Franklin Primary Health TEFRA Notice
Aug 20th, 2019
Posted in: City Clerk
Notice is hereby given that representatives of The Second Medical Clinic Board of the City of Mobile (the “”) will conduct a public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, for the issuance of the within referenced tax-exempt refunding revenue obligation (the “”) in the maximum aggregate face amount of $1,300,000 under the authority of the Constitution and laws of the State of Alabama, including particularly, Chapter 58 of Title 11 of the CODE OF ALABAMA 1975 (the “”). The hearing will take place at 9:00 a.m. on August 28, 2019, in the Community Room on the campus of the Charles White Family Center, located at 990 Cody Road, North, Mobile, Alabama 36608 (the “”).
The Issuer proposes to use the proceeds of the Obligation to refund and retire the outstanding balance of a certain loan made to Franklin Primary Health Services, Inc. (the “”) by BBVA Compass Bank (the “”) as evidenced by a Promissory Note dated December 21, 2018 (the “”). The Borrower previously issued its 2018 Note, in part, to acquire, construct and install capital improvements consisting of buildings, facilities, equipment and personal property incidental to facilities on certain real estate located at 990 Cody Road North, Mobile, Alabama 36608 within the corporate limits of the City of Mobile, Alabama for lease to and use by the Borrower as a medical clinic as defined under the Enabling Act (the “”).
The Issuer further proposes to lease the Project to the Borrower for rentals payable by the Borrower at times and in amounts sufficient to pay the principal of and interest on the Obligation when due and payable.
The Obligation cannot and will not create an obligation (whether direct, indirect, or contingent), or result in the exemption or abatement (in whole or in part) of any tax, of the City of Mobile, Mobile County or the State of Alabama. The Obligation will be a limited obligation of the Issuer, payable solely from amounts to be received from the Borrower and will not constitute a general obligation of the Issuer. The Issuer has no taxing power.
The public hearing will provide an opportunity for all interested persons to express their views, both orally and in writing, on the proposed issue of the Obligation and with respect to the Project. This notice is provided solely for the purposes of Section 147 of the Internal Revenue Code of 1986, as amended. This notice is in no way intended to solicit any interest in the offer or sale of the Obligation, nor shall it constitute an offer to sell the Obligation. This notice creates no obligation on the Issuer to issue the Obligation.
Additional information concerning the above may be obtained from Mr. Alvin K. Hope, II, Maynard, Cooper & Gale, P.C., 11 North Water Street, Suite 24290, RSA Battle House Tower, Mobile, Alabama 36602.