HomeMy WebLinkAbout07-106 - ADMIN Resolution - City Council - 2007/10/01CITY OF ST. LOUIS PARK, MINNESOTA
RESOLUTION NO. 07-106
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 REFUNDING 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"),
authorizes the City to issue revenue bonds (i) to finance, in whole or in part, the cost of the
acquisition, construction, reconstruction, improvement, betterment or extension of a project,
defined in the Act as including 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; and (n) to
refund, in whole or in part, bonds previously issued by the City under the authority of the Act
and interest on such bonds. 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 submitted an application to the City requesting the issuance by the City of its
Health Care Facilities Revenue Refunding Bonds (Park Nicollet Health Services), Series 2007A
in the approximate aggregate principal amount not to exceed $43,000,000 (the "Series 2007A
Bonds"), to refund the outstanding principal amount of the Health Care Facilities Revenue Bonds
(Park Nicollet Health Services), Series 2003B (the "Series 2003B Bonds"), issued by the Issuer
in the original aggregate principal amount of $41,550,000. The Series 2003B Bonds were issued
to finance (A) the construction and equipping of the Obligated Group's Heart and Vascular
Center at Park Nicollet Methodist Hospital located at 6500 Excelsior Boulevard in the City of St.
Louis Park, the construction of a parking ramp and other improvements at Park Nicollet
Methodist Hospital, the construction of public infrastructure improvements with respect to the
foregoing, and the acquisition and installation of equipment for Park Nicollet 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 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 North Central Avenue in the City of Wayzata, Minnesota (collectively, the "Series 2003B
Project"); and (ii) pay the costs of issuing the Series 2007A Bonds.
1.03. Section 1'47(f) of the Internal Revenue Code of 1986, as amended, and regulations
promulgated thereunder, requires that prior to the issuance of the Series 2007A Bonds, this
Council approve the Series 2007A Bonds after conducting a public hearing thereon.
Resolution No. 07-106 -2-
Section 2. Public Heanng.
2.01. The City Council shall meet at 7:30 p.m. on Monday, October 15, 2007, to
conduct a public heanng on the issuance of the Senes 2007A Bonds as requested by the
Obligated Group.
2.02. The actions of Kennedy & Graven, Chartered, acting as bond counsel for the City,
in publishing notice of the hearing in substantially the form attached hereto as Exhibit A in 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 are hereby ratified.
Section 3. City Council Approvals. The Council hereby states its preliminary
intention to issue the Series 2007A Bonds to (i) redeem and prepay the Series 2003B Bonds; and
(ii) pay the costs of issuing the Series 2007A Bonds. The Series 2007A 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 2007A Bonds as to the
terms and conditions thereof.
Section 4. 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 Series 2007A Bonds, whether or not
the Series 2007A Bonds are issued. The submission of the application to the Minnesota
Department of Employment and Economic Development ("DEED") for approval of the Project
and the issuance of the Series 2007A 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
2007A Bonds.
Section 5. Commitment Conditional. The adoption of this Resolution does not
constitute a guaranty or firm commitment that the City will issue the Series 2007A 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 Senes 2007A Bonds, or issue the Series
2007A 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 Series
2007A Bonds, or to issue the Series 2007A 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 - s and conditions of any of the documents required for the transaction.
Se 6' ion 6. Effective Date. This Resolution shall be in full force and effect from and
after its pas age.
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Adopted by the City Council October 1, 2007
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Resolution No. 07-106
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EXHIBIT A
CITY OF ST. LOUIS PARK, MINNESOTA
NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF HEALTH
CARE FACILITIES REFUNDING 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 heanng on Monday, October 15, 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 refunding revenue bonds, 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 bonds
proposed to be issued by the City for the benefit of the Obligated Group (the "Refunding
Bonds") will be applied to refund the outstanding pnncipal amount of the Health Care Facilities
Revenue Bonds (Park Nicollet Health Services), Series 2003B (the "Prior Bonds"), issued by the
City in the original aggregate principal amount of $41,550,000. The Pnor Bonds were issued to
finance (A) the construction and equipping of the Obligated Group's Heart and Vascular Center
at Park Nicollet Methodist Hospital located at 6500 Excelsior Boulevard in the City of St. Louis
Park, the construction of a parking ramp and other improvements at Park Nicollet Methodist
Hospital, the construction of public infrastructure improvements with respect to the foregoing,
and the acquisition and installation of equipment for Park Nicollet 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 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 North Central Avenue in the City of Wayzata, Minnesota. Proceeds of the Refunding Bonds
will also be used to pay the costs of issuing the Refunding 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 Refunding Bonds. The aggregate face amount of the Refunding Bonds
proposed to be issued to fmance the Project is presently estimated not to exceed $43,000,000.
The Refunding 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 fmancing.
® Dated:
[Date of Publication]
BY ORDER OF THE CITY OF ST. LOUIS PARK,
MINNESOTA