Public Hearing followed by discussion and possible action on any and all matters regarding Resolution No. 2414.  An amending resolution of the Mayor and City Council of the City of San Luis, Arizona, approving the application of draws on existing tax-exempt draw-down bonds issued by the Industrial Development Authority of the City of San Luis, Arizona, in a maximum principal amount not to exceed $10,000,000, to the refinancing of certain outstanding debt obligations of Regional Center for Border Health, Inc., and declaring an emergency. (Glenn J. Gimbut, Counsel for Regional Center for Border Health Inc.)

(6 votes in favor are required to pass immediately as an emergency per A.R.S. § 19-142.)

A.  Presentation the Regional Center for Border Health, Inc.
B.  Open Public Hearing
C.  Call to the Public
D.  Close Public Hearing
E.  Discussion and Action on Resolution No. 2414

On October 2, 2024, the City Council passed Resolution No. 2334 to approve the Regional Center for Border Health, Inc. (“RCBH”), an Arizona non-profit corporation, borrowing $80,000,000 for its hospital project through the conduit of the IDA, as 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. The amount borrowed was subsequently increased to $100,000,000 on September 10, 2025 by Resolution No, 2375, then again to $110,000,000 by Resolution No. 2390 on January 14, 2026.

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.

This amending resolution is necessary because the completion of financing for this project requires refinancing certain outstanding loans made to RCBH by the United States Department of Agriculture (“USDA”).  RCBH, together with the San Luis Walk-in Clinic, Inc. (the "Borrowers"), is requesting the authorization to apply a portion of the proceeds of certain draws on the Healthcare Facilities Revenue Bonds to such refinancings in accordance with an amended plan of finance. All the property financed with proceeds of the refunded loans (the “Subject Financed Property”) will be owned and principally used by RCBH, and the Subject Financed Property and the New Hospital Project will be used by the Borrowers in an integrated operation.

A public hearing is required before discussion of this item under A.R.S. § 35-721(B) and Section 147(f) of the Internal Revenue Service Code for approval of the Industrial Development Authority of San Luis ("IDA") and  the City Council of San Luis to issue this amendment to the application. Therefore, a new Public Hearing is needed.

The bond lawyer or lawyers will be available by video conference during the Council meeting.