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HomeMy WebLinkAbout20070716 - VI-04MEMO ~'" TO: Honorable Mayor and City Council members FROM: Charlene A. Stark, Finance Director RE: Resolution for host approval for the issuance of revenue bonds-Regina Medical Center and set Public Hearing Date of August 6tn DATE: July 11, 2007 ~~~ Regina Medics! Center is requesting the City of Hastings to hold a Public Hearing on August 6tn for the issuance of revenue bonds by the City of Vermillion for the addition to the Regina Medical Center being planned for later this year. Since the Regina Medical Center is located in the City limits of Hastings the City is required by the IRS to hold a Public Hearing and give host approval for the debt issuance. The City of Vermillion will be the entity that will be offering bank qualified financing to Regina as the City of Hastings will not have the capacity in 2007. Council Action Requested: Set the Public Pleating date and give host approval for the issuance of revenue bonds by the City of Vermillion for the Regina Medical Center on August 6"`. RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF A REVENUE NOTE (REGINA MEDICAL CENTER PROJECT) WHEREAS, Regina Medical Center (the "Company"), desires to remodel and expand its existing hospital facilities, including but not limited to the remodeling of 10 patient rooms, construction of new laboratory facilities and remodeling of emergency services at its existing hospital facilities located in the City of Hastings, Minnesota. (the "Project"); and WHEREAS, the Company has proposed that the City of Vermillion, Minnesota, issue its revenue note in the approximate principal amount of $6,500,000 (the "Note") to finance the Project; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended, requires that a governmental unit in which facilities to be financed by the Note are located must approve the issuance of the Note following a public hearing; and WHEREAS, a public hearing on this matter was held by the City of Hastings, Minnesota ("Hastings") this same date; and WHEREAS, the Note is payable solely from revenues of the Company, will not be a general or moral obligation of Hastings, the City of Vermillion, or any other political subdivision of the State of Minnesota, but will be payable solely from revenues of the Company, to the extent and in the manner provided in the documents executed in connection with the issuance of the Note; and NOW, THEREFORE, BE IT RESOLVED by the City Council of Hastings, Minnesota, that Hastings hereby gives the host approval required under the Internal Revenue Code to the issuance of the Nate. Adopted by the City Council of Hastings, Minnesota, this 6th day of August, 2007. Attest: Clerk Mayor 2047214v1 STATE OF MINNESQTA CITY OF HASTINGS COUNTIES OF DAKOTA AND WASHINGTON I, the undersigned, being the duly qualified and acting Clerk of the City of Hastings, Minnesota., DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof an file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving host approval to the issuance of a revenue note (Regina Medical Center Project). WITNESS my hand this day of , 2007. Clerk 2047214v1 2 RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING ON A HEALTH CARE FACILITY REVENUE NOTE (REGINA MEDICAL CENTER PROJECT] WHEREAS, Regina Medical Center, a nonprofit corporation organized under the laws of Minnesota (the "Company") desires to finance various remodeling and improvements to its existing facilities located in the City of Hastings, Minnesota (the "Project"); and WHEREAS, the Company has proposed that the City of "Vermillion, Minnesota ("Vermillion"), issue a revenue note in the approximate principal amount of $6,500,000 (the "Revenue Note") to finance the Project; and WHEREAS, Section 147(f} of the Internal Revenue Code of 1986, as amended, requires that a governmental unit in which facilities to be financed by the Revenue Note are located must approve the issuance of the Revenue Note following a public hearing; and WHEREAS, a public hearing on this matter will be held by the City Council on Monday, August 6, 2007, as set Earth in the attached Exhibit A; and WHEREAS, the Revenue Note will be payable solely from revenues of the Company, and will not be a general or moral obligation of the City of Hastings ("Hastings"), Vermillion or any other political subdivision of the State of Minnesota, but will be payable solely from revenues of the Company, to the extent and in the manner provided in the documents executed by the City and the Company in connection with the issuance of the Revenue Note. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hastings, Minnesota, as follows: 1. Hastings shall hold a public hearing on the issuance of the Revenue Note and consider host approval for the Project on August 6, 2007. The notice of public hearing shall be in substantially the form attached hereto as Exhibit A. Staff is hereby directed to arrange for the notice of public hearing to be published in the Hastings Star Gazette. Adopted by the City Council of the City of City of Hastings, Minnesota this 16th day of July, 2007. zoa~ozo~i .. ,~~~ STATE OF MINNESOTA CITY OF HASTINGS COUNTIES OF DAKOTA AND WASH-IINGTON I, the undersigned, being the duly qualif ed and acting Clerk of the City of Hastings, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution calling a public hearing on a health care revenue project. WITNESS my hand this day of , 2007. Clerk aoa~o2o~i 2 EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR A HEALTH CARE FACILITY PROJECT Notice is hereby given that the City Council of the City of Hastings, Minnesota (the "City"), will meet at the City Hall in Hastings, Minnesota at 7:00 p.m. on August 6, 2007, to consider the proposal of Regina Medical Center, a nonprofit corporation organized under the laws of the State of Minnesota (the "Company"), that the City give host approval to the issuance by the City of Vermillion, Minnesota ("Vermillion") of a revenue note for the following project: The remodeling and expansion of the existing hospital facilities, including but not limited to the remodeling of 10 patient rooms, construction of new laboratory facilities and remodeling of emergency services, ail located at 1175 Nininger Road in the City of Hastings, Minnesota.. The Project will be owned and operated by the Company. The maximum aggregate estimated principal amount of the note or other obligations to be issued by Vermillion to finance the project is $6,500,000. The note or other obligations if and when issued will not constitute a charge, lien or encumbrance upon any property of the City or Vermillion, and such note or obligations will not be a charge against the City's or Vermillion's general credit or taxing powers but will be payable from sums to be paid by the Company pursuant to a revenue agreement. At the time and place fixed for the Public Hearing, the City Council of the City will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may file written comments respecting the proposal with the City Administrator at or prior to said public hearing. aoa7oao~i A-1