Halifax Health cannot issue bonds to finance hospital outside taxing district, judge says

A judge ruled against Daytona Beach, Fla.-based Halifax Health, finding the organization's is not authorized to issue up to $115 million in bonds to finance a proposed 96-bed hospital in Deltona, Fla., according to The Daytona Beach News-Journal.

Volusia County Circuit Court Judge Christopher France said in his April 17 ruling Halifax Health cannot issue bonds to finance the proposed project because it is outside the geographical boundaries of the Halifax public health district.   

Daytona resident and taxpayer, Nancy Epps, challenged Halifax Health's plans, claiming validation of the bonds would be unlawful because the district does not have authority to operate the proposed hospital outside of its geographic boundaries authorized by the Florida legislature, according to the ruling. Halifax contended construction of the proposed hospital "will conserve the district's financial resources, is necessary and will serve a legitimate purpose of the district."

After considering the issue, the judge said a "plain reading" of Florida's land development regulations "shows that the medical facilities that Halifax is authorized to establish are to be located 'in the district,' 'for the use of the public of the district' and in furtherance of 'the general welfare of the residents of the district.'"

 

 

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