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HomeMy WebLinkAbout15-069 - ADMIN Resolution - City Council - 2015/05/18RESOLUTION NO. 15-069 RESOLUTION CONSENTING TO THE ISSUANCE OF HEALTH CARE REVENUE REFUNDING BONDS TO REFINANCE HEALTH CARE FACILITIES LOCATED IN THE CITY NOW THREFORE, BE IT RESOLVED, by the City Council of the City of St. Louis Park, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City is a home rule city duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Sections 469.152 through 469 1655, as amended (the "Act"), the City is authonzed to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance revenue- producing enterpnses located within the City, whether or not operated for profit, engaged in providing health care services, including, without limitation, hospitals and related medical facilities or to refund, in whole or in part, bonds previously issued under the authority of the Act. 1.03. Park Nicollet Health Services, Park Nicollet Methodist Hospital, Park Nicollet Clinic, PNMC Holdings, and Park Nicollet Health Care Products, all Minnesota nonprofit corporations (collectively, "Park Nicollet"), have proposed that the City consent to the issuance of revenue bonds, in one or more senes, as taxable or tax-exempt obligations in an aggregate pnncipal amount estimated not to exceed $525,000,000 (the "Refunding Bonds") by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Issuer"), pursuant to the Act. The Refunding Bonds are proposed to refund vanous bond issues, including but not limited to the (i) Health Care Facilities Revenue Refunding Bonds (Park Nicollet Health Services), Series 2009 (the "Senes 2009 Bonds"), issued by the City in the original aggregate principal amount of $188,340,000; and (ii) Health Care Facilities Revenue Refunding Bonds (Park Nicollet Health Services), Senes 2008C (the "Senes 2008C Bonds"), issued by the City in the onginal aggregate principal amount of $221,850,000. 1.04. A portion of the proceeds of the Senes 2009 Bonds and the Series 2008C Bonds were used to refinance the (i) acquisition, construction, and equipping of an approximately 82,000 square foot building to house the 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, (in) 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 new Cancer Center, and the Meadowbrook Building, located at 3931 Louisiana Avenue South in the City; 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 Dnve in the City. 1.05. A portion of the proceeds of the Senes 2009' Bonds were also used to refinance the construction and equipping of the Heart and Vascular Center at Park Nicollet Methodist Hospital, the construction of a parking ramp and other improvements at Park Nicollet Methodist Resolution No. 15-069 -2- Hospital, the construction of public infrastructure improvements with respect to the foregoing, and the acquisition and installation of equipment for Park Nicollet Methodist Hospital. 1.06. Proceeds of the Senes 2008C Bonds also refinanced capital improvements to the facilities of Park Nicollet Health Services, Park Nicollet Methodist Hospital, Park Nicollet Institute, Park Nicollet Clinic, PNMC Holdings, and Park Nicollet Health Care Products originally financed with the proceeds of the following obligations issued by the City (i) the Hospital Facilities Refunding Revenue Bonds (Methodist Hospital Project), Series 1990-B; (11) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Senes 1993A; (111) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Senes 1993B; and (iv) the Health Care Facilities Revenue Bonds (HealthSystem Minnesota Obligated Group), Series 1993C. 1.07. The facilities to be refinanced with the proceeds of the Refunding Bonds that are located in the City are referred to herein as the "St. Louis Park Facilities." Section 2. Public Heanng. Under Section 147(0 of the Internal Revenue Code of 1986, as amended (the "Code"), prior to the issuance of the Refunding Bonds, a public heanng, duly noticed, must be held by the City Council, with respect to the St. Louis Park Facilities A public heanng was held on May 18, 2015, after publication of notice in the Sun Sailor, the official newspaper of the City and a newspaper circulating generally in the City. Section 3 Preliminary Findings. Based on representations made by Park Nicollet to the City to date, the City Council hereby makes the following preliminary findings, determinations, and declarations: (a) The Issuer will loan a portion of the proceeds of the Refunding Bonds to Park Nicollet to refinance the St. Louis Park Facilities. The Issuer will enter into one or more revenue agreements with Park Nicollet requinng loan repayments from Park Nicollet in amounts sufficient to repay the loans when due and requiring Park Nicollet to pay all costs of maintaining and insunng the St. Louis Park Facilities. (b) The Refunding Bonds will be special, limited obligations of the Issuer payable solely from the revenues pledged to the payment thereof and will not be a general or moral obligation of the City or be secured by the taxing power or any property or assets of the City. Section 4. Fee Agreement. There has been presented before this City Council a form of Fee Agreement, to be dated on or after June 1, 2015 (the "Fee Agreement"), proposed to be entered into between the City and Park Nicollet. Pursuant to the Fee Agreement, Park Nicollet will agree to pay the City's administrative fee for conduit bond financings set forth in Part II, paragraph 9 of the City's Pnvate Activity Revenue Bond Financing Policy, effective as of February 26, 2001. Section 5. Approval. (a) The City Council hereby approves the issuance of the Refunding Bonds by the Issuer to, among other things, refinance the St. Louis Park Facilities through the defeasance, redemption, and prepayment of the Senes 2008C Bonds and the Senes 2009 Bonds, subject to final approval by the Board of Commissioners of the Issuer, following the preparation of bond documents and a determination by the Issuer to issue the Refunding Bonds. • • Resolution No. 15-069 -3- (b) The Fee Agreement is hereby in all respects authorized, approved and confirmed and the Mayor and City Manager are hereby authorized and directed to execute and deliver the Fee Agreement for and on behalf of the City in substantially the form now on file with the City but with such modifications as shall be deemed necessary, desirable or appropnate, their execution thereof to constitute conclusive evidence of their approval of any and all modifications therein. Section 6. Costs. Park Nicollet will pay and upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the refinancing of the St Louis Park Facilities and the issuance of the Refunding Bonds, whether or not the Refunding Bonds are issued. ection 7 Effective Date. This resolution shall be in full force and effect from and after its p: ssag . Reviewe dministration: City M Attest: Adopt y the City Council May 18, 2015 Mayor i