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HomeMy WebLinkAboutCity Council Resolution 1994-2009 RESOLUTION NO. 94-200 Tax-atempt buw. City of Plymouth, linnesoa Oovwning Body: City Council Kind, date, time and Atte of meeting: A ligular meeting, held on April 4, 19941 at 7: 00 dclodt p,m., at the City Hall. Members present Anderson, Morrison, Lymangood, Helliwell, Granath, Edson, Tierney Members absent Documents Attached: Minutes of said meeting (pages): RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF HEALTHSPAN HEALTH SYSTEMS CORPORATION AND NORTH MEMORIAL MEDICAL CEN ITX 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 qualified and acting recording officer of the public corporation refereed to in the tick of this certificate, certify that the documents attached hereto. as described above, have been carefully compared with the original records of the corporation in my legal curtody, ftom 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 copier of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the membitin indicted above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording oilicer and the seal of the City this ith day of .April. 1994. (SEA1W City Clerk • is Tax-exempt ember Helliwell introduced the following resolution and proved its adoption: followx RESOLUTION NO. 94- 200 RESOLUTION GIVING PREUdMINARY 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. BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City', me SECTION l RCd1WL I.I. HealthSpan Health Systems Corporation, a Minnesota non-profit corporation and North Memorial Medial Center, a Minnesota non-profit dorporation, acting as tenants-in-common a• through a successor Minnesota non-profit corporation to be foimed for the purposes of owning and operating the Project refined to below (the "Borrower', has advised this Council of its desire to finance 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 oflice building (together, the "Project") to be owned and operated by the Borrower. The Project will be located at 2655 Campus Drive in the City. 1.2. The City is authorised by Minnesota Statutes, Section 469.152 through 469.165 (the "Act's, t -) issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue-producing enterprise, whether or not operated for profit, engaged in providing health are services, including hospitals, nursing homes, and related medical facilities. The Borrower has requested the City to issue its tax-exempt revenue bonds in an aggregate total amount estimated not to exceed =16,500,000 (the "Bond,") to finance a portion of the cats of the Project. I.S. At a public hearing, duly noticed and held on April 4, 19%, in accordance with the Act and Section 147M of the Internal Revenue Code of 1986, as amended, on the proposal to undertake and finance the Project, all parties whom appeared at the hearing were given at opportunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hexing, such written comments (if any) and such other facts and 9 L circumstances stanea as this Council deems relevant, this Council hereby finds, determines and dedares as follows: (a) the welfare of the State of hfinnesom (the "State's requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental actions for the purpose of preventing the emergence of blighted and marginal lands and areas of dwmk unemployment, and the State has encouraged local government units to act to prevent such economic deter;oration, (b) the welfare of the State further requires the provision of necessary health care fscilides, so that adequate health care services are available to residents of the State at reasonable Dost; (c) the undertaking of the Project would further the general purposes contemplated and described in Section 469.152 of the Act; (d) the existence of the Project would add to the tax base of Hennepin County, the City and die School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding arra; (e) this 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 costs of borrowing that the economic feasibility of constructing and operating the Project would be reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically move feasible; (Q the Council has been advised by representatives of the Borrower that the Project would not be undertaken but for the avallabifityof industrial development bond financing; W this Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt 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 of 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 Project In the maximum aggregate face amount of $16,500,000. 2.2 It is hereby determined to pmLeed with the Project and its financing. This Council hereby declares its intent to have the City issue the Bonds under the Act to finance the Project. -2- • • Notwiduanding 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 cruse the issuance of the Honda. Apr details of the Bonds and theprovisias for payment thereof shall be wbjeet to final approval of the Project by the Minnesota Department of Trade and Economic Development (the "Department") and may be subject to such further conditions as the City may specify. The Bonds, if issued, shall not constitute a Burge, lien or encumbrance, legal or equitable, upon any property of the City, mew the revenues specifically pledged to the payment thereof, and each Bond, when , as and if ioucd, shop mite in substance that the Bonds, including interest thereon, is payable solely from the revraues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. No holder of any Bonds will ever have the Hot to compel any exercise of the canting power of the City to pay the Bonds or the interest thereon, nor to enforce payment against any property of the City except money payable by the Borrower to the City and pledged to the payment of the Bonds. 2.3 The Application to the Department (the "Application', with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute the Application on behalf of the City. 2.4 In accordance with Section 469.154, Subd. 3 of the Act, the Mayor and City Manager are hereby authorized and directed to cause the Application to be submitted to the Department for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Depnrtment with any preliminary information needed for this purpose. The City Attorney is designated as Bond Counsel for the Bonds of the City to finance the Project and is authorised to initiate and asaat in the preparation of such documents as may be appropriate to the Project, if approved by the Department. SECTION 3 3.1. If the Bonds are issued and sold, the City will enter into a loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreement's with the Borrower. The loan payments or other amounts payable by the Borrower to the City under th' Loan Agreement shall be mfiident 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 oats incurred by the City in connection with the Project, whether or not the Project is carried to completion, whether or not approved by the Department, whether or not the City by resolution authorizes the issuance of the Bonds, will be paid by the Borrower upon request. 3.3 The Mayor and City Manager are directed, if the Bonds arc issued and sold, thereafter to comply with the provisions of Section 469.154, Subd. 5 and Subd.7 of the Act. -3- C • Adopted by the City Councll of the City of Plymouth on this 4th day of ApA 19%. O Atue Laurie Rauenhorst City Clerk The motion for the adoption of the foregoing re roludon was duly seconded by Coturn'6t--mber _ ua&,., and upon voce being tabm thereon, the Nowing voted in favor thereof: Anderson. Nbrrison,, Lymw*ood,, Helliwell, Granath, Edson, Tierney and the fol ming voted against the same: None wbumpon the resolution was declared duly pawed and adopted and was appwved and signed by the Mayor, whose signature was attested by the City Clerk. •