Middle Park Facilities Corporation Health Facilities Revenue Bonds

The following is more information on the structure of the Middle Park Medical Facilities Corporatoin and the Health Facilities Revenue Bond structure. It is taken from an email from counsel. The intention here is to provide greater understanding of how this project will be financed. This is perhaps the most thorough and clearest explanations of the structure:

"The Site Lease between the District and Middle Park Facilities Corporation, the 63-20 issuer (the "Corporation") creates the leasehold interest of the Corporation in the Poject site. Fee ownership of the site will remain in the District, subject to the Site Lease and the Lease.

The Lease is also entered into between the District and the Corporation. It proves for the District to lease back the site and the improvements, (i.e., the clinic to be constructed on the site) from the Corporation, subject to annual appropriation of rental payments by the District's Board of Directors. when all of the scheduled rental payments under the Lease have been made, the Site Lease and the Corporation's interest in the Project terminate and the District own the Project free and clear of the financing documents.

The Agreement to Construct appoints the District to construct the Project for the Corporation, with money provided by the Corporation from the Bond transaction. It has the effect of putting the District in charge of construction and the submission of construction fund requisitions to the Trustee. The Corporation would not be expected to have any ongoing role in construction.

the Indenture is entered into between the Corporation and the Trustee. It provides the issuance of the Bonds by the Corporation. In the Indenture, the Corporation assigns and mortgages its interest in the Site Lease and the Lease to the Trustee as security for the Bonds. The effect of this assignment is that the District will make rental payments directly to the Trustee, rather than to the Corporation. the Indenture does not mortgage the District's underlying fee ownership in the site ... "