ADMINISTRATION - Clark Arneson, City Manager
Title
A PETITION FOR DISSOLUTION OF THE NORTH SUBURBAN HOSPITAL DISTRICT
Background
At the December 8, 2016, workshop, Scott Lepak, General Counsel for the North Suburban Hospital District shared an update on the Hospital District’s Petition for Dissolution approved September 14, 2016. The Hospital District is seeking dissolution as Unity Hospital is no longer a full service community hospital and no longer has a public purpose to spend ad valorem tax dollars to fund capital improvement projects for the building. With the stated intention of the Hospital District, the matter is now before the five member cities: Blaine, Fridley, Hilltop, Mounds View, Spring Lake Park. Pursuant to state law, one member City may petition for dissolution to present to the Hospital District for acceptance.
After discussion, Council directed Mr. Lepak to bring forward a proposed resolution clearly outlining that the City supports the Hospital District’s intent to dissolve but is not requesting the dissolution.
Recommendation
Adopt the resolution for a petition for dissolution of the North Suburban Hospital District.
Body
WHEREAS, the City of Blaine is part of the North Suburban Hospital District (hereinafter referred to as the Hospital District); and
WHEREAS, the Hospital District is comprised of the cities of Blaine, Fridley, Hilltop, Mounds View and Spring Lake Park; and
WHEREAS, the North Suburban Hospital District has been in existence for over 50 years with a focus on initially building and then providing funding for the physical improvements of Unity Hospital; and
WHEREAS, Allina Health has indicated that it is moving forward with operating the Unity campus under the Mercy Hospital license while not renewing the Unity Hospital license, and intends to provide service under a “One Hospital, Two Campuses” approach; and
WHEREAS, as a result of the Allina Health decision to consolidate services from Unity Hospital to Mercy Hospital, it will result in a less than a comprehensive stand alone community hospital at the newly reorganized “Mercy Hospital - Unity Campus”; and
WHEREAS, the currently planned service offering at “Mercy Hospital - Unity Campus” will no longer meet or fulfill the North Suburban Hospital district’s public purpose to provide a wide range of hospital related medical services at Unity Hospital focused on citizens of the five cities comprising the Hospital District, including the residents of the City of Blaine; and
WHEREAS, on September 14, 2016, the Hospital District’s Board unanimously approved a resolution stating its intention to seek dissolution the District; and
WHEREAS, the resolution of intention to seek dissolution made the finding that that the conditions for the creation and continued operation of the North Suburban Hospital District no longer exist; and
WHEREAS, North Suburban Hospital District has stated it will not be able to provide tax based funding for necessary improvements to Allina Health under the combined health services approach noted as “Mercy Hospital - Unity Campus”; and
WHEREAS, as the North Suburban Hospital District determined it can no longer provide funding for “Mercy Hospital - Unity Campus”, it is the determination of the City of Blaine to petition for dissolution of the Hospital District under Minn. Stat. 447.38.
NOW THEREFORE, THE CITY OF BLAINE PETITIONS THE NORTH SUBURBAN HOSPITAL DISTRICT AS FOLLOWS:
1. Based upon the findings in the aforementioned recitals and findings herein, it is the determination of the City of Blaine that the conditions for the creation and continued operation of the North Suburban Hospital District no longer exist.
2. The City of Blaine accepts the determination of the Hospital District Board and files this petition in response to such determination and directs and requests that the District Board proceed with the requirements of dissolution of the North Suburban Hospital District.
3. The City of Blaine proposes, pursuant to the requirements of Minn. Stat. 447.38 Subdivision 1, that all funds distributed back to the member cities - upon the final disposition of all outstanding indebtedness, payment of all claims, and sale or transfer of all real and personal property owned by the District - shall be divided by the County Auditor based upon the proportional per capita taxable market value of persons residing in each member city.
4. The City Clerk is directed to transmit a certified copy of this petition for dissolution to the Board of the North Suburban Hospital District.
PASSED by the City Council of the City of Blaine this 15th day of December, 2016.