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HomeMy WebLinkAbout01-084 - ADMIN Resolution - City Council - 2001/09/04• • • RESOLUTION NO. 01-084 RESOLUTION CALLING FOR A PUBLIC HEARING AND GIVING PRELIMINARY APPROVAL TO THE PROPOSED ISSUANCE OF REVENUE BONDS UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165 WHEREAS, the City of St Louis Park, Minnesota (the "City") is a home rule city, duly organized and existing under its Charter, the Constitution and laws of the State of Minnesota. WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152-469.165, as amended (the "Act"), each home rule charter or statutory city of the State of Minnesota, including the City of St. Louis Park, Minnesota (the "City"), is authorized to issue revenue bonds to finance, in whole or in part, the costs of the acquisition, construction, improvement, or extension of a revenue producing enterprise, whether or not operated for profit, and WHEREAS, Park Nicollet Health Services, a Minnesota nonprofit corporation (the "Corporation"), has requested that the City issue one or more series of revenue bonds (the "Bonds") and loan the proceeds derived f i om the sale of the Bonds to the Corporation, pursuant to the terms of a Loan Agreement between the City and the Corporation (the "Loan Agreement") to finance costs related to the acquisition of various assets and hospital improvements, including, but not limited to, hospital and medical equipment, computer equipment, and hospital furniture and to be located in Borrower -owned facilities at 6500 Excelsior Boulevard, 3800 Park Nicollet Boulevard, 3850 Park Nicollet Boulevard, and 3900 Park Nicollet Boulevard, each in the City (the "Project"), and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, requires that prior to the issuance of the Bonds, this Council approve the Bonds after conducting a public heanng thereon. NOW, THEREFORE, BE 11' RESOLVED THAT. Public Hearing. At a meeting beginning at approximately 7:30 p.m. on Monday, October 1, 2001, the City Council will conduct a public heanng on the issuance of the Bonds as requested by the Corporation. It shall be the Corporation's responsibility to publish notice of the hearing in substantially the form attached hereto as Exhibit A in the official newspaper and rn' a newspaper of general circulation in the City once, at least fifteen days prior to the date of the public heanng. Resolution No. 01-084 -2- Preliminary Approval. 1. The City hereby grants preliminary approval for the issuance of the Bonds for the purposes referenced in this resolution and in an aggregate principal amount not to exceed $10,000,000, subject to the approval of the Project by the Minnesota Department of Trade and Economic Development ("DTED"), as required by the Act, and subject to the mutual agreement of the City, the Corporation, and the initial purchaser of the Bonds as to the details of the Bonds and provisions for their payment. In all events, it is understood, however, that the Bonds shall not constitute a pecuniary liability or charge, lien or encumbrance, legal or equitable, upon any funds, assets, taxing power or any other property of the City except the City's interest in the Loan Agreement; and the Bonds, when, as, and if issued, shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenues received from the Loan Agreement and other property pledged to the payment thereof, and shall not constitute general or moral obligations of the City. 2. In accordance with Section 469.154 of the Act, the City may cooperate with the Corporation in submitting the proposal for the financing of the Project to DTED, including the execution of necessary documentation by City officials. 3. As requested by the Corporation, the law firm of Kennedy & Graven, Chartered may serve as Bond Counsel and assist in the preparation and review of necessary documents relating to the Project and the Bonds to be issued in connection therewith 4. The Corporation shall pay to the City any and all costs incurred by the City in connection with the Bonds or the financing of the Project, whether or not the financing of the Project is approved by DTED, whether or not the financing is carried to completion, and whether or not the Bonds or operative instruments are executed and delivered. The Corporation shall also comply with the City's deposit and fee policies respecting such revenue bond issues. 5. All commitments of the City expressed herein are subject to the condition that by December 31, 2001, the City and the Corporation will have agreed to mutually acceptable terms and conditions of the Loan Agreement, the Bonds, and of the other instruments and proceedings relating to the Bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time, this resolution will expire and be of no further effect. 6. The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Corporation. The City retains the right in its sole discretion to withdraw from participation and accordingly not t0 ISSIIC the Bonds, or issue the Bonds in an amount less that the amount referred to herein, should the City at any time pnor to issuance thereof determine not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in paragraph 1 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 7. With respect to eligible costs of the Project which may be paid by the Corporation pnor to the issuance of the Bonds and reimbursed to the Corporation from the proceeds of the Bonds, this resolution is intended to be a reimbursement resolution and declaration of intent to issue reimbursement bonds under Treasury Regulations, Section 1.150-2, as amended. Resolution No. 01-084 -3- Effective Date. This Resolution shall be in full force and effect from and after its passage. Adopted by the City Council of the City of St. Louis Park, Minnesota on this 4th day of September 2001. Reviewed for Administration: `-144 City Manager Attest• ty Clerk Adoptees the City Council September 4, 2001. Resolution No. 01-084 -4- EXHIBIT A NOTICE OF PUBLIC HEARING PUBLIC NOTICE NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE BONDS UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED, BY THE CITY OF ST. LOUIS PARK, MINNESOTA CITY OF ST. LOUIS PARK, MINNESOTA NOTICE IS HEREBY GIVEN that at a meeting of the City Council of the City of St. Louis Park, Minnesota (the "City"), on Monday, October 1, 2001, beginning at 7:30 p.m. at the St. Louis Park City Hall, 5005 Minnetonka Boulevard, in St. Louis Park, Minnesota, the City' Council will hold a public hearing on a proposal that the City approve and authorize the issuance by the City of its revenue bonds (the "Bonds"), in one or more series under the Minnesota Municipal Industnal Development Act, Minnesota Statutes, Sections 469.152 through 469.165, as amended (the "Act"), in order to finance costs related the acquisition of vanous assets and hospital improvements, including, but not limited to, hospital and medical equipment, computer equipment, and hospital furniture to be located in facilities located at 6500 Excelsior Boulevard, 3800 Park Nicollet Boulevard, 3850 Park Nicollet Boulevard, and 3900 Park Nicollet Boulevard, each in the City (the "Project"). The facilities are owned by Park Nicollet Health Services, a Minnesota nonprofit corporation (the "Corporation"). The maximum aggregate pnncipal amount of the proposed bond issue is $10,000,000 The Bonds will be special, limited obligations of the City and the Bonds and interest thereon will be payable solely from the revenues and assets pledged to the payment thereof No holder of any Bonds will ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the interest thereon, nor to enforce payment against any property of the City except money payable by the Corporation to the City and pledged to the payment of the Bonds. Before issuing the Bonds, the City will enter into an agreement with the Corporation, whereby the Corporation will be obligated to make payments at all times sufficient to at least pay the pnncipal of and interest on the Bonds when due. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the City Administiatoi pnor to the date of the heanng set forth above Dated: September 4, 2001 CITY OF ST. LOUIS PARK, MINNESOTA