ITEM: 9.1 PUBLIC HEARING - Joe Huss, Finance Director
Title
PROVIDING HOST CITY AUTHORIZATION FOR THE ISSUANCE OF REVENUE BONDS ON BEHALF OF CRITICAL CARE SERVICES, INC.
Background
Critical Care Services, Inc., DBA, Life Link III, is a nine-member non-profit health consortium providing critical care transportation services for critically ill patients. The consortium will be issuing conduit revenue bonds to fund the purchase of six helicopters to be used for medical purposes, one or more of which will be housed at the Life Link III facility located at the Anoka County-Blaine Airport. While the conduit funding will be provided by the Wisconsin-based Public Finance Authority, because a portion of the proceeds will be used to fund improvements or equipment located in Blaine, the City is required by statutes and IRS regulations to provide what is known as Host City Approval. The bonds, or any other obligations issued for this project, will not be obligations of the City; will not constitute a charge, lien or encumbrance upon any property of the City; and will not be a charge against the City's general credit or taxing powers.
Pursuant to regulations, Blaine must conduct a public hearing to provide an opportunity for comment on the finance plan and the project.
Schedule of Actions
Conduct Public Hearing |
August 1, 2013 |
Approve Resolution |
August 1, 2013 |
Recommendation
Staff recommendation is for Council to approve the attached resolution upon completion of the required public hearing.
Body
A RESOLUTION OF THE CITY COUNCIL OF BLAINE, MINNESOTA
APPROVING THE ISSUANCE BY THE PUBLIC FINANCE AUTHORITY
OF BONDS ON BEHALF OF
CRITICAL CARE SERVICES, INC.
WHEREAS, Critical Care Services, Inc., a Minnesota nonprofit corporation (the Borrower), has requested that the Public Finance Authority in the State of Wisconsin (the Authority) issue its Revenue Bonds (Critical Care Services, Inc. Project) Series 2013 (the Bonds) in an amount not to exceed $18,600,000 to finance the (i) acquisition of six (6) helicopters for medical use to be located in Alexandria, Minnesota; Hibbing, Minnesota; Willmar, Minnesota; Blaine, Minnesota; and in Rice Lake, Wisconsin; and (ii) costs of issuance of the Bonds (collectively, the Project); and
WHEREAS, the Borrower has advised the City that one or more of the financed helicopters will be housed at the Borrower's facility located at the Anoka County-Blaine Airport, 9833 North Airport Road NE, Blaine, Minnesota 55449 (the Blaine Project); and
WHEREAS, the Project will be initially owned and operated by the Borrower; and
WHEREAS, the Bonds or a portion thereof will be private activity bonds and qualified 501(c)(3) bonds for purposes of the Internal Revenue Code of 1986 (the Code); and
WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Bonds are required to be approved by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is located, after a public hearing held following reasonable public notice; and
WHEREAS, pursuant to Section 66.0304(11)(a) of the Wisconsin Statutes, prior to their issuance, the Bonds issued by the Authority must be approved by the governing body or highest ranking executive or administrator of the political jurisdiction within whose boundaries the Project is to be located; and
WHEREAS, the members of the City Council (the Governing Body) of Blaine, Minnesota (the City) are the applicable elected representatives of the City; and
WHEREAS, the Borrower has requested that the Governing Body approve the financing of the Project and the issuance of the Bonds in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Amended and Restated Joint Exercise of Powers Agreement Relating to the Public Finance Authority, dated as of September 28, 2010 (the Joint Exercise Agreement) and Section 66.0304(11)(a) of the Wisconsin Statutes; and
WHEREAS, pursuant to Section 147(f) of the Code, the Governing Body or its designee has, following notice duly given in the form attached hereto as Exhibit A (the TEFRA Notice), held a public hearing regarding the financing of the Project and the issuance of the Bonds, and now desires to approve the financing and the issuance of the Bonds relating to the Blaine Project;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
- The above recitals are true and correct.
- In order to comply with Section 147(f) of the Code, the Governing Body hereby ratifies the publication of the Notice of Public Hearing in a newspaper qualified to carry legal notices and having general circulation within the City.
- The Governing Body hereby approves the issuance of the Bonds by the Authority for financing the Blaine Project. It is the purpose and intent of the Governing Body that this resolution constitute approval of the issuance of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Blaine Project is located, in accordance with Section 147(f) of the Code, Section 66.0304(11)(a) of the Wisconsin Statutes and Section 4 of the Joint Exercise Agreement. The Governing Body has not performed any due diligence with regard to the Project or the issuance of the Bonds. This Resolution shall not be construed as an endorsement by the Governing Body of the Project or the actions of the Authority or the Borrower in connection therewith.
- The officers of the Governing Body are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby.
ADOPTED by the City Council of Blaine, Minnesota at a regular meeting of said body held on the 1st day of August 2013, by a majority vote:
By _________________________________
Mayor
ATTEST AND COUNTERSIGN
(SEAL)
By _________________________________
City Clerk
EXHIBIT A
FORM OF TEFRA NOTICE
NOTICE OF PUBLIC HEARING
CONCERNING THE ISSUANCE OF BONDS BY THE
PUBLIC FINANCE AUTHORITY
AND A PLAN OF FINANCE FOR
CRITICAL CARE SERVICES, INC. dba LIFE LINK III
NOTICE IS HEREBY GIVEN that the City Council of the City of Blaine, Minnesota (the "City"), will conduct a public hearing concerning the approval of the issuance of certain revenue bonds, in an aggregate principal amount not to exceed $18,600,000 (the "Bonds"), pursuant to Section 66.0304 of the Wisconsin Statutes, as amended, by the Public Finance Authority (the Authority), a commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin Statutes. The Bonds may be issued in one or more series as either tax-exempt or taxable obligations. The Bonds will be limited obligations of the Authority payable solely from the payments to be made by the Critical Care Services, Inc., dba Life Link III (the Borrower) to the Authority, and certain funds and accounts established by the financing agreement related to the Bonds (the Financing Agreement) among the Borrower, the Authority and U.S. Bancorp Government Leasing and Finance, Inc., as purchaser of the Bonds (the Purchaser).
Proceeds of the Bonds will be used by the Borrower for a plan of finance comprised of the following purposes: (a) purchasing six (6) helicopters for medical use, one or more of which will be housed at the Borrower's facility located at the Anoka County-Blaine Airport, 9833 North Airport Road NE, Blaine, Minnesota 55449 in the City; and (b) paying the costs of issuance of the Bonds (the Project).
The Bonds will be limited obligations of the Authority payable solely from payments to be made by the Borrower under the Financing Agreement.
This notice is intended to comply with the public notice requirements of Section 147(f) of the Internal Revenue Code of 1986. All interested parties are invited to attend and present comments at the public hearing regarding the plan of finance, the issuance of the Bonds and the Project. The public hearing on the Bonds, plan of finance and financing of the Project will be held on August 1, 2013, at 7:30 p.m., in the Council Chambers at City Hall, 10801 Town Square Drive Northeast, Blaine, Minnesota 55449.
Dated ________, 2013