North and South, located at 40 South
Heathwood, Marco Island, Florida 34145, (vi) NCH Ave Maria Immediate Care, located at 5335 Useppa
Drive, Ave Maria, Florida 34142, and (vii) 2320 Vanderbilt Beach Road, Naples, Florida 34109.
Plan of Finance
Like the 2024 Bonds, the 2026 Bonds will be issued in one or more series, and the proceeds of the sale of
the bonds will be loaned to NCH pursuant to loan agreements between the parties, and under the terms of
a trust indenture between the Authority and U.S. Bank Trust Company, National Association, as Trustee.
The bonds will be publicly offered through the underwriter, JP Morgan, and like 2024 Bonds, NCH
expects to receive "investment grade" ratings from one or more of the major bond rating agencies.
Authority Public Hearing/Findings and Determinations
The Authority met on November 17, 2025, considered the application and supporting documentation, and
heard presentations from NCH officers and representatives. 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. The
meeting was also noticed through a press release by the County's Public Information Office, and a notice
of the meeting and the agenda were placed on the Authority's page on the County website. No members
of the public attended the meeting either in person or remotely or submitted comments.
Upon consideration of the application, documentation, and testimony presented to the Authority,
the Authority made several findings, primarily as follows:
The Projects are appropriate to the needs and circumstances of the community and make a significant
contribution to the economic growth of the County, provide or preserve gainful employment and serve a
public purpose by advancing the economic prosperity, public health and general welfare of the
community and the State.
NCH is financially responsible and fully capable and willing to fulfill its obligations under the financing
agreements, including the obligations to make payments in the amounts and at the times required; to
operate, repair, and maintain at its own expense the project; and to fulfill such other responsibilities as
may be imposed under the financing agreements.
Adequate infrastructure is available to enable responsible governmental units to cope satisfactorily with
the impact of the Projects.
Adoption of Authority Resolution
At the conclusion of the public hearing and the presentations by NCH the Authority determined to
proceed with the financing and adopted a resolution evidencing such approval (the “Authority
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Resolution”, attached as Exhibit A to the "County Resolution”). The notice of hearing published in the
Naples Daily News is attached as Exhibit A to the Authority Resolution.
Process and Procedure
Federal tax law requires two approvals for the issuance of tax-exempt private activity bonds. First, the
Authority must hold a public hearing and must adopt a resolution in favor of issuing the bonds. This was
done at the conclusion of the public hearing on November 17, as described above. Following this
approval, the governing body of the jurisdiction must also approve the bond issue. This does not have to
be a specially advertised hearing but must be done at a regularly noticed and held meeting of the Board.
A Resolution for the Board to adopt (the "County Resolution") is attached.
Bonds issued by the Industrial Development Authority are defined in the Internal Revenue Code as
private activity bonds. They are not County bonds and are not debt of the County but are payable solely
by revenues pledged by the financing documents between the Authority and NCH, and no other revenues
of the Authority. There is no pledge of any taxes, or a pledge of any County or other public revenues.
Neither the County, the Board, nor any other governmental entity is liable for their payment. Further,
both the Authority Resolution and the proposed County Resolution expressly provide that approval by
the Board does not abrogate any County regulations (or in the case of facilities located in the City,
applicable City regulations) including land use regulations.
FISCAL IMPACT:
As stated above, the issuance of the bonds does not require any contribution from, or create any payment
obligation on, the Board of County Commissioners or any other County agency. On the other hand, the
continued successful operation, expansion and growth of the NCH system in Collier County has and will
continue to have a very positive fiscal impact on the County. The Authority is a self-funding agency, and
no County monies are contributed to its operation.
GROWTH MANAGEMENT IMPACT: The adoption of the attached resolution will have no adverse growth
management consequences. The existing NCH facilities were constructed in accordance with all City and County
growth management regulations, and were subject to the respective governments' LDC, the Growth Management Plan,
concurrency requirements, and the payment of impact fees where applicable.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. Review of these and similar
bonds by the Governing Body is a statutory requirement and serves as a safeguard against the issuance of inappropriate
bonds, which is not the case here. The County has no liability, contingent or otherwise, with respect to these bonds.
With that noted, this item is approved as to form and legality and requires majority vote for Board approval. -JAK
RECOMMENDATION(S): The Board of County Commissioners adopt the attached Resolution.
PREPARED BY: Donald A. Pickworth, Counsel, Collier County Industrial Development Authority
ATTACHMENTS:
1. Resolution - Revenue Bonds
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