Notice of PUblic Meeting_SD Health and Educational Facilities Authority

Notice of Public Hearing

Public Notice is hereby given that a public hearing will be held on Friday, September 11, 2020 at 9:00 a.m. local time, in the offices of the South Dakota Health and Educational Facilities Authority (the “Authority”), 330 South Poplar, Suite 102, Pierre, South Dakota, regarding a plan to issue not to exceed $190,000,000 aggregate original principal amount of Revenue Bonds, Series 2020 (Monument Health), in one or more series, tax-exempt or taxable (collectively, the “Series 2020 Bonds”), of the Authority. In addition, the public hearing will be simultaneously accessible by residents, taxpayers and other interested persons telephonically on Friday, September 11, 2020 at 9:00 a.m., by dialing into the toll-free telephone conference line number: 877-336-1828, and entering access code: 4677196#.
The proceeds of the Series 2020 Bonds will be loaned to Monument Health, Inc. (formerly Regional Health, Inc.), a South Dakota nonprofit corporation (the “Corporation”). The proceeds of the Series 2020 Bonds will be applied, together with other available funds, (1) in an amount not to exceed $65,000,000, to refund all or a portion of the outstanding $67,210,000 original principal amount South Dakota Health and Educational Facilities Authority Variable Rate Demand Revenue Bonds, Series 2015 (Regional Health) (the “Series 2015 Bonds”); (2) in an amount not to exceed $125,000,000, to pay or reimburse the Corporation and certain of its affiliates, including Monument Health Rapid City Hospital, Inc. (formerly Rapid City Regional Hospital, Inc.) (the “Hospital”), Monument Health Network, Inc. (formerly Regional Health Network, Inc.) (“Health Network”) and Monument Health Physicians, Inc. (formerly Regional Health Physicians, Inc.) (“Monument Physicians” and, together with the Hospital and Health Network, the “Affiliates”) for the cost of acquiring, constructing, remodeling, renovating and equipping certain health care facilities owned by the Corporation and/or the Affiliates, and all necessary and attendant facilities, equipment, site work and utilities appurtenant thereto as further described below; (3) to fund one or more debt service reserve funds for the benefit of the Series 2020 Bonds, if deemed necessary or desirable by the Authority or the Corporation; (4) to fund working capital for the Corporation or the Affiliates, if deemed necessary or desirable by the Authority or the Corporation; (5) to fund interest accruing on the Series 2020 Bonds, if deemed necessary or desirable by the Authority or the Corporation; (6) to pay some or all of the costs of terminating an interest rate hedge agreement; and (7) to pay certain expenses incurred in connection with the issuance of the Series 2020 Bonds and the refunding of the Series 2015 Bonds.
The current or initial owner or principal user of the health facilities being financed, refinanced or reimbursed with the proceeds of the Series 2020 Bonds is or will be the Corporation, the Hospital, the Health Network or Monument Physicians.
A portion of the Series 2020 Bonds in a principal amount not to exceed $48,731,000 will be used to pay the costs of constructing, remodeling, renovating and equipping projects in or attached to the Monument Health Rapid City Hospital, a 417 licensed bed acute care general hospital located at 353 Fairmont Boulevard, Rapid City, South Dakota (the “Main Unit”), including, but not limited to the following: (i) the construction of a surgery hybrid room, (ii) the construction of two additional operating rooms, (iii) the expansion and renovation of the pre-surgery and post-surgery infill area, (iv) the renovation and remodeling of the pharmacy and logistical area, (v) the remodeling and renovation of the fifth floor to accommodate the expansion of the Heart and Vascular Institute, (vi) the renovation, remodeling and equipping of the surgical clinic, (vii) the acquisition and installation of a replacement MRI machine and (viii) the renovation, remodeling and equipping of the nuclear medical space.
A portion of the Series 2020 Bonds in a principal amount not to exceed $36,282,000 will be used to pay the costs of constructing, remodeling, renovating and equipping an expansion to the Monument Health Cancer Care Institute located at 353 Fairmont Blvd. in Rapid City, South Dakota. The expansion will consist of the remodeling of approximately 22,000 square feet of space and the addition of approximately 34,800 square feet of space, including 14 exam rooms and two procedure rooms.
A portion of the Series 2020 Bonds in a principal amount not to exceed $4,200,000 will be used to pay the costs of acquiring, constructing and equipping an approximately 7,800 square foot, one-story urgent care and primary care center to be located at the south east corner of the intersection of North Ellsworth Road and Liberty Blvd. in Box Elder, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $4,000,000 will be used to pay the costs of acquiring, constructing and equipping an approximately 7,500 square foot, one-story urgent care and primary care center to be located at the south east corner of the intersection of East Highway 44 and Elderberry Road in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $3,000,000 will be used to pay the costs of constructing, remodeling, renovating and equipping the fourth floor of the primary care clinic located within the Monument Health Rapid City Clinic located at 640 Flormann Street in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $3,500,000 will be used to pay the costs of constructing, remodeling, renovating and equipping the existing clinic building located at 4150 5th Street in Rapid City, South Dakota, to accommodate a dermatology practice and lifestyle medicine practice.
A portion of the Series 2020 Bonds in a principal amount not to exceed $29,000,000 will be used to pay the costs of acquiring, constructing and equipping an approximately 60,000 square foot, two-story long term acute care hospital and inpatient rehabilitation unit to be located on a parcel of land bounded by Golden Eagle Drive to the north, Promise Road to the west and Mount Rushmore Road to the east in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $1,934,000 will be used to pay the costs of relocating the wound care department located at 2929 5th Street in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $2,737,640 will be used to pay the costs of acquiring and installing a new MRI machine at the Monument Health Orthopedic & Specialty Hospital located at 1635 Caregiver Circle in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $13,000,000 will be used to pay the costs of constructing, remodeling, renovating and equipping Spearfish Hospital located at 1440 N. Main Street in Spearfish, South Dakota including: (i) the installation of a replacement MRI machine and (ii) the completion of the master facilities renovation and remodeling plan, which includes the consolidation of several outpatient service lines to the hospital campus and the upgrade of the hospital infrastructure.
A portion of the Series 2020 Bonds in a principal amount not to exceed $2,800,000 will be used to pay the costs of constructing, remodeling, renovating and equipping the Dakota Market Square Dialysis facility located at 1043 East North Street in Rapid City, South Dakota.
A portion of the Series 2020 Bonds in a principal amount not to exceed $10,000,000 will be used to pay the costs of various capital expenditures at the health care facilities of the Corporation and/or the Affiliates located at one or more of the addresses listed below.
The proceeds of the Series 2015 Bonds were used, among other things, to (i) currently refund all of the outstanding $67,465,000 original principal amount South Dakota Health and Educational Facilities Authority Variable Rate Demand Revenue Bonds, Series 2008 (Regional Health) (the “Series 2008 Bonds”); and (ii) pay certain expenses incurred in connection with the issuance of the Series 2015 Bonds and the current refunding of the Series 2008 Bonds.
The proceeds of the Series 2008 Bonds were used, among other things, to (i) pay or reimburse the Corporation and certain of its affiliates, including the Hospital, the Health Network, and Monument Physicians for the cost of acquiring, constructing, remodeling, renovating and equipping certain health care facilities owned by the Corporation and/or the Affiliates, and all necessary and attendant facilities, equipment, site work and utilities appurtenant thereto, including, but not limited to (A) projects in or attached to the Main Unit, including, but not limited to the following projects: the constructing, remodeling, renovating and equipping of the Hospital’s main campus central utility plant (said main campus consisting of a parcel of land which is bordered to the West by 5th Street, to the North by Fairmont Boulevard, to the East by Second Street and to the South by Elk Street, Rapid City, South Dakota) (the “Main Campus”), the construction, renovation and equipping of inpatient rooms on the ninth floor of the Main Unit, the construction, renovation and equipping of integrated OR suites within the Main Unit, the construction of a new approximately 13,500 square foot addition to the third floor of the Main Unit building to house a Rapid Admissions Unit, and the renovation, remodeling, construction and equipping of various spaces within the existing Main Unit building; (B) projects in or attached to Belle Fourche Regional Senior Care, an 83 licensed skilled nursing bed and 16 licensed assisted living bed long term care facility located at 2200 13th Avenue, Belle Fourche, South Dakota, including, but not limited to the construction, remodeling and equipping of a 10,000 square foot, one-story health care clinic; (C) projects in or attached to Lead Deadwood Regional Hospital, an 18 bed general acute care hospital located at 61 Charles Street, Deadwood, South Dakota, including, but not limited to the equipping of a gas water heater; (D) projects in or attached to Sturgis Regional Hospital, a 25 licensed bed general acute care hospital and 84 licensed bed long term care facility located at 949 Harmon Street, Sturgis, South Dakota, including, but not limited to the construction and equipping of a Plant Operations garage and air handling controls for the facility; (E) projects in or attached to Spearfish Regional Hospital, a 40 licensed bed general acute care hospital and the attached Spearfish Regional Medical Clinic located at 1440 N. Main Street and 1445 North Avenue, respectively, in Spearfish, South Dakota, including but not limited to an air conditioner compressor and air dampers; and (F) projects in or attached to Queen City Regional Medical Clinic, a health care clinic located at 1420 N. 10th Street, Spearfish, South Dakota, including, but not limited to the construction, remodeling, renovating and equipping of the approximately 15,000 square foot clinic, (ii) refund all or a portion of the outstanding $60,000,000 original principal amount of South Dakota Health and Educational Facilities Authority Variable Rate Revenue Bonds, Series 2003 (Rapid City Regional Hospital) (the “Series 2003 Bonds”), and (iii) pay certain expenses incurred in connection with the issuance of the Series 2008 Bonds including the cost of credit enhancement for the Series 2008 Bonds. On March 17, 2011, the Corporation defeased that portion of the Series 2008 Bonds allocable to the Belle Fourche Regional Senior Care project described in (B) above. The facility is no longer owned by the Corporation or any of its Affiliates.
The proceeds of the Series 2003 Bonds were used, among other things, to (i) pay or reimburse the Corporation and the Affiliates for the payment of, or to refinance certain indebtedness the proceeds of which were used to pay, the costs of acquiring, constructing, remodeling, renovating and equipping certain portions of the Hospital’s and the Affiliates’ health care facilities, including projects in, or attached to, the Hospital’s Main Unit and projects in facilities or the construction of facilities adjacent to or located on or about the Main Campus, including, but not limited to the following projects: expanding, constructing and equipping the Hospital’s main campus central utility plant and tunnel, constructing and equipping inpatient rooms on the ninth and tenth floors of the Main Unit, relocating existing support services from the Main Unit to a new two-story approximately 16,000 square foot grounds building on the Main Campus, and acquiring, constructing, remodeling, renovating and equipping certain portions of the Hospital’s and the other Affiliates’ existing health care facilities listed in the next paragraph below and acquiring, equipping, renovating and constructing all necessary appurtenances and associated land and utility improvements related to such facilities, and (ii) pay certain expenses incurred in connection with the issuance of the Series 2003 Bonds, including the cost of a municipal bond insurance premium and initial liquidity facility.
All of the improvements financed or refinanced by the Series 2020 Bonds, the Series 2015 Bonds, the Series 2008 Bonds and the Series 2003 Bonds, with the exception of those improvements that have been sold and/or the allocable portion of the related bonds defeased, are or will be located on land initially owned or principally used by the Corporation or the Affiliates at the following locations: 209 Ramsland, Buffalo, South Dakota; 1039 Montgomery Street, 1041 Montgomery Street, 1065 Montgomery Street, 1220 Montgomery Street and 423 N. 10th Street, each in Custer, South Dakota; 71 Charles Street and 61 Charles Street, each in Deadwood, South Dakota; 238 Elm Street, Hill City, South Dakota; 130 N. 15th Street and 145 N. 16th Street, each in Hot Springs, South Dakota; 200 Montana Avenue, Lead, South Dakota; 1011 11th Street, 224 Elk Street, 2331 Oak Avenue, 2311 Oak Avenue, 2805 5th Street, 2908 5th Street, 2929 5th Street, 301 Fox Run Drive, 353 Fairmont Boulevard, land that is bordered to the west by 5th Street, to the north by Fairmont Boulevard, to the east by Second Street and to the south by Elk Street (the Rapid City Regional Hospital Main Campus), land that is located west of 5th Street, east of Highway 16, north of Elk Street and south of Regional Way (west of Main Unit); land located to the south and east of the intersection of Highway 16 and Catron Boulevard; 405 E. Fairlane Drive, 409 E. Fairlane Drive, 413 E. Fairlane Drive, 417 E. Fairlane Drive, 4940 5th Street, 502 E. Monroe Street, 529 Kansas City Street, 640 Flormann Street, 615 Flormann Street, 619 Flormann Street, 651 Cathedral Drive, 677 Cathedral Drive, 2925 Regional Way, 7011 Healing Way, 915 Mountain View Road 4150 5th Street, 1635 Caregiver Circle, 1043 East North Street, 2116 Jackson Boulevard, 1303 N. Lacrosse Street, 1906 Lombardy Drive, 717 Meade Street, 725 Meade Street, 735 Meade Street, 1241 Concourse Drive, 1321 Concourse Drive, 1400 Turbine Drive, an approximately three acre site located at the intersection of East Highway 44 and Elderberry Road, and land located at the intersection of Golden Eagle Drive to the north, Promise Road to the west and Mount Rushmore Road to the east each in Rapid City, South Dakota; 132 N. Yankee Street, 1440 N. Main Street, 1445 North Avenue, 1420 N. 10th Street, 1316 N. 10th Street and 2479 East Colorado Boulevard, each in Spearfish, South Dakota; an approximately 70 acre site located east of US Highway 85 and approximately one mile south of Interstate 90, Exit 17, on the eastern edge of Spearfish, South Dakota; 890 Lazelle Street, 2140 Junction Avenue and 949 Harmon Street, each in Sturgis, South Dakota; 112 7th Avenue in Wall, South Dakota and an approximately three acre site located at the south east corner of the intersection of North Ellsworth Road and Liberty Blvd. in Box Elder, South Dakota.
The Series 2020 Bonds shall not be deemed to constitute a debt or liability of the State of South Dakota or of any political subdivision thereof, other than the Authority, or a pledge of the faith and credit of the State of South Dakota or of any such political subdivision other than the Authority, and neither the State of South Dakota nor any political subdivision thereof will be liable on the Series 2020 Bonds nor will the Series 2020 Bonds be payable out of any funds other than those pledged and assigned under the Loan Agreement between the Authority and the Corporation and the Master Trust Indenture among the Corporation, the Hospital, Health Network, Monument Physicians and U.S. Bank National Association in St. Paul, Minnesota, as successor master trustee, as amended and/or restated.
The public hearing is required by Section 147(f) of the Internal Revenue Code of 1986. Written comments may be submitted to the Executive Director of the South Dakota Health and Educational Facilities Authority via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or at his office located at 330 South Poplar, Suite 102, Pierre, South Dakota 57501, through September 10, 2020. Prior to the issuance of the Series 2020 Bonds, the Members of the Authority will meet to approve the issuance of the Series 2020 Bonds.
Notice dated: September 3, 2020.
/s/ Donald A. Templeton
Executive Director,
South Dakota Health and Educational Facilities Authority
Published once at the total approximate cost of $194.58
Published: Sept. 3, 2020

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