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HomeMy WebLinkAbout07-093 - ADMIN Resolution - City Council - 2007/09/04CITY OF ST. LOUIS PARK, MINNESOTA RESOLUTION NO. 07-093 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 NOTES 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"), authorizes the City to issue revenue obligations 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 enterpnse, 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 Notes (Park Nicollet Eating Disorders Institute), Series 2007, in the approximate principal amount not to exceed $27,000,000 (the "Notes"). The proceeds of the Notes are to be applied to. (i) finance the acquisition, construction, and equipping of an Eating Disorders Institute to be located at 3515 Belt Line Boulevard in the City (the "Project"); (ii) pay capitalized interest on the Notes; and (iii) pay the costs of issuing the Notes. 1.03. Section 147(0 of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, requires that prior to the issuance of the Notes, this Council approve the Notes 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. 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 heanng on the issuance of the Notes as requested by the Obligated Group. Resolution No. 07-093 -2- 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 prior to the date of the public hearing. Section 3. City Council Approvals. 3.01. The Council hereby states its preliminary intention to issue the Notes to (i) finance the acquisition, construction, and equipping of the Project; (ii) pay capitalized interest on the Notes; and (111) pay the costs of issuing the Notes. The Notes 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 Notes 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 Notes 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 obligations, 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 obligations. 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 obligations be issued and the reimbursement allocation made from the proceeds of the obligations 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 obligations. 4.02. To the extent any portion of the proceeds of the Notes 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 Notes 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 Notes, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations and also qualifying expenditures under the Act. 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 Notes, whether or not the Notes are issued. The submission of the application to the Department for approval of the Project and the issuance of the Notes 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 Notes. Resolution No. 07-093 -3- Section 6. Commitment Conditional. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Notes 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 Notes, or issue the Notes 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 Notes, or to issue the Notes 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. Section 7. Effective Date. This Resolution shall be in full force and effect from and after its passage. Approved by the City Council of the City of St. Louis Park this 4th day of September, 200 Rev sewed for Administration: C Attest: ger City Clerk Adopted the CityJouncil September 4, 2007 Mayor Resolution No. 07-093 -4- EXHIBIT A CITY OF ST. LOUIS PARK, MINNESOTA NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF HEALTH CARE FACILITIES REVENUE NOTES 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 notes, in one or more series 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 notes proposed to be issued by the City for the benefit of the Obligated Group (the "Notes") will be applied to the following costs: (i) financing the acquisition, construction, and equipping of an Eating Disorders Institute to be located at 3515 Belt Line Boulevard in the City (the "Project"); (ii) paying capitalized interest on the Notes; and (iii) paying the costs of issuing the Notes. 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 Notes. The aggregate face amount of the Notes proposed to be issued to finance the Project is presently estimated not to exceed $27,000,000. The Notes 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 SA140-93 (JAE) 316731v2