TEFRA Hearings
PUBLIC HEARING NOTICE
The Pennsylvania Higher Educational Facilities Authority (the “Authority”) will hold a public hearing on June 12, 2025, at 11:00 a.m., prevailing time, in Hearing Room #4 in the Commonwealth Keystone Building, 400 North Street. Harrisburg, PA 17120 in connection with a plan of finance for the proposed issuance of up to $725,000,000 in aggregate principal amount of tax-exempt revenue bonds (the “Bonds”) in one or more series on one or more dates. The Bonds are intended to be issued as qualified 501(c)(3) hospital bonds for the benefit of The Trustees of the University of Pennsylvania (the “University”), a Pennsylvania nonprofit corporation.
- Initial Owner: The University owns and operates the University of Pennsylvania Health System (the “System”), which consists of the Hospital of the University of Pennsylvania (“HUP”) and the Clinical Practices of the University of Pennsylvania (which are designated units of the University), together with the following Pennsylvania nonprofit corporations, all of which are wholly-controlled affiliates of the University: Presbyterian Medical Center of the University of Pennsylvania Health System d/b/a Penn Presbyterian Medical Center (“PPMC”), Clinical Care Associates of the University of Pennsylvania Health System, Wissahickon Hospice, Pennsylvania Hospital of the University of Pennsylvania Health System (“Pennsylvania Hospital”), The Chester County Hospital and Health System (“TCCHHS”), Lancaster General Health and The Lancaster General Hospital (“LGH”).
- Maximum Amount of Issue: $725,000,000. This amount and the amounts set forth below for individual projects include amounts to finance the payment of capitalized interest on the Bonds and the funding of necessary reserves, if any, and the payment of certain costs of issuance in respect of the Bonds.
- Purpose of Financing and Nature of the Financed Facilities: The proceeds of the Bonds will be used for projects (collectively, the “Bond Projects”) consisting of:
(i) The financing, reimbursement, and/or refinancing (in whole or in part) of the costs of the acquisition, construction, renovation, improvement, installation, and equipping of certain capital projects for the System consisting of:
(a) Bonds in the maximum principal amount of $30,000,000 to finance mechanical infrastructure projects at HUP (the “Mechanical Infrastructure Project”), including architectural engineering and pre-construction services to design the replacement of three (3) existing chillers in Rhoads and provide chiller optimization along with four (4) Founders chillers and two (2) aging cooling towers replacement and associated system;
(b) Bonds in the maximum principal amount of $25,000,000 to finance preliminary design and construction of the Penn Medicine Montgomeryville ambulatory center (the “Penn Medicine Montgomeryville Project”), which will deliver a full spectrum of healthcare services, from wellness to specialized evaluation and cutting-edge treatment options, including comprehensive cancer care, primary care, heart and vascular, orthopaedic and neuroscience care, specialized services in women’s health, and surgical consultations;
(c) Bonds in the maximum principal amount of $90,000,000 to finance design and pre-construction site preparation for the Proton Therapy Center at PPMC (the “Proton Therapy Center Project”), which is intended to build capacity for a planned update of the Roberts Proton Therapy Center at the Perelman Center for Advanced Medicine of HUP while also expanding future proton capacity for current and future indications for proton therapy and other innovative and effective cancer treatment options at PPMC; and
(d) Bonds in the maximum principal amount of $158,000,000 to finance certain capital projects related to the System’s Fiscal Year 2020-2026 Capital Plans (the “Capital Plan Project” and together with (a) – (c) above, the “New Facilities”).
(ii) Bonds in the maximum principal amount of $160,000,000 to finance the refunding of all or a portion of the Authority’s University of Pennsylvania Health System Revenue Bonds, Series of 2015 (the “2015 Bonds”) outstanding in the approximate principal amount of $156,290,000, the proceeds of which were used to finance and/or refinance (a) the relocation and expansion of the System’s Level I Regional Resource Trauma Center from its current home to a state-of-the-art facility at the Pavilion for Advanced Care and the addition of a 150,000 square foot outpatient facility at the PPMC campus; (b) the construction of an up to 250,000 square foot office building, the addition of five floors of clinical care to the Perelman Center for Advanced Medicine, demolition of Penn Tower and construction of additional parking at the University campus; (c) other capital expenditures included in System’s capital budget; (d) the refinancing of certain then-outstanding indebtedness of System, including all of the Authority’s University of Pennsylvania Health System Revenue Bonds, Series A of 2005, Series B of 2005 and Series B of 2008, the proceeds of which were used to finance and refinance the acquisition, construction, renovation, improvement and equipment of the System’s existing facilities including capital projects to solve violations of building codes and safety and other infrastructure deficiencies, data management systems, miscellaneous ongoing capital improvements and maintenance upgrades to the System’s facilities, acquisition of PPMC, Proton Therapy equipment and construction, and construction of the Perelman Center for Advanced Medicine;
(iii) Bonds in the maximum principal amount of $62,000,000 to finance the refunding of all or a portion of the Authority’s University of Pennsylvania Health System Refunding Revenue Bonds, Series C of 2016 (the “2016 Bonds”) outstanding in the approximate principal amount of $60,950,000, the proceeds of which were used to refinance certain then-outstanding indebtedness of the System, including all or a portion of the Authority’s University of Pennsylvania Health System Revenue Bonds, Series A of 2009 and Series A of 2011, the proceeds of which were used to finance and refinance the acquisition, construction, renovation, improvement and equipping of certain capital projects of various members of the System; and
(iv) Bonds in the maximum principal amount of $200,000,000 to finance the refunding of all or a portion of the Lancaster County Hospital Authority (the “Lancaster Authority”) University of Pennsylvania Health System Revenue Bonds, Series A and B of 2016 (the “Lancaster 2016 Bonds”) outstanding in the principal amount of $194,855,000, the proceeds of which were used to finance and/or refinance the construction of a six-story addition to the existing LGH facilities, upgrades to boiler facilities and equipment of LGH; moving the Pennsylvania College of Health Sciences to a new campus and converting the space for use as an educational instruction space from its current manufacturing design; various other capital projects of LGH; various capital projects at the Pavilion for Advanced Care at the facilities of PPMC; a new outpatient facility of PPMC; the demolition of an existing office building and construction of a new office building of the System; the construction of the Center for Advanced Cellular Therapeutics at the Perelman Center for Advanced Medicine at the facilities of the University set forth below; various capital projects of TCCHHS; and to refinance certain then-outstanding indebtedness of various members of the System, including all of the Authority’s University of Pennsylvania Health System Revenue Bonds, Series A of 2009 and Series A of 2011, the Lancaster Authority’s Health System Revenue Bonds (The Lancaster General Hospital Construction Project), Series A of 2007, the Lancaster Authority’s Health System Revenue Bonds (The Lancaster General Hospital Refunding Project) Series B of 2007 and Series A of 2012, the Lancaster Authority’s Health System Revenue Bonds (The Lancaster General Hospital Project), Series B of 2012 and The Lancaster General Hospital, Series of 2015 Master Note, the proceeds of which were used to finance and/or refinance capital projects consisting of a new cancer center, capital equipment and upgrades to existing facilities.
- Location of Facilities: The facilities to be financed or refinanced by the Bonds will be or are located at the following locations:
(i) The New Facilities will be located at the following locations:
(a) the Mechanical Infrastructure Project will be located on the University’s campus bounded by Spruce Street and South Street on the North, Health Sciences Drive and Convention Avenue on the South and East, and University Avenue on the West, in the City of Philadelphia, Pennsylvania,
(b) the Penn Medicine Montgomeryville Project will be located at 200 Dekalb Pike, North Wales, PA 19454,
(c) the Proton Therapy Center Project will be located on the PPMC campus, bounded by Baring Street on the North, Market Street on the South, 38th Street on the East and 40th Street on the West, in the City of Philadelphia, and
(d) the improvements relating to the Capital Plan Project will be located: (1) on the University’s campus bounded by Spruce Street and South Street on the North, Health Sciences Drive and Convention Avenue on the South and East, and University Avenue on the West, in the City of Philadelphia, Pennsylvania, (2) on the PPMC campus, bounded by Baring Street on the North, Market Street on the South, 38th Street on the East and 40th Street on the West, in the City of Philadelphia; (3) on the Pennsylvania Hospital campus bounded by 9th Street on the West, 7th Street on the East, Locust Street on the North and Pine Street on the South, in the City of Philadelphia, Pennsylvania; (4) on the Penn Medicine Washington Square campus bounded by Walnut Street on the North, 8th Street on the East, Locust Street on the South and 9th Street on the West, in the City of Philadelphia, Pennsylvania; (5) on the Penn Medicine University City campus bounded by Market Street on the South, 36th Street to the East, 38th Street to the West and Filbert Street to the North, in the City of Philadelphia, Pennsylvania; (6) HUP Cedar Avenue campus located at 501 South 54th Street in the City of Philadelphia, Pennsylvania; (7) on the LGH main campus at 555 North Duke Street, Lancaster, Pennsylvania; and (8) on the TCCHHS campus bounded by Goshen Road on the North, E. Marshall Street to the East and South and Marshall Drive to the West, in West Goshen Township, Pennsylvania and the Borough of West Chester, Pennsylvania.
(ii) The facilities financed and/or refinanced by the 2015 Bonds are located (a) on the University’s campus bounded by Spruce Street and South Street on the North, Health Sciences Drive and Convention Avenue on the South and East, and University Avenue on the West, in the City of Philadelphia, Pennsylvania; (b) on the TCCHHS campus bounded by Goshen Road on the North, E. Marshall Street to the East and South and Marshall Drive to the West, in West Goshen Township, Pennsylvania and the Borough of West Chester, Pennsylvania; (c) on the PPMC campus bounded by Baring Street on the North, Market Street on the South, 38th Street on the East and 40th Street on the West, in the City of Philadelphia; (d) on the Pennsylvania Hospital campus bounded by 9th Street on the West, 7th Street on the East, Locust Street on the North and Pine Street on the South, in the City of Philadelphia, Pennsylvania; (e) on the Penn Medicine Washington Square campus bounded by Walnut Street on the North, 8th Street on the East, Locust Street on the South and 9th Street on the West, in the City of Philadelphia, Pennsylvania; and (f) on the Penn Medicine University City campus bounded by Market Street on the South, 36th Street to the East, 38th Street to the West and Filbert Street to the North, in the City of Philadelphia, Pennsylvania.
(iii) The facilities financed or refinanced by the 2016 Bonds are located (a) on the University’s campus bounded by Spruce Street and South Street on the North, Health Sciences Drive and Convention Avenue on the South and East, and University Avenue on the West, in the City of Philadelphia, Pennsylvania; (b) on the PPMC campus bounded by Baring Street on the North, Market Street on the South, 38th Street on the East and 40th Street on the West, in the City of Philadelphia; (c) on the Pennsylvania Hospital campus bounded by 9th Street on the West, 7th Street on the East, Locust Street on the North and Pine Street on the South, in the City of Philadelphia, Pennsylvania; (d) on the Penn Medicine at Valley Forge facility located at 1001 Chesterbrook Boulevard in Berwyn, Chester County, Pennsylvania; and (e) on the Penn Medicine at Radnor facility located at 250 King of Prussia Road in Radnor Township, Delaware County, Pennsylvania.
(iv) The facilities financed and/or refinanced by the Lancaster 2016 Bonds are located (a) on the University’s campus bounded by Spruce Street and South Street on the North, Health Sciences Drive and Convention Avenue on the South and East, and University Avenue on the West, in the City of Philadelphia, Pennsylvania; (b) on the TCCHHS campus bounded by Goshen Road on the North, E. Marshall Street to the East and South and Marshall Drive to the West, in West Goshen Township, Pennsylvania and the Borough of West Chester, Pennsylvania; (c) on the PPMC campus bounded by Baring Street on the North, Market Street on the South, 38th Street on the East and 40th Street on the West, in the City of Philadelphia; (d) on the Pennsylvania Hospital campus bounded by 9th Street on the West, 7th Street on the East, Locust Street on the North and Pine Street on the South, in the City of Philadelphia, Pennsylvania; (e) on the Penn Medicine Washington Square campus bounded by Walnut Street on the North, 8th Street on the East, Locust Street on the South and 9th Street on the West, in the City of Philadelphia, Pennsylvania; (f) on the Penn Medicine University City campus bounded by Market Street on the South, 36th Street to the East, 38th Street to the West and Filbert Street to the North, in the City of Philadelphia, Pennsylvania; (g) on LGH’s main campus at 555 North Duke Street, Lancaster, Pennsylvania; (h) on the Pennsylvania College of Health Sciences campus located at 850 Greenfield Road, Lancaster, Pennsylvania (East Lampeter Township, Lancaster County, Pennsylvania); (i) on LGH’s campus in East Hempfield Township, Lancaster County, Pennsylvania in the area bounded by Route 741, the Harrisburg Pike, Good Drive and Route 30; (j) at PPMC facilities located at 3737 Market Street in Philadelphia, Pennsylvania; (k) at the System’s facilities located at 3600 Civic Center Boulevard in Philadelphia, Pennsylvania; (l) at the Penn Medicine at Valley Force facility located at 1001 Chesterbrook Boulevard in Berwyn, Chester County, Pennsylvania; (m) at the Penn Medicine at Doylestown facility located at 599 West State Street in Doylestown, Bucks County, Pennsylvania; (n) at the Penn Medicine at Radnor facility located at 250 King of Prussia Road in Radnor Township, Delaware County, Pennsylvania; and (o) at the Penn Medicine at Limerick facility located at 420 West Linfield-Trappe Road in Limerick, Montgomery County, Pennsylvania.
At the public hearing, any and all persons in attendance will be afforded an opportunity to comment on the proposed Bond Projects and the issuance by the Authority of the Bonds. If you need an accommodation due to disability and want to attend the meeting, please call 717‑975-2209 at least 24 hours in advance so arrangements can be made.
This notice is published, and the public hearing is being held by and on behalf of the Authority as the issuer of the Bonds in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
Interested persons can also submit written comments on the plan of financing at least twenty-four hours before the hearing to the Pennsylvania Higher Educational Facilities Authority. 400 North Street FL 6, Harrisburg. PA 17120, Attention: Executive Director.
PENNSYLVANIA HIGHER EDUCATIONAL FACILITIES AUTHORITY