WASHINGTON — Alliance, Ohio, disclosed last week that the Internal Revenue Service has concluded an audit of $50 million of hospital revenue bonds it issued in 2003 with no change to the tax-exempt status.
Bank of New York Mellon, which served as dissemination agent for the issuer, filed the notice with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system Monday. It included in the notice a copy of a letter the city received from the IRS stating that the audit has ended and the bonds will not be affected.
The bonds, which were auction-rate securities, were issued to pay to acquire, construct, equip, and furnish two new hospital buildings for the Alliance Community Hospital system, which includes an acute-care facility and a nursing facility, according to bond documents.
The new 229,000-square-foot acute-care facility has 102 licensed acute-care beds as well as 10 licensed geriatric psychiatric beds. The 41,550-square-foot nursing facility has 78 licensed beds and is located on a 17-acre site located to existing hospital facilities.
As part of the new facilities project, the hospital spent $5.7 million from its own funds to build a new, 51,000-square-foot office building, according to the bond documents.
Squire, Sanders & Dempsey LLP was bond counsel on the deal, Goldman, Sachs & Co. was underwriter and Foley & Lardner LLP was underwriter’s counsel.