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267560 WHITE - CITV CLERK CO1111C11 �� PINK - FINANCE CANARV - DEPARTMENT G I TY OF SA I NT PAU L BLUE - MAx�OR File NO. �- � � ` � ouncil Resolution Presented By Referred To Committee: Date Out of Committee By Date - T�THEREAS: 1. On July 8, 1976, the Port Authority of the City of Saint Paul, adopted Resolution No. 1098, giving preliminary approval to the issuance of revenue bonds in the initial principal amount not to exceed $67,000,000.00 to finance a revenue producin� hospital facility for United Fiospitals, Inc. , and Children s Hospital, Incorporated; 2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul, shall be issued only with the con- sent of the City Council of the City of Saint Paul, by resolution adopted in accordance with law; 3. The Port Authnrity of the City of Saint Paul, ha.s requested that the City Council give its requisite consent pursuant to s aid law to facilitate the issuance of said ' rever�ue bonds by the Port Authority of the City of Saint Paul, subject tc� fi.nal approval of the details of said issue by the „ , ' Port Authority of the City of Saint Paul; ; _. 4. It is estima.ted that the initial principal amount of said bonds will be not more than $67,000,000.00 and that the net interest cost applicable to said issue will not exceed 9.25%, now, therefore, be it RESOLVED, by the City Couneil of the City of Saint Paul, that in accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance COUNCILMEN Requested by Department of: Yeas Nays Butler tn Favor Hozza Hunt ' Levine ' __ Against BY Roedler Sylvester Tedesco Form Approved b City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by A7�yor: Date Approved by Mayor for Submission to Council By BY - WHI7E - CITV CLERK COl1I1C11 �� PINK - FINANCE GITY OF SAINT PAUL BLUERy - MA'1\ORTMENT File NO• �� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 1098 in the initial principal amount of not to exceed $67,000,000.00 at a net interest cost of not to exceed 9.25°10, the exact details of which, including,but not limited to, provisions relating to ma.turities, interest rates, discount, redemption, and for the issuance of additional 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 by the Port Authority, found by the Port Authority to be necessary for carrying out the purposes for which the aforesaid bonds are issued. COUNCILMEN Yeas Nays Requested by Department of: -�Btt�et�- Hozza In Favor Hunt J Levine __ Against BY �� Sylvester �'°�'"ee" JUL 2,0 1976 PP r y y Form A roved b C Attorne Adopted by Cou . Date Certif asse by ouncil Secretary BY � y� Approv by IVlayor: Date �` `�L ��3 1976 Approv d by May r or Submi 'on Council BY B PUBLIS�3Et� ,IUL � 1 1976 ' �� r1 .. .' � Resolution No. � 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 Development Act . (hereinafter called "Act") as found and determined by the legis- � lature is to promote the_ welfare of the state by the active attraction and encoura�ement and development of economically � - sound industry and commerce to prevent so Far as possible the . - emergence of biighted and mar�inal lands. and areas of chronic � � • unemployment; and WHEREAS, faetors neces�itating 'the active promot3on � and development of economically sound indus�ry and commerce are ' the increasing concentration of population in the metropolitan . areas and the rapidly rising� increase in the amount and cost of governmental services required to meet the needs of the increased population and tlne need for development of land use � . which will provide an adequate ta� base to finance these inereas- ed costs and� access to employment opportunities for such populat3.on; . and . . � � WHEREAS, The Port Authority of the City of Saint Paul (the "Authority") has received from the United Hospital Incorporated � : ("United"), a request that the Authority issue its revenue bonds to � finance the acquisition, installation and construction of hospital facilities for United and for The Ghildrens Hospital Incorporated : ("Childrens") (hereinafter collectively called the �'tPro3ect"} � 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 selec- • tive development of the commun3ty,to retain and improve its tax base and to help it provide the range of services , and in parti- cular the hospital services furnished by United and Childrens, and employment opportunities required by its population, and said - _ Pro3ect will assist the City in achieving that ob�ective; and � • WHEREAS, the Pro3ect to be financed by revenue bonds will result in helping to maintain employment in this City; and .� � �' . �� '� _c. WHEREAS, the Authority has been advised by representa- tives of United that conventional, commercial financing to pay the capital cost of the� Pro�ect is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Pro�ect would be significantly reduced, but United has also advised this Authority that �rith the aid of � revenue bond financing, and its resulting low borrowing cost, the - � Pro�ect is economically more feasible. � � NOW, THEREFORE, BE IT RESOLVED by the Commissioners - of the Port Author.ity of the City of Saint Paul, Minnesota as � _ follows : � -l. On the basis of information available to the � � Authority it appears, and the Authority hereby finds, that said Pro�ect constitutes properties, used or usePul. in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Act; � that the avai�.ability of the financing under the Act and Zvi1Z- • � ingness of the Authority to furnish such financing will be a �substantial inducement to �United and Childrens to undertake the • � Pro3ect; and that the effect of the Pro�ect, if undertaken, will be to (a) encourage the� development of economically sound industry � and commerce, assist in the prevention of the emergence of blighted and marginal land, and chronic unemployment, and help retain and � �improve the City's tax base by prov3ding necessary hospital facili- ties to serve the health needs of the �community and attract economically sound development, (b) contribute to providing the range of servicea and employment opportunities required by the City's population, (c) . discourage 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 ,(d) promote public health 2nd welfare of . the City and surrounding communities. � 2. Sub3ect to the mutual agreement of the Authority, United, and Childrens and the purchaser of the revenue bonds as to the details of the revenue agreement, and other documents nec- essary to evidence and effect the financing of the Pro�ect and the issuance of the revenue bonds, the Pro�ect is hereby approved and . . authorized and the issuance of revenue bonds of the• Authority in an amount not to exceed $6�',000,000 is hereby .authorized to finance � the costs of the Pro�ect . _ � 3. There is attached Y�ereto as Exhibit A .a form of � Preliminary Agreement between the Authority and United, relating to the proposed financing and construction of the Pro�ect. The form of said Agreement has been examined by the Commissioners. It is the purpose of said Agreement to evidence the commitment of the � -2- t ► . _�, ,,t.� . . oq� �� parties and their intention with respect to the proposed Pro3ect in order that the Authority may without delay secure the City Council's requlsite consent to the issuance of the revenue bonds and prepare in final form the bond issue and underlying security � documents. Said Agreement �is hereby approved, and the President . 2nd Secretary of the Authority are hereby authorized and directed to execute said �Agreenent. ' The staff of the Authority are author- � ized and directed _to continue negotiations wi�h United and other . • interested parties so as to resolve the remaini.ng issues neces- sary to the preparation of the revenue agreement and other docu- . ments necessary to the issuance and delivery of the revenue bonds. 4. The revenue bonds and interest thereon shall not � � constitute an indebtedness of �the Authority or Ci�y �of Saint Paul within the� meaning of any constitutional statutory limitation of the Authority or the City nor 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. • - 5. 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, 19?6, Chap- . � ter 234, to the issuance of the revenue bonds herein contemplated � "� and any additional bonds the Authority may from time to time deem . � necessary to issue to complete the Pro�ect or to refund such revenue bonds; and for such purpose the Executive Vice P�esident � � is hereby authorized �.and directed to forward to the City Council copies of this resoluti.on and said Preliminary Agreement and any . additional available informa.tion the City Council may request in . . connection therewith. , _ . � Adopted July 8 , 1976 . � Pre d n The rt Authority of (� e City of � Saint Paul � At es . _ . . . . � .,•' .�ili - . , ... '� �. � . � �'� � � i` ••.�'�1 i�;� �', .� ' 1 . . 1 � 1 � s ) � �'a � �, '/� ,� �'� l' � �� .. .. -3- WHITE - CITV CLERK . ��J� � PINK - FINANCE GITY OF SAINT PALTL Council � CANARV - DEPARTMENT L� � BLUE - MAYQR � Clle NO. � � � ouncil Resolution Presented By � �`�''�� Referred To Committee: Date Out of Committee By Date WE� S, on July 8, 1976, the Port Authority of the City of �it Paul adopted its Resolution No 1098 author- izing the ' s`s�uance of revenue bonds not to xceed �67,000,000.00 to finance revenue producing facility fo United Hospitals, Inc. ; and \ :, WHEREAS, of Minnesota for 197 , Chapter 234, pro- vides that any i e of revenue bonds thorized by the Port Authority of the of Saint Paul s 11 be issued only with the consent, of the y Council of t City of Saint Paul by resolution adopted i ccordance wit law; and WHEREAS, ° the Port thority o the City of Saint Paul has requested that the City uncil g' e its requisite consent to the issuance of said reven e bond approved by the Port Authority Resolution 1098 t fac' litate negotiation of the details of the bond issue an u derlying security documents and the prompt issuance of th onds after adoption by the Por�t Authority of its final bo resolutions, now, therefore, be it RESOLVED, by the Counc' of City of Saint P$ul, that, in accordance with Laws of 'nneso for 1976, C�apter 234, it hereby consents to the iss ance of revenue bonds authorized by the Port Authority of e City ot� int Paul for the purposes set forth in Port Author' y Resolutiax�. 098� and hereby consents to the issua.nce of any ditional bon�$s � hich the Port Authority may_ at any time deem ne essary to issu� t .carry out the purposes set forth in said Reso ution 1098. COUNCILMEN Requested by Departm nt of: Yeas Nays Butler Hozza [n Favor Hunt � Levine � Against BY °� Roedler Sylvester Tedesco Form Approved City ttorne Adopted by Council; Date 7 Certified Passed by Council Secretary BY By Approved by A�layor. Date Approved by Mayor for Submission to Council By BY ' , � � ��1,�� C ITY OF SAI NT PAUL OFFICE OF THE CITY ATTORNEY July 19, 1976 ' HARRIET LANSING Councilwoma.n Rosalie Butler Seventh Floor Court House Saint Paul, Minnesota Re: United Ho�pitals, Inc. Port Authority Revenue Bond Issue Dear Mrs. Butler: Bond counsel have recommended changes to the proposed City Council Resolution approving the Port Authority' s issuance of revenue bond financing for United Hospitals. I have examined the changes and recommend that they be accepted. The changes recognize that the $67,000,000.00 revenue bonds to be issued ma.y have to be increased at some later date and that the City Council is authorizing the Port Authority Board to issue any additional bonds if the additional bonds are necessary for the hospital f�acility of United Hospitals, Inc. and Children' s Hospital, Incorporated. Very truly yours J J. AL As ' tant City Attorney JJS:jr City Hall, Saint Paul, Minnesota 55102 612 298-5121