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AGENDA ITEM REVIEW FORM |
7.G.
Regular City Council Meeting
- Meeting Date:
- 01/14/2026
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2390. A Resolution of the Mayor and City Council of the City of San Luis, Arizona, amending Resolution No. 2334, as previously amended by Resolution No. 2375, concerning the issuance of debt by the Industrial Development Authority of the City of San Luis, Arizona, the proceeds of which are to be used for the construction of the Regional Center for Border Health, Inc.’s new hospital facilities, and declaring an emergency. (Kay Marion Macuil, City Attorney)
(6 votes in favor are required to pass immediately as an emergency per A.R.S. § 19-142.)
SUMMARY:
At the October 2, 2024, Council Meeting, the Council passed Resolution No. 2334 authorizing the Regional Center for Border Health ("RCBH"), an Arizona nonprofit corporation, to borrow $80,000,000 by issuing bonds for the hospital project through the IDA conduit. IDAs have the legal power to issue debt exempt from federal income taxes. The tax exemption makes interest rates more favorable and debt more marketable than loans where the income from interest payments is taxable.
On September 10, 2025, the City Council passed Resolution No. 2375, for RCBH to be able to borrow $100,000,000 rather than $80,000. To date, the bonds have never been issued.
Today, this amendment increases the amount to $110,000,000 to cover the increased cost of construction.
Under Arizona Statute A.R.S. § 35-742, neither the city nor the Industrial Development Authority of San Luis (“IDA”) is liable in any manner for the loan.
On September 10, 2025, the City Council passed Resolution No. 2375, for RCBH to be able to borrow $100,000,000 rather than $80,000. To date, the bonds have never been issued.
Today, this amendment increases the amount to $110,000,000 to cover the increased cost of construction.
Under Arizona Statute A.R.S. § 35-742, neither the city nor the Industrial Development Authority of San Luis (“IDA”) is liable in any manner for the loan.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2390 AND DECLARE AN EMERGENCY.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is no fiscal impact to the City of San Luis nor to the San Luis Industrial Development Authority. The Regional Center for Border Health, Inc. is responsible for payment of the loan.