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Conduct a public hearing required by the Tax and Equity Fiscal Responsibility Act of 1982 (TEFRA) and consider adopting a resolution approving the issuance of revenue bonds by the California Municipal Finance Authority (CMFA), for the benefit of HealthCore Vacaville, LLC (Borrower), in an amount not to exceed $80,000,000 for the purpose of financing and/or refinancing certain costs of the acquisition, construction, expansion, remodeling, renovation, furnishing, equipping and/or improvement of the health facilities, including real estate, owned and operated by NorthBay Health Advantage, LLC, located within Solano County at 1020 Nut Tree Road, Vacaville, California
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Published Notice Required? Yes _X__ No _ _
Public Hearing Required? Yes _X__ No _ _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors conduct a public hearing required by the Tax and Equity Fiscal Responsibility Act of 1982 (TEFRA) and consider adopting a resolution approving the issuance of revenue bonds by the California Municipal Finance Authority (CMFA), for the benefit of HealthCore Vacaville, LLC (Borrower), in an amount not to exceed $80,000,000 for the purpose of financing and/or refinancing certain costs of the acquisition, construction, expansion, remodeling, renovation, furnishing, equipping and/or improvement of the health facilities, including real estate, owned and operated by NorthBay Health Advantage, LLC, located within Solano County at 1020 Nut Tree Road, Vacaville, California.
SUMMARY:
The Borrower has requested that the CMFA participate in the issuance of one or more series of tax-exempt revenue bonds in an aggregate principal amount not to exceed $80,000,000 (the “Bonds”) for the purpose of financing certain costs of the acquisition, construction, expansion, remodeling, renovation, furnishing, equipping and/or improvement of the health facilities, including real estate, to the Borrower and located at 1020 Nut Tree Road, Vacaville, CA 95687 (the Project). Adoption of the resolution is solely for the purposes of satisfying the requirements of TEFRA, the Code, and California Government Code section 6500 in order to request that the CMFA participate in the issuance of one or more series of tax-exempt revenue bonds. This process requires the County of Solano conduct a public hearing (TEFRA Hearing), providing the members of the community with an opportunity to speak in favor of or against the use of tax-exempt bonds.
FINANCIAL IMPACT:
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the County will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the County or the State of California but are to be paid for solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the County of Solano, it is expected that a portion of the issuance fee attributable to the County will be granted by the CMFA to the general fund of the County. Such a grant may be used for any lawful purpose of the County.
The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2025/26 Working Budget.
DISCUSSION:
A qualification for issuance of tax-exempt bonds requires the County of Solano to conduct a TEFRA Hearing, providing the members of the community with an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearings, reasonable notice must be provided to members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
The Project
The NorthBay Health VacaValley Wellness Center, located at 1020 Nut Tree Road in Vacaville, is a comprehensive outpatient medical facility designed to consolidate specialty services and enhance patient access to coordinated care. The approximate 115,000 SF building, completed in 2016, supports a wide array of outpatient functions, including physician practices, specialty clinics, and a medical-fitness component.
A major component of the facility is the Heidi Y. Campini Cancer Center, which delivers a full spectrum of oncology services. These include medical oncology, hematology, and radiation oncology, supported by advanced diagnostic and treatment technologies. The cancer center’s capabilities feature a linear accelerator for precise radiation therapy and PET/CT imaging, enabling accurate tumor detection, staging, and treatment.
The project includes utilizing approximately $15 million of bond proceeds to fund a 4,000 SF expansion of the oncology department to accommodate a second linear accelerator. This investment is especially critical because the facility houses the only linear accelerator in Solano County, expanding access and reducing treatment delays for local patients.
California Municipal Finance Authority
The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the County of Solano, have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.
HealthCore and NorthBay Healthcare are seeking to provide financing and/or refinancing of up to $80,000,000 for the purpose of acquiring, constructing, expanding, remodeling, renovating, furnishing, equipping, and/or providing improvements to health facilities. Adoption of this resolution will allow CMFA to issue the bonds on its behalf.
ALTERNATIVES:
The Board of Supervisors could elect not to adopt the resolution in favor of issuing the Bonds by the CMFA. This is not recommended, as it will hinder the provision of essential healthcare services to the people of Solano County.
OTHER AGENCY INVOLVEMENT:
Solano County Counsel, California Municipal Finance Authority, HealthCore and NorthBay Healthcare have been involved in the drafting of this item.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION