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Resolution 2003-090 16K9 RESOLUTION 03--2.Q.. A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA APPROVING THE ISSUANCE AND SALE OF REVENUE BONDS BY THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY, AS REQUIRED BY SECTION 147(1) OF THE INTERNAL REVENUE CODE, AS AMENDED; AND PROVIDING FOR OTHER RELATED MATTERS. WHEREAS, the Collier County Health Facilities Authority (the "Authority") is (1) a body corporate and politic and a special district of Collier County, Florida ("Collier County") created by Collier County Ordinance No. 79-95 duly adopted by the Board on November 20, 1979 pursuant to the Florida Health Facilities Authorities Law (Part III of Chapter 154, Florida Statutes), as amended (the "Health Facilities Act"), (ii) a "public agency" as defined in Section 163.01, Florida Statutes, as amended, which is titled the "Florida Interlocal Cooperation Act of 1969" (the "Act", and (iii) a "health facilities authority" as defined in the Health Facilities Act, and a "local agency" under Section 159.27(4) ofthe Industrial Development Financing Act (Part II of Chapter 159, Florida Statutes), as amended (the "Industrial Act"), with the power to issue revenue bonds for the purposes of financing and refinancing a "project" as defined in the Health Facilities Act and the Industrial Act; and WHEREAS, Cleveland Clinic Florida (A Nonprofit Corporation), a Florida not for profit corporation, with certain facilities located within the boundaries of Collier and Broward Counties Florida, (the "Interlocal Borrower") and Cleveland Clinic Florida Naples Hospital Non Profit Corporation, a Florida not for profit corporation with facilities located within the boundaries of Collier County (collectively with the Interlocal Borrower, the "Borrowers"), have requested the Authority to issue its revenue bonds (the "Bonds") for the benefit of the Borrowers and to loan all or a portion of the proceeds thereof to the Borrowers to, among other things, (i) refund all or a portion of the outstanding principal amount of the $117,000,000 Collier County Health Facilities Authority Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed), (ii) payor reimburse the Borrowers for the payment of, or to refinance certain prior debt the proceeds of which were used to pay, costs of acquiring constructing, renovation, rehabilitating and equipping certain healthcare facilities and (iii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement, if deemed necessary or desirable by the Borrowers, all as permitted by the Health Facilities Act or the Industrial Act; and WHEREAS, in order to accomplish economies of scale and other cost savings, to help reduce or control the costs of providing health care services in Collier County, and to strengthen or enhance the security on the Bonds, the Authority desires to assist the Borrowers by issuing the Bonds; and WHEREAS, in order to accomplish the purposes of the Act, the Authority will enter into an Interlocal Agreement (the "lnterlocal Agreement") with the Broward County Health Facilities Authority (the "Broward Authority") to provide for the issuance by the Authority of its Bonds for the benefit of the Interlocal Borrower; and 16K9 WHEREAS, Section 147(t) ofthe Internal Revenue Code of 1986, as amended (the "Code"), provides that the elected legislative body of the governmental unit which has jurisdiction over the area in which the facility financed with the proceeds of tax exempt bonds is located is to approve the issuance of such bonds after a public hearing; and WHEREAS, the Board of County Commissioners of Collier County, Florida (the "Board") is the elected legislative body of the County; and WHEREAS, the Authority caused notice ofa public hearing (the "Notice") pursuant to and in accordance with the Code to consider approval of the Bonds and the location and nature of the project to be refinanced with the proceeds of the Bonds (the "Project") to be published on or before January 30, 2003, in the Naples Daily News a newspaper of general circulation in the County, and a copy of said notice being attached as Exhibit A to the Authority Resolution described herein; and WHEREAS, the Authority held a public hearing on February 14,2003 pursuant to the Notice at which hearing the Authority considered the application and presentation of the Borrows and the comments of members of the public, if any; and WHEREAS, at the conclusion ofthe hearing the Authority adopted its Resolution 2003-01 (the "Authority Resolution") a copy of which is attached as Exhibit A approving the financing, the issuance of the Bonds, the Interlocal Agreement with the Broward Authority, and recommending the Board of County Commissioners approve the issuance ofthe Bonds by the Authority in accordance with Section 147(t) ofthe Code; and WHEREAS, the Broward County Board of County Commissioners will approve the issuance of the Bonds with respect to those portions of the Project that are located within the boundaries of Broward County, Florida by its Proposed Resolution to be considered and adopted March 4,2003, a copy of which is attached as Exhibit B; and WHEREAS, for the reasons set forth above, it appears to the Board that the approval of the issuance and sale of such Bonds as required by Section 1 47(t) of the Code is in the best interests of Collier County; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, THAT: 2 16K9 Section 1. Approval of Issuance of the Bonds. Pursuant to Section 147(f) of the Code, the Board hereby approves the issuance of the Bonds by the Authority for the purposes described in the Notice. The Bonds shall be issued in such aggregate principal amount, bear interest at such rates, mature in such amounts and be subject to such optional and mandatory redemptions as are approved by the Collier Authority without the further approval of this Board. The Bonds shall not constitute a debt liability or obligation of Collier County, Broward County, their respective Boards of County Commissioners, officers, agents or employees, or the State of Florida or any political subdivision thereof, but shall be payable solely from the revenues provided therefor, and neither the faith and credit nor any taxing power of Collier County, Broward County, or the State of Florida or any political subdivision thereof is pledged to the payment of the principal of, premium, if any, and interest on the Bonds. No member of the Board of County Commissioners of Collier or Broward County or any officer of either shall be liable personally on the Bonds by reason of their issuance. This approval shall in no way be deemed to abrogate any regulations of Collier County and that portion ofthe Project located in Collier County contemplated by this Resolution shall be subject to all such regulations, including, but not limited to, the Collier County Growth Management Plan and all concurrency requirements contained therein and the Collier County Land Development Code. Section 2. Severability. Ifany section, paragraph, clause or provision of this Resolution shall be held to be invalid or ineffective for any reason, the remainder of this Resolution shall continue in full force and effect, it being expressly hereby found and declared that the remainder of this Resolution could have been adopted despite the invalidity or ineffectiveness of such section, paragraph, clause or provision. Section 3. Effective Date. This Resolution shall take effect immediately upon its adoption, and any provisions of any previous resolutions in conflict with the provisions hereof are hereby superseded. PASSED and Adopted this 25th day of February, 2003. CHI-I 336270v I 3 ,-"""",,\\ ........ ", ~:.....~ . ~O{iF"'" 1\, t _~~1:f'./!$'f~ .".:.-, (~"\. 'il., /&Ni~~tBrock;. ~l~l'~ i, gay.i g~:~ k&...';' ~ ' , M. - _0"", ..,- \'?- >!?epu '_~. ~~<.-'/ ! ;..,..0:. . . '.. \ Atii~t"as.tn-;€ha1run's '~~i~iQHu~~:~~:lj ~ ApproVed'a'S to form and legal sufficiency: CHI-1336270vl 16K9 COLLIER COUNTY, FLORIDA BY ITS BOARD OF COUNTY COMMISSIONERS Tom~h&k 2.. - 2..5 -0 3 4 RESOLUTION NO. 2003-01 Draft 2-11-03 AN INDUCEMENT RESOLUTION OF THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY REGARDING THE OFFICIAL ACTION OF THE AUTHORITY WITH RESPECT TO THE PROPOSED ISSUANCE BY THE AUTHORITY OF ITS COLLIER COUNTY HEALTH FACILITIES AUTHORITY REVENUE BONDS (CLEVELAND CLINIC HEALTH SYSTEM OBLIGATED GROUP) SERIES 2003 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $125,000,000 FOR THE PRINCIPAL PURPOSE OF REFUNDING ALL OR A PORTION OF THE OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S HOSPITAL REVENUE BONDS, SERIES 1999 (CLEVELAND CLINIC HEALTH SYSTEM OBLIGATED GROUP) AND TO PAY CERTAIN COSTS INCURRED OR TO BE INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A PRELIMINARY AGREEMENT BETWEEN THE AUTHORITY AND THE BORROWERS; RECOMMENDING THAT THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, AS THE ELECTED LEGISLATIVE BODY OF THE COUNTY APPROVE THE ISSUANCE OF THE BONDS PURSUANT TO SECTION 147 (I') OF THE INTERNAL REVENUE CODE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, Cleveland Clinic Florida (A Nonprofit Corporation) ("CCF Florida") and Cleveland Clinic Florida Hospital Naples Nonprofit Corporation ("CCF Naples" and, together with CCF Florida, the "Borrowers"), each a Florida not-for-profit, nonstock membership corporation have applied to the Collier County Health Facilities Authority (the "Authority") to issue a series of its revenue bonds to be designated as Collier County Health Facilities Authority Revenue Bonds (Cleveland Clinic Health System Obligated Group) Series 2003 in an Aggregate principal amount not to exceed $125,000,000 (the "Bonds") to be used to (i) refund all or a portion of the outstanding principal amount of the $117,000,000 Collier County Health Facilities Authority Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), the proceeds of which were originally used to pay or reimburse the Borrowers for the payment of, or to refinance certain prior indebtedness the proceeds of which were used to pay, costs of acquiring, constructing, renovating, rehabilitating and equipping certain healthcare facilities EXHIBIT A TO BCC RESOLUTION (the "Project"), and (ii) pay certain costs incurred in connection with the issuance of the Bonds; and WHEREAS, the Borrowers have requested that the Authority loan the proceeds of the Bonds to the Borrowers pursuant to Chapter 154, Part III, Florida Statutes, or such other provision or provisions of Florida law as the Authority may determine advisable (the "Act") in order to accomplish the foregoing purposes; and WHEREAS, the issuance of the Bonds and the loaning of the proceeds thereof to the Borrowers under loan agreements or other financing agreements, and pursuant to the terms thereof which will provide that payments thereunder be at least sufficient to pay the principal of and interest and redemption premium, if any, on such Bonds and such other costs in connection therewith as may be incurred by the Authority, will assist the Borrowers and promote the public purposes provided in the Act; and WHEREAS, in order to satisfy certain of the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Authority did on the date hereof hold a public hearing (the "Hearing") on the proposed issuance of the Bonds for the purposes herein stated, which date is more than 14 days following the first publication of notice of such public hearing in a newspaper of general circulation in Collier County and which public hearing was conducted in a manner that provided a reasonable opportunity for persons with differing views to be heard, both orally and in writing, on the issuance of the Bonds and the location and nature of the Project, as more particularly described in the notice of public hearing attached hereto as Exhibit A; and WHEREAS, it is intended that this Resolution shall constitute official action toward the issuance of the Bonds within the meaning of the applicable United States Treasury Regulations in addition to any other action that may have heretofore been taken by the Borrowers; NOW, THEREFORE, BE IT RESOLVED BY THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY, THAT: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of the Act and other applicable provisions of law. SECTION 2. PRELIMINARY STATEMENT. This Resolution is entered into to permit the Borrowers to proceed with the financing and to provide an expression of intention by the Authority, prior to the issuance of the Bonds, to issue and sell the Bonds and make the proceeds thereof available for such purposes, all in accordance with and subject to 16K9 the provisions of the Act, the Constitution and other laws of the State of Florida and the laws of the United States of America, including the Code, and this Resolution. SECTION 3. FINDINGS AND DETERMINATIONS. At the hearing, the Authority heard and considered both oral and written presentations by the Borrowers, written evidence provided by Borrowers in advance of the Hearing, and comments of members of the public, if any. The Borrowers were represented at the Hearing by employees of the Borrowers' organization and consultants retained by the Borrowers, all of whom had personal knowledge of the matters about which they testified. The Authority had opportunity to direct inquiries to all individuals present, and members of the public were afforded the opportunity to direct questions to the Authority for response by the Borrowers. Based upon the evidence and testimony presented, the Authority finds as follows: A. In 1999 the Authority issued the Prior Bonds in order to permit the financing by Borrowers of the acquisition, construction, and equipping of certain health care facilities (the "Facilities") in Collier County, Florida (the "Collier Facilities") and Broward County, Florida (the "Broward Facilities") described as follows: 1. The Collier Facilities consist of hospital and clinic facilities located at 6101 Pine Ridge Road, Naples, Florida 34112 and include the following: a. The Collier Hospital Facilities, consisting of a three-story concrete structure of approximately 31,620 square feet to be used for diagnosis and testing, and related equipment, and a four-story concrete structure of approximately 165,700 square feet to provide medical/surgical bed space, and related equipment; b. The Collier Clinic Facilities, consisting of a five-story concrete structure of approximately 174,220 square feet and related equipment; 2. The Broward Facilities consist of Clinic facilities located in Broward County, Florida and include the following: a. The Cypress Creek Facilities, located at 3000 West Cypress Creek Road, Ft. Lauderdale, Florida 33309 and consisting of a clinic; b. The Weston Facilities, located at 3100 Weston Road, Weston, Florida 33326 and consisting of a five-story steel frame structure of approximately 190,417 square feet and related equipment; 16 9 B. The portion of the Prior Bonds for the Broward Facilities were issued by the Authority pursuant to an Interlocal Agreement between the Authority and the Broward County Health Facilities Authority. C. Subsequent to the issuance of the Prior Bonds, the Facilities have been constructed and equipped (or acquired and renovated, as appropriate) and are being operated by the respective Borrowers. D. The Collier Facilities have enhanced the health, safety, and welfare of the residents of Collier County and the State of Florida by the following: 1. The Collier Facilities have expanded the health care facilities and health care choices available to the public; 2. The need for such facilities was evidenced by the issuance of a Certificate of Need by the State of Florida Agency for Health Care Administration, and other state-issued licenses; 3. The Facilities have made available to the public in Collier County and the Southwest Florida area three accredited residency programs (Internal Medicine, Neurology, and Colorectal Surgery). 4. The Borrowers have enhanced medical care for the economically disadvantaged by the following community-related programs: a. Since January, 1999, Florida Clinic has employed and otherwise financially supported the placement of one full-time physician at the Isabel Collier Reed Outpatient Center in Immokalee. b. Florida Clinic provides nursing and physician volunteers to the Neighborhood Health Clinic. c. Florida Clinic is working with Collier Health Services, Inc., Moorings Park, and the Lorenzo Walker Vocational School in the development and funding for an LPN program in Immokalee. d. Florida Clinic is the only Medipass participant in the area. 5. The Collier Facilities have created over 750 new jobs in Collier County. 16 9 E. The Borrowers are non-profit corporations whose sole member is the Cleveland Clinic Foundation. The Cleveland Clinic Foundation was established in 1921 and has been recognized as one of the leading healthcare providers worldwide. In a recent survey of hospitals, the Foundation was ranked third overall nationally, and first in heart and heart surgery, and in the top five in six other specialties including urology, digestive disorders, kidney disease, neurology and neurosurgery, orthopedics and rheumatology. Fo The Prior Bonds carry an investment grade rating by a nationally recognized rating agency. G. The Prior Bonds are not in default. H. The purpose of issuing the Bonds is to refund the Prior Bonds and to provide for additional capital expenditures of approximately $9.4 million for the Broward Facilities. I. The primary benefit to the public from the issuance of the Bonds is a more secure debt structure and enhanced financial strength as follows: 1. The Bonds will be secured and enhanced by the issuance of letters of credit by certain banks, currently projected to be JPMorgan Chase Bank and Bank of America, N.A. or UBS AG. The unenhanced and unsecured credit rating of the Obligated Group is A1 (Moody's) and A+ (Standard & Poor's). With the letters of credit, it is anticipated the Bonds will have a rating of . 2. The Bonds are being issued as part of an over-all refinancing of the debt structure of the Obligated Group which will reduce interest rate risk by reducing the amount of variable rate debt, taking advantage of currently low interest rates. All members of the Obligated Group, including the Borrowers, will benefit from the reduced risk. 3. The average life of Obligated Group's indebtedness is being extended to better equalize and match debt service and asset lives. J. The Bonds will be payable from revenues of the Borrowers and other members of the Obligated Group and other payments as described in the financing documents and will be secured by letters of credit. The Borrowers presented evidence to demonstrate that the revenues and other payments pledged to the payment of the Bonds will be sufficient to make the payments required by the Bonds. K. The Bonds will carry and investment grade rating from a nationally recognized rating agency. 16 9 L. The issuance of the Bonds, which includes bonds to refund portions of the Prior Bonds that were issued on account of the Broward Facilities, has been approved by an interlocal agreement between the Broward County Health Facilities Authority and the Authority. M. The Bonds will not be a debt or obligation of Collier County, Broward County, any municipality within either County, the State of Florida or any agency thereof, and will be payable solely from revenues and other payments related to the Facilities, and adequate provisions have been made to inform investors of those facts. N. The Collier Facilities are located in the unincorporated area of Collier County and were constructed in accordance with applicable Collier County codes and regulations. There are no pending or alleged violations of County regulations. SECTION 4. APPROVAL OF THE FINANCING. This financing by the Authority through the issuance of the Bonds, pursuant to the Act, will promote the economic development, prosperity, health and welfare of the citizens of Collier County, will promote the general economic structure of Collier County, and will thereby serve the public purposes of the Act and is hereby preliminarily approved, subject, however, in all respects to the Borrowers meeting the conditions set forth in this Resolution to the sole satisfaction of the Authority. SECTION 5. AUTHORIZATION OF THE BONDS. There is hereby authorized to be issued and thc Authority hereby determines to issue the Bonds, subject in all respects to thc conditions set forth in this Resolution. Thc rate of interest payable on the Bonds shall not exceed the maximum rate permitted by law. SECTION 6. AUTHORIZATION OF EXECUTION AND DELIVERY OF THE INTERLOCAL AGREEMENT. The Interlocal Agreement between the Authority and the Broward County Health Facilities Authority (the "Interlocal Agreement"), which shall be in substantially the form thereof attached hereto and marked "Exhibit B" is hereby approved. The Chairman is authorized to execute and deliver the Interlocal Agreement, including such changes therein as shall be approved by the Chairman executing the same, with such execution to constitute conclusive evidence of such officer's approval and the Authority's approval of any changes therein from the form of Interlocal Agreement attached hereto. SECTION 7. CONDITIONS OF APPROVAL. The approval of the financing and the authorization of the Bonds set forth herein is expressly conditioned on 16K9 the following: A. The loan agreements, trust indentures, and other financing documents (collectively, the "Financing Agreements") between the Authority and the Borrowers shall, under terms agreed upon by the parties, provide for payments to be made by the Borrowers in such sums as shall be necessary to pay the amounts required under the Act, including the principal of and interest and redemption premium, if any, on the Bonds, as and when the same shall become due and payable. B. In authorizing any issuance of the Bonds pursuant to this Agreement, the Authority will make no warranty, either expressed or implied, that the proceeds of the Bonds will be sufficient to pay all costs of refunding the Prior Bonds or paying the costs of issuance of the Bonds. C. The Bonds shall specifically provide that they are payable solely from the revenues derived from the Financing Agreements or other agreements approved by the Authority. The Bonds and the interest thereon shall not constitute an indebtedness or pledge of the general credit of Collier County, Broward County, the State of Florida or any political subdivision or agency thereof, and such fact shall be plainly stated on the face of each of the Bonds. D. Issuance of the Bonds by the Authority shall be contingent upon (I) satisfaction of all of the provisions hereof and all provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations promulgated thereunder, including the ability of and desirability by the Authority to issue the Bonds for the purposes set forth, (ii) the approval of the issuance of the Bonds by the Broward County Health Facilities Authority and (iii) the approval by the Board of County Commissioners of Collier County in accordance with the provisions of Section 147(0 of the Code. E. The Borrowers shall pay the fees of the Authority, Issuer's Counsel, and Bond Counsel and all of the oat-of-pocket expenses of officials and representatives of the Authority incurred in connection with the issuance of the Bonds. F. Nothing contained herein shall be construed to create a binding commitment by the Authority to issue the Bonds until such time, if ever, as the Authority shall grant its final approval for the issuance of the Bonds and the final terms and provisions of the Financing Agreements. By execution hereof, the Borrowers agree that the Authority may withhold its final approval of the issuance of the Bonds in its sole discretion and shall not incur any liability whatsoever as a result of it not granting any such approval notwithstanding any other provision hereof. 16 9 SECTION 8. RECOMMENDATION FOR APPROVAL BY BOARD OF COUNTY COMMISSIONERS. This Resolution shall constitute a recommendation to the Board of County Commissioners of Collier County for approval of the Bonds pursuant to Section 147 (f) of the Code. The Chairman and General Counsel of thc Authority are hereby authorized to present this resolution at a regular meeting of the Board of County Commissioners and to request a resolution of approval for the issuance of the Bonds. SECTION 9. OFFICIAL ACTION. This resolution is an official action of the Authority toward the issuance of thc Bonds, in accordance with the purposes of the laws of thc State of Florida and the applicable United States Treasury Regulations. SECTION 10. LIMITED APPROVAL. The approval given herein shall not be construed as an approval or endorsement of approval of any rezoning or other land use applications, if any, nor for any other regulatory permits relating to the Project and the Authority shall not be construed by reason of its adoption of this resolution to have waived any right of Collier County or to have estopped Collier County from asserting any rights or responsibilities it may have in that regard. SECTION 11. GENERAL AUTHORIZATION. The Chairman and the other officers of the Authority arc hereby further authorized to proceed with the undertakings provided herein on thc part of the Authority and are further authorized to take such steps and actions as may be required or necessary in order to cause the Authority to issue the Bonds subject in all respects to the terms and conditions set forth in this Resolution. SECTION 12. immediately. EFFECTIVE DATE. This Resolution shall take effect ADOPTED this 14th day of February, 2003. (SEAL) COLLIER COUNTY HEALTH FACILITIES AUTHORITY ATTEST: Chairman 16K9 Secretary EXHIBIT A TO RESOLUTION 16~(9 AFFIDAVIT OF PUBLICATION OF NOTICE OF PUBLIC HEARING A-1 Naples Daily News Naples, FL 34102 Affidavit of Publication NapLes DaiLy News PICKgORTH, DONALD P.A. 5150 TANIAM! TRL N #602 NAPLES FL 34103 REFERENCE: 01078~ 5859606q NOTICE OF SPECIAL NE State of FLorida County of CoLLier Before the undersigned authority, personaLLy appeared B. Lamb, who on oath says that she serves as Assistant Corporate Secretary of the NapLes DaiLy Ne~s, a daily newspaper published at NapLes, in CoLLier County, FLorida: that the attached copy of advertising wes published in said newspaper on dates Listed. Affiant further says that the said NapLes OaiLy Ne~s is a newspaper published at NapLes, in said CoLLier County, FLorida, and that the said newspaper has heretofore been continuously published in said CoLLier County, FLorida, each day and has been entered as second class mail matter at the post office in NapLes, in said CoLLier County, FLorida, for a period of I year next preceding the first publication of the attached copy of advertisement; and affiant further says that she has neither paid nor promised any person, firm or corporation any discount, rebate, coaw~ission or refund for the purpose of securing this advertisement for pubLiction in the said neuspaper. PUBLISHED ON: 01/30 AD SPACE: 268.000 INCH FILED ON: 01/31/03 ~o~ mnna C~ Notice of Special Meeting and Public Hearing Notice Is Health duct lief Naples public '. lng the rem not Bonds wlll lows of the "Borrowers") to be used, together i o~- ~,~ ~unds, to: (fi current refund Oil or a portion of the umorlt~'s $H7,000,000 Hosolfa Revenue Bonds, Se rios 1999 (Clevelclnd Clinic Health System Obligated) Group GuoronteedJ (the "Prior Bonos"); (ii) ~¥ r.e.[mburse the Borrowers for the costs of the ocqul-I SITIOn renovation, remade ng and equipping afl their existing healthcare facilities In Collier and] Broword Counties (the "Prolect"); (iii) fund o clebt service reserve fond, If deemed necessary or deslr. able by the Borrowers; and (Iv)pay certain ex-I penses Incurred In connection with the Issuance afl the Bonds clnd the refunding of the Prior Bonds, In-t eluding the cost of any credit enhancement or IH/ quid)fy enhallcement, If deemed necessary or desir- able bythe Borrowers. - The Prolect will consist of the payment for or relm-I .bu.rse.ment of ~the costs o~ certain routine capital ouogeT expenditures of the Borrowers' fac)lines de. scribed below els the Co er FclclllfleS end the Bro-r ward Fclclllfles. The proceeds of the Prior Bondsl were used fa finance the acqus~fon, construoflon, I renovation, remodeling, clnd e_qulpplno of certain health core facilities described os f0[Iows: ~ 1.HosPital and clinic fao)lites ocofed In Colliert Coun_~, Florida ~c ud ng sU~ acquisition (the "COI-I Ilar Foc Ities")as fu ows: . o. The C011ler Hosolfal FacUlties/ condstln; af.a three-story ceacrete s'ffuctare of apprexl: mcr~ely 31,620 square feet fa be used .for d[agno sis (3nd f~sting, and feinted equipment, and four-story concrete structure o1' clpproxlmofe¥ 165,700 squclre feet fa provide medlcal/surg cai bed space, clnd related eatdpment; b. The Collier Clinic FclcilUtes, consisting of .o_.fl.v.e:sfor¥ co. ncfete structure of oPprox motel,/ i/4~z;zu square ~ee7 and related equ pment; c. Locoflorc 6101 PineRidgeRocld Naples, Florida 34112; ' dJnlflol Operators clnd Owners: {1} Collier Hos~Ifal Faclllfies-C eveland Clinic Florida Hospr- [gtNclp!es Non Profit corporation: (2) Collier Clln- ic Fo¢llffles. Clevelond Cllnlc Plorldo (A Nonprofit Corporation) 2.Cllnlc faclllfies located n Broword County FI0rldo (the "Browclrd Fclclllfies") OS follows: o. The Cypress Creek Facilities, consisting of c cllnrc presently oValod by on unroofed thrd party fo be clcqulrod, remodeled, and renovated; b. Ttie Weston Fac )ties, consisting of a five. story steel trclme sfl'uCfure Of approximately 190,4~7 square feet and related paulpmenr, c. Locoflea: (1)_ ' CYl~_ess creek F~clllfles-30001 West Cypress creek R~l~ Fl. Lcludordcl e Floriflol 33309; £2~ wesfafl Facilities-3100 Wesfan R~)~d, West- on, F~orlde 33326; d.lnltiol Onerofor and Owner: Cleveland CllnlcJ Florida (A Nohproflf Corporgflon). ' I Ail lnforesfled persons are InVifod fa submit written comments, or attend the .he~.dng, either bersonoll¥ or thrOUgh their rel:~'esent~lve~ end Will be given ~n oPparl~nlty fa fLxpres~ their views concerning the Pr01ecls or the /[naflclng; An¥Otm deslrina to make written ~;omthent~ In adypnce Of the hearing mclv Send SuCh COmmerlts fa: Collier County Hegtth FOCi ~fles Authority c/o General Coullsel · 5150 Narlh Tamtaml Trail, ~ulfe NaPleS, Florida 34103 Wr~en comments received In advance of th~ hearing, and oral carl!manta made at the hearing are fur the co~sklercmon of the Aulh0rlty and not bind the Authority. Capias of .tf~ application., for financing:are a~lgble for Inspection and copy. SHOULD ANY' PERSON DECIDE TO APPEAL ANY DECISION NLADE BY THE.AUTHORITY WITH RE. SPECT TO ANY MATTER CONSIDERED AT SUCH HEARING, SUCH PERSON WILL N~A RECORD OF THE PROCEEDINGS AND FOR T_HAT: PUR- TH/~'PO E SUCH PERSONMA~Y ~IEED TO ENSURE ^ VERBAT ~ R~CORO O~' T.E ERGCEE~- ING~ 15 MADE, WHICH RECORD:INCLUDES THE In clccor~nce wlth the Americans With Dlsclbllifiesll Act, PersoqS needing ::P sl~lel mc:ommodaflon foil oPi'lclp~ e. rt ~IS h ~Eig: g cf Donald er man seven(7)c[o~j prior 1~ fha hearlna. This notice IS a ~n ~r~6~toS~dpn ~o of the Internal Revenue Code, es ~m~ded,: . j /s/ D°~Id A P ckw°~i I Assistant ~eoretory ond j General CounSel ' , January 30, 2003 :'ilo. 90829/ 16K9 EXHIBIT A TO AUTHORITY RESOLUTION 16K9 INTERLOCAL AGREEMENT THIS IS AN INTERLOCAL AGREEMENT, dated as of ,2003 (the "Agreement"), by and between the COLLIER COUNTY HEALTH FACILITIES AUTHORITY (the "Issuer"), a public body corporate and politic duly created and existing under the laws and Constitution of the State of Florida, and the BROWARD COUNTY HEALTH FACILITIES AUTHORITY (the "Interlocal Participant"), a public body corporate and politic created and existing under the laws and the Constitution of the State of Florida. RECITALS Pursuant to the Florida Interlocal Cooperation Act of 1969, Section 163.01, Part I, Chapter 163, Florida Statutes, as amended (the "Interlocal Cooperation Act"), "public agencies," as defined in the Interlocal Cooperation Act, are authorized to enter into agreements with one another in order to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to fOITnS of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities. The Interlocal Cooperation Act provides that a public agency may, pursuant to contract, exercise jointly with any other public agency any power, privilege or authority which such public agencies share in common which each might exercise separately. Pursuant to the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended (the "Health Authorities Act"), and to the Florida Industrial Development Financing Act (Part II, Chapter 159, Florida Statutes), as amended (the "Industrial Development Act" and, together with the Health Authorities Act, the "Financing Acts"), the Issuer and the Interlocal Participant are authorized to issue revenue bonds and loan the proceeds thereof to qualified borrowers to, among other things, pay all or any part of the "costs" of any "project" (both as defined in the respective Financing Acts). The Issuer and the Interlocal Participant are public agencies and desire to enter into this Agreement to authorize the Issuer to issue one or more series of revenue bonds (the "Bonds") on behalf of and with the approval of the Interlocal Participant and loan the proceeds thereof to, among others, Cleveland Clinic Florida (A Nonprofit Corporation) (the "Interlocal Borrower"), which is a Florida not for profit corporation with certain facilities located outside the geographical boundaries of Collier County, Florida, but within the geographical boundaries of Broward County, Florida, for the purposes of providing funds to, among other things, (i) current refund all or a portion of the outstanding principal amount of the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. The proceeds of the Prior Bonds were used to (i) pay or reimburse the Interlocal Borrower for CHI-1335583v2 EXHIBIT B TO AUTHORITY RESOLUTION 16 (9 the payment of, or to refinance certain prior debt the proceeds of which were used to pay, costs of acquiring, constructing, renovating, rehabilitating and equipping of certain healthcare facilities operated by the Interlocal Borrower and located at 3100 Weston Road, Weston, Florida 33326 and 3000 W. Cypress Creek Road, Ft. Lauderdale, Florida 33309 and facilities operated by the Interlocal Borrower and one of its affiliates and located at 6101 Pine Ridge Road, [Naples, Florida 34122]; and (ii) pay certain expenses incurred in connection with the issuance of the Prior Bonds, including the cost of any credit enhancement or liquidity enhancement, if deemed necessary or desirable by the Interlocal Borrower. In consideration of the mutual agreements contained herein and upon the further consideration of the recitals hereinabove set forth, it is hereby agreed by and between the parties hereto as follows: Section 1. Definitions. Unless the context otherwise requires, the following terms for all purposes of this Agreement shall have the following meanings: "Acts" means the Financing Acts and the Interlocal Cooperation Act. "Administrator" means the administrator appointed pursuant to Section 4(c) hereof. "Agreement" means this Interlocal Agreement and all amendments and supplements thereto. "Bondlndenture" means each of the Bond Trust Indentures between the Issuer and the Bond Trustee pursuant to which the Bonds are to be issued, and all amendments and supplements thereto, including any indenture pursuant to which a series of revenue bonds is issued to provide for the refunding or refinancing of the Bonds. "Bonds" means the revenue bonds issued in one or more series by the Issuer, in part, on behalf of the Interlocal Participant for the benefit of the Interlocal Borrower under the Bond Indenture. "Bond Trustee" means the bond trustee selected by the Inteflocal Borrower and approved by the Issuer, or any successor trustee under the Bond Indenture. "Financing Acts" means the Health Authorities Act and the Industrial Development Act. "Health Authorities Act" means the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended. "Industrial Development Act" means the Florida Industrial Development Financing Act (Part II, Chapter 159, Florida Statutes), as amended. "Interlocal Borrower" means Cleveland Clinic Florida (A Nonprofit Corporation), a Florida not for profit corporation, and its successors and assigns. "Interlocal Cooperation Act" means the Florida Interlocal Cooperation Act of 1969 (Section 163.01, Part I, Chapter 163, Florida Statutes), as amended. CHI-1335583v2 2 16K9 "Interlocal Participant" means the Broward County Health Facilities Authority and its successors and assigns. "Issuer" means the Collier County Health Facilities Authority, and its successors and assigns, as issuer of the Bonds. "Loan" means the loan to be made by the Issuer to the Interlocal Borrower to, among other things, (i) current refund all or a portion of the outstanding principal amount of the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. "Loan Agreement" means each of the Loan Agreements between the Issuer and, among others, the Interlocal Borrower, setting forth the terms of the Loan, and all amendments and supplements thereto, including any loan agreement evidencing a loan to the Interlocal Borrower the proceeds of which will be used to refund or refinance the Bonds. "Master Note" means each of the Master Notes of the Interlocal Borrower or an affiliate or affiliates thereof or any combination of the foregoing, delivered to the Bond Trustee in order to evidence or secure the obligation of the Interlocal Borrower to pay an amount sufficient to amortize the Loan. "Prior Bonds" means the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed). "Resolution" means a resolution of the goveming body of a party hereto adopted for the purpose of approving and authorizing the execution of this Agreement or any amendment hereto, or approving any action taken pursuant to this Agreement when such approval is required hereby. Terms defined in this Section in the singular shall include the plural and vice versa. Section 2. Purposes. In order to assist in the development and maintenance of the public health, to accomplish economies of scale and other cost savings, and to reduce the cost of providing health care services, this Agreement is entered into pursuant to the authority granted in the Acts for the purposes of providing for (A) the issuance of the Bonds by the Issuer on behalf of and with the approval of, among others, the Interlocal Participant for the benefit of the Interlocal Borrower in order, among other things, to make the Loan to the Interlocal Borrower to, among other things, (0 current refund the Prior Bonds, and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower and (B) the issuance of any future revenue bonds by the Issuer for the benefit of the Interlocal Borrower in order to make a loan to the Interlocal Borrower to refinance or refund the Bonds and pay expenses related thereto. This Agreement shall be interpreted so as to permit the realization of such purposes to the full extent authorized by the Acts. CHI-1335583v2 3 16K9 Section 3. Effective Date; Closing Conditions; Duration. This Agreement shall become effective and shall enter into force, within the meaning of the Interlocal Cooperation Act, upon receipt by the Administrator of (i) the Resolutions duly adopted by the governing body of the Issuer and of the Interlocal Participant, respectively, approving and authorizing the execution and delivery of this Agreement, (ii) a counterpart of this Agreement, duly executed by authorized officers of the Issuer and the Interlocal Participant; and (iii) evidence satisfactory to the Administrator of the filing of a duly executed counterpart of this Agreement with the Clerk of the Circuit Court of Collier County, Florida and in the Public Records of Broward County, Florida in the County Records Division. The issuance of the Bonds shall be subject to the receipt by the Administrator of(i) the documents and showings listed in clauses (i) through (iii) above, (ii) an opinion of counsel to the Interlocal Participant in substantially the form attached hereto as Exhibit,4, and (iii) such other documents, opinions and showings as may be necessary to effectuate the issuance of the Bonds and the making of the Loan. The term of this Agreement shall end upon the discharge of the Bond Indenture in accordance with the provisions thereof. Upon the expiration of this Agreement, any property or moneys not required to be used to pay principal, premium, if any, or interest on the Bonds and not otherwise required to be applied as required by the Bond Indenture shall, to the extent permitted by law, be distributed pro rata between the Interlocal Borrower and the other parties to whom loans were made from proceeds of the Bonds. Section 4. The Interlocal Financing. The Issuer shall issue the Bonds subject to the following conditions: (a) The Bonds. (i) The Issuer shall authorize the issuance and delivery of the Bonds pursuant to and subject to the terms and conditions of the Bond Indenture, the portion of which shall be attributable to the Loan being in an aggregate principal amount not to exceed $ The Bonds shall be rated and shall bear interest, be subject to repurchase and redemption, be designated and be in the form, and have such other terms as are provided in the Bond Indenture, as finally executed and delivered by the Issuer without further approval of the Interlocal Participant, but subject in all respects to the provisions set forth in the Issuer Resolution. (ii) In the event that the Bonds are to be refunded at a future date through an issuance, by the Issuer or other issuing body, of one or more series of bonds, such Bonds can be refunded without the prior approval of the Interlocal Participant. (iii) The Bonds, together with interest thereon, shall not constitute a debt, liability or obligation of Broward County, Florida, Collier County, Florida, the State of Florida or any political subdivision or agency thereof, but shall be special and limited obligations of the Issuer payable solely from, and shall be secured by, to the extent and in the manner provided in the Bond Indenture, a pledge to the Bond Trustee of the rights of the Issuer under the Master Note and the Loan Agreement and the amounts in the funds and accounts created by the Bond Indenture. The Interlocal Participant, the Issuer (except to the extent provided in the preceding sentence), Broward County, Florida, Collier County, Florida and their CHI-1335583v2 4 16K9 respective members, officers, agents and employees shall not be liable for the payment of the principal of, premium, if any, or interest on the Bonds, nor shall the Interlocal Participant, the Issuer (except to the extent provided in the preceding sentence), Broward County, Florida, Collier County, Florida, or their respective members, officers, agents and employees, be liable for any other indebtedness or liability which may arise in connection with the issuance of the Bonds or the making of the Loan. (iv) The proceeds of the sale of the Bonds shall be applied in accordance with the provisions of the Bond Indenture for the purposes specified in the Bond Indenture and in Section 2 hereof. (v) The Bonds may be issued in one or more series and, if issued in more than one series, references herein to the Bond Indenture, the Loan Agreement and the Master Note shall be deemed to include, if necessary, any supplemental or additional Bond Indentures or Loan Agreements and any additional Master Notes executed and delivered in connection with the issuance of the Bonds. (vi) The Interlocal Borrower shall agree to pay any amounts owing on the Bonds pursuant to the provisions of Section 148(0 of the Internal Revenue Code of 1986, as amended. (vii) The Interlocal Borrower shall agree in the Loan Agreement to protect, indemnify and save the Issuer, the Interlocal Participant, Broward County, Florida and Collier County, Florida, their members, officers, agents and employees against and from any and all liabilities, suits, actions, claims, demands, damages, losses, expenses and costs of every kind and nature incurred by or asserted or imposed against the Issuer, the Interlocal Participant, Broward County, Florida or Collier County, Florida, their members, officers, agents and employees which may arise in connection with the issuance of the Bonds or the making of the Loan. (b) The Loan. (i) Pursuant to and subject to the terms and conditions of the Bond Indenture, the Issuer is hereby authorized to make available to the Interlocal Borrower proceeds of the Bonds to be used by the Interlocal Borrower for the purposes set forth in Section 2 without further approval of the Interlocal Participant. (ii) The Loan Agreement shall provide for payments sufficient to pay expenses incident to the issuance of the Bonds and any costs and expenses of the Interlocal Participant and its counsel. It is understood that the Interlocal Participant and the Interlocal Borrower have determined that such agreement to pay expenses and costs of the Interlocal Participant and of Broward County, Florida shall be satisfied by the agreement of the Interlocal Borrower in the Loan Agreement to pay to the Interlocal Participant: (i) on the date of delivery of the Bonds, an amount equal to the product obtained by multiplying the original principal amount of the Bonds attributable to facilities located in Broward County, Florida times .0005; and (ii) on each annual anniversary date of such delivery, an amount equal to the CHI-1335583v2 5 16 (9 product obtained by multiplying the principal amount of Bonds attributable to facilities located in Broward County, Florida which were outstanding on the anniversary date times .0005. The Interlocal Participant and the Interlocal Borrower further agree that: (1) if the Interlocal Participant adopts a fee or similar schedule for executing Interlocal Participation Agreements which if applied to the Bonds would result in a lower amount being payable to the Interlocal Participant by the Interlocal Borrower than under the agreement herein referred to, the Interlocal Borrower's payment obligation referred to above shall be reduced to such lower level; and (2)if the Interlocal Participant fails to adopt such a fee schedule by or ceases using any such fee schedule which it adopted by ., the Interlocal Borrower shall have no obligation or further obligation, as the case may be, to pay the amounts hereinabove referred to in subsection (ii). (c) Administrator. Pursuant to Section 163.01(6) of the Interlocal Cooperation Act, the Issuer is hereby designated the Administrator. The Administrator shall have and is hereby delegated full power and authority to do all things necessary or convenient to carry out the purposes of this Agreement, including, without limitation, the appointment of such agents or entities as are necessary or desirable to effectuate the issuance of the Bonds and the making of the Loan. Section 5. Amendments. This Agreement may not be amended, changed, modified or altered except by an instrument in writing which shall be (i) approved by a Resolution of the governing body of the Issuer and of the Interlocal Participant, (ii)executed by duly authorized officers of the Issuer and the Interlocal Participant, and (iii) filed with the Clerk of the Circuit Court of Collier County, Florida and in the public records of Broward County, Florida in the County Records Division. Section 6. Severability. If any term or provision of this Agreement or the application thereof shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and shall be enforced to the extent permitted by law. To the extent permitted by applicable law, the parties hereby waive any provision of law which would render any of the terms of this Agreement unenforceable. Section 7. Governing Law. All questions with respect to the construction of this Agreement, and the rights and liabilities of the parties hereto, shall be governed by the laws of the State of Florida. Section 8. Notices. Any notice or other communication shall be sufficiently given and shall be deemed given when delivered or mailed by registered or certified mail, postage prepaid, addressed as follows: CHI-1335583v2 6 16K9 If to the Issuer: Collier County Health Facilities Authority C/O Clerk of the Board of County Commissioners Collier County Courthouse, Bldg. F 3301 E. Tamiami Trail Naples, Florida 34112 If to the Interlocal Participant: Broward County Health Facilities Authority 115 South Andrew Avenue Suite 513 Ft. Lauderdale, Florida 33301 In each case with a copy to: Collier County, Florida Clerk of the Circuit Court Attn: Clerk of the Board Collier County Courthouse, Bldg. F 3301 E. Tamiami Trail Naples, Florida 34112 and a copy to: Donald A. Pickworth, PA Suite 602, Newgate Tower 5150 North Tamiami Trail Naples, Florida 34103 and a copy to: Broward County, Florida Clerk of the Circuit Court 115 South Andrew Avenue Suite 513 Ft. Lauderdale, Florida 33301 The Issuer and the Interlocal Participant may, by notice given hereunder, designate any further or different addresses to which subsequent notices or communications shall be sent. Section 9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. CHI-1335583v2 7 16 9 Section 10. No Delegation of Authority. This Agreement shall in no way be interpreted to authorize the unlawful delegation of the constitutional or statutory duties of the Issuer, the Interlocal Participant or any of their officers, members, representatives or employees. Section 11. Limited Approval. The approval given herein shall not be construed as an approval of any necessary zoning or rezoning applications nor for any planning or regulatory permits and the approval of this Agreement shall not be construed to be a waiver by either the Issuer or the Interlocal Participant of, and neither the Issuer nor the Interlocal Participant shall be estopped from asserting, any regulatory rights or responsibilities it may have with respect thereto. CHI-1335583v2 8 16 9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested in their respective corporate names by their duly authorized officers all as of the date first above written. COLLIER COUNTY HEALTH FACILITIES AUTHORITY [SEAL] Attest: Title: Primed Name: [SEAL] Attest: Title: Printed Name: By. Title: Printed Name: BROWARD COUNTY HEALTH FACILITIES AUTHORITY By. Title: Printed Name: CHI-1335583v2 9 16K9 STATE OF FLORIDA ) ) SS COUNTY OF BROWARD) I, ., a Notary Public in and for the said County in the State aforesaid, do hereby certify that and , personally known to me to be the same persons whose names are, respectively, as and of the BROWARD COUNTY HEALTH FACILITIES AUTHORITY, a special district and a body corporate and politic, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged under oath that they, being thereunto duly authorized, signed, sealed with the corporate seal, and delivered the said instrument as the free and voluntary act of said public body and as their own free and voluntary act, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of ,2003. Notary Public Printed Name: Commission Number: [NOTARIAL SEAL] My commission expires: CHl-1335583v2 10 16t(9 STATE OF FLORIDA COUNTY OF COLLIER ) ) SS ) I, , a Notary Public in and for the said County in the State aforesaid, do hereby certify that and , personally known to me to be the same persons whose names are, respectively, as and of the COLLIER COUNTY HEALTH FACILITIES AUTHORITY, a special district and a body corporate and politic, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged under oath that they, being thereunto duly authorized, signed, sealed with the corporate seal, and delivered the said instrument as the free and voluntary act of said public body and as their own free and voluntary act, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of ,2003. Notary Public Printed Name: Commission Number: [NOTARIAL SEAL] My commission expires: cm-1335583v2 1 1 16K9 EXHIBIT A The opinion of counsel required by Section 3 of this Agreement shall be dated the date of delivery of the Bonds, shall be addressed to the Administrator, the Bond Trustee and such other parties as may be reasonably requested by the Administrator, shall be in form and substance satisfactory to them, and shall be to the effect that: 1. The Interlocal Participant is a public body corporate and politic duly organized and validly existing under the Constitution and laws of the State of Florida and qualifies as a "public agency" within the meaning of the Florida Interlocal Cooperation Act of 1969 (Section 163.01, Part I, Chapter 163, Florida Statutes, as amended). 2. The Interlocal Participant Resolution has been duly adopted by the Interlocal Participant and is in full force and effect. 3. The Agreement has been duly authorized, executed and delivered by the Interlocal Participant and, assuming the due authorization, execution, and delivery thereof by the Issuer and the other public agencies which are parties thereto, constitutes a valid and binding obligation of the Interlocal Participant enforceable against the Interlocal Participant in accordance with its terms. 4. There is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, public board or body pending or, to the best of our knowledge, threatened against or affecting the Interlocal Participant, nor to the best of our knowledge is there any basis therefor, which in any way questions the powers or actions of the Interlocal Participant relative to the Interlocal Participant Resolution or the Agreement. 5. The execution, delivery and performance of the Agreement by the Interlocal Participant will not conflict with or result in the breach of any of the provisions of, or constitute a default under, any indenture, mortgage, deed of trust or agreement or instrument known to us to which the Interlocal Participant is a party or by which it or its properties are bound. CHl-1335583v2 A-1 RESOLUTION NO. 2003-01 16K9 AN INDUCEMENT RESOLUTION OF THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY REGARDING THE OFFICIAL ACTION OF THE AUTHORITY WITH RESPECT TO THE PROPOSED ISSUANCE BY THE AUTHORITY OF ITS COLLIER COUNTY HEALTH FACILITIES AUTHORITY REVENUE BONDS (CLEVELAND CLINIC HEALTH SYSTEM OBLIGATED GROUP) SERIES 2003 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $125,000,000 FOR THE PRINCIPAL PURPOSE OF (1) REFUNDING ALL OR A PORTION OF THE OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S HOSPITAL REVENUE BONDS, SERIES 1999 (CLEVELAND CLINIC HEALTH SYSTEM OBLIGATED GROUP), (2) PAYING OR REIMBURSING THE COSTS OF ACQUIRING, CONSTRUCTING, RENOVATING, REHABILITATING AND EQUIPPING CERTIAIN HEALTH CARE FACILITIES AND (3) TO PAY CERTAIN COSTS INCURRED OR TO BE INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A PRELIMINARY AGREEMENT BETWEEN THE AUTHORITY AND THE BORROWERS; RECOMMENDING THAT THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, AS THE ELECTED LEGISLATIVE BODY OF THE COUNTY APPROVE THE ISSUANCE OF THE BONDS PURSUANT TO SECTION 147 (f) OF THE INTERNAL REVENUE CODE; AND PROVIDING FOR RELATED MATTERS. WHEREAS, Cleveland Clinic Florida (A Nonprofit Corporation) CCCF Florida") and Cleveland Clinic Florida Hospital Naples Nonprofit Corporation ("CCF Naples" and, together with CCF Florida, the "Borrowers"), each a Florida not-for-profit, nonstock membership corporation have applied to the Collier County Health Facilities Authority (the "Authority") to issue a series of its revenue bonds to be designated as Collier County Health Facilities Authority Revenue Bonds (Cleveland Clinic Health System Obligated Group) Series 2003 in an Aggregate principal amount not to exceed $125,000,000 (the" Bonds") to be used to (i) refund all or a portion of the outstanding principal amount of the $117,000,000 Collier County Health Facilities Authority Hospital Revenue Bonds, EXHIBIT A TO BCC RESOLUTION 16K9 Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), the proceeds of which were originally used to pay or reimburse the Borrowers for the payment of, or to refinance certain prior indebtedness the proceeds of which were used to pay, costs of acquiring, constructing, renovating, rehabilitating and equipping certain healthcare facilities (the "Prior Project"), (ii) pay or reimburse the Borrowers for the costs of acquiring, constructing, renovating, rehabilitating, and equipping of their health care facilities and (iii) pay certain costs incurred in connection with the issuance of the Bonds; and WHEREAS, the Borrowers have requested that the Authority loan the proceeds of the Bonds to the Borrowers pursuant to Chapter 154, Part III, Florida Statutes, or such other provision or provisions of Florida law as the Authority may determine advisable (the "Act") in order to accomplish the foregoing purposes; and WHEREAS, the issuance of the Bonds and the loaning of the proceeds thereof to the Borrowers under loan agreements or other financing agreements, and pursuant to the terms thereof which will provide that payments thereunder be at least sufficient to pay the principal of and interest and redemption premium, if any, on such Bonds and such other costs in connection therewith as may be incurred by the Authority, will assist the Borrowers and promote the public purposes provided in the Act; and WHEREAS, in order to satisfy certain of the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Authority did on the date hereof hold a public hearing (the "Hearing") on the proposed issuance of the Bonds for the purposes herein stated, which date is more than 14 days following the first publication of notice of such public hearing in a newspaper of general circulation in Collier County and which public hearing was conducted in a manner that provided a reasonable opportunity for persons with differing views to be heard, both orally and in writing, on the issuance of the Bonds and the location and nature of the Project, as more particularly described in the notice of public hearing attached hereto as Exhibit A; and WHEREAS, it is intended that this Resolution shall constitute official action toward the issuance of the Bonds within the meaning of the applicable United States Treasury Regulations in addition to any other action that may have heretofore been taken by the Borrowers; NOW, THEREFORE, BE IT RESOLVED BY THE COLLIER COUNTY HEALTH FACILITIES AUTHORITY, THAT: 2 16K9 SECTION 1. AUTHORITY FOR THIS Resolution is adopted pursuant to the provisions of the provisions of law. RESOLUTION. This Act and other applicable SECTION 2. PRELIMINARY STATEMENT. This Resolution is entered into to permit the Borrowers to proceed with the financing and to provide an expression of intention by the Authority, prior to the issuance of the Bonds, to issue and sell the Bonds and make the proceeds thereof available for such purposes, all in accordance with and subject to the provisions of the Act, the Constitution and other laws of the State of Florida and the laws of the United States of America, including the Code, and this Resolution. SECTION 3. FINDINGS AND DETERMINATIONS. At the hearing, the Authority heard and considered both oral and written presentations by the Borrowers, written evidence provided by Borrowers in advance of the Hearing, and comments of members of the public, if any. The Borrowers were represented at the Hearing by employees of the Borrowers' organization and consultants retained by the Borrowers, all of whom had personal knowledge of the matters about which they testified. The Authority had opportunity to direct inquiries to all individuals present, and members of the public were afforded the opportunity to direct questions to the Authority for response by the Borrowers. Based upon the evidence and testimony presented, the Authority finds as follows: A. In 1999 the Authority issued the Prior Bonds in order to permit the financing by Borrowers of the acquisition, construction, and equipping of certain health care facilities (the "Facilities") in Collier County, Florida (the "Collier Facilities") and Broward County, Florida (the "Broward Facilities") described as follows: 1. The Collier Facilities consist of hospital and clinic facilities located at 6101 Pine Ridge Road, Naples, Florida 34119 and include the following: a. The Collier Hospital Facilities, consisting of a three-story concrete structure of approximately 31,620 square feet to be used for diagnosis and testing, and related equipment, and a four-story concrete structure of approximately 165,700 square feet to provide medical/surgical bed space, and related equipment; b. The Collier Clinic Facilities, consisting of a five-story concrete structure of approximately 174,220 square feet and related equipment; 3 16K9 2. The Broward Facilities consist of Clinic facilities located in Broward County, Florida and include the following: a. The Cypress Creek Facilities, located at 3000 West Cypress Creek Road, Ft. Lauderdale, Florida 33309; b. The Weston Facilities, located at 3100 Weston Road, Weston, Florida 33326 and consisting of a five-story steel frame structure of approximately 190,417 square feet and related equipment; B. The portion of the Prior Bonds for the Broward Facilities were issued by the Authority pursuant to an Interlocal Agreement between the Authority and the Broward County Health Facilities Authority. C. Subsequent to the issuance of the Prior Bonds, the Facilities have been constructed and equipped (or acquired and renovated, as appropriate) and are being operated by the respective Borrowers. D. The Collier Facilities have enhanced the health, safety, and welfare of the residents of Collier County and the State of Florida by the following: 1. The Collier Facilities have expanded the health care facilities and health care choices available to the public; 2. The need for such facilities was evidenced by the issuance of a Certificate of Need by the State of Florida Agency for Health Care Administration, and other state-issued licenses; 3. The Facilities have made available to the public in Collier County and the Southwest Florida area three accredited residency programs based in Weston and/or Weston and Collier County (Internal Medicine, Neurology, and Colorectal Surgery). 4. The Borrowers have enhanced medical care for the economically disadvantaged by the following community-related programs: a. Since January, 1999, Florida Clinic has employed and otherwise financially supported the placement of one full-time physician at the Isabel Collier Reed Outpatient Center in Immokalee. 4 16K9 b. Florida Clinic provides nursing and physician volunteers to the Neighborhood Health Clinic. c. Florida Clinic is working with Collier Health Services, Inc., Moorings Park, and the Lorenzo Walker Vocational School in the development and funding for an LPN program in Immokalee. d. Florida Clinic is the only Medipass participant in the area. e. Florida Clinic is participating in the Centers for Disease Control Breast and Cervical cancer screening program. f. Florida Clinic is providing funding for the "Healthy Kids" program ($73,000 as the requested amount on the current year). g. Florida Clinic personnel hold memberships on boards of various local public health oriented organizations. h. Florida Clinic works with the Senior Friendship Center. i. Florida Clinic provides support and participation in the smallpox immunization program. o The Collier Facilities have created over 750 new jobs in Collier County. E. The Borrowers are non-profit corporations whose sole member is the Cleveland Clinic Foundation. The Cleveland Clinic Foundation was established in 1921 and has been recognized as one of the leading healthcare providers worldwide. In a recent survey of hospitals, the Foundation was ranked third overall nationally, and first in heart and heart surgery, and in the top five in six other specialties including urology, digestive disorders, kidney disease, neurology and neurosurgery, orthopedics and rheumatology. The Prior Bonds carry an investment grade rating by a nationally recognized rating agency. G. The Prior Bonds are not in default. 16 (9 H. The purpose of issuing the Bonds is to refund the Prior Bonds and to provide for additional capital expenditures of approximately $10.5 million for the Broward Facilities. I. The primary benefit to the public from the issuance of the Bonds is a more secure debt structure and enhanced financial strength as follows: 1. The Bonds will be secured and enhanced by the issuance of letters of credit by certain banks, currently projected to be JPMorgan Chase Bank and Bank of America, N.A. or UBS AG. The unenhanced and unsecured credit rating of the Obligated Group is A1 (Moody's) and A+ (Standard & Poor's). With the letters of credit, it is anticipated the Bonds will have a rating of AA. 2. The Bonds are being issued as part of an over-all refinancing of the debt structure of the Obligated Group which will reduce interest rate risk by reducing the amount of variable rate debt, taking advantage of currently low interest rates. All members of the Obligated Group, including the Borrowers, will benefit from the reduced risk. 3. The average life of Obligated Group's indebtedness is being extended to better equalize and match debt service and asset lives. J. The Bonds will be payable from revenues of the Borrowers and other members of the Obligated Group and other payments as described in the financing documents and will be secured by letters of credit. The Borrowers presented evidence to demonstrate that the revenues and other payments pledged to the payment of the Bonds will be sufficient to make the payments required by the Bonds. K. The Bonds will carry an investment grade rating from a nationally recognized rating agency. L. The issuance of the Bonds, which includes bonds to refund portions of the Prior Bonds that were issued on account of the Broward Facilities, will be approved by an interlocal agreement between the Broward County Health Facilities Authority and the Authority. M. The Bonds will not be a debt or obligation of Collier County, Broward County, any municipality within either County, the State of Florida or any agency thereof, and will be payable solely from revenues and other payments related to the Facilities, and adequate provisions have been made to inform investors of those facts. 6 16K9 N. The Collier Facilities are located in the unincorporated area of Collier County and were constructed in accordance with applicable Collier County codes and regulations. There are no pending or alleged violations of County regulations. SECTION 4. APPROVAL OF THE FINANCING. This financing by the Authority through the issuance of the Bonds, pursuant to the Act, will promote the economic development, prosperity, health and welfare of the citizens of Collier County, will promote the general economic structure of Collier County, and will thereby serve the public purposes of the Act and is hereby preliminarily approved, subject, however, in all respects to the Borrowers meeting the conditions set forth in this Resolution to the sole satisfaction of the Authority. SECTION 5. AUTHORIZATION OF THE BONDS. There is hereby authorized to be issued and the Authority hereby determines to issue the Bonds, subject in all respects to the conditions set forth in this Resolution. The rate of interest payable on the Bonds shall not exceed the maximum rate permitted by law. SECTION 6. AUTHORIZATION OF EXECUTION AND DELIVERY OF THE INTERLOCAL AGREEMENT. The Interlocal Agreement between the Authority and the Broward County Health Facilities Authority (the "Inteflocal Agreement"), which shall be in substantially the form thereof attached hereto and marked "Exhibit B" is hereby approved. The Chairman is authorized to execute and deliver the Inteflocal Agreement, including such changes therein as shall be approved by the Chairman executing the same, with such execution to constitute conclusive evidence of such officer's approval and the Authority's approval of any changes therein from the form of Interlocal Agreement attached hereto. SECTION 7.CONDITIONS OF APPROVAL. The approval of the financing and the authorization of the Bonds set forth herein is expressly conditioned on the following: A. The loan agreements, trust indentures, and other financing documents (collectively, the "Financing Agreements") between the Authority and the Borrowers shall, under terms agreed upon by the parties, provide for payments to be made by the Borrowers in such sums as shall be necessary to pay the amounts required under the Act, including the principal of and interest and redemption premium, if any, on the Bonds, as and when the same shall become due and payable. B. In authorizing any issuance of the Bonds pursuant to this Agreement, the 7 16K9 Authority will make no warranty, either expressed or implied, that the proceeds of the Bonds will be sufficient to pay all costs of refunding the Prior Bonds or paying the costs of issuance of the Bonds. C. The Bonds shall specifically provide that they are payable solely from the revenues derived from the Financing Agreements or other agreements approved by the Authority. The Bonds and the interest thereon shall not constitute an indebtedness or pledge of the general credit of Collier County, Broward County, the State of Florida or any political subdivision or agency thereof, and such fact shall be plainly stated on the face of each of the Bonds. D. Issuance of the Bonds by the Authority shall be contingent upon (I) satisfaction of all of the provisions hereof and all provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations promulgated thereunder, including the ability of and desirability by the Authority to issue the Bonds for the purposes set forth, (ii) the approval of the issuance of the Bonds by the Broward County Health Facilities Authority and (iii) the approval by the Board of County Commissioners of Collier County in accordance with the provisions of Section 147(f) of the Code. E. The Borrowers shall pay the fees of the Authority, Issuer's Counsel, and Bond Counsel and all of the out-of-pocket expenses of officials and representatives of the Authority incurred in connection with the issuance of the Bonds. F. Nothing contained herein shall be construed to create a binding commitment by the Authority to issue the Bonds until such time, if ever, as the Authority shall grant its final approval for the issuance of the Bonds and the final terms and provisions of the Financing Agreements. By execution hereof, the Borrowers agree that the Authority may withhold its final approval of the issuance of the Bonds in its sole discretion and shall not incur any liability whatsoever as a result of it not granting any such approval notwithstanding any other provision hereof. SECTION 8. RECOMMENDATION FOR APPROVAL BY BOARD OF COUNTY COMMISSIONERS. This Resolution shall constitute a recommendation to the Board of County Commissioners of Collier County for approval of the Bonds pursuant to Section 147 (f) of the Code. The Chairman and General Counsel of the Authority are hereby authorized to present this resolution at a regular meeting of the Board of County Commissioners and to request a resolution of approval for the issuance of the Bonds. SECTION 9. OFFICIAL ACTION. This resolution is an official action of the Authority toward the issuance of the Bonds, in accordance with the purposes of the 8 16K9 laws of the State of Florida and the applicable United States Treasury Regulations. SECTION 10. LIMITED APPROVAL. The approval given herein shall not be construed as an approval or endorsement of approval of any rezoning or other land use applications, if any, nor for any other regulatory permits relating to the Project and the Authority shall not be construed by reason of its adoption of this resolution to have waived any right of Collier County or to have estopped Collier County from asserting any rights or responsibilities it may have in that regard. SECTION 11. GENERAL AUTHORIZATION. The Chairman and the other officers of the Authority are hereby further authorized to proceed with the undertakings provided herein on the part of the Authority and are further authorized to take such steps and actions as may be required or necessary in order to cause the Authority to issue the Bonds subject in all respects to the terms and conditions set forth in this Resolution. SECTION 12. immediately. EFFECTIVE DATE. This Resolution shall take effect ADOPTED this 14th day of February, 2003. (Signature Page follows) 9 16K9 ATTEST: COLLIER COUNTY HEALTH FACILITIES AUTHORITY 9 NapLes DaiLy Ne~s NapLes, FL 3&I02 Affidavit of PubLication NapLes DaiLy Ne~s PICKWORTH, DONALD P.A. 5150 TAHIAHI TRL N #602 NAPLES FL 34103 REFERENCE: 01078~ 58596061 NOTZCE OF SPECZAL ME State of FLorida County of Collier Before the undersigned authority, personally appeared B. Lamb, ~ho on oath says that she serve~ aa Assistant Corporate Secretary of the Naples Daily Ne~s, a daily neuspaper published at Naples, in Collier County, FLorida: that the attached copy of advertising ~as published in said newspaper on dates Listed. Affiant further says that the said Naples Daily Ne~s is a newspaper published at Naples, in said Collier County, FLorida, and that the said nevspaper has heretofore been continuously published in said Collier County, FLorida, each day and has been entered as second class ceil ·atter at the post office in Naples, in said Collier County, FLorida, for a period of 1 year next preceding the first publication of the attached copy of advertiseaent; and affiant further says that she has neither paid nor proeised any person, firm or corporation any discount, rebate, comeisston or refund for the purpose of securing this advertisement for pubLiction in the said newspaper. PUBLISHED ON: 01/30 AD SPACE: 268.000 INCH FILED ON: 01/31/03 Signature of Affiant S.orn to and Subscribed be,~{ ~e Per~LLy knq,n by ~ ~' ~ Donna C~ My C~m~l~ D~5~3~ E~ires ~em~r 11, 2~5 Notice of Special 6Aeeting and Public Hearing Notice is hereby given that the Collier Couot~ Heath Fac fas Author[h/ the "Authority" will con duct o sPec al meet ng and public hearing on Febru ary 14, 2003, ot 900 om In the County Manager' Conference Room, second floor, Building "F", Ilar County Courthouse, 3301 East Tcmiam~ Trol Napies, Florida, 34112, for the purpose of recelv[n! public comments and hearing discussion concern Irlg the proposed ssuance of the Authority's Reve- nue Bonds, Series 2003 (Cleveland Clinic Heaith Sys. fern Obligated Group) {the "Bonds"), In an amount not ta exceed $125,000~000. The proceeds at the Bonds w be loaned ta Cleveland Clinic Florida (A Nonprofit Corporation)_ and Clevelaad Clinic Florida Hasp fo Nap es Non Hroflt Corporation, each o prl- vote not for pratt corporation organized under the laws of the State of Florida (collectively, the "Borrowers") to be used, together with certain oth- er funds, to: (I) current refund all or a po~tlon at the Authorltv's $117 000 000 HosPital Revenue Bonds, Se- ries 1999 (Ceveand Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"); (il) pay or re mburse the Borrowers for the costs of the ocqui* $ f on, renovation~ remodeling and equipping ot their existing healthcare tacll[ties In Cailler arc Broward Countes {the "Project"); (Ill) fund a debt serv ce reserve fund If deemed necessary or deslr. able by the Borrowers; and (tv) pay certain ex* parses incurred in conneotlen with the Issuance ol the Bonds and the ratundlng of the Prior Bonds, In. cludl~g the cost of any credit enhancement or I1, quldlty enhancement, If deemed necessary or deslr. able by the Borrowers. - The Prolect w cons st of the payment for or rolm, bursement of 'the costs of certain routine capita budget expenditures of the Borrowers' taclllties de* sar bed below as the Collier Facilities and the ~ro, lward Facilities. The proceeds of the Prior Bond,' were used fo finance the asqu sition, cons~uotion renovator, remodeling, and equlpplng of ce~alr , health coca taclllfles described as follows: 1.Hospital and clinic facilities located In Collier County, Florida, Including site acquisition (the "col- lier Faolllties") Os follows: o.The Collier HosPital Facilities, c0nsisflnJaI ot o three-story concrete structure of opprom-I mutely 31~20 square feet ta be used .for dTogno-[ sS and fesflng~ end rested equipment, and al four-sfery concrete s~ruchJre of approxlmofelyi 165~700 square feet ta provide medlcoi/surglcoll beg space, and related equipment; b.The Collier Clinic Facilities, consisting otl o five-story concrete struct~ro of opproxlmofelYI 174,220 square feat and related ec.~Jlpment; I c Location 6101 P ne Ridge Road, Naples, F~orlda 34112; d nlra Operators odd Owners: (1 CaillerI Hospital Fac I[t es-Cleveland Clinic Florida Hospi- ta Naples Non Profit Corporation (2 Collier Clin- Ic Facilities-Cleveland Cllnlc Florida (A Nonprofltl Corporation) 2.Cllnlc taollttles located in Broword County Florida {the "Broward Facilities") as follows: a The Cypress Creek Facilities, consisting of all crlnlc p~esently owned by an unrelated third par~ fo be acquired, remodeled, end renovated; b The Wesfen Fac ties, consisting of a five-Il story steel frame structure of approximately 190,417~! square feat and related equlpmer~, c Locof on ( )_ Cypress Creek Faclllties-3000l! West Cypress Creek ROad, Ff. Lauderdale, Florldall 33309; (2) Westan Facilities-3100 Wastan Road, West-I on, F:loclda 33326; II dJnltiol Operator and OWner: Cleveland Cllnicl! Florida (A Nonproflf Corporation), Il Al nteresfed persons are Invited to submit written comments, or attend the heorlng, either persoeallv oc through ther represe~ve and will be given an opportunity fo ex..press their views ~oncernlng the prolects or the tlnancltlg; An¥oae deslrlng to make written com'ments tn advance of the hearing may s~nd such comments to: Collier County Hoa~th Facilities Authority c/o GeneraiCounsel 51.50 North Tamlaml Tral$~ Suite 502 Naple~, Florida 34103 Written comments received in advance of the heartng, and oral comments made at the hearln~ are for the conslderaflen of the Authority and wnl not bind the Authorty. CO~les of the applications for financing are available ter Inspection and copy.. lng at the office at the General Counsel set form above. SHOULD ANY PERsoN DECIDE TO APPEAL ANY DECISION MADE BY THE AUTHORITY WITH RE. SPECT TO ANY MATTER CONSIDERED AT SUCH HEARING SUCH PERSON WILL NEED A RECORD OF THE' PROCEEDINGS AND_FOR THAT PUR- POSE, SUCH PERSONMAY 'NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEED- ING'S IS MADE, WHICH RECORD INCLUDES THE TESTI6AONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. n cccoraance with the Americans with Disabilities Act, persons nodding a SPgClal accommodation toll participate In this h_earing snou)d contact Donald A41 Plckworth, General Coup~l~ of (941) :~63-8060 no lot-ti er than seven (7) days prior t6 the hearing. Thls notice Is given ~Urs~ant tO Section 147(t) the internal Revenue Code, as amended. /s/Dongld A. Plckworfh Assistant Secretary and Janudrv 30, 2d03 : NO. 90829 16K9 EXHIBIT A TO AUTHORITY RESOLUTION 6t(9 ]NTERLOCAL AGREEMENT THIS IS AN INTERLOCAL AGREEMENT, dated as of ,2003 (the "Agreement"), by and between the COLLIER COUNTY HEALTH FACILITIES AUTHORITY (the "Issuer"), a public body corporate and politic duly created and existing under the laws and Constitution of the State of Florida, and the BROWARD COUNTY HEALTH FACILITIES AUTHORITY (the "Interlocal Participant"), a public body corporate and politic created and existing under the laws and the Constitution of the State of Florida. RECITALS Pursuant to the Florida Interlocal Cooperation Act of 1969, Section 163.01, Part I, Chapter 163, Florida Statutes, as amended (the "Interlocal Cooperation Act"), "public agencies," as defined in the Interlocal Cooperation Act, are authorized to enter into agreements with one another in order to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities. The Interlocal Cooperation Act provides that a public agency may, pursuant to contract, exercise jointly with any other public agency any power, privilege or authority which such public agencies share in common which each might exercise separately. Pursuant to the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended (the "Health Authorities Act"), and to the Florida Industrial Development Financing Act (Part II, Chapter 159, Florida Statutes), as amended (the "Industrial Development Act" and, together with the Health Authorities Act, the "Financing Acts"), the Issuer and the Interlocal Participant are authorized to issue revenue bonds and loan the proceeds thereof to qualified borrowers to, among other things, pay all or any part of the "costs" of any "project" (both as defined in the respective Financing Acts). The Issuer and the Interlocal Participant are public agencies and desire to enter into this Agreement to authorize the Issuer to issue one or more series of revenue bonds (the "Bonds") on behalf of and with the approval of the Interlocal Participant and loan the proceeds thereof to, among others, Cleveland Clinic Florida (A Nonprofit Corporation) (the "Interlocal Borrower"), which is a Florida not for profit corporation with certain facilities located outside the geographical boundaries of Collier County, Florida, but within the geographical boundaries of Broward County, Florida, for the purposes of providing funds to, among other things, (i) current refund all or a portion of the outstanding principal amount of the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. The proceeds of the Prior Bonds were used to (i) pay or reimburse the Inteflocal Borrower for CHI-1335583v2 EXHIBIT B TO AUTHORITY RESOLUTION 16 9 the payment of, or to refinance certain prior debt the proceeds of which were used to pay, costs of acquiring, constructing, renovating, rehabilitating and equipping of certain healthcare facilities operated by the Interlocal Borrower and located at 3100 Weston Road, Weston, Florida 33326 and 3000 W. Cypress Creek Road, Ft. Lauderdale, Florida 33309 and facilities operated by the Interlocal Borrower and one of its affiliates and located at 6101 Pine Ridge Road, [Naples, Florida 34122]; and (ii) pay certain expenses incurred in connection with the issuance of the Prior Bonds, including the cost of any credit enhancement or liquidity enhancement, if deemed necessary or desirable by the Interlocal Borrower. In consideration of the mutual agreements contained herein and upon the further consideration of the recitals hereinabove set forth, it is hereby agreed by and between the parties hereto as follows: Section 1. Definitions. Unless the context otherwise requires, the following terms for all purposes of this Agreement shall have the following meanings: "Acts" means the Financing Acts and the Interlocal Cooperation Act. "Administrator" means the administrator appointed pursuant to Section 4(c) hereof. "Agreement" means this Interlocal Agreement and all amendments and supplements thereto. "Bond Indenture" means each of the Bond Trust Indentures between the Issuer and the Bond Trustee pursuant to which the Bonds are to be issued, and all amendments and supplements thereto, including any indenture pursuant to which a series of revenue bonds is issued to provide for the refunding or refinancing of the Bonds. "Bonds" means the revenue bonds issued in one or more series by the Issuer, in part, on behalf of the Interlocal Participant for the benefit of the Interlocal Borrower under the Bond Indenture. "Bond Trustee" means the bond trustee selected by the Interlocal Borrower and approved by the Issuer, or any successor trustee under the Bond Indenture. "Financing Acts" means the Health Authorities Act and the Industrial Development Act. "Health Authorities Act" means the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended. "Industrial Development Act" means the Florida Industrial Development Financing Act (Part II, Chapter 159, Florida Statutes), as amended. "Interlocal Borrower" means Cleveland Clinic Florida (A Nonprofit Corporation), a Florida not for profit corporation, and its successors and assigns. "Interlocal Cooperation Act" means the Florida Interlocal Cooperation Act of 1969 (Section 163.01, Part I, Chapter 163, Florida Statutes), as amended. CHI-1335583v2 2 16K9 "Interlocal Participant" means the Broward County Health Facilities Authority and its successors and assigns. "Issuer" means the Collier County Health Facilities Authority, and its successors and assigns, as issuer of the Bonds. "Loan" means the loan to be made by the Issuer to the Interlocal Borrower to, among other things, (i) current refund all or a portion of the outstanding principal amount of the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed) (the "Prior Bonds"), and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. "Loan Agreement" means each of the Loan Agreements between the Issuer and, among others, the Interlocal Borrower, setting forth the terms of the Loan, and all amendments and supplements thereto, including any loan agreement evidencing a loan to the Interlocal Borrower the proceeds of which will be used to refund or refinance the Bonds. "Master Note" means each of the Master Notes of the Interlocal Borrower or an affiliate or affiliates thereof or any combination of the foregoing, delivered to the Bond Trustee in order to evidence or secure the obligation of the Interlocal Borrower to pay an amount sufficient to amortize the Loan. "Prior Bonds" means the Issuer's $117,000,000 Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed). "Resolution" means a resolution of the governing body of a party hereto adopted for the purpose of approving and authorizing the execution of this Agreement or any amendment hereto, or approving any action taken pursuant to this Agreement when such approval is required hereby. Terms defined in this Section in the singular shall include the plural and vice versa. Section 2. Purposes. In order to assist in the development and maintenance of the public health, to accomplish economies of scale and other cost savings, and to reduce the cost of providing health care services, this Agreement is entered into pursuant to the authority granted in the Acts for the purposes of providing for (A) the issuance of the Bonds by the Issuer on behalf of and with the approval of, among others, the Interlocal Participant for the benefit of the Interlocal Borrower in order, among other things, to make the Loan to the Interlocal Borrower to, among other things, (i) current refund the Prior Bonds, and (ii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower and (B) the issuance of any future revenue bonds by the Issuer for the benefit of the Interlocal Borrower in order to make a loan to the Interlocal Borrower to refinance or refund the Bonds and pay expenses related thereto. This Agreement shall be interpreted so as to permit the realization of such purposes to the full extent authorized by the Acts. CHI-1335583v2 3 16K9 Section 3. Effective Date; Closing Conditions; Duration. This Agreement shall become effective and shall enter into force, within the meaning of the Interlocal Cooperation Act, upon receipt by the Administrator of(i) the Resolutions duly adopted by the governing body of the Issuer and of the Interlocal Participant, respectively, approving and authorizing the execution and delivery of this Agreement, (ii) a counterpart of this Agreement, duly executed by authorized officers of the Issuer and the Interlocal Participant; and (iii) evidence satisfactory to the Administrator of the filing of a duly executed counterpart of this Agreement with the Clerk of the Circuit Court of Collier County, Florida and in the Public Records of Broward County, Florida in the County Records Division. The issuance of the Bonds shall be subject to the receipt by the Administrator of (i) the documents and showings listed in clauses (i) through (iii) above, (ii) an opinion of counsel to the Interlocal Participant in substantially the form attached hereto as Exhibit A, and (iii) such other documents, opinions and showings as may be necessary to effectuate the issuance of the Bonds and the making of the Loan. The term of this Agreement shall end upon the discharge of the Bond Indenture in accordance with the provisions thereof. Upon the expiration of this Agreement, any property or moneys not required to be used to pay principal, premium, if any, or interest on the Bonds and not otherwise required to be applied as required by the Bond Indenture shall, to the extent permitted by law, be distributed pro rata between the Interlocal Borrower and the other parties to whom loans were made from proceeds of the Bonds. Section 4. The Interlocal Financing. The Issuer shall issue the Bonds subject to the following conditions: (a) The Bonds. (i) The Issuer shall authorize the issuance and delivery of the Bonds pursuant to and subject to the terms and conditions of the Bond Indenture, the portion of which shall be attributable to the Loan being in an aggregate principal amount not to exceed $ The Bonds shall be rated and shall bear interest, be subject to repurchase and redemption, be designated and be in the form, and have such other terms as are provided in the Bond Indenture, as finally executed and delivered by the Issuer without further approval of the Interlocal Participant, but subject in all respects to the provisions set forth in the Issuer Resolution. (ii) In the event that the Bonds are to be refunded at a future date through an issuance, by the Issuer or other issuing body, of one or more series of bonds, such Bonds can be refunded without the prior approval of the Interlocal Participant. (iii) The Bonds, together with interest thereon, shall not constitute a debt, liability or obligation of Broward County, Florida, Collier County, Florida, the State of Florida or any political subdivision or agency thereof, but shall be special and limited obligations of the Issuer payable solely from, and shall be secured by, to the extent and in the manner provided in the Bond Indenture, a pledge to the Bond Trustee of the rights of the Issuer under the Master Note and the Loan Agreement and the amounts in the funds and accounts created by the Bond Indenture. The Interlocal Participant, the Issuer (except to the extent provided in the preceding sentence), Broward County, Florida, Collier County, Florida and their CHl-1335583v2 4 16K9 respective members, officers, agents and employees shall not be liable for the payment of the principal of, premium, if any, or interest on the Bonds, nor shall the Interlocal Participant, the Issuer (except to the extent provided in the preceding sentence), Broward County, Florida, Collier County, Florida, or their respective members, officers, agents and employees, be liable for any other indebtedness or liability which may arise in connection with the issuance of the Bonds or the making of the Loan. (iv) The proceeds of the sale of the Bonds shall be applied in accordance with the provisions of the Bond Indenture for the purposes specified in the Bond Indenture and in Section 2 hereof. (v) The Bonds may be issued in one or more series and, if issued in more than one series, references herein to the Bond Indenture, the Loan Agreement and the Master Note shall be deemed to include, if necessary, any supplemental or additional Bond Indentures or Loan Agreements and any additional Master Notes executed and delivered in connection with the issuance of the Bonds. (vi) The Interlocal Borrower shall agree to pay any amounts owing on the Bonds pursuant to the provisions of Section 148(13 of the Internal Revenue Code of 1986, as amended. (vii) The Interlocal Borrower shall agree in the Loan Agreement to protect, indemnify and save the Issuer, the Interlocal Participant, Broward County, Florida and Collier County, Florida, their members, officers, agents and employees against and from any and all liabilities, suits, actions, claims, demands, damages, losses, expenses and costs of every kind and nature incurred by or asserted or imposed against the Issuer, the Interlocal Participant, Broward County, Florida or Collier County, Florida, their members, officers, agents and employees which may arise in connection with the issuance of the Bonds or the making of the Loan. (b) The Loan. (i) Pursuant to and subject to the terms and conditions of the Bond Indenture, the Issuer is hereby authorized to make available to the Interlocal Borrower proceeds of the Bonds to be used by the Interlocal Borrower for the purposes set forth in Section 2 without further approval of the Interlocal Participant. (ii) The Loan Agreement shall provide for payments sufficient to pay expenses incident to the issuance of the Bonds and any costs and expenses of the Interlocal Participant and its counsel. It is understood that the Interlocal Participant and the Interlocal Borrower have determined that such agreement to pay expenses and costs of the Interlocal Participant and of Broward County, Florida shall be satisfied by the agreement of the Interlocal Borrower in the Loan Agreement to pay to the Interlocal Participant: (i) on the date of delivery of the Bonds, an amount equal to the product obtained by multiplying the original principal amount of the Bonds attributable to facilities located in Broward County, Florida times .0005; and (ii) on each annual anniversary date of such delivery, an amount equal to the CHI-1335583v2 5 16K9 product obtained by multiplying the principal amount of Bonds attributable to facilities located in Broward County, Florida which were outstanding on the anniversary date times .0005. The Interlocal Participant and the Interlocal Borrower further agree that: (1) if the Interlocal Participant adopts a fee or similar schedule for executing Interlocal Participation Agreements which if applied to the Bonds would result in a lower amount being payable to the Interlocal Participant by the Interlocal Borrower than under the agreement herein referred to, the Interlocal Borrower's payment obligation referred to above shall be reduced to such lower level; and (2)if the Interlocal Participant fails to adopt such a fee schedule by or ceases using any such fee schedule which it adopted by ., the Interlocal Borrower shall have no obligation or further obligation, as the case may be, to pay the amounts hereinabove referred to in subsection (ii). (c) Administrator. Pursuant to Section 163.01(6) of the Interlocal Cooperation Act, the Issuer is hereby designated the Administrator. The Administrator shall have and is hereby delegated full power and authority to do all things necessary or convenient to carry out the purposes of this Agreement, including, without limitation, the appointment of such agents or entities as are necessary or desirable to effectuate the issuance of the Bonds and the making of the Loan. Section 5. Amendments. This Agreement may not be amended, changed, modified or altered except by an instrument in writing which shall be (i) approved by a Resolution of the goveming body of the Issuer and of the Interlocal Participant, (ii) executed by duly authorized officers of the Issuer and the Interlocal Participant, and (iii) filed with the Clerk of the Circuit Court of Collier County, Florida and in the public records of Broward County, Florida in the County Records Division. Section 6. Severability. If any term or provision of this Agreement or the application thereof shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and shall be enforced to the extent permitted by law. To the extent permitted by applicable law, the parties hereby waive any provision of law which would render any of the terms of this Agreement unenforceable. Section 7. Governing Law. All questions with respect to the construction of this Agreement, and the rights and liabilities of the parties hereto, shall be governed by the laws of the State of Florida. Section 8. Notices. Any notice or other communication shall be sufficiently given and shall be deemed given when delivered or mailed by registered or certified mail, postage prepaid, addressed as follows: CHI-1335583v2 6 16K9 If to the Issuer: Collier County Health Facilities Authority C/O Clerk of the Board of County Commissioners Collier County Courthouse, Bldg. F 3301 E. Tamiami Trail Naples, Florida 34112 If to the Interlocal Participant: Broward County Health Facilities Authority 115 South Andrew Avenue Suite 513 Ft. Lauderdale, Florida 33301 In each case with a copy to: Collier County, Florida Clerk of the Circuit Court Attn: Clerk of the Board Collier County Courthouse, Bldg. F 3301 E. Tamiami Trail Naples, Florida 34112 and a copy to: Donald A. Pickworth, PA Suite 602, Newgate Tower 5150 North Tamiami Trail Naples, Florida 34103 and a copy to: Broward County, Florida Clerk of the Circuit Court 115 South Andrew Avenue Suite 513 Ft. Lauderdale, Florida 33301 The Issuer and the Interlocal Participant may, by notice given hereunder, designate any further or different addresses to which subsequent notices or communications shall be sent. Section 9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. CHI-1335583v2 7 16K9 Section 10. No Delegation of Authority. This Agreement shall in no way be interpreted to authorize the unlawful delegation of the constitutional or statutory duties of the Issuer, the Interlocal Participant or any of their officers, members, representatives or employees. Section 11. Limited Approval. The approval given herein shall not be construed as an approval of any necessary zoning or rezoning applications nor for any planning or regulatory permits and the approval of this Agreement shall not be construed to be a waiver by either the Issuer or the Interlocal Participant of, and neither the Issuer nor the Interlocal Participant shall be estopped from asserting, any regulatory rights or responsibilities it may have with respect thereto. CHI-1335583v2 8 16K9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested in their respective corporate names by their duly authorized officers all as of the date first above written. COLLIER COUNTY HEALTH FACILITIES AUTHORITY [SEAL] Attest: Title: Printed Name: [SEAL] Attest: Title: Printed Name: By. Title: Printed Name: BROWARD COUNTY HEALTH FACILITIES AUTHORITY By. Title: Printed Name: CHI-1335583v2 9 16K9 STATE OF FLORIDA ) ) SS COUNTY OF BROWARD) I, , a Notary Public in and for the said County in the State aforesaid, do hereby certify that and ., personally known to me to be the same persons whose names are, respectively, as and of the BROWARD COUNTY HEALTH FACILITIES AUTHORITY, a special district and a body corporate and politic, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged under oath that they, being thereunto duly authorized, signed, sealed with the corporate seal, and delivered the said instrument as the free and voluntary act of said public body and as their own free and voluntary act, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of ., 2003. Notary Public Printed Name: Commission Number: [NOTARIAL SEAL] My commission expires: CHI-1335583v2 l0 16K9 STATE OF FLORIDA COUNTY OF COLLIER ) ) ss ) I, ., a Notary Public in and for the said County in the State aforesaid, do hereby certify that and , personally known to me to be the same persons whose names are, respectively, as and of the COLLIER COUNTY HEALTH FACILITIES AUTHORITY, a special district and a body corporate and politic, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged under oath that they, being thereunto duly authorized, signed, sealed with the corporate seal, and delivered the said instrument as the free and voluntary act of said public body and as their own free and voluntary act, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of .,2003. Notary Public Printed Name: Commission Number: [NOTARIAL SEAL] My commission expires: CHI-1335583v2 11 EXHIBIT A 16K9 The opinion of counsel required by Section 3 of this Agreement shall be dated the date of delivery of the Bonds, shall be addressed to the Administrator, the Bond Trustee and such other parties as may be reasonably requested by the Administrator, shall be in form and substance satisfactory to them, and shall be to the effect that: 1. The Interlocal Participant is a public body corporate and politic duly organized and validly existing under the Constitution and laws of the State of Florida and qualifies as a "public agency" within the meaning of the Florida Interlocal Cooperation Act of 1969 (Section 163.01, Part I, Chapter 163, Florida Statutes, as amended). 2. The Interlocal Participant Resolution has been duly adopted by the Interlocal Participant and is in full force and effect. 3. The Agreement has been duly authorized, executed and delivered by the Interlocal Participant and, assuming the due authorization, execution, and delivery thereof by the Issuer and the other public agencies which are parties thereto, constitutes a valid and binding obligation of the Interlocal Participant enforceable against the Interlocal Participant in accordance with its terms. 4. There is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, public board or body pending or, to the best of our knowledge, threatened against or affecting the Interlocal Participant, nor to the best of our knowledge is there any basis therefor, which in any way questions the powers or actions of the Interlocal Participant relative to the Interlocal Participant Resolution or the Agreement. 5. The execution, delivery and performance of the Agreement by the Interlocal Participant will not conflict with or result in the breach of any of the provisions of, or constitute a default under, any indenture, mortgage, deed of trust or agreement or instrument known to us to which the Interlocal Participant is a party or by which it or its properties are bound. CHI-1335583v2 A- 1 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA APPROVING THE ISSUANCE AND SALE OF REVENUE BONDS BY THE-COLLIER COUNTY HEALTH FACILITIES AUTHORITY, AS REQUIRED BY SECTION 147(0 OF THE INTERNAL REVENUE CODE, AS AMENDED; AND PROVIDING FOR OTHER RELATED MATTERS. WHEREAS, the Collier County Health Facilities Authority (the "Authority") is (I) a body corporate and politic and a special district of Collier County, Florida ("Collier County") created by Collier County Ordinance No. 79-95 duly adopted by the Board on November 20, 1979 pursuant to the Florida Health Facilities Authorities Law ( Part III of Chapter 154, Florida Statutes), as amended (the "Health Facilities Act"), (ii) a "public agency" as defined in Section 163.01, Florida Statutes, as amended, which is titled the "Florida Interlocal Cooperation Act of 1969" (the "Act", and (iii) a "health facilities authority" as defined in the Health Facilities Act, and a "local agency" under Section 159.27(4) of the Industrial Development Financing Act (Part II of Chapter 159, Florida Statutes), as amended (the "Industrial Act"), with the power to issue revenue bonds for the purposes of financing and refinancing a "project" as defined in the Health Facilities Act and the Industrial Act; and WHEREAS, Cleveland Clinic Florida (A Nonprofit Corporation), a Florida not for profit corporation, with certain facilities located within the boundaries of Collier and Broward Counties Florida, (the "Interlocal Borrower") and Cleveland Clinic Florida Naples Hospital Non Profit Corporation, a Florida not for profit corporation with facilities located within the boundaries of Collier County (collectively with the Interlocal Borrower, the "Borrowers"), have requested the Authority to issue its revenue bonds (the "Bonds") for the benefit of the Borrowers and to loan all or a portion of the proceeds thereof to the Borrowers to, among other things, (i) refund all or a portion of the outstanding principal amount of the $117,000,000 Collier County Health Facilities Authority Hospital Revenue Bonds, Series 1999 (Cleveland Clinic Health System Obligated Group Guaranteed), (ii) pay or reimburse the Borrowers for the payment of, or to refinance certain prior debt the proceeds of which were used to pay, costs of acquiring constructing, renovation, rehabilitating and equipping certain healthcare facilities and (iii) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement, if deemed necessary or desirable by the Borrowers, all as permitted by the Health Facilities Act or the Industrial Act; and WHEREAS, in order to accomplish economies of scale and other cost savings, to help reduce or control the costs of providing health care services in Collier County, and to strengthen or enhance the security on the Bonds, the Authority desires to assist the Borrowers by issuing the Bonds; and WHEREAS, in order to accomplish the purposes of the Act, the Authority will enter into an Interlocal Agreement (the "Interlocal Agreement") with the Broward County Health Facilities