Projects
Summa Health System
Akron, Ohio
Summa Health System is one of the largest integrated health systems in Ohio. The Heart Center and Specialty Health Center added approximately 80,000 square feet of space to the Akron City Hospital Campus. The addition brought a wide range of patient services under one roof. The building provides a mix
The Challenge:
Find optimum financing for Summa’s mixed for-profit and non-profit development.
Maintain Summa’s control of the facility’s construction and operation.
Benefits of Working with SCPA
Summa financed 100% of the project with the SCPA as substantive issuer.
The SCPA’s non-profit status meant sales tax exemption on construction materials.
SCPA-structured financing took advantage of the tax-exempt portion.
Lease end options will allow Summa to share in appreciation of the project.
Summa enjoys enhanced cash flow from off-balance sheet financing.
Fixed or floating rate financing means flexibility in capital and debt management.
Project Cost: Taxable: $17 million
Tax-exempt: $10.5 million
Source Funds:
$17,000,000 - Summit County Port Authority Taxable Bonds
$10,500,000 - Summit County Port Authority Tax-exempt Bonds
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$27,500,000 - Total
Interest Rate:
The Summit County Port Authority issued a total of $27.5 million in tax-exempt and taxable bonds to finance the project. The SCPA structured a synthetic lease financing agreement with Summa. The lease was facilitated and underwritten by NatCity Investments, Inc. Under the terms of the agreement, Summa leases the buildings from the SCPA, which owns the assets. Lease payments service the bond debt. During the lease term, Summa reports these payments as an operating expense, but may also take depreciation for tax purposes.
