Revised


M E M O R A N D U M

							January 25, 2012	
									

TO:		Members of the Board of Trustees		

FROM:	Nancy L. Zimpher, Chancellor

SUBJECT:	Tax-Exempt Leasing Program -- University 
 Hospital Medical Center at Brooklyn


Action Requested

	The resolution authorizes a tax-exempt leasing transaction in an amount not to exceed $25.0 million to finance equipment for University Hospital Medical Center at Brooklyn.

Resolution

      I recommend that the Board of Trustees adopt the following resolution:

Whereas pursuant to Title 18, Chapter 6 of the Unconsolidated Laws, as amended, State University of New York has the statutory authority to participate in the Dormitory Authority of the State of New York's Tax-Exempt Leasing Program ("Program") for hospitals and residential health care facilities; and

Whereas University Hospital Medical Center at Brooklyn desires to participate in the Program to finance certain equipment; and

Whereas it is desirable to finance the cost of the Hospital's equipment acquisition and installation through the Program; now, therefore, be it


Resolved that the form and content of the proposed Master Lease and Sublease Agreement ("Agreement”) by and
between the State University and the Dormitory Authority of the State of New York (copy on file in the Office of the Secretary of the University), be, and hereby is, approved; and, be it further

Resolved that the Chancellor, or designee, be, and hereby is, authorized to execute and deliver one or more said Agreements in the name and on behalf of the State University of New York, for and on behalf of University Hospital Medical Center at Brooklyn, with such changes and additions, not materially altering said Agreement, as may be found appropriate to effectuate the purposes thereof, and to provide all certifications, assurances or other documents, and to take any and all steps necessary and appropriate to enable the State University to participate in the Program for the acquisition and installation of the Hospital’s equipment in an amount not to exceed $25 million.

Background

      This resolution authorizes the State University to participate in the Dormitory Authority's (DASNY) Tax Exempt Leasing Program to finance new equipment.  The new equipment includes an electronic medical record system, robotic surgery equipment, emergency generators, radiological picture imaging and communication system, isolation room equipment, operating room equipment and machines, and other miscellaneous medical and information system equipment. 
       
      It is estimated that the payments to DASNY under this loan program will be $5.3 million annually for the University Hospital Medical Center at Brooklyn.  This cost will be paid out of Hospital revenues from the annual operating budget.

      DASNY plans to close this transaction during second quarter of 2012.  Required approvals for the purchase of certain items of equipment have been received from the New York State Department of Health.




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Board Resolution		January 25, 2012