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HomeMy WebLinkAboutCity Council Resolution 1994-199R M111TIQd ND. 94-199 Tapable 1. s 'I . 1 r Iruer: City of Plymouth, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on April 4, 1994, at 7:00 o'clock pat, at the City Hall. Members present: Anderson, MDrrison, Lymangood, Helliwell, Granath, Edson$ Tierney Members absent: None Documents Attached: Minutes of aid meeting (pagua RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF HEALTHSPAN HEALTH SYSTEMS CORPORATION AND NORTH MEMORIAL MEDICAL CENTER, OR A SUCCESSOR NON-PROFIT CORPORATION TO BE FORMED, UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL. DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS. I, the undersigned, being the duly quaned and acting recording officer of the public corporation referred to in the tick of this eeMcst% certify that the documents attached hereto, se described above, have been caref* compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insoW n they relate to the obligations; and that the mating was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such mating given a required by law. WITNESS my hand officially a such recording officer and the seal of the City this4th day of April, 1994. (SEA4 City Clerk • 0 Taxable Coundhnamber Hell ivell introduced the foUowiag resolution and moved its adoption: RESOLUTION NO. 94. 199 RESOLUTION GIVING PREUMINARY APPROVAL TO A PRCMW ON BEHALF OF HEALTHSPAN HEALTH SYSTEMS CORPORATION AND NORTH MEMORIAL MEDICAL CENTER, OR A SUCCESSOR NON-PROFIT CORPORATION TO BE FORMED, UNDER THE W[INNBSOTA MUNICIPAL INDUSTRIAL DEVEIAPMENT ACI,, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS. BE IT RESJLVED by the City Council of the City of Plymouth, Mrmnesoa (the "City% as SECTION 1 RUML 1.1. HealthSpan Health Systeme Corporation, a Mlinnesota non-profit cogioration and North Memorial Medical Center, a Minnesota non-profit corporation, acting as tenants-in-common or through a successor Minnesota non-profit corporation to be formed for the purposes of owning and operating the Project referred to below (the •Borrower's, has advised this Council of its desire to flumos the acquisition of land and the construction and equipping thereon of an approximately 50,000 quare foot Ambulatory Care Center and an approximately 72,000 quare foot Medial Office Building (together, the "Prgject") to be owned and operated by the Borrower. Ile Project will be boated at 2835 Campus Drive in the City. 1.2. The City is authorised by Mmnesoa Statutes, Section 469.152 through 469.165 (the "Act"), to issue its revenue bonds to Mance capital prcom consisting of properties used and useN 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 heilities. The Borrower has requested the City to issue its taxable revenue bonds In an aggregate total amount estimated not to exceed 117,500,000 (the "Bonds") to finance a portion of the costs of the Project. I.S. At a public hearing, duly noticed and held on April 4, 1994, in accordance with the Act and Section 147M of the Internal Revenue Code of 198tH, as amended, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Ned and interested penons were givat the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and c1rcumstances u this Council deems relevant, this Council hereby finds, determines and declares a follows: (a) the welfare of the State of Wmaesota (the 'State' requires active promotion, attraction, eaoouealement and development of economically sound industry and commerce through governmental actions for the purpose of preventing the emergence of blighted and marginal lands and caw of chronic unemployment, and the State has encouraged local government units to act to prevent such economic deterioratki; (b) the welfare of the State further requires the provision of necessary health can tulles, so that adequate health are services are available to residents of the State at reasonable cos. (c) the undertaking of the Project would funther the general purposes contemplated and described in Section 469.152 of the Act; (d) the exiistmce of the Project would add to the tax base of Hennepin County, the (Sty and the School District in which the Project is located and would provide increased opportunities for employment for residents, of the City and surrounding arm; (e) ' chis Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high oats of borrowing that the eomomic feasibility of constructing and operating the Project would be reduced, but that with the aid of n.unieipal borrowir% and its resulting lower borrowing ext, the Project is economically more reasi0e; (Q the Council has been advised by representatives of the Borrower that the Ptgject would not be undertaken but for the availability of industrial development bond financing; (g) this Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of taxable bonds, revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project; and (h) the City is authorised by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue-producing enterprise, such as that of the Borrower, and the issuance of the Bonds by the City would be a substantial inducement to the Borrower to construct the Project. SECTION 2 2.1 On the basis r: the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Nect In the maximum aggregate face amount of =17,500,000. 2.2 It is hereby determined to proceed with the Project and its financing. Ilia Council hereby declares its intent to have the City issue the Bonds under the Act to finance the Prgject. Notwithstanding the foregoing, however, the adoption of the resolution shall not be deemed to establish a legal obligation on the part of the City or its Council to issue or to cause the issuance of the Bonds. An details of the Bonds and the provisions for payment thereof shall be subject to final approval of the Prgect by the Minnesota Department of Trade and Economic Development (the "Department's and may be subject to such further conditions as the City may specify. The Bonds, if -2- issued, Ad ant constitute a charge, ries or amuobnooe, legal or equitaW upon any property of the City, esoept tie revenues specifically pledged to the payment thereof, and each Bond, when, a and if issued, Ad recite in substance that the Hoods, including interest thereon, is payable solely Brom the seven= and property gwific* piedgad to the payment thereof. and Ad not constitute a debt of the City within the meaning of my constitutional or statutory limitedou. No bolder of nay Bonds will ever have the tight to compel coy eaxrrise of the taring power of the City to pay the Bonds a the in- F i i tbereoq as to eaS, payment apron nay property of the City esoept money payable by the Borrower to the City and pledged to the payment of the Boa& 2.3 T k Application to the Department (the 'Appicationwh with attachments, is hereby approved, and the )Maya and City Manager we authorised to cocate the Application as behalf of the city. 2.4 In accordance with Section 469.154, Subd. 3 of the Mx, the Mayor and City Manager are hereby authorised and directed to com the Application to be submitted to the Department for approval of the Prgjeet. The Mayor, City Manager, City Clerk, City Attorney and other onicen, employees and spats of the City are hereby authorised and directed to provide the Department with say preliminary io%rmation needed for this purpose. Tine City Attorney is designated as Bond Counsel for the Bonds of the City to Bounce the Project and is authorised to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Department. SECTION 3 3.1. N the Bonds are issued and sold, the City will enter into a loan agreement or similar agreeneot saddying the requirements of the Act (the 'Revenue Agreement' with the Borrower. The baa payments or other amounts payable by the Bonower to the City under the Ian Agreement shall be su6ioeat to pay the principal of, and interest and any redemption premium on, the Bonds as and when the same shall become due and payable. 3.2 The Borrower has agreed and it is hereby determined that any and all direct and indirect cow incurred by the City in connection with the Project, whether or not the Pegjeet is carried to completion, whether or not approved by the Department, whether or not the City by resolution authorises the issuance of the Bonds, will be paid by the Borrower upon request. 3.3 Ile Mayor and City Manager are directed, if the Bonds are issued and sold, thenulkr to comply with the provisions of Section 469.154, Subd. S and Subd.7 of the Act. Adopted by the City Council of the City of Plymouth on this 4th day of April, 1994. (SEA4 Atter: Laurie Rauenhorst City Clerk Joy Tierney Mayor -3- T6c motion for dw adoption of dw foregoing raaobdoa was day seconded by Comedlomember Edson and up= vete beim term thoraco. the 6&ming voted ferorin t Amlerson. Morrison, Lyarangood. Helliwell. Granath, Edson. Tierney end As fang Ws voted agaim the mama: None vrb I a - the re.olwien waw defined ddy paseed and adVW and waw app eowd and dpad by era li/gw. edtoae aiputwe waa ateemod by aha City ClwL -4-