Council Entertains a Bevy of Proposals

The City-County Council agenda for its meeting next Monday, November 9, 2009, is now posted. Not much caught my eye for decision on Monday night, but a slew of interesting new proposals will be introduced.

Prop 404 and 405 would allow the County Assessor to rent space at 7363 E. 21st Street for an Eastside Satellite Office, and 5526 Elmwood Avenue for a Southside Satellite office. My first blush question is, why can't we rent space from the Township Trustees - you know, keep the money moving government to government to help with tax rates? We'll see what develops as far as information is concerned. Money is not mentioned, but the length of the leases is for 7 and 5 years respectively. Both were initiated by the County Assessor and sponsored by Councillor Moriarty Adams, and will be assigned to the Administration & Finance committee which next meets on Tuesday, November 10, beginning at 5:30 in room 260 of the City-County Building.

Prop 413 sponsored by Councillor Scales and drafted by the interim Director of Animal Care and Control, Teri Kendrick:

DIGEST: amends the Code to clarify the definition and violation of animal at large, to expand the definition of serious injury, to specifically provide for court-ordered forfeiture and/or destruction of an animal if serious injury to a person results from the animal chasing or approaching a person in an aggressive manner while at large, and to change the reference to serious bodily injury to serious injury in the section on owner responsibility for animal attacks

Looking at the proposed changes to the existing ordinance, the most significant changes would appear to be changing the definition of 'at large' to (red text added by proposal; green text in parentheses deleted by proposal):

At large means not confined without means of escape of any portion of the animal’s body in a pen, corral, yard, cage, house, vehicle or other secure enclosure, unless on a leash and under the control of a competent human being.

Serious injury, (for purposes of this chapter) means any injury (which results in a broken bone, lacerations severe enough to require multiple sutures, or to render cosmetic surgery necessary, or appropriate or death) that results in permanent disfigurement, unconsciousness, extreme pain, or permanent or protracted loss or impairment of the function of a bodily member or organ.

Added, also, is that if an at-large dog seriously injures someone, then "the court upon request shall order the animal forfeited and/or destroyed".

Prop 413 will be assigned to the Public Safety and Criminal Justice committee that next meets on Wednesday, November 11, at 5:30 pm in room 260 of the City-County Building.

Prop 416, sponsored by Councillors Hunter and Moriarty-Adams, simply gives the right of way to bicycles when motor vehicles cross over a sidewalk. This goes to the Public Works committee that next meets on Thursday, November 19, at 5:30 pm in room 260 of the City-County Building.

Prop 417, "requests the General Assembly to amend existing statutes to provide that the Council has binding authority on reviews of township budgets in Marion County". This one was initiated by Councilor Malone and is co-sponsored by Councillors B. Mahern, Lutz, Smith and McHenry. The current law mandates that the Council undertake a non-binding review of the township and excluded cities budgets, which really looked like a huge waste of time this year. Although I did get some really good information that I would not otherwise have obtained, keeping the review non-binding does not make any sense. Prop 417 will be assigned to the Rules & Public Policy committee which next meets at 5:30 pm, November 17, in room 260.

Prop 418 is the most important Proposal being introduced Monday night, in my view. Initiated by Councillor Brian Mahern and co-sponsored by Councillors Lewis, Sanders, D. Mahern, Hunter, Smith, Mansfield and Malone, the Proposal is described as:

DIGEST: urges the General Assembly and Governor to grant additional authority to the Council to review and approve all tax abatements, postpone consideration of tax abatements and zoning changes, and review and approve any real estate acquisition by the Metropolitan Development Commission in excess of $25,000

A lengthy list of whereas clauses lay out the case for Council review of all abatements pretty clearly. This proposal would result in a Council Resolution, rather than an ordinance, because the State Legislature is the only body that can empower the Council with this authority. The truly bad deal that was proposed between the City and TM Miller Enterprises for a parking garage and a city block at 450 E. Market Street that was subject of zoning review by the Council this fall, is the poster child for why the fiscal body of this City should be able to review abatements granted by the MDC - much like they now have the authority to review zoning decisions of the MDC. More on this one in a later entry. Prop 418 will be assigned to the Metropolitan Development committee which next meets at 5:30 pm in room 260, Monday, November 16.

And rounding out list is Prop 419, initiated by Health & Hospitals Corporation and sponsored by Councillors McQuillen and Nytes.

DIGEST: approves the purchase, construction or acquisition by the Indianapolis-Marion County Building Authority of all or any portion of the Wishard Hospital project and a proposed lease or leases between the Building Authority and The Health and Hospital Corporation to finance all or any portion of the Wishard Hospital project

While the Wishard project was approved by the recent Referendum, the Council must still provide authorization for the IMCBA to participate in the overall bonding and leasing of the buildings. Still we have no breakdown of the fraction of general obligation bonds to be issued by H&H and the fraction of revenue bonds to be issued by the IMCBA. Perhaps someone at the hearing will pause and request this important information. Prop 419 will be assigned to the Admin & Finance committee which next meets at 5:30 pm, Tuesday, November 10, in room 260 of the City-County Building.

[edited on Nov 7 to mention that a public notice appeared in today's paper regarding public hearings on the proposed leases by the Marion County Assessor - 10:00 am, Nov. 17, room 260 of the City-County Building. The first lease agreement is for 2525 square feet of commercial office space at 7363 E. 21st Street. It is for 7 years at $39,137.52 per year plus utilities. The second lease agreement is for 3373 square feet at 5226 Elmwood Avenue. It is for 5 years at $30,342.50 per year plus utilities.]

Cliffhanger

Just like a season finale in a rivoting television series, this thing ain't over. The Wishard referendum won in a landslide, but its not the end, its just a cliffhanger. Left to linger in anticipation for the next go round are the following issues:

For how long will Matt Gutwein and the Marion County Health & Hospitals Corporation be able to pay off the general obligation bonds with profits? When will they turn to property taxes, which, had they been totally honest about things, more folks would have known about when they voted. Will they just try to hide it in the budget and let taxpayers read it in their property tax bills?

Will the Legislature again pick and choose favored projects that they feel should escape the minimal requirements set for public questions?

Will the Star repair its reputation after flaunting itself so wantonly for Wishard?

Will any legal authority look into the use of public facilities, like the Mayor's office, the distribution of pro-literature to school children to take home, the decisions on where to locate satellite voting centers, etc., that were an assist to the landslide?

Will the feds decide the nursing home 'business' of H&H is too much like a scam to continue to qualify for higher fee payments than other nursing home businesses?

As the flashbulbs illuminate the raised champagne glass and the scene fades, remember to tune in next time as we resume the story.

Wishard Referendum - Vote No !

Keep them honest - no property taxes to pay for the new Wishard complex. Vote NO tomorrow.

Remember, if the referendum is denied, they can still float revenue bonds for their new campus. Hell, a NO vote might even prod Health & Hospitals to ask IU to help financially support their new teaching hospital ! But, if they say they can finance the project with ongoing revenues, make them prove it.

Vote NO on the Wishard Referendum.

The Consequences of a "NO" Vote on the Wishard Referendum

Take heart if you have been considering voting "NO" on the Wishard Referendum. Should the outcome be "NO", Health & Hospitals can continue forward and still build their new campus. The only thing that would change is that H&H would be banned from raising your property taxes to pay off the bonds. They have said all along that they can pay off the bonds with ongoing profits from Wishard. All they have to do is float revenue bonds. And, they could have floated revenue bonds without holding a referendum.

Hold them to their promise not to raise your property taxes. Vote "NO" on the Wishard question. You will not be forcing them to live with burst pipes. You will not be forcing them to live without a new campus. You will only be forcing them to be true to their word - that they will not use property taxes to repay the bonds they use to finance the project.

Wishard Referendum - Role of Legislature and Added Information

I want to take a short detour into the actions of the Legislature, that in the 11th hour of the last night of the 2009 Special Session, gutted the democratic process inherent in a referendum. Representative Bill Crawford and Senator Luke Kenley are the two names that arise most often as the major players in the special law written for Wishard. Whoever the players were, shame on you.

The referendum law for large capital projects requires the following wording:

"Shall ________ (insert the name of the political subdivision) issue bonds or enter into a lease to finance ___________ (insert a brief description of the controlled project), which is estimated to cost not more than _______ (insert the total cost of the project) and is estimated to increase the property tax rate for debt service by ___________ (insert increase in tax rate as determined by the department of local government finance)?".

The midnight insertion for Wishard provides that they can use the following wording:

"Shall the Health and Hospital Corporation of Marion County, Indiana, issue bonds or enter into a lease to finance (insert the description of the project)?".

The additional specifics must be provided in a legal notice that links the project information to the referendum. Of course, few people will see or read the legal notice. It has been provided at HadEnoughIndy previously. Unlike with other referenda, nowhere is the total cost of the project required, just the amount of the bonds that will finance the deal. So, as Matt Gutwein, CEO of the Marion County Health & Hospitals Corp., likes to brag about, there is a savings account with $150 million that H&H has managed to squirrel away. According to the Wishard project website, that $150 million will also be spent on this project and add to the bonded amounts that require disclosure and which were disclosed not to exceed $703 million. That website, by the way does not describe the project at all - no number or uses of the buildings - nothing - not even the artist renderings Gutwein has been hauling around the County. http://www.wishardfacts.org/ check it out, its just a PR piece.

Required of all referendum questions, is specific details, including per square foot charges, that are to be posted on the State Department of Local Government Finance website. The per square foot charges listed there for the Wishard project are:

Hospital building and ambulatory clinic - $635.96 (estimated).
Administrative office building - $286.43 (estimated).
Parking garage - $56.69 (estimated).
Central utility plant - $1,335.55 (estimated).

The per square foot information would be far more valuable if there were also an estimate of the total square footage of each structure. But, even the above information has value.

The 'central utility plant' has received very little attention. The only question I have heard posed, but not answered, was if it was going to be based on 'green' energy. Given the cost per square foot, renewed efforts to gain clarification of its purpose and usefulness, especially since there is access to electricity from more conventional sources, should be undertaken.

The Administrative office building is listed on the artist rendering, available through the IBJ, as 'Faculty Office', as in an office building for IU Medical Instructors. So, a good question is, why should Marion County taxpayers be on the hook, either through proceeds of its Health & Hospital Corp. or through increased property taxes, for a building to benefit the IU Medical School? Which, by the way, is contributing nothing to the project, either for construction or for ongoing operations, even though it is a vital asset as a teaching hospital for IU and provides its faculty with the opportunity to also have a private practice.

More questions to come in a future entry entitled "What If..." But, for this moment, lets not forget that the Legislature allowed our first public referendum to be watered down to essentially say "We do good works. Shall we continue?" Hopefully the democratic process promised by referenda will not be gutted for any future project and the rights of the voters will be held in higher esteem than shown for the Wishard project referendum.

Health & Hospitals - 2nd Public Notice on the New Wishard Project

On Friday, September 25, the Health & Hospitals Corporation published two public notices in the Indianapolis Star. The first was required by law since they intend to issue bonds secured by property taxes. I mentioned that notice in my 'Um - What Happened to No Property Taxes for New Wishard Project' entry.

The second public notice may not be required by any law and may be H&H's attempt to link the price tag and the project description to the upcoming referendum. To say that the referendum question is poorly written is to be kind; rather it is decidedly propaganda without reference to any facts a discerning voter might want to consider, like price tag and project description.

I will cut and paste the 2nd notice below, so you can read it for yourself.

What I see is an English version of the shorter, first notice, with more detail that I hope the public does take the time to read. What I see as items of interest are briefly put:

1) new Wishard project is described as the acquisition of land, construction of and equipping of a medical complex (two or more buildings related to the dispensing of health care), construction of least one parking garage and/or parking lot, and construction of a power plant.

2) they will finance the project by entering into a lease with the Indianapolis-Marion County Building Authority and BOTH entities will float bonds -- why is not explained. H&H will float General Obligation Bonds secured with property taxes. IMCBA will issue Revenue Bonds secured by the lease payments to be made by H&H. No indication is made as to why both bodies would issue bonds, or indeed, why the IMCBA need be involved at all in this project.

3) the total of all bonds issued by both bodies combined will not exceed $703,040,000 in principle, not exceed 30 years in payback time, not exceed 6.16% interest, and not exceed $830,478,858 in total interest paid over the 30 years. These numbers do not include the Build America Bonds issued by the federal government, estimated elsewhere to be about $120,000,000 in total interest to be paid by those bonds. So, the total payback could be as high as $1,653,518,858. These numbers also do not include any money, such as the $150,000,000 H&H has already saved in cash for this project. There is no indication in the notice of how much of the total bonds shall be issued by H&H and how much by IMCBA.

4) the maximum annual lease to be paid by H&H to IMCBA is $54,807,604 which is estimated would cause a maximum increase in property tax rates of $0.1494 per $100 of assessed value. Not mentioned is that this amount would be outside of the property tax caps now law in Indiana.

5) the current debt plus lease obligations currently held by H&H and repaid by property taxes is $41,730,000. The total of debt plus lease obligations currently held by all taxing units in Marion County combined and repaid by property taxes is $2,160,112,176, or 5.8878% of the total assessed value of Marion County.

Not said in the notice, but easily derived is that the new Wishard project would increase the total debt plus lease obligations currently held by all taxing units in Marion County combined and repaid by property taxes by a third.

6) the notice links the bonds to the approval of the referendum on November 3, 2009.

Following is the public notice itself.

THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY, INDIANA NOTICE OF PRELIMINARY DETERMINATION BY THE BOARD OF TRUSTEES OF THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY, INDIANA, TO ISSUE GENERAL OBLIGATION BONDS AND TO ENTER INTO A PROPOSED LEASE OR LEASES OF FACILITIES OPERATED OR TO BE OPERATED BY THE HEALTH AND HOSPITAL CORPORATION IN CONNECTION WITH THE WISHARD HOSPITAL PROJECT

Registered voters residing within Marion County, Indiana (the “County”), hereby are given notice that the Board of Trustees (the “Board”) of The Health and Hospital Corporation of Marion County, Indiana (the “Health and Hospital Corporation”), preliminarily has determined, at its meeting held on September 22, 2009: (1) that a need exists for all or any portion of the construction and equipping of a replacement hospital and related facilities for Wishard Health Services currently located at 1001 West Tenth Street (the “Wishard Complex”), together with land acquisition and site development related thereto and all projects and activities related to any of the foregoing, including, but not limited to, all or any portion of the following: (a) acquisition of land and any improvements located thereon and any site development related thereto, (b) renovation and equipping of any such buildings, and the construction and equipping of one or more buildings which will replace the existing hospital and related facilities for the Wishard Complex and provide all or any portion of (i) inpatient services, (ii) diagnostic and treatment, (iii) clinical support, (iv) non-clinical support, (v) offices and education, and (vi) public and building functions, (c) construction and equipping of a new ambulatory care building, (d) construction and equipping of one or more related parking garages and/or surface lots, (e) construction and equipping of a central plant for all of the foregoing facilities, and (f) all projects related to any of the projects or facilities described in clauses (a) through and including (e) (clauses (a) through and including (f), collectively, the “Wishard Hospital project”); and (2) to the extent permitted by law to take all of the necessary steps to finance all or a portion of the costs of all, or as much as is possibly based on the facts and circumstances at the time, of the Wishard Hospital project by: (a) entering into a proposed lease or leases (collectively, the “Lease”) between the Indianapolis-Marion County Building Authority (the “Building Authority”), as lessor, and the Health and Hospital Corporation, as lessee, relating to all or any portion of the Wishard Hospital project operated or to be operated by the Health and Hospital Corporation; and (b) issuing one or more series of general obligation bonds of the Health and Hospital Corporation (the “General Obligation Bonds”). The Building Authority will issue one or more series of revenue bonds, as lessor, secured by and payable from the lease payments under the Lease (the “Revenue Bonds”).

Each series of the General Obligation Bonds and the Revenue Bonds (collectively, the “Bonds”) will have a maximum term of 30 years. The Bonds will be issued in an original aggregate principal amount not to exceed $703,040,000, or such greater amount in the case of the issuance of any bonds, all or any portion of which will be used to refund all or any portion of the Bonds. The proposed term of any Lease entered into in connection with the Revenue Bonds will not exceed 30 years, beginning on the date each such Lease is executed by the Health and Hospital Corporation. Based on an estimated maximum interest rate that will be paid in connection with the Bonds of 6.16% per annum, the total interest cost associated therewith will not exceed $830,478,858 (which amount is net of any funds expected to be received by or on behalf of the Health and Hospital Corporation or the Building Authority from the United States of America as a result of any series of the Bonds being issued as Build America Bonds pursuant to Section 54AA of the Internal Revenue Code of 1986, as amended (the “Code”), as Recovery Zone Economic Development Bonds pursuant to Section 1400U-2 of the Code or as any other type of tax credit bond pursuant to the Code (collectively, the “Tax Credit Bonds”)), not taking into account any funds of the Health and Hospital Corporation or the Building Authority available for capitalized interest.

Including interest costs, the maximum annual lease rental to be paid by the Health and Hospital Corporation under the Lease is $54,807,604 (which amount is net of any funds expected to be received by or on behalf of the Building Authority from the United States of America as a result of any series of the Bonds being issued as Tax Credit Bonds), and the maximum total lease rental over the term of the Lease is $1,478,711,254 (which amount is net of any funds expected to be received by or on behalf of the Building Authority from the United States of America as a result of any series of the Bonds being issued as Tax Credit Bonds), not taking into account any proceeds of the Bonds deposited in a debt service reserve fund for the Bonds. The Health and Hospital Corporation’s: (i) total debt service fund tax levy for 2007 pay 2008 (which is the most recent certified tax levy) is $3,714,897; and (ii) debt service fund tax rate for 2007 pay 2008 (which is the most recent certified tax rate) is $0.0085 per $100 of assessed value. The estimated maximum increase in the debt service fund tax levy for the Health and Hospital Corporation and the estimated maximum increase in the debt service fund tax rate for the Health and Hospital Corporation after the issuance of the Bonds are anticipated to occur in 2036 pay 2037 and will be $54,807,604 and $0.1494 per $100 of assessed value, respectively, as a result of the payment of the debt service on the General Obligation Bonds and the lease rentals under the Lease.

The net assessed value of taxable property within the County, which is coterminous with the jurisdiction of the Health and Hospital Corporation, as shown by the last, complete and final assessment for state and County taxes (which is for 2008 pay 2009), is in the amount of $36,686,229,690 (the “Net Assessed Value”). The aggregate amount of the Health and Hospital Corporation’s debt service payments on bonds and lease rental payments under leases secured by ad valorem property taxes in 2009 is $4,314,980. Such amount divided by the Net Assessed Value is equal to 0.0118%. The projected maximum aggregate amount of the Health and Hospital Corporation’s debt service payments on bonds currently outstanding, together with the General Obligation Bonds, and lease rental payments under leases currently in effect, together with the Lease, which are secured by ad valorem property taxes, is $54,807,604. Such amount divided by the Net Assessed Value is equal to 0.1494%.

The sum of the Health and Hospital Corporation’s currently outstanding long-term debt, together with any bonds secured by leases entered into by the Health and Hospital Corporation and currently in effect, all of which are secured by ad valorem property taxes, is $41,730,000. The sum of the outstanding long-term debt of all other taxing units in the County, as of September 2, 2009, together with any bonds secured by leases entered into by all other taxing units in the County and in effect as of September 2, 2009, all of which are secured by ad valorem property taxes, is estimated to be $2,118,272,176. The aggregate of such amounts is $2,160,002,176. Such amount divided by the Net Assessed Value is equal to 5.8878%.

The proposed payment of debt service on the General Obligation Bonds or lease payments under the Lease must be approved at the special election to be held in the County on November 3, 2009, on the following public question:

“Shall the Health and Hospital Corporation of Marion County, Indiana, issue bonds or enter into a lease to finance safe, efficient and functional facilities for the Wishard Hospital project:
1.to allow Wishard to provide access to care for all residents of Marion County, including people who are seniors, poor, uninsured or vulnerable regardless of their ability to pay; and

2.to allow Wishard to provide specialized care, including to victims suffering from traumatic injuries or severe burns; and

3.to allow Wishard to work with colleges and universities, including Indiana University School of Medicine, Ivy Tech Community College, and the Purdue School of Pharmacy, to teach future doctors, nurses and other healthcare professionals in Indiana?”

Dated this 25th day of September, 2009. THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY By: Dan Sellers, Treasurer (S - 9/25/09 - 5543537) - 09/25

Um - What Happened to No Property Taxes for New Wishard Project?

Matt Gutwein has been absolutely everywhere these days, selling the community on the "New Wishard Project" that is the subject of a public referendum on November 3rd. Mailings - glossy and not - as well as phone calls polling opinion. Who knows how much money H&H is spending on this blitz.

Since blogger Paul Ogden first broke the wimpy wording of the referendum question itself, others, including Advance Indiana's Gary Welsh, have questioned the use of property taxes to repay the bonds on the project. There remains the key, outstanding question, also, as to whether or not the referendum question legally binds the Health & Hospital Corporation (H&H) to any particular project for any particular sum of money. To me the wording can be boiled down to: "We do good works. Shall we continue?". When I brought that up at last Saturday's McANA meeting, Matt Gutwein said that the Board would be meeting on Tuesday (now two days ago) and the wording they adopt for the project's bonds would legally tie down the referendum question. I'll leave it to the legal scholars among us to decided if the two acts - board action on some bonds and a public referendum are legally linked in any way.

Over and over and over again Gutwein tells us how there will be no property taxes used to repay the bonds floated to pay for this project.

So, imagine my surprise when I saw the legal notice of the H&H Board's decision at it's Tuesday meeting to float bonds for the New Wishard Project. The notice is reprinted below, along with a link to the IndyStar's publication of same -- I don't know if the link will give tomorrow's public notice, so please use it today if you wish.

What I learned from the notice:
1) The bonds cannot be for any more than $703,040,000, and must be repaid within 30 years.
2) The Indianapolis-Marion County Building Authority will actually float the bonds and lease the facilities back to H&H.
3) "All or any portion" of the bonds may be repaid from "property taxes collected by the Health and Hospital Corporation on all taxable property within the geographical boundaries of Marion County, Indiana".

I have changed the typeface to bold for the property tax statement within the public notice and put it in the paragraph form found in the print version of the Star.

http://www2.indystar.com/webcat/classified/classlist?category=Public+Notices&page=12

THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY, INDIANA NOTICE OF PRELIMINARY DECISION BY THE BOARD OF TRUSTEES OF THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY, INDIANA, TO ISSUE GENERAL OBLIGATION BONDS AND TO ENTER INTO A PROPOSED LEASE OR LEASES OF FACILITIES OPERATED OR TO BE OPERATED BY THE HEALTH AND HOSPITAL CORPORATION IN CONNECTION WITH THE WISHARD HOSPITAL PROJECT

Notice is hereby given that on September 22, 2009, the Board of Trustees of The Health and Hospital Corporation of Marion County, Indiana (the “Health and Hospital Corporation”), did adopt a resolution making a preliminary decision: (1) that a need exists for all or any portion of the construction and equipping of a replacement hospital and related facilities for Wishard Health Services currently located at 1001 West Tenth Street (the “Wishard Complex”), together with land acquisition and site development related thereto and all projects and activities related to any of the foregoing, including, but not limited to, all or any portion of the following: (a) acquisition of land and any improvements located thereon and any site development related thereto, (b) renovation and equipping of any such buildings, and the construction and equipping of one or more buildings which will replace the existing hospital and related facilities for the Wishard Complex and provide all or any portion of (i) inpatient services, (ii) diagnostic and treatment, (iii) clinical support, (iv) non-clinical support, (v) offices and education, and (vi) public and building functions (c) construction and equipping of a new ambulatory care building, (d) construction and equipping of one or more related parking garages and/or surface lots, (e) construction and equipping of a central plant for all of the foregoing facilities, and (f) all projects related to any of the projects or facilities described in clauses (a) through and including (e) (clauses (a) through and including (f), collectively, the “Wishard Hospital project”); and (2) to the extent permitted by law, to take all of the necessary steps to finance all or a portion of the costs of all, or as much as is possibly based on the facts and circumstances at the time, of the Wishard Hospital project by: (a) entering into a proposed lease or leases (collectively, the “Lease”) between the Indianapolis-Marion County Building Authority (the “Building Authority”), as lessor, and the Health and Hospital Corporation, as lessee, relating to all or any portion of the Wishard Hospital project operated or to be operated by the Health and Hospital Corporation; and (b) issuing one or more series of general obligation bonds of the Health and Hospital Corporation (the “General Obligation Bonds”). The Building Authority will issue one or more series of revenue bonds, as lessor, secured by and payable from the lease payments under the Lease (the “Revenue Bonds”).

All or any portion of the Health and Hospital Corporation’s payments of principal of and interest on the General Obligation Bonds and/or rental payments under the Lease may be payable from ad valorem property taxes collected by the Health and Hospital Corporation on all taxable property within the geographical boundaries of Marion County, Indiana. The proposed General Obligation Bonds and Revenue Bonds (collectively, the “Bonds”) shall be issued in an original aggregate principal amount not to exceed $703,040,000. The maximum term of each series of the Bonds will be 30 years, and the Bonds will bear interest at a rate or rates estimated not to exceed 6.16% per annum. Dated this 25th day of September, 2009.THE HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY By: Dan Sellers, Treasurer (S - 9/25/09, 10/2/09 - 5543528) - 09/25