4855-6558-0524.3
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN, as required by and in compliance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), that, commencing at 6:00 p.m., or as soon thereafter as the matter may be heard, on October 23, 2024 a public hearing will be held before the Board of Trustees of the Town of Del Norte, Colorado (the “Town”) at Town Hall, 140 Spruce Street, Del Norte, Colorado 81132, for the purpose of providing an opportunity for interested persons to express their views, orally and in writing, with respect to the proposed issuance by the Town of the Town of Del Norte, Colorado Healthcare Facilities Revenue Refunding Bonds (Rio Grande Hospital Refunding Project), Series 2024 (the “Series 2024 Bonds”), in a maximum stated principal amount of $18,000,000, in one or more series and/or issuances from time to time pursuant to a plan of finance. The proceeds of the Series 2024 Bonds are to be lent to Valley Citizens’ Foundation for Health Care, Inc., d/b/a Rio Grande Hospital, a Colorado nonprofit corporation and an organization described under Section 501(c)(3) of the Code (the “Borrower”).
The Borrower proposes to use the proceeds of the Series 2024 Bonds as part of a plan of finance to (a) refinance the Borrower’s two outstanding Promissory Notes (RD 440-22), dated as of April 10, 2019 and delivered in the original aggregate principal amounts of $6,452,000 and $7,000,000, respectively (the “Direct Loan Notes”), which Direct Loan Notes evidence two United States Department of Agriculture (“USDA”) Community Facilities Direct Loans, made by USDA, as lender, to the Borrower for the original purpose of providing long-term financing for the construction of improvements to the Rio Grande Hospital located at 310 County Road 14, Del Norte, Colorado 81132 (together with all renovations, extensions, expansions and improvements of the Rio Grande Hospital, the “Healthcare Facilities”), (b) refinance the Borrower’s outstanding mortgage note payable to MidFirst Bank (“MidFirst”) delivered in the original aggregate principal amount of $7,000,000, made by MidFirst, as lender, to the Borrower for the original purpose of providing long-term financing for the construction of improvements to the Healthcare Facilities, (c) fund a reserve fund and certain interest, if applicable, and (d) pay the costs of issuing the Series 2024 Bonds. The Borrower is the owner and principal user of the Healthcare Facilities.
All or a majority of the Series 2024 Bonds are expected to be issued as tax-exempt qualified 501(c)(3) bonds as defined in Section 145 of the Code. The Series 2024 Bonds will be a special, limited obligation of the Town and will not constitute a debt or pledge of the full faith and credit of the Town, the State of Colorado, or any agency or political subdivision thereof. The Series 2024 Bonds are to be secured by a pledge of and lien on the revenues generated by the Healthcare Facilities.
The public hearing will provide a reasonable opportunity to be heard for persons wishing to express their views on the issuance of the Series 2024 Bonds and the refinancing project proposed to be financed thereby. Any person may appear at the hearing and express his or her views, or may submit his or her views in writing, relating to such issuance or refinancing project. Any written submission should be sent to bond counsel in connection with the Series 2024 Bonds, Kutak Rock LLP, at 2001 16th Street, Suite 1800, Denver, Colorado 80202, Attention: Ashley S. Dennis, Esq., and should be clearly marked: Rio Grande Hospital Refunding Project. Written submissions should be mailed in sufficient time to be received before the hearing on October 23, 2024.
