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HomeMy WebLinkAbout5896 - ADMIN Resolution - City Council - 1977/11/07• Resolution No. 5896 NOVEMBER 7, 1977 lla RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY METHODIST HOSPITAL UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT Be It Resolved by the City Council of the City of St. Louis Park as follows: 1. There has been presented to this Council a proposal by Methodist Hospital, a Minnesota non-profit corporation, (the "Corporation") that the City undertake a project pursuant to the Minnesota Municipal Industrial Development Act (Minnesota Statutes, Chapter 474), to provide financing for construction of an addition to and otherwise improving the hospital facilities of the Corpora- tion to increase the ratio of private rooms, to relocate certain ancillary service departments, to remodel the dormitory building for educational and administrative purposes, and to expand space for stores, mechanical - service, medical records, management engineering and business and finance offices, together with necessary site improvements and equipment (hereinafter called the "Project"). Under the proposal, the Project will be owned and operated by the Corporation, and the Corporation will enter into a loan agreement with the City upon such terms and conditions as are necessary to produce income and revenues sufficient to pay, when due, the prin- cipal of and interest on up to approximately $19,800,000 Industrial Development Revenue Bonds of the City to be issued pursuant to said Chapter 474, Minnesota Statutes, to provide monies for the construction and equipping of the Project, capitalized interest, debt reserve funds and expenses,and the City will pledge its interest in the loan agreement to a trustee to secure the bonds. 2. It is hereby found, determined and declared that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encouragement and development of economically sound industry, agriculture and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the retention and develop- ment of industry to use the available resources of the community in order to retain the benefit of its existing investment in edu- cational and public service facilities, by halting the movement of talented, educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and the preservation and improvement of a major non-profit acute hospital and related health care services to the benefit and health of residents of the City and the State. 3. The Corporation has entered into preliminary dis- cussions with Kidder, Peabody & Co. and Piper, Jaffray & Hopwood, Incorporated as managing underwriters, and the managing under- writers have reported that the Project and the sale of the bonds therefor are feasible. 4. Upon recommendation of the Metropolitan Council and the Metropolitan Health Board, the State Board of Health has issued a Certificate of Need for the Project pursuant to the requirements of Sections 145.71 to 145.83, Minnesota Statutes. 5. The Project is hereby given preliminary approval by the City subject to approval of the Project by the Commissioner of Securities and subject to final approval by this Council and by the purchasers of any bonds to be issued and as to the ultimate details of the Project. 6. In accordance with Section 474.01, Subd. 7a, Minne- sota Statutes, the Mayor, the City Clerk, and such other officers and members of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and request his approval thereof, and the Mayor, Clerk, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require. The Corporation, Kidder, Peabody & Co. and Piper, Jaffray & Hopwood, Incorporated, Messrs. Faegre & Benson as bond counsel, the City Attorney, and other City officials are also authorized to initiate the preparation of a proposed loan agreement, trust indenture, mortgage and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed Project is approved by the Com- missioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously. 7. The Corporation has agreed to pay any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner and whether or not the Project is carried to completion and to indemnify the City, its officers and employees from all liability which the City and any officers and employees may incur in connection with the Project or the issuance and sale of the bonds. -2- • , 8. The Corporation is hereby authorized to enter into such contracts, in its own name and not as agent for the City, as may be necessary for the construction of the Project by any means available to it and in the manner it determines without advertisement for bids as may be required for the acquisition or construction of other municipal facilities, but the City shall not be liable on any such contracts. Adopted by the City ouncil November 7, 1977. May r At est: City Clerk view -d fora. V istration: Approv-d as to form and legality: ity 'ttorney -3-