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HomeMy WebLinkAbout93- 132 - ADMIN Resolution - City Council - 1993/08/231 1 RESOLUTION NO. 93- 132 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.01 This Council has received a proposal that the City issue its revenue bonds to finance a portion or all of the cost of a proposed project (the "Project") under its Home Rule Charter and Minnesota Statutes, Sections 469.152 to 169.165, as amended (the "Act"), on behalf of an obligated group of entities (the "Obligated Group") consisting of HealthSystem Minnesota The Healthcare Network, a Minnesota nonprofit corporation, Methodist Hospital, a Minnesota nonprofit corporation, Park Nicollet Medical Center, a Minnesota nonprofit business trust, and PNMC Holdings, a Minnesota nonprofit corporation, consisting of the issuance of up to $7,000,000 healthcare facilities revenue bonds on behalf of the Obligated Group. The principal operations and executive offices of the Members of the Obligated Group are within the boundaries of the City. 1.02 The Project includes the acquisition, construction and equipping of a 20,000 square foot, one or two story medical clinic facility to be located on a portion of one of the following parcels of farm land, all of which are located within the boundaries of the City of Shakopee, Minnesota: (a) The third parcel (comprising approximately sixty acres) on the east side of Scott County Road 17 (Marshall Road) approximately 1/4 to 1/2 mile south of the new Highway 169 Bypass (currently under construction); (b) A twenty-seven acre parcel located at the southwest corner of Vierling Drive and Scott County Road 17 (Marshall Road) or; (c) An eighteen acre parcel located at the northwest corner of Vierling Drive and Scott County Road 17 (Marshall Road). BOND/22015848 8/23/93 Such facility shall be initially owned and operated by Park Nicollet Medical Center, which is a member of the Obligated Group. 1.03 This Council has been advised by representatives of the Obligated Group that (i) conventional commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the medical facilities of the Members of the Obligated Group would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible, and (ii) the Project might not be undertaken but for the availability of tax exempt revenue bond financing. 1.04 This Council has also been advised by Dain Bosworth Incorporated that, on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. SECTION 2 Determination to Proceed with the Project and its Financing 2.01 On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate principal amount of $7,000,000. 2.02 It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under its Home Rule Charter and the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue such revenue bonds. All details of such revenue bond issues and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development and shall be subject to entering into an intergovernmental agreement with the municipality in which the Project is located, and may be subject to such further conditions as the City may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation. 2.03 The Application to the Minnesota Department of Trade and Economic Development in substantially the form on file with the City (the "Application"), with all attachments and exhibits, is hereby approved, and the Mayor, City Manager and City Clerk BOND/22015848 8/23193 2 1 a all 1 are authorized to execute said documents on behalf of the City, with such changes, additions or deletions as the Mayor, City Manager and the City Clerk i deem appropriate. 2.04 In accordance with Section 469.154, Subd. 3 of the Act, the Mayor, City Manager and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Minnesota Department of Trade and Economic Development for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Minnesota Department of Trade and Economic Development with any preliminary information needed for this purpose. The City Attorney and/or Special Counsel for the City is authorized to initiate and assist in the preparation of such documents as may be appropriate with respect to the issuance of the revenue bonds, if approved by the Department. 2.05 This resolution and the intentions set forth herein are subject to the members of the Obligated Group entering into the Agreement as to Indemnity and Payment of Expenses, between the City and the Obligated Group substantially in the form approved by Resolution 93-90 with such changes as approved by the City Manager. 2.06 Popham, Haik, Schnobrich & Kaufman, Ltd. is hereby designated as Bond Counsel and is authorized to proceed with the preparation of documents as directed by the Obligated Group. SECTION 3 Joint Powers Agreement The Project as set forth in Section 1.02 hereof is located in the city of Shakopee, Minnesota. By Resolution No. 93-111 dated August 2, 1993, the City has approved and authorized the execution of a joint powers agreement with the city of Shakopee. This resolution and the intentions set forth herein are subject to the due and valid authorization, execution and delivery of the required joint powers agreement by the city of Shakopee prior to the issuance of the bonds. SECTION 4 General 4.01 If the bonds are issued and sold, the City will enter into a loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreement") with the Members of the Obligated Group. The loan payments or other amounts payable by the Members of the Obligated Group to the City under the Revenue Agreement shall be sufficient to pay the principal of, and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. BOND/22015848 8/23/93 3 4.02 The Mayor, City Manager and City Clerk are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Section 469.154, Subdivisions 5 and 7 of the Act. Executed this 23rd day of August, 1993. ST: City Cler /s/ Bever Flanagan Reviewed for administration: ity Manager /s`/CD'rles W. Meyer BOND/22015848 8/23/93 4 Approved as to form and execution: City Attorney IsI Suesan Lea Pace