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HomeMy WebLinkAboutCity Council Resolution 1994-292RESOLUTION M. 94-292 CERTMCATION OF >I nNU` BS RELATING TO HEALTHCARE FACILITIES REVENUE BONDS (i# RON FARNM NURSING HOIIE PROJECT) SERIES 1"4 Issuer. City of Plymouth, Minnesota Governing Body: City Courral Kind, date, time and place of meeting: A regular mating, held on May 160 19941 at 7:00 o'clock p.m., at the City HaIL Members present: Anderson, Morrison, Lymangood, Helliwell, Granath, Tierney Members absent: Edson Document: Attached: Minutes of said meeting (pages): RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEiiALF OF MISSION FARM NURSING HOME, INC. 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 referred to in the tick of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original mcords of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of tt a 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, 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 members indicated above, pursuant to call and notice of such mating given as required by law. VMNESS my hand officially as such recording officer and the seal of the City this 31stday of May, 19%. (SEAL) City Clerk Councilmember Helliwell introduced the following resolution and moved its adoption: RESOLUTION NO. go 292 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF MISSION FARM NURSING HOME,, INC. 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 TT RESOLVED by the City Council of the City of Plymouth, Krinesota (the "City"), as follows: SECTION 1 p4dt& I.I. Mission Farm Nursing Home, Inc., a Minnesota non-profit corporation (the "Borrower"), has advised this Council of its desire to finance the construction and equipping of s 104 -licensed bed nursing facility (the "Project's to be owned and operated by the Borrower. The Project will be located at 9401 East Medicine Lake Boulevard in the City. 1.2. The City is authorized by Minnesota Statutes, Section 469.152 through 469.165 (the "Act"), to issue its revenue bonds to finance capital projects consisting of properties used and usef il in connection with a revenue-producing enterprise, whether or not operated lbr profit, engaged in providing health care services, including hospitals, nursing homes, and related medial facilities. The Borrower has requested the City to iuw its revenue bonds in an aggregate total amount estimated not to exceed :5,600,000 (the "Bondal to finance a portion of the coats of the Project. I.S. At a public hearing, duly noticed and held on May 16, 1994, in accordance with the Act and Section 147(Q of the Internal Revenue Code of 1986, as amended, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an oppoktunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the o,.portunity to submit written comments to the City Clerk before the time of the hearing. Based cn the public hearing, such written comments (if any) and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) the welfare of the State of Minnesota (the "State's requires active promotion, attraction, encouragement and development of economically sound industry and commerce through govemmenta) actions for the purpose of preventing die emergence of blighted and marginal lands and areas of chronic unemployment, and the State has encouraged local government units to act to prevent such economic deterioration; (b) the welfare of the State further requires theprovision of necessary health ire facilities, so that adequate health care services are available to residents or the State at reasonable cost; (c) the undertalnng 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 provide increased opportunities for employment for residents of the City and surrounding area; (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 cow 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 more feasible; (Q the Council has been advised by representatives of the Borrower that the Project would not be undertaken but for the availability of industrial development bond financing; (g) this Council hes 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 terns to finance the Project; and (h) the City is authorized by the Act to issue its revenue bonds to finance apical projects consisting of properties used and useful in connection with a revenue-producing enterprise, sucir 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 booms under the provisions of the Act to finance the Project in the maximum aggregate face amount of $5,600,000. 2.2 It is hereby determined to proceed 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. Notwithstanding the foregoing, however, the adoption of the resolution shall not be deemed to estabM a legal ooligation on the part of the City or its Council to issue or to cause the issuance of the Bonds. All details of the Bondi and *.e provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development (the "Department's and may be subject to such further eonditiors as the City may specify. The Bonds, if issued, shall not constitute a charge, lien .or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thervof, and each Bond, when , as and if issued, shall recite in substance that the Bonds, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within -2- the meaning of any constitutional or statutory limitation. No holder of any Bonds wail ever have the right to compel grey ,rp ,i F of the rasing power of the City to pay the Bonds or the in-, 1 1 themak nor to enforce payment against arty property of the City except money payable by the Borrower to the City and pledged to the payment of the Bonds. 2.3 'lire Application to the Department (the "Appliatkm' with attachments, is hereby approved, and the Mayor and City Manager are authorised 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 authorised and directed to cause the Application to be submitted to the Deputmeent for approval of the Project. The Mayor, City Manager, City Clerk, city Attorney and other amoen, employees and agents of the City are hereby authorised and directed to provide the Department with airy preliminary information needed for this purpose. The City Attorney is designated a, Band Counsel for the Bands of the City to finance the Project and is authorised to initiate and assist in the preparation of such documents as mar be appropriate to the Project, if approved by the Department. SEC nON 3 3.1. If the Bonds are issued and sold, the City will enter into a ban agreement or similar agreement ud*ing the requirements of the Act (the "Ian Agreement") with the Borrower. The ban payments or other amounts payable by the Borrower to the City under the Ian Agreement shall be sufficient to pay the principal of, and interest and any redemption premium on, the Bonds as and when the same shall became due and payable. 3.2 The Borrower has agreed and it is hereby determined that any and all direct and indirect cost incurred by the City in connection with the project, whether or riot the Project is carried to completion, whether or not approved by the Departtment, whether or not the City by resolution authorises 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 are issued and sold, thereafter to comply with the provisions of Section 469.154, Subd. 5 and Subd.7 of the Act. -3- Adopted by the City Council of the City of Plymouth an this 16th dry of May, 1994. Attest: fa/ l�aiw F_ 1hrw��e City Cask /s/ Joycelyn Tierney 0 The mod= for the adoption of the foregoing resolution waa duly seoonded by Co--- &I er -a P _ LiSmwMod and upon vote being taken thereon, the foGowing voted in favor thereof: Anderson, Morrison, LymuVood, Helliwell, Granath, Tierney and the foUwmng voted against the same: NOW whereupon the resolution was dedared duly paved and adopted and was approved and signed by the Mayor, whose signature was attested by the City Clerk. -4.