HomeMy WebLinkAboutCity Council Resolution 1994-199R M111TIQd ND. 94-199
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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
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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
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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
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