PUBLIC HEARING - Joe Huss, Finance Director
Title
REFINANCE 2009 ALLINA HEALTH SYSTEMS CONDUIT DEBT
Schedule of Actions
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City Council (Call for Public Hearing) |
February 16, 2017 |
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City Council (Conduct Public Hearing) |
March 16, 2017 |
Background
In 2009, Allina Health Systems, a Minnesota non-profit corporation, requested the City of Minneapolis and the St. Paul HRA to issue $300,000,000 of conduit revenue bonds on behalf of Allina and its affiliates. Included in the issue was $2,000,000 that was used to finance both improvements and acquisition of capital equipment at the Blaine Allina Medical Clinic located at 10705 Town Square Dr. NE. Since a portion of the proceeds were used for facilities located in Blaine, the City provided consent pursuant to Minnesota Statutes, Chapter 471.656 and the Internal Revenue Code.
Allina Health Systems is in the process of refinancing the 2009 bonds and again is seeking consent from Blaine pursuant to Minnesota statutes and IRS code. The debt is considered conduit debt and, as such, is payable solely from the revenues of Allina Health Systems. The debt is neither a general nor moral obligation of the Cities of Blaine or Minneapolis, or the St. Paul HRA.
Recommendation
Upon conclusion of the Public Hearing, by motion, adopt the following resolution.
Body
APPROVING THE ISSUANCE OF BONDS BY THE CITY OF MINNEAPOLIS AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA, ON BEHALF OF ALLINA HEALTH SYSTEM UNDER MINNESOTA STATUTES, SECTIONS 469.152 TO 469.165
BE IT RESOLVED by the City Council (the “Council”) of the City of Blaine, Minnesota (the “City”), as follows:
SECTION 1
Recitals and Findings
1.1. This Council has received a proposal from Allina Health System, a Minnesota nonprofit corporation (“Allina”), that the City authorize the City of Minneapolis, Minnesota, and The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, acting jointly (together, the “Issuer”) to issue bonds under Minnesota Statutes, Sections 469.152 through 469.165 (the “Act”) to refund revenue bonds previously issued in 2007 and 2009 by the Issuer, a portion of the proceeds of which were applied to refinance the acquisition of certain fixtures and equipment by the Allina or its affiliates at the Allina Health Blaine Clinic (the “Clinic”), located at 10705 Town Square Drive NE in the City. The bonds are proposed to be issued as part of a larger bond issue by the Issuer in an aggregate amount which is not expected to exceed $200,000,000 (the “Bonds”), the proceeds of which will be issued to refinance the acquisition, construction, renovation, remodeling and equipping by Allina or its affiliates of health care facilities located in the cities of Buffalo, Brooklyn Park, Coon Rapids, Cottage Grove, Eagan, Forest Lake, Fridley, Minneapolis, Ramsey, St. Paul and Woodbury, Minnesota, in addition to refinancing improvements to the Clinic.
1.2. At a public hearing held on March 16, 2017, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal that the Issuer issue the Bonds under the Act, and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing.
SECTION 2
Approvals
2.1. The issuance of bonds by the Issuer pursuant to the Act in a principal amount of up to $200,000,000, to refinance improvements to the Clinic and to refinance the acquisition, construction, renovation, remodeling and equipping by Allina or its affiliates of health care facilities located in the cities of Buffalo, Brooklyn Park, Coon Rapids, Cottage Grove, Eagan, Forest Lake, Fridley, Minneapolis, Ramsey, St. Paul and Woodbury, Minnesota, is hereby consented to and approved. The terms of the bonds shall be as are approved by the governing bodies of the Issuer.
2.2. The Mayor and City Clerk and other officers of the City are authorized and directed to furnish to Allina, the Issuer and the attorneys rendering an opinion on the issuance of the Bonds certified copies of all proceedings and records of the City relating to the Bonds and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the books and records in the officer’s custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein.