HomeMy WebLinkAbout07-092 - ADMIN Resolution - City Council - 2007/09/04RESOLUTION NO. 07-092
RESOLUTION AUTHORIZING THE PUBLICATION OF A NOTICE OF
PUBLIC HEARING AND ESTABLISHING THE DATE FOR A PUBLIC
HEARING REGARDING THE ISSUANCE OF HEALTH CARE
FACILITIES REVENUE BONDS UNDER MINNESOTA STATUTES,
SECTIONS 469.152 THROUGH 469.1651, AS AMENDED
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 through 469.1651, as amended (the "Act"),
authonzes the City to issue revenue bonds to finance, in whole or in part, the costs of the
acquisition, construction, reconstruction, improvement, betterment, or extension of a project and
any related public improvements. A "project" includes 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. Park Nicollet Health Services, a Minnesota nonprofit corporation, Park Nicollet
Methodist Hospital, a Minnesota nonprofit corporation, Park Nicollet Institute, a Minnesota
nonprofit corporation, Park Nicollet Clinic, a Minnesota association that has elected to be treated
as a nonprofit corporation, PNMC Holdings, a Minnesota nonprofit corporation, and Park
Nicollet Health Care Products, a Minnesota nonprofit corporation (collectively, the "Obligated
Group"), have proposed that the City issue its Health Care Facilities Revenue Bonds (Park
Nicollet Health Services), Series 2007B-1 (the "Senes 2007B-1 Bonds"), and its Health Care
Facilities Revenue Bonds (Park Nicollet Health Services), Series 2007B-2 (the "Series 2007B-2
Bonds," and collectively with the Series 2007B-2 Bonds, the "Senes 2007B Bonds"), in the
approximate pnncipal amount not to exceed $80,000,000. The proceeds of the Series 2007B
Bonds are to be applied to: (i) finance (A) the acquisition, construction, and equipping of an
approximately 26,000 square foot building to house the Obligated Group's Cancer Center to be
located at 6490 Excelsior Boulevard in the City, (B) the acquisition, construction, and equipping
of a new parking ramp which will include approximately 1,700 parking stalls adjacent to the
Cancer Center, (C) the redesign and renovation of the emergency center at Methodist Hospital
located at 6500 Excelsior Boulevard in the City, and (D) construction and equipping of a new
common entrance to Methodist Hospital, the Meadowbrook Building, and the new Cancer Center
(collectively, the "Project"); (ii) pay capitalized interest on the Series 2007B Bonds; and (iii) pay
the costs of issuing the Series 2007B Bonds.
1.03. Section 147(0 of the Internal Revenue Code of 1986, as amended, and regulations
promulgated thereunder, requires that pnor to the issuance of the Series 2007B Bonds, this
Council approve the Series 2007B Bonds after conducting a public hearing thereon. In addition,
Section 469.154 of the Act provides that the City Council of the City must conduct a public
hearing on the proposal to undertake projects authorized to be financed under the terms of the
Act
Resolution No. 07-092 -2-
Section 2. Public Hearing.
2.01. The City Council shall meet at 7:30 p.m. on Monday, October 1, 2007, to conduct a
public hearing on the issuance of the Series 2007B Bonds as requested by the Obligated Group.
2.02. The City Finance Director is authorized and directed to publish notice of the
hearing in substantially the form attached hereto as Exhibit A in the St. Louis Park Sun Sailor,
the official newspaper, and the Star Tribune, a newspaper of general circulation in the City,
once, at least fourteen (14) days pnor to the date of the public hearing.
Section 3. City Council Approvals.
3.01. The Council hereby states its preliminary intention to issue the Series 2007B Bonds
to (i) finance the acquisition, construction, and equipping of the Project; (ii) pay capitalized
interest on the Series 2007B Bonds; and (iii) pay the costs of issuing the Series 2007B Bonds
The Senes 2007B Bonds shall be issued, subject to compliance with the terms and conditions of
the Act and the final agreement among the City, the Obligated Group, and the initial purchaser of
the Series 2007B Bonds as to the terms and conditions thereof.
3.02. The Council hereby authorizes the preparation of an application to the Minnesota
Department of Employment and Economic Development for approval of the Project and the
issuance of the Series 2007B Bonds to finance the Project in accordance with the terms of the
Act.
Section 4. Reimbursement of Costs under the Code.
4.01. The United States Department of the Treasury has promulgated final regulations
governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to
reimburse the City or a borrower from the City for project expenditures paid prior to the date of
issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2)
(the "Regulations") require that the City adopt a statement of official intent to reimburse an
original expenditure not later than sixty (60) days after payment of the original expenditure. The
Regulations also generally require that the bonds be issued and the reimbursement allocation
made from the proceeds of the bonds occur within eighteen months after the later of: (i) the date
the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no
event more than three years after the date the expenditure is paid. The Regulations generally
permit reimbursement of capital expenditures and costs of issuance of the bonds.
4.02. To the extent any portion of the proceeds of the Senes 2007B Bonds will be
applied to expenditures with respect to the Project, the City reasonably expects to reimburse the
Obligated Group for the expenditures made for costs of the Project from the proceeds of the
Series 2007B Bonds after the date of payment of all or a portion of such expenditures. All
reimbursed expenditures shall be capital expenditures, costs of issuance of the Series 2007B
Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Regulations and also qualifying expenditures under the Act.
•
Resolution No. 07-092 -3-
Section 5. 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 Senes 2007B Bonds, whether or not
the Series 2007B Bonds are issued. The submission of the application to the Department for
approval of the Project and the issuance of the Series 2007B 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 Series 2007B Bonds.
Section 6. Commitment Conditional. The adoption of this Resolution does not
constitute a guaranty or firm commitment that the City will issue the Senes 2007B Bonds as
requested by the Obligated Group. The City retains the nght in its sole discretion to withdraw
from participation and accordingly not to issue the Series 2007B Bonds, or issue the Series
2007B Bonds in an amount less than 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 Senes
2007B Bonds, or to issue the Series 2007B Bonds in an amount less than the amount referred to
in paragraph 1.02 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.
aft
Se,
its pa
Revi -J' dministration:
11111
111 f
tion 7.
sage.
Effective Date. This Resolution shall be in full force and effect from and
City M
Attest:
-X) Gtr 1-1.,
City Clerk
Ado. the City- ouncil September 4, 2007
Mayo
G
Resolution No. 07-092
-4-
EXHIBIT A
CITY OF ST. LOUIS PARK, MINNESOTA
NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF HEALTH
CARE FACILITIES REVENUE BONDS UNDER MINNESOTA
STATUTES, SECTIONS 469.152 THROUGH 469.1651, 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, October 1, 2007, at 7:30 p.m. at
City Hall, 5005 Minnetonka Boulevard, on a proposal that the City approve and authorize the
issuance by the City of its revenue bonds, in one or more senes under Minnesota Statutes,
Sections 469.152-469.1651, as amended (the "Act"), for the benefit of Park Nicollet Health
Services, a Minnesota nonprofit corporation, Park Nicollet Methodist Hospital, a Minnesota
nonprofit corporation, Park Nicollet Institute, a Minnesota nonprofit corporation, Park Nicollet
Clinic, a Minnesota association that has elected to be treated as a nonprofit corporation, PNMC
Holdings, a Minnesota nonprofit corporation, and Park Nicollet Health Care Products, 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) financing (A) the acquisition, construction, and equipping of
an approximately 26,000 square foot building to house the Obligated Group's Cancer Center to
be located at 6490 Excelsior Boulevard in the City, (B) the acquisition, construction, and
equipping of a new parking ramp which will include approximately 1,700 parking stalls adjacent
to the Cancer Center, (C) the redesign and renovation of the emergency center at Methodist
Hospital located at 6500 Excelsior Boulevard in the City, and (D) construction and equipping of
a new common entrance to Methodist Hospital, the Meadowbrook Building, and the new Cancer
Center (collectively, the "Project"); (ii) paying capitalized interest on the Bonds; and (iii) paying
the costs of issuing the Bonds. 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 is presently estimated not to exceed $80,000,000. 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.
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