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279951 WHITE - CITY CLERK 2'7995� PINK -. FINANCE CANARY - DEPARTMENT G I TY O F SA I NT PA LT L . Council , BL�iE - MAYOR File N 0. Co ncil Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1. On February 22, 1983, the Port Authority of the City of Saint Pau1 adopted Reso1ution No. 2098 giving preliminary approva1 to the issuance of approximate1y $15,175,000 in revenue bonds to make availab1e a pool of 1oan funds to facilitate the acquisition of equipment at the lowest possible cost for the fo1lowing St. Paul hospita1s: Hospital Loan Amount United Hospita1 $ 2,000,000 Chi1dren's Hospital 1 ,000,000 Bethesda Lutheran Medical Center 2,206,000 St. Joseph's Hospita1 2 ,700,000 Baptist Fbspital Fund (Midway Hospita1 ) 485,000 Samaritan Hospita1 3,000,000 St. John's Hospita1 90'0,000 Gil1ette Chi1dren's Hospita') 0 St. Pau1-Ramsey Medical Center - 0 Mounds Park Hospita1 0 12,291 ,000 2. Laws of Minnesota '1976, Chapter 234, provides th�t any issue of revenue bonds authorized by the Port Authority of the City of Saint Pau1, sha11 be issued on1y with the consent of the City Council of the City of Saint Pau1 , by resolution adopted in accordance with 1aw; 3. The Port Authority of the City of Saint Pau1 has requested that the City Counci� give its requisite consent pursuant to .said 1aw to �aci'�itate the issuance of.said revenue bonds by the Port Authority of the City of Saint Paul, .subject to fiina') approval of the details of said issue by the Port Authority of the City of Saint p�u1. COUIVCILMEN Yeas Nays Requestgd b epart of: Hunt � Levine In Favo[ Maddox McMahon snowaite� _ Against BY Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date �--` Certified Passed by Council Secretary E�!� � Bl c���' � Approved by :Nayor: Date Approved yor for Sub i Counc'1 By _ BY wHITE — CITV CLERK �/�9 t�-t/��A }l�� PINK �- FINANCE GITY OF SAINT 1 AUL COUIICIl /_ �J�� ■ CANnRV — DEPARTMENT E1LUE — MAVOR /•� �� File N 0. , �Cou cil Resolution Presented By ��'' Referred To Committee: Date Out of Committee By Date RESOLVED, by the City Council of the City of Saint Pau1 , that in accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 2098, the exact details of which, inc1uding, but not limited to , provisions relating to maturities , interest rates , discount, redemption, and for the issuance of additiona1 bonds are to be determined by the Port Authority, pursuant to resolution adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority, found by the Port Authority to be neces- sary for carrying out the purposes for which the aforesaid bonds are issued. COUNCILMEN Requested by Department of: Yeas Nays � Fl�c�her�/� Masanz In Favor .Ml�it�. scheibe� _ � __ Against BY _s��w.n Wilson Adopted by Council: Date MAR 1 0 1983 Form Approved by City Attorney Certified a.se Counc�l Secr y $y �'"'"'-' � '-'`�-� � ��~� ,,._ � S � , :�' � B , ..� � �R � � ��8�_ Approved by Ma or for Sub iss' to Council Approved , avor• Date � gy. ' ,c�-- gy PUBUSHED MAR 1, 9 1983 . • • � r��+r��s5� Resolution No. �?Q�:� RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Develop- ment Act (hereinafter called "Act" ) as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economi- cally sound industry and conunerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment and to aid in the development of existing areas of blight, marginal land and persistent unemployment; and WHEREAS, The Port Authority of the City of Saint Paul (the "Authority" ) has received requests from a number of hospitals in the City of Saint Paul that the Authority issue its revenue bonds to provide a pool of funds from which loans can be made to those hospitals to finance or refinance the acquisition and installation of hospital equipment (hereinafter collectively called the "Project" ) to be located at the hospitals in the City of St. Paul, all as is more fully described in the staff report on file; and WHEREAS, the Authority desires to facilitate the selective development of the community, to provide the range of services and employment opportunities reguired by its population, and said Project will assist the City in achieving that objective, and will help enhance the image and reputation of the City; and 'r�HEREAS, the Authority has been advised by repre- sentatives of the hospitals that conventional, co�nercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of the Project would be significantly reduced, but the Company has also advised this Authority that with the aid of revenue bond financing, and its resulting low borrowing cost, the Project is economically more feasible; . � _ ��ss�a WHEREAS, Miller & Schroeder Municipals, Inc. (the "Underwriter" ) has made a proposal in an agreement (the "Underwriting Agreement" ) relating to the purchase of the revenue bonds to be issued to finance the Project; WF�REAS, the Authority, pursuant to Minnesota Statutes, Section 474.01, Subdivision 7b did publish a notice, a copy of which with proof of publication is on file in the office of the Authority, of a public hearing on the proposal of the Company that the Authority finance the Project hereinbefore described by the issuance of its industrial revenue bonds; and WHEREAS, the Authority did conduct a public hearing pursuant to said notice, at which hearing the recom�nendations contained. in the Authority' s staff inemorandum to the Co�aissioners were reviewed, and all persons who appeared at the hearing were given an opportunity to express their views with respect to the proposal. NOW, THEREFORE, BE IT RESOLVED by the Conanissioners of the Port Authority of the City of Saint Paul, Minnesota as follows: 1. On the basis of information available to the Authority it appears, and the Authority hereby finds, that said Project constitutes properties, used or useful in connection with one or more revenue producing enterprises engaged in the business of providing health care services within the meaning of Subdivision lc of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01 of the Act, that the availability of the financing under the Act and willingness of the Authority to furnish such financing will be a substantial inducement to the hospitals to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce and assist in the prevention of the emergence of blighted and marginal land, and will help to prevent chronic unemployment, and will help the City to provide the range of services and employment opportunities required by its population, and will help to prevent the movement of talented and educated persons out of the state and to areas within the state where their services may not be as effectively used; and that it is in the best interests of the port district and the people of the City of Saint Paul and in furtherance of the general plan of development to assist the hospitals in financing the Project. � � � 2'7995� 2. Subject to the mutual agreement of the Authority and the Underwriter as to the details of the revenue agreements as defined in the Act, and other documents necessary to evidence and effect the financing of the Project and the issuance of the revenue bonds, the Project is hereby approved and authorized and the issuance of revenue bonds of the Authority in an amount not to exceed approximately $15, 175, 000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Project and the reconunendations of the Authority's staff, as set forth i.n the staff inemorandum to the Commissioners which was presented to the Conanissioners, are incorporated herein by reference and approved. 3 . In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Executive Vice-President of the AUTHORITY is hereby authorized and directed to submit the proposal for the above described Project to the Coaanissioner of Securities, requesting his approval, and other officers, employees and agents of the AUTHORITY are hereby authorized to � provide the Commissioner with such preliminary information as he may require. 4. The staff of the Authority are authorized and directed to continue negotiations with the Underwriter and hospitals so as to resolve the remaining issues necessary to the preparation of the documents necessary to the adoption by the Authority of its final bond resolution and the issuance and delivery of the revenue bonds; provided that the President (or Vice-President if the President is absent) and the Secretary (or Assistant Secretary if the Secretary is absent) of the Authority, or if either of such officers (and his alternative) are absent, the Treasurer of the Authority in lieu of such absent officers, are hereby authorized in accordance with the provisions of Minnesota Statutes, Section 475.06, Subdivision 1, to accept a final offer of the Underwriter made by the Underwriter to purchase said bonds and to execute an undexwriting agreement setting forth such offer on behalf of the Authority. Such acceptance shall bind the Underwriter to said offer but shall be subject to approval and ratification by the Port Authority in a formal supplemental bond resolution to be adopted prior to the delivery of said revenue bonds. � � - � � � 2`7�95� 5. The revenue bonds and interest thereon shall not constitute an indebtedness of the Authority or the City of Saint Paul within the meaning of any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liability of the Authority or the City or a charge against their general credit or taxing powers and neither the full faith and credit nor the taxing powers of the Authority or the City is pledged for the payment of the bonds or interest thereon. 6. In order to facilitate completion of the revenue bond financing herein contemplated, the City Council is hereby requested to consent, pursuant to Laws of Minnesota, 1976, Chapter 234, to the issuance of the revenue bonds (including any interim note or notes) herein contemplated and any additional bonds which the Authority may prior to issuance or from time to time thereafter deem necessary to complete the Project or to refund such revenue bonds; and for such purpose the Executive Vice President of the Authority is hereby authorized and directed to forward to the City Council copies of this resolution and any additional available information the City Council may request. 7. The actions of the Executive Vice-President of the Authority in causing public notice of the public-hearing and in describing the general nature of the Project and estimating the principal amount of bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Comanissioner of Securities, State of Minnesota, for approval of the Project, which has been available for inspection by the public at the office of the Authority from and after the publication of notice of the hearing, are in all respects ratified and confirmed. Adopted February 22, 1983 ' ,/ Attest � �- . , GG�., • esi The Po t Authority of the City of S nt Paul i /�,� / � ,. L ��G��'L � - retary `~ ~ � CITY; OF sAINT �,�UL 2`799�� ��., �� . . & �� + OFFIC� OF Z.'HF: CITY COIINCIL - �... �...;::� '��='�' ^�-'�' 00 te ; March 3, 1983 � CO� MM (TT � E RE PORT TO = Sa�nt Pau ! Cifiy Council � - F R O M = C o m rn if t e e O h FINANCE, MANAGEi�1ENT F, PERSONNEL C H A I R James Scheibel , 1. Approval of minutes from meeting held February 24, 1983. 2. Resolution extending the length of time for one more year on the Unclassified Status of the following positions: Deputy Director: Planning, Business Revitalization, Community Develo ment, Develo ment and Housing. (Personnel � � r 3. Resolution replacing the class spec. for Fire Dfarshal with a new on��Q� 4. Resolution replacing the title and class spec. for General Dfanager -- Water Dept. with the title and class spec. for General Manager--Water Utility. ����- 'Y ��1-''� S. Resolution xeplacing the title and class spec. for naffic Maintenance Foreman I with title and class spec. for Traffic Maintenance Sup , � I. ro�. 6. Resolution approving a budget amendment to allow the spending of a $41,000 Northwest o .�dation Grant for the New Ltlorks/St. Paul project. 7. Discussi ,�,�,g�ut�� ',� rvice testin rocedures. �i3�ai�,�lc'S�"�,. . � NOT ON PREPARED AGENDA: Resolution approving a bond issue to finance a fwid to make available a pool of loan funds for St. Paul hospitals. � / ' CI'i'Y HALL SEVENTH FLOOR SAINT PAUL, MLNNESOTA SS102 �„ t - . ' �-�� Port Authority EP RT�,IENT . l ( � �jr� � ��� a� E A� ICraut�L�/�;�_'��.g�TAGT 224-5686 PHONE �CF� 2-23-83 DI4TE reen �� �F . d (Routing and Explanation She ��2�s Assi n mber for Routin Order Cli All Locations for M oral Si nature : �/QN�. y Department Di rector City Attorney SUBJECT: HOSPITAL EQUIPMENT FINANCING POOL 3 !�S �1f�P3 $15,175,000 t/Mayor ir-� 4 Fi nance and Management Servi ces Di rector ��'.� (���{� j�e� 5 Ci ty Cl erk �''� �; _ ;'��3 Budget Director What Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale): The purpose of the bond issue is to finance the issuance of revenue bonds in the approximate amount of $15,175,000 to make avai1able a pool of 1oan funds for the St. Paul hospitals as indicated in the attached memorandum to facilitate the acquisition at the lowest possible cost of equipment for the hospitals. The purpose of this poo1 of funds is to accamp1ish for the St. Paul medica1 faci1ities the 1owest possib1e rate for equipment financing based upon a six year amortization period. The anticipated 1oan rate is 9% based upon a bond issue of six years with an expected average interest rate of 7.�8� and a net interest cost of 7.77�. The bonds wou1d not be issued under Res. 876 but wi11 be ,insured by the American Municipa1 Bond Assurance Financial , �udgetary and Personnel Impacts Antic�pated: Corporation (AMBAC). They wi11 carry a 'AAA' rating from Standard & Poor's. Funding Source and Fund Activity Number Charged or Credited: N/A Attachments (List and Nun�er all Attachments1 : Staff Memorandum - Draft City Counci1 Resolution Port Authority Resolution No. 2098 DEPARTMENT REVIEW CITY ATTORNEY REVIEW � Yes No Council Resolution Required? Resolution Required? X Yes No Yes X No Insurance Required? Insurance Sufficient? X Yes No Yes X No Insurance Attached? Revision of October, 1982 cc: R. THORPE (See Reverse Side for �Instructions) ' P O R T ���g�� � AUTHORITY OF THE CITY OF ST. PAUL Memorandum TO: BOARD OF COMMISSIONERS DATE: February 18, 1983 (Meeting February 22, 1983) FROM: Eug e. A. � aut C �±-- SUBJECT: PRELIMINARY AUTHORIZING RESOLUTION APPROVING HOSPITAL EQUIPMENT FINANCING POOL - �15,175,000 RESOLUTION N0. 2098 To facilitate the acquisition at the lowest possible cost of equipment for St. Paul 's medical institutions,we are recommending that the Port Authority issue revenue bonds in the approximate amount of $15,175,000 to make available a pool of loan funds for the following hospitals in the amounts indicated: Hospital Loan Amount United Hospital $ 2,000,000 Children's Hospital 1 ,000,000 Bethesda Lutheran Medical Center 2,206,000 St. Joseph' s Hospital 2,700,000 Baptist Hospital Fund (Midway Hospital ) 485,000 Samaritan Hospital 3,000,000 St. John's Hospital* 900,000 Gillette Children's Hospital 0 St. Paul-Ramsey Medical Center 0 Mounds Park Hospital 0 12,291 ,000 Certain of the hospitals have not as yet furnished us with detailed amounts� and it is possible that prior to sale of this issue this amount could be higher. The purpose of this pool of funds is to accomplish for the St. Pau1 Medical Facilities the lowest possible rate for equipment financing based upon a six year amortization period. The anticipated loan rate to the hospitals is 9% based upon a bond issue of six years with an expected average interest rate of 7.18� and a net interest cost of 7.77%. In essence, the Port Authority would manage this pool of funds and make the loans to the individual hospitals based upon a hospital equipment loan agreement. The hospitals would be privileged to draw this loan agreement � .I � y 2"�99��_ BOARD OF COM��ISSIONERS HOSPITAL EQUIPMENT FINANCING POOL Page 2 at any time during the six years that they elected to or, in the event they did not take down the funds, the residual would be available to retire the bonds at maturity. These bonds would not be issued under Resolution 876 but wi11 be bonds insured by the American Municipal Bond Assurance Corporation (AMBAC) . They will carry a "AAA" rating from Standard and Poor's Corporation. Subject to Commission approval, it would be expected that the Port Authority would hold a special meeting on March 8 for the sale of the bonds, the closing scheduled for March 15, after which the hospitals could apply to the Port Authority and AMBAC for a loan in a stipulated amount. I am attaching a schedule of the disposition of the bond proceeds that illustrates the income to the Port Authority during the terms of the loan agreements. If a11 loans are made the income will aggregate to $408,600,000. If 50% of the loans are made the income will aggregate to $332,066 and if no loans are made at all , which is highly unlikely, the income would be $255,648. This, of course, is based upon a specified schedule of reinvestment and earnings on the reserve fund. Staff recorr�nends approval of Resolution No. 2098 to facilitate the hospital loan financing program. The Port Authority assumes no risk because of the AMBAC "AAA" rating and pledges no credit to the bonds. The hospitals, of themselves, are sufficiently credit worthy to merit the insured rating of "AAA". EAK:sjs