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HomeMy WebLinkAbout03-102 - ADMIN Resolution - City Council - 2003/08/18RESOLUTION NO. 03-102 CALLING FOR A PUBLIC HEARING REGARDING A FINANCING FOR THE BENEFIT OF PARK NICOLLET HEALTH SERVICES, METHODIST HOSPITAL, PARK NICOLLET INSTITUTE, PARK NICOLLET CLINIC AND PNMC HOLDINGS TO FUND CONSTRUCTION OF FACILITY IMPROVEMENTS AND EQUIPMENT ACQUISITION AND INSTALLATION; AND GRANTING APPROVAL FOR CERTAIN OTHER ACTIONS WITH RESPECT THERETO • g BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. Minnesota Statutes, Sections 469.152-469.165, as amended (the "Act"), authorizes the City to issue revenue bonds or other obligations to finance, in whole or in part, the costs of the acquisition, construction, reconstruction, improvement, betterment, or extension of a project constituting any properties, real or personal, used or useful in connection with a revenue producing enterprise, whether or not operated for profit, engaged in providing health care services, including hospitals, nursing homes, and related medical facilities. 1.02. Section 469.154 of the Act requires that no municipality or authority undertake any project authorized by the Act unless its governing body finds that the project furthers the purposes stated in Section 469.152 of the Act, nor until the Commissioner of the Minnesota Department of Employment and Economic Development (the "Department") has approved the project on the basis of preliminary information the Commissioner requires, as tending to further the purposes and policies of the Act. Pnor to submitting an application to the Department requesting approval of a project, the governing body of the municipality or redevelopment agency must conduct a public heanng on the proposal to undertake and finance the project. Notice of the time and place of hearing, and stating the general nature of the project and an estimate of the principal amount of bonds or other obligations to be issued to finance the project, must be published at least once not less than fourteen (14) days nor more than thirty (30) days prior to the date fixed for the hearing, in the official newspaper and a newspaper of general circulation of the municipality or redevelopment agency. The notice must state that a draft copy of the proposed application to the department, together with all attachments and exhibits, shall be available for public inspection following the publication of the notice and shall specify the place and times where and when it will be so available. 1.03. Park Nicollet Health Services, a Minnesota nonprofit corporation, Methodist Hospital, a Minnesota nonprofit corporation, Park Nicollet Institute, a Minnesota nonprofit corporation, Park Nicollet Clinic, a Minnesota nonprofit corporation, and PNMC Holdings, a Minnesota nonprofit corporation (collectively, the "Obligated Group"), has proposed that the City issue its revenue bonds or other obligations in one or more series in an aggregate pnncipal amount not to exceed $290,000,000 (the "Bonds") the proceeds of which will be loaned by the City to the Obligated Group to be applied by the Obligated Group to finance the following costs: (i) to finance (A) the construction and equipping of its Heart and Vascular Center at Methodist Hospital located at 6500 Excelsior Boulevard in the City of St. Louis Park, the construction of a parking ramp and other improvements at Methodist Hospital, the construction of public infrastructure improvements with respect to the foregoing, and the acquisition and installation of equipment for Methodist Hospital, and (B) the acquisition and installation of (1) a computed tomography scanner ("CT Scanner") at the facilities of the Obligated Group located at Resolution No. 03-102 -2- 1400 Fairview Drive in the City of Burnsville, Minnesota, (2) a CT Scanner at the facilities of the Obligated Group located at 15800 95th Avenue North in the City of Maple Grove, Minnesota, and (3) a CT Scanner and a magnetic resonance imaging scanner ("MRI Scanner") at the facilities of the Obligated Group located at 250 N. Central Avenue in the City of Wayzata, Minnesota (collectively, the "Project"); and (ii) to redeem and prepay the outstanding principal amount of (A) the Hospital Facilities Refunding Revenue Bonds (Methodist Hospital Project), Series 1990-B, issued by the City on November 15, 1990, (B) the Health Care Facilities Revenue 'Bonds (HealthSystem Minnesota Obligated Group), Senes 1993A (Fixed Rate), issued by the City on September 30, 1993, (C) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Series 1993B (Vanable Auction Rate), issued by the City on September 30, 1993; and (D) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Series 1993C (Inverse Variable Auction Rate), issued by the City on September 30, 1993 (collectively, the "Pnor Bonds"); and (iii) to finance the costs of issuing the Bonds. 1.04. Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, require that pnor to the issuance of the Bonds, the Bonds must be approved by the governmental unit which is proposing to issue the Bonds and each governmental unit having jurisdiction over the area in which any facility to be financed with the proceeds of the Bonds is located. Under Treasury Regulations, Section 5f.103-2, the Bonds will be deemed to have been approved in accordance with the requirements of Section 147(0 of the Code if the City Council of the City approves the Bonds after conducting a public hearing thereon and if the City Councils of the Cities of Burnsville, Maple Grove and Wayzata (Burnsville, Maple Grove and Wayzata are referred to collectively as the "Participating Cities") approve the Bonds after each has conducted a public hearing thereon. Each public hearing must be preceded by reasonable public notice. Notice of the public hearing will be deemed to be reasonable if it is published no fewer than fourteen (14) days prior to the hearing in a newspaper of general circulation and if it includes the following information: (i) a general, functional description of the type and use of the facilities to be financed; (ii) the maximum aggregate face amount of obligations to be issued with respect to the facilities; (iii) the initial owner, operator, or manager of the facilities; and (iv) the location of the facilities by their respective street addresses. Section 2. Public Heanng. The City Council of the City shall meet at 7:30 p.m. on Monday, September 15, 2003, to conduct a public hearing with respect to the proposal to issue the Bonds as requested by the Obligated Group. The City Finance Director is directed to authorize the publication of a notice of the hearing in substantially the form attached hereto as Exhibit A in the official newspaper of the City once, at least fourteen (14) days prior to the date of the public heanng. Section 3. Agreement. The City Council hereby approves the preparation and execution and delivery of a Joint Powers Agreement between the City and the Participating Cities (the "Agreement") pursuant to which the City and the Participating Cities agree that the City shall issue the Bonds on behalf of itself and the Participating Cities for the benefit of the Obligated Group. The City Council hereby authonzes the execution and delivery of the Agreement by the Mayor and the City Manager of the City (or by other officers of the City who are authorized to execute and deliver the Agreement on behalf of the City in their absence). • • 1 if.C` moi; Resolution No. 03-102 -3- Section 4. Application to the Department. The preparation of the required application to the Department for approval of the Project and the issuance of the Bonds to finance the Project and to redeem and to prepay the Prior Bonds is hereby authorized to be undertaken by the Obligated Group and the officers, employees, and agents of the City. A draft copy of the application, together with all attachments and exhibits, shall be available for public inspection at the office of the City Finance Director following the publication of the notice of public hearing referred to in Section 2 hereof. Section 5. Actions Authorized. The law firm of Kennedy & Graven, Chartered is authorized to act as bond counsel and to assist in the preparation and review of necessary documents relating to the Project and the Bonds issued in connection therewith. The Mayor, City Manager and other officers, employees and agents of the City are hereby authorized to assist bond counsel in the preparation of such documents and are hereby authorized to execute and deliver, on behalf of the City, applications, confirmations and other documents determined by bond counsel to be necessary and appropriate with respect to the proposed issuance of the Bonds. Section 6. Costs. The Obligated Group will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. The submission of the application to the Department for approval of the Project and the issuance of the Bonds is subject to the condition that the Obligated Group shall have executed and delivered to the City an agreement to pay or reimburse the City for any costs paid or incurred by the City in connection with the Project and the issuance of the Bonds. Section 7. Commitment Conditional. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Obligated Group. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in paragraph 1.03 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. Section 8. after its passage. Effective Date. This Resolution shall be in full force and effect from and Approved by the City Council of the City of St. Louis Park this 18th day of August, 2003. Reviewed for Administration: ylty Manager Attest: A ay Clerk '' ' Adopt . by the City Council August 18, 2003 May Resolution No. 03-102 -4- ' EXHIBIT A CITY OF ST. -;LOUIS .PARK,g1WILNNESOTA NOTICI OF PUBLIC ROARING WITH RESPECT TO A PROJECT DESCRIBED IN MINNESOTA STATUTES, SECTIONS 469.152-469.165, AS AMENDED NOTICE IS HEREBY GIVEN that the City Council of the City of St. Louis Park, Minnesota (the "City") will hold a public hearing on Monday, September 15, 2003, at 7:30 p.m. at City Hall, 5005 Minnetonka Boulevard, to consider a proposal for the issuance of revenue bonds of the City under Minnesota Statutes, Sections 469.152-469.165, as amended (the "Act"), for the benefit of Park Nicollet Health Services, a Minnesota nonprofit corporation, Methodist Hospital, a Minnesota nonprofit corporation, Park Nicollet Institute, a Minnesota nonprofit corporation, Park Nicollet Clinic, a Minnesota nonprofit corporation, and PNMC Holdings, a Minnesota nonprofit corporation (collectively, the "Obligated Group"). The revenue bonds proposed to be issued by the City for the benefit of the Obligated Group (the "Bonds") will be applied to the following costs: (i) to finance (A) the construction and equipping of a Heart and Vascular Center at Methodist Hospital located at 6500 Excelsior Boulevard in the City of St. Louis Park, the construction of a parking ramp and other improvements at Methodist Hospital, the construction of public infrastructure improvements with respect to the foregoing, and the acquisition and installation of equipment for Methodist Hospital, and (B) the acquisition and installation of (1) a computed tomography scanner ("CT Scanner") and related equipment at the facilities of the Obligated Group located at 1400 Fairview Dnve in the City of Burnsville, Minnesota, (2) a CT Scanner and related equipment at the facilities of the Obligated Group located at 15800 95th Avenue North in the City of Maple Grove, Minnesota, and (3) a CT Scanner and a magnetic resonance imaging scanner ("MRI Scanner") and related equipment at the facilities of the Obligated Group located at 250 N. Central Avenue in the City of Wayzata, Minnesota (collectively, the "Project"); and (ii) to redeem and prepay the outstanding principal amount of (A) the Hospital Facilities Refunding Revenue Bonds (Methodist Hospital Project), Series 1990-B, issued by the City on November 15, 1990, (B) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Senes 1993A (Fixed Rate), issued by the City on September 30, 1993, (C) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Series 1993B (Variable Auction Rate), issued by the City on September 30, 1993; and (D) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Series 1993C (Inverse Variable Auction Rate), issued by the City on September 30, 1993 (collectively, the "Prior Bonds")and (iii) to finance the costs of issuing the Bonds. The facilities financed with the proceeds of the Prior Bonds are owned by the members of the Obligated Group and the Project will be owned and operated by members of the Obligated Group. At the public hearing, the City Council will consider adoption of a resolution approving the issuance of the Bonds. The aggregate face amount of the Bonds proposed to be issued to finance the Project, redeem and prepay the Prior Bonds, and pay the costs of issuing the Bonds is presently estimated not to exceed $290,000,000. The Bonds will be issued by the City and will constitute limited obligations of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets or property of the City except interests in the Project that may be granted to the City in conjunction with this financing. 0 o Resolution No 03-102 -5- A copy of the proposed application to the Commissioner of the Minnesota Department of Employment and Economic Development for approval of the Project, together with all attachments and exhibits, will be on file in the offices of the City on and after the date of publication of this notice. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. Dated: [Date of Publication] BY ORDER OF THE CITY OF ST. LOUIS PARK, MINNESOTA