NOTICE OF PUBLIC HEARING
ON A PROPOSED ISSUE OF
HEALTH CARE FACILITIES REVENUE BONDS
MONTANA FACILITY FINANCE AUTHORITY
NOTICE IS HEREBY GIVEN that, on June 10, 2021 at 11:00 a.m., in the offices of the Authority at 2401 Colonial Drive, Third Floor, Helena, Montana 59620, the Executive Director of the Montana Facility Finance Authority (the “Authority”) or his designee will hold a public hearing pursuant to the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, on a proposal that the Authority issue its health care facilities revenue bonds, in one or more series (the “Series 2021 Bonds”), under Montana Code Annotated, Title 90, Chapter 7, Parts 1, 2 and 3, as amended. The maximum aggregate principal amount of Series 2021 Bonds to be issued is estimated to be $37,000,000.
The proceeds of the Series 2021 Bonds will be loaned by the Authority to Marcus Daly Memorial Hospital Corporation, a Montana nonprofit corporation (the “Borrower”). The Borrower owns and operates certain hospital and health care facilities located at 1200 Westwood Drive, Hamilton, Montana (the “Hospital Campus”). The Borrower will use the proceeds of the Series 2021 Bonds as follows:
- in the maximum principal amount of $9,600,000, to finance or reimburse the Borrower for all or a portion of the costs of design, engineering, construction, and equipping of improvements to the Hospital Campus, consisting of a 14,000 square foot addition to its acute care hospital, including new endoscopy suites, procedure suites, information technology space, conference center, infusion and cancer service areas, a new main entrance, and other related improvements, and renovation of an existing building on the Hospital Campus;
- in the maximum principal amount of $4,300,000, to finance or reimburse the Borrower for all or a portion of the costs of design, engineering, construction, and equipping of a new 6,000 square foot medical clinic in Darby, Montana, at a location the legal description of which is S11, T03 N, R21 W, ACRES 1, E 208' OF W 892' OF N 208' OF NWSW INDEX 27;
- in the maximum principal amount of $15,800,000, to finance or reimburse the Borrower for all or a portion of the costs of design, engineering, construction, and equipping of a new 20,000 square foot primary and urgent care facility in Stevensville, Montana, at a location the legal description of which is S21, T09 N, R20 W, ACRES 10.54, IN N2NE INDEX 23 CS #608729-F PARCEL B-2;
- in the maximum principal amount of $1,600,000, to finance or reimburse the Borrower for all or a portion of the costs of acquisition, design, engineering, and renovation of a medical office building, located at 280 North 10th Street, Hamilton, Montana 59840;
- to refund the Authority’s Health Care Facilities Revenue and Refunding Bonds (Marcus Daly Memorial Hospital Corporation Project), Series 2017, outstanding in the aggregate principal amount of $8,110,000, which was used to refinance the construction of improvements and the acquisition of properties, assets and capital equipment on and for the Hospital Campus;
- to refinance loans of the Borrower outstanding in the aggregate principal amount of $6,029,001.07, which loans originally financed or refinanced improvements to the Hospital Campus, including design, construction and equipping of a rehabilitation center, boilers, loading dock and receiving area, and related improvements;
- to make deposits to debt service reserve funds for the Series 2021 Bonds; and
- to pay expenses incurred in connection with the issuance of the Series 2021 Bonds, the refunding and the refinancing.
If the Series 2021 Bonds are issued and the proceeds thereof loaned to the Borrower as proposed, the Borrower will agree to repay the loan at times and in amounts sufficient to provide for the prompt payment of the principal of, premium, if any, and interest on the Series 2021 Bonds when due. The Series 2021 Bonds will be payable from and secured by a pledge of the loan repayments from the Borrower. Up to $10,000,000 aggregate principal amount of the Series 2021 Bonds may also be secured by a pledge of a loan to the Authority from the Board of Investments of the State of Montana under the Master Loan Program. The Series 2021 Bonds may also (but need not) be secured by additional collateral as may be provided by the Borrower.
The Series 2021 Bonds shall not constitute or give rise to a debt of the State of Montana, and neither the faith and credit nor the taxing power of the State of Montana is pledged to the payment of the principal of or the interest on the Series 2021 Bonds.
The Authority makes reasonable accommodations for any known disability that may interfere with a person’s ability to participate in public meetings. Persons needing an accommodation must notify the Authority by telephone at (406) 444-0259 or writing at P.O. Box 200506, Helena, Montana 59620, no later than three days prior to the hearing to allow adequate time to make needed arrangements.
Dated: June 2, 2021.
MONTANA FACILITY FINANCE AUTHORITY
By: Adam Gill, Executive Director