HomeMy WebLinkAbout09-141 - ADMIN Resolution - City Council - 2009/11/02CITY OF ST. LOUIS PARK, MINNESOTA
RESOLUTION NO. 09-141
RESOLUTION RATIFYING 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. Pursuant to the Minnesota Statutes, Sections 469.152-469.1651, as amended (the
"Act"), the City is authorized to issue revenue bonds for the following purposes: (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 any properties, real or personal, used or useful in
connection with a revenue producing enterprise; and (ii) to refund, in whole or in part, bonds
previously issued by the City under the authority of the Act and interest on such bonds,
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 Refunding Bonds (Park Nicollet
Health Services), Series 2009 (the "Series 2009 Bonds"), in one or more series, in an approximate
principal amount not to exceed $215,000,000. The proceeds of the Series 2009 Bonds are to be
applied to refund the outstanding principal amount of the (i) Variable Rate Demand Revenue
Refunding Bonds (Park Nicollet Health Services), Series 2008A (the "Series 2008A Bonds"), issued
by the City in the original aggregate principal amount of $41,830,000; (ii) Variable Rate Demand
Revenue Refunding Bonds (Park Nicollet Health Services), Series 2008B-1 (the "Series 2008B-1
Bonds"), issued by the City in the original aggregate principal amount of $57,645,000; and
(iii) Variable Rate Demand Revenue Refunding Bonds (Park Nicollet Health Services), Series
2008B-2 (the "Series 2008B-2 Bonds," and collectively with the Series 2008B-1 Bonds, the "Series
2008B Bonds"), issued by the City in the original aggregate principal amount of $45,400,000. The
Series 2008A Bonds and the Series 2008B Bonds are referred to collectively as the "Series 2008
Bonds.
1.03. Proceeds of the Series 2008A Bonds were loaned to the Obligated Group and applied
by the Obligated Group to redeem and prepay the outstanding principal amount of the Health Care
Facilities Revenue Refunding Bonds (Park Nicollet Health Services), Series 2007A (the "Series
2007A Bonds"), issued by the City in the original aggregate principal amount of $41,600,000
Proceeds of the Series 2007A Bonds were previously loaned to the Obligated Group and applied by
the Obligated Group to redeem and prepay the outstanding principal amount of the Health Care
Facilities Revenue Bonds (Park Nicollet Health Services), Series 2003B (the "Series 2003B Bonds"),
issued by the City in the original aggregate principal amount of $41,550,000. The proceeds of the
Resolution No. 09-141 -2-
Series 2003B Bonds were used to finance: (i) 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, 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 (ii) the acquisition and installation of a computed tomography scanner ("CT Scanner") at Park
Nicollet Clinic, located at 14000 Fairview Drive in the City of Burnsville, Minnesota, a CT Scanner
at Park Nicollet Clinic, located at 15800 95th Avenue North in the City of Maple Grove,
Minnesota, and a CT Scanner and a magnetic resonance imaging scanner ("MRI Scanner") at Park
Nicollet Clinic, located at 250 North Central Avenue in the City of Wayzata, Minnesota.
1.04. Proceeds of the Series 2008B Bonds were loaned to the Obligated Group and applied
by the Obligated Group to redeem and prepay the outstanding principal amount of the (i) Health
Care Facilities Revenue Bonds (Park Nicollet Health Services), Series 2007B-1, issued by the City in
the original aggregate principal amount of $56,595,000 (the "Series 2007B-1 Bonds"); and
(ii) Health Care Facilities Revenue Bonds (Park Nicollet Health Services), Series 2007B-1, issued by
the City in the original aggregate principal amount of $44,575,000 (the "Series 2007B-2 Bonds,"
and collectively with the Series 2007B-1 Bonds, the "Series 2007B Bonds"). Proceeds of the Series
2007B Bonds were loaned to the Obligated Group to finance the (i) acquisition, construction, and
equipping of an approximately 82,000 square foot building to house the Obligated Group's Cancer
Center and related facilities with approximately 31,000 square feet of the building reserved for future
expansion, located at 6490 Excelsior Boulevard in the City, (ii) acquisition, construction, and
equipping of a new parking ramp including approximately 1,700 parking stalls adjacent to the
Cancer Center; (iii) redesign and renovation of the emergency center at Park Nicollet Methodist
Hospital located at 6500 Excelsior Boulevard in the City; (iv) construction and equipping of a new
common entrance to Park Nicollet Methodist Hospital, the Meadowbrook Building, and the new
Cancer Center; and (v) acquisition, construction, and equipping of an approximately 69,000 square
foot Eating Disorders Institute, including a parking ramp and surface lot with an estimated 220
parking stalls, located at 3525 Monterey Drive in the City.
1.05. All projects to be refinanced with the proceeds of the Series 2009 Bonds are owned by
the Obligated Group. Proceeds of the Series 2009 Bonds will also be used to fund one or more
reserve funds, pay the costs of issuing the Series 2009 Bonds, and pay other costs related to
refunding the Series 2008 Bonds.
1.06. Section 147(0 of the Internal Revenue Code of 1986, as amended, and regulations
promulgated thereunder, requires that prior to the issuance of the Series 2009 Bonds, the City
Council approve the Series 2009 Bonds after conducting a public hearing thereon.
Section 2. Public Hearing.
2.01. Pursuant to the Act and the Code, Kennedy & Graven, Chartered, as Bond Counsel
to the City, published a notice of public hearing in the form required by Section 147(0 of the Code
in the St. Louis Park Sun -Sailor, the official newspaper of the City, at least fourteen days prior to the
date of the public hearing. The notice of public hearing (the "Notice"), in substantially the form
published in the St. Louis Park Sun -Sailor, is attached hereto as Exhibit A.
Resolution No. 09-141 -3-
2.02. Pursuant to the Notice, the City Council shall meet at 7:30 p.m. on Monday,
November 16, 2009, to conduct a public hearing on the issuance of the Series 2009 Bonds as
requested by the Obligated Group.
Section 3. City Council Approvals.
3.01. The City Council hereby ratifies the actions of Kennedy & Graven, Chartered, in
publishing the Notice in the Sr. Louis Park Sun -Sailor.
3.02. The City Council hereby states its preliminary intention to issue the Series 2009
Bonds to (i) refund the outstanding principal amount of the Series 2008 Bonds; (ii) fund one or
more reserve funds; (iii) pay the costs of issuing the Series 2009 Bonds; and pay other costs related to
refunding the Series 2008 Bonds. The Series 2009 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 2009 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 2009 Bonds, whether or not the Series
2009 Bonds are issued.
Section 5. Commitment Conditional The adoption of this Resolution does not
constitute a guaranty or firm commitment that the City will issue the Series 2009 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 Series 2009 Bonds, or issue the Series 2009 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 2009 Bonds, or to
issue the Series 2009 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.
Section 6.
passage.
Effective Date. This Resolution shall be in full force and effect from and
for Administration
Attest:
Adopted -6 the City Council November 2, 2009
Mayor
Resolution No. 09-141
-4-
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF ST. LOUIS PARK, MINNESOTA
NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF HEALTH CARE
FACILITIES REVENUE REFUNDING 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, November 16, 2009, 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 refunding 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 principal amount of the (i) Variable Rate Demand Revenue Refunding
Bonds (Park Nicollet Health Services), Series 2008A (the "Series 2008A Bonds"), issued by the City
in the original aggregate principal amount of $41,830,000; (ii) Variable Rate Demand Revenue
Refunding Bonds (Park Nicollet Health Services), Series 2008B-1 (the "Series 2008B-1 Bonds"),
issued by the City in the original aggregate principal amount of $57,645,000; and (iii) Variable Rate
Demand Revenue Refunding Bonds (Park Nicollet Health Services), Series 2008B-2 (the "Series
2008B-2 Bonds," and collectively with the Series 2008B-1 Bonds, the "Series 2008B Bonds"), issued
by the City in the original aggregate principal amount of $45,400,000.
Proceeds of the Series 2008A Bonds were loaned to the Obligated Group and applied by the
Obligated Group to redeem and prepay the outstanding principal amount of the Health Care
Facilities Revenue Refunding Bonds (Park Nicollet Health Services), Series 2007A (the "Series
2007A Bonds"), issued by the City in the original aggregate principal amount of $41,600,000.
Proceeds of the Series 2007A Bonds were previously loaned to the Obligated Group and applied by
the Obligated Group to redeem and prepay outstanding principal amount of the Health Care
Facilities Revenue Bonds (Park Nicollet Health Services), Series 2003B (the "Series 2003B Bonds"),
issued by the City in the original aggregate principal amount of $41,550,000. The proceeds of the
Series 2003B Bonds were used to finance: (i) 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, 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 (ii) the acquisition and installation of a computed tomography scanner ("CT Scanner") at the
facilities of the Obligated Group located at 14000 Fairview Drive in the City of Burnsville,
Minnesota, a CT Scanner at the facilities of the Obligated Group located at 15800 95th Avenue
North in the City of Maple Grove, Minnesota, and a CT Scanner and a magnetic resonance imaging
0
0
Resolution No. 09-141 -5-
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 Series 2008B Bonds were loaned to the Obligated Group and applied by the
Obligated Group to redeem and prepay the outstanding principal amount of the (i) Health Care
Facilities Revenue Bonds (Park Nicollet Health Services), Series 2007B-1, issued by the City in the
original aggregate principal amount of $56,595,000 (the "Series 2007B-1 Bonds"); and (ii) Health
Care Facilities Revenue Bonds (Park Nicollet Health Services), Series 2007B-1, issued by the City in
the original aggregate principal amount of $44,575,000 (the "Series 2007B-2 Bonds," and
collectively with the Series 2007B-1 Bonds, the "Series 2007B Bonds"). Proceeds of the Series
2007B Bonds were loaned to the Obligated Group to finance the (i) acquisition, construction, and
equipping of an approximately 82,000 square foot building to house the Obligated Group's Cancer
Center and related facilities with approximately 31,000 square feet of the building reserved for future
expansion, located at 6490 Excelsior Boulevard in the City, (ii) acquisition, construction, and
equipping of a new parking ramp including approximately 1,700 parking stalls adjacent to the
Cancer Center; (iii) redesign and renovation of the emergency center at Park Nicollet Methodist
Hospital located at 6500 Excelsior Boulevard in the City; (iv) construction and equipping of a new
common entrance to Park Nicollet Methodist Hospital, the Meadowbrook Building, and the new
Cancer Center; and (v) acquisition, construction, and equipping of an approximately 69,000 square
foot Eating Disorders Institute, including a parking ramp and surface lot with an estimated 220
parking stalls, located at 3525 Monterey Drive in the City.
All projects to be refinanced with the proceeds of the Refunding Bonds are owned by the
Obligated Group. Proceeds of the Refunding Bonds will also be used to fund one or more reserve
funds, pay the costs of issuing the Refunding Bonds, and pay other costs related to refunding the
Series 2008A Bonds and the Series 2008B Bonds.
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 finance the Project is presently estimated not to exceed $215,000,000. 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 financing.
QUESTIONS: Contact Kevin Locke at 952-924-2580.
HOW TO COMMENT: Attend the meeting and you will be heard or submit written comments
Dated: October 29, 2009
BY ORDER OF THE CITY COUNCIL OF ST. LOUIS PARK, MINNESOTA
Nancy J. Stroth, City Clerk
0 AUXILIARY AIDES FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON
REQUEST AT LEAST 96 HOURS IN ADVANCE. TO MAKE ARRANGEMENTS
CONTACT THE CLERK'S OFFICE AT 952-924-2505.
Published: October 29, 2009