06-1095Council File # Q� — ,�j
Green 5heet # 3034871
RESOLUTION ��
OF SAINT PAUL, MINNESOTA
�
RESOLUTION APPROVING REDEVELOPMENT PLAN
FOR THE UNIVERSITYBOBERT AND JACKSON STREET REDEVELOPMENT
PROJECT (Regions Hospital Campus)
1 WHEREAS, the Council of the City of Saint Paul (the "Council") has the statutory responsibility
2 under Minnesota Statutes Section 469.028, to approve redevelopment plans and projects of the Housing
3 and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA"), after public hearing
4 thereon; and
5 WF3EREAS, the HRA jointly with the Port Authority of the City of Saint Paul ("Port Authority")
6 proposes to undertake the University/Robert and Jackson Street Project (Regions Hospital Campus)
7 Redevelopment Project (the "Project"), and has submitted to the Council the Redevelopment Plan and the
8 written opinion of the Saint Paul Planning Commission as to the Redevelopment Plan; and
9 WHEREAS, said Redevelopment Plan contains an identification of need and statement of
10 objectives and program of the HRA and Port Authority for carrying out of a redevelopment project
11 including property to be acquired, public improvements to be provided, development and redevelopment to
12 occur, and sources of revenue to pay redevelopment costs of the Project; and
13 WHEREAS, the Saint Paul Planning Commission has reviewed the said Redevelopment Plan, and
14 approved the same as being in conformity with the Saint Paul Comprehensive Plan and the general plan for
15 the development and redevelopment of the City as a whole; and
16 WHEREAS, on this same date, the City Council conducted a public hearing on the Redevelopment
17 Plan, after published notice thereof; and
18 WHEREAS, at said public hearing the City Council heard testimony from all interested parties on
19 the Redevelopment Plan; and
20 WHEREAS, the City Council has considered the findings and determinations of the Saint Paul
21 Planning Commission and the HRA and Port Authority respecting the Project and Redevelopment Plan,
22 together with the documentation submitted in support of said Redevelopment Plan and has taken into
23 account the information and knowledge gained in hearings upon and during consideration of other matters
24 relating to the developments proposed for said Project.
25 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota,
26 having reviewed and considered the documents submitted and the recitals, representations and provisions
27 contained therein, as follows:
28 1. It is hereby found and determined:
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A. that the undertakings and site of the Project, as described in the Redevelopment Plan
constitutes a'Yedevelopment project" within the meaning of Minnesota Statutes,
Section 469.002, Subdivision 14;
B. That the land in the project uea would not be made available for, nor would
redevelopment be financially feasible without the public improvements and the
fmancial assistance proposed for the Project;
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That the Redevelopment Plan will afford m�imum opportunity, consistent with the
sound needs of the locality as a whole, for the redevelopment of such uea by private
enterprise; and
That the Redevelopment Plan conforms to the Saint Paul Comprehensive Plan and
the general plan for the development of the locality as a whole.
40 2. The Redevelopment Plan is hereby approved as in the public interest and as necessary in
41 order to carry out the development and redevelopment of the Project Area in accardance
42 with the objectives and purposes in said Redevelopment Plan provided thereby to eliminate
43 the conditions identified in said Redevelopment Plan and accomplish the provision of public
44 improvements and private developments contemplated by said Redevelopment Plan in the
45 furtherance of the general welfare of the citizens of Saint Paul.
46 Passed and Adopted this 6`" day of December, 2006, by the City Council of the City of Saint Paul.
Requested by Department of:
B � l J J
Form Approv�d"�y � torn
By: � � ��
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Adoption Certified by Council Secretary
By: �
Approve b ay � ate 2— fo n�
By:
Form Approved by Mayor for Submission to Council
BY- i
Appr�e th O fice of Fin�ial S�
By � �
Adopted by Council: Date /a p� ��G
C�G �oys`
„ r , � Green S,heet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
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� PE — Plaaning&EconomicDevelopmrnt � 24NOV-06 ' Green She NO: 3 03 4 871
� ;
� Contact Person 8 Phone: � �
� Bob GeUrs �
� 2fi&-6653 I
AsSign
'� Must Be on Council Agenda by (Date): i Number
'�, OfrDEG06 I For
I Doc.Type: RESOLUiION Routing
� Order
E-0ocumentRequired: N
Document Contact:
Contact Phone:
4 ,Cnuncil I U.'Phune
5 i(5ty Clerk (Stv CI k
ToW I# of Signature Pages _(Clip PJI Locations for SignaW re)
Action Requested:
City Council Public Hearing and City Council Resolution approving a Redevelopment Plan for Regions Hospital Campus.
Recommendations: Approae (A) or Reject (R):
Planning Commission
CIB Committee
Citil Service Commission
0 �Rla o' e& Econo ' Develo i� fA��__
1 � 1 Re F ' n 1 D rtm t D' ec[
2 'RStv AttorneV � �tv Anome� �
3 M/a or's Office I MavorlASSictant
1. Has this persoNfirtn e�er worked under a contract for this department�
Yes No
2. Has this persoMfirtn e�er been a city employee?
Yes No
3. Does this persoMfirtn possess a skill not nortnally possessed by any
current ciry employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
City and HRA are assisting in $200 M Regions Hospital Expanse. All other City and HRA approvals happened in OcYOber and
November 2006.
AdvantageslfApproved:
Regions Hospital Parking Ramp financing can be completed.
Disadvantaqes If Approved:
None known.
Disadvantages M Not Approved:
Part of Regions financing cannot proceed.
TotalAmountof N/A
Ttansaction:
Fundinq Source:
Financial Infomiation:
(Explain)
Activity Number:
�' :> `�"hh,'
�
CosURevenue Budgeted:
Novem6er 29, 2006 9:43 AM Page 1
DEPARTMENT OF PLANNING &
ECONOMIC DEVELOPMENT �
Ceci7e Bedor, Diiec[or
CTI`Y OF SA.�V'I' PAUL
Chrzstopher B. Co[emarz, Mayor
DATE:
TO:
FROM:
RE:
11J22/06
PlamZing Commission
Larry Soderholm� �
U�
25 P✓est Fourih Street
SaintPaul, MT755302
Redevelopment Pian for Regions Hospital Expansion
��
Q.
Telephone: 65I-266-6700
Facsimiie: 651-228-3220
On ll/8/06 the Neighborhood and Current Plaiuiing Committee reviewed the .Toint
Redevelopment Plan: UniversitylRobert and Jackson Stveet Project (Regions Hospital
Campus) and voted to support the plan after proposing minor boundary xevisions. The
committee and PED staff recommend approval of the attached resolution finding
the redevelopment plan for Regions Hospital expansion to be consistent with the
Comprehensive Plan.
Representatives of Regions Hospital will be at the Planning Cammission meeting on
12/1/06 to explain the plan. It is a large hospital expansion with accompanying
structured parking. In the packet for the last Planning Commission meeting, we sent you
colored copies of the expansion plans. We are not enclosing another set for this meeting,
but the hospital's azchitects will have drawings at the meeting.
The hospital expansion and redevelopment plan need approvals from both the fIRA and
the City Council. The HRA is reviewing the project on 11/22/06, and the City Council
will review it shortly after receiving the Planning Commission's recommendation.
If you have questions, please call PED Project Manager Bob Geurs at 651-266-6653 or
Lucy Thompson at 651-266-6578.
AA-ADA-EEO EMPLOYER
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city of saint paul
planning commission resolution
file number
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JOINT REDEVELOPMENT PLAN
UNIVERSITY/ROBERT AND JACKSON STREET PROJECT
(REGIONS HOSPITAL CAMPUS)
WHEREAS, the Saint Paul Housing and Redevelopment Authority and Port Authority propose to
establish the University/Robert and Jackson Street Projecf Area (Regions Hospital Campus) as provided
for in Minnesota Statutes, Chapter 469.002, Subd. 14 for the purpose of preventing the emergence of
tilighf and providing for the construction of improvements to serve Regions Hospital; and
WHEREAS, a draft Redevelopment Plan has been prepared for the Project Area, as provided for in
Minnesota Statutes, Chapter469.002, Subd. 16; and
WHEREAS, the key development objective of the Redevelopment Plan is encouragement of job growth
for a major Saint Paul employer (Regions Hospital); and
WHEREAS, the Saint Paul Planning Commission has the responsibility under State law to comment on
the consistency of redevelopment plans with the Saint Paul Comprehensive Plan and any other relevant
City policies; and
WIiEREAS, construction of site improvements to support a major empioyer in the B5 Central Business-
Service District is consistent with the Land Use Plan's policies regarding a vital, growing city center.
NOW, THEREFORE, BE IT RESOLVED, that the Saint Paul Planning Commission hereby finds
the Joint Redevelopment Plan for the University/Robert and Jackson Street Project (Regions Hospital
Campus) consistent with the Saint Paul Comprehensive Ptan.
moved by
seconded by �
in favor
against
JOIlVT REDEVELOPMENT PLAN
Li)�IIY�l:7.� la����(.Y�J\f.'yYN91�1
PROJECT (Regions Hospital Campus Area)
�_ I►1 ': 1 1IIIU►19:.�] :
[Recommended by the Saint Paul Planning Commission
December 1, 2006]
[Clnrent date November 16, 2006]
{: [�1��;11\�!�\�17:7�13 �1���J �151�1►Y II_\iY Il : C�7:7 Y��
OF THE CITY OF SAINT PAUL, MINNESOTA
AND
0(� - ��r�
PORT AUTHORITY OF THE CITY OF SAINT PAUL
a� /�y5
TABLE OF CON'TENTS
. ..�.
II. DESCRIPTION OF REDEVELOPMENT PROJECT AREA
ni�:_�r_,• t►u
IV. DEVELOPIVIENT OBJEC'ITVES
V. DESIGN GUIDELINES
VI. REDEVELOPMENi' TECHNIQUES TO ACIi1EVE PLAN OB7ECITVES
VII. 01T�ER NECESSARY PROVISIONS TO MEET STATE/LOCAL 12EQIJIlZEMENTS
VIII. PROVISIONS FOR AMENDING PLAN AND LENGTH OF TFIE PLAN
E�ibits
Erlubit A—Illustrative Map of Redevelopment Project Area
Eachibit B—Description ofRegions Hospital Eapansion Project (2006-2009)
E�ibit G Site Plan of Regons Employee Parldng Ramp
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I.PURPOSE
The Housing and Redevelopment Authoriry of the City of Saint Paul, Mim�.esota ("HRA") and
Port Authority of the City of Saint Paul ("Port Authority") propose to establish the
University/Robert and Jackson Street Project Area (Regions Hospital Campus), as provided for
in Minnesota Statutes, Chapter 469.002, Subd. 14. This document represents the Redevelopment
Plan as provided for in Minnesota Statutes, Chapter 469.002, Subd. 16.
Pursuant to Minnesota Statutes, Section 469.059, subd. 15, the Port Authority has authority to
exercise the powers and duties of a housing and redevelopment authority as set forth in Sections
469.001 to 469.047 (the "FIRA AcY') far a purpose in Minnesota Statutes, Section 469152 to
469165 (the "IDB AcY').
The Port Authority and HRA propose to jointly establish the University/Robert and Jackson
Street Redevelopment Project Area (tlie "Redevelopment Project Area") pursuant to Minnesota
Statutes, Section 469.027, and to adopt a redevelopment plan (the "Redevelopment Plan" or the
"Plan") in order to undertake a redevelopment project as defined in Minnesota Statutes, Section
469.002, subd. 14 to prevent the emergence of blight and to provide for the construction of
improvements in the Redevelopment Project Area.
The Port Authority proposes to issue its revenue bonds in the approximate principal amount of
$23,000,000 (the "Parking Revenue Bonds") pursuant to the IDB Act to provide funds to be
loaned to Capital City Properties, a Minnesota nonprofit corparation ("CCP") to finance an
approximately 900 space employee parking ramp (the "Parking Ramp") in the Redevelopment
Project Area. The Parking Revenue Bonds will have a final maturity date approximately 30
years from this date of issuance. Pursuant to Minnesota Statutes, Section 469.041, subd. 8, the
HRA is authorized to enter into agreements with respect to actions to be taken by the Port
Authority pursuant to the I3RA Act, which agreement may extend over any period of time,
notwithstanding any law to the contrary.
Regions Hospital ("Regions") willlease tkie property on which the Pazking Ramp will be
constructed to CCP pursuant to a ground lease (the "Ground Lease") and CCP will construct and
lease the Parking Ramp to Regions pursuant to an approximately 23 year lease (tl�e "Parking
Lease"). The HRA has agreed pursuant to a Standby Lease between the HRA, the Port Authority
and CCP (the "Standby Lease"), upon certain conditions, to lease the Parking Ramp for the
remaining term of the Parking Revenue Bonds, which remaining term will be approximately 7
years. The Standby Lease will provide for payment by the HRA of rent in amounts sufficient to
pay principal and interest due on the remaining debt service due on the Parking Revenue Bonds,
which will be outstanding in a principal amount of approximately one-third of the original
principal amount of the Parking Revenue Bonds.
II. DESCRIPTION OF REDEVELOPMENT PROJECT AREA
The boundaries of the of the Redevelopment Project Area as illustrated by Exhibit A attached are
described as follows: Beginning at a point on the northwest corner of the intersection of Robert
Street and University Avenue East, then north along the west line of Robert Street to the
D� /oy�
southwest corner of the intersection of Robert Street and Capitol Hgts thence southeasterly
across the intersection of Robert Street and continuing along the southwest line of Capitol
Heights to the end of said street thence northeasterly along the southeasterly boundary of the end
of Capitol Hei„uhts street and continuin� northeasterly along the southeasterly boundary line of
the property located 718 Capitol Heights as extended to its intersection with a point on the
northeasterly boundary of 7ackson Street thence south along the northeasterly line of Jackson
Street to its intersection with the north line of University and also including Parcel ID Nos.
31.29.22.24.0080 and 31.29.22.13.0017 which lie east of Jackson and northwesterly of the north
line of University Avenue thence continuing northeasterly along the north line of University
Avenue to the westerly right of way line of Interstate 94, southwesterly along said right of way
line of Interstate 94 to a point on the westerly line of Jackson Street, thence northwesterly along
the westerly line of Jackson Street to the intersection with the north line of Fourteenth Street and
also including Parcel ID Nos. 31.29.22.31.0041 and 31.29.22.42.0013 which lie southwesterly of
Jackson Street and south of Fourteenth Street thence southwest along the northwesterly line of
Fourteenth Street to its intersection with west line of Robert Street thence north along the
westerly boundary of Robert Street to the beginning point at the Northwest corner of the
intersection of Robert Street and University Avenue East and also including Parcel ID Nos.
31.29.2231.0032 and 31.29.2231.0007 which lie south of University Avenue between Robert
and Jackson Streets.
Redevelopment Area Parcels included are as follows:
31.29.22.13.0019
31.29.22.13.0017
31.29.22.24.0080
31.29.22.24.0070
31.29.22.24.0130
31.29.22.24.0072
31.29.22.31.0032
31.29.22.31.0007
31.29.2231.0041
31.29.22.42.0013
III. BACKGROUND
The Redevelopment Project Area is located east of the State Capitol and north of downtown. The
Project Area includes eight parcels, including Regions Hospital Campus and Gillette Childrens
Hospital, a motel (Economy Inn), vacant land west of the motel for the proposed Region
Employee Ramp, Emma Norton Residence (women transitional housing), Central Park
Methodist Church a portion leased to Regions. The area is currently zoned B-5 and CAAPCJ
(Capital Area Architectural Planning Commission Jtuisdiction).
This Redevelopment Plan process will culminate in the City's adoption of the Redevelopment
Plan as part of the City's Comprehensive Plan, and the Redevelopment Plan to guide the
implementation activities of the HRA and the Port Authority.
Implementation of this Redevelopment Plan will be undertaken by providing for incentives and
land use controls that encourage sound development that is consistent with the City of Saint
Paul's Comprehensive Plan and is supported by types of mazket growth that can reasonably be
expected in Saint Paul including sufficient hospital capacity to serve the needs of the St. Paul
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residents and provide opportunities for employment of St. Paui zesidents. Regions Hospital is the
lazgest owner of property in the Project azea and is St. PauPs second largest employer with 4,100
employees (including over 900 St. Paul residents).
IV. DEVELOPMENT OBJECTIVES
The development objectives mclude:
1. Encouraging job growth for a major St. Paul employer:
a.) Continuation of a Regions Hospital campus to pxovide medical services
for St. Paul residents.
b) Off campus development of parking necessary for Regions employees,
consistent with CAAPB rules. (see Exhibit C�ite Plan)
2. The Redevelopment Plan recommends for current non healthcare related uses for
the following properties: Economy Inn (149 University Ave E.), Emma Norton Residence
(670 Robert St.) and Central Park Methodist Church (639 Jackson St.), if these properties
are sold, the appropriate reuse is either 1) complementary commercial use for visitors and
employees of Regions or 2) healthcare related development.
V. DESIGN GUIDELINES
The City will follow the Capitol Area Architectaral Plauning Boatd (CAAPB) recommendations
concerning design with respect to development undertaken in the applicable part of the
Redevelopment Proj ect Area: (see Exhibit A)
New development should relate to the State Capitol, the street and the rest of the
community.
2. New development should be environmentally sustainable, to include:
• Zero run-off or on-site storm water retention. Zero runoff is difficult to achieve
on urban sites, but storm water can be cleaned and detained on-site for a time
before it enters the city storm sewer system. These ponds can be used as pazks
and open spaces in the development.
Native plantings. Using native plantings for landscaping can significantly
reduce maintenance and installation costs. The use of native plants can eliminate
the need far irrigation systems.
Environxnentally-sensitive design and construction ofbuildings. Whenever
possible, incorporate the following concepts in any new development: salvage
recyclable materials during building demolition, design energy efficient
buildings that exceed current code requirements, incorporate salvaged and
recycled building materials in conshuction, and create healthy work and living
spaces.
After review with respect, if applicable, to design by CAAPB, each development pro}ect will go
through City Site Plan review to receive appficable City permits to construct the development
proj ect.
ol� �o��
VI. REDEVEI.OPMENT TECHNIQUES TO ACFIIEVE PLAN OBJECTIVES
This Plan envisions the pemutted use of all tecluuques or powers authorized through applicable
statutes by the City, HRA, Port Authority or other public agencies as appropriate and necessary to
carry out the implementation of the Plan. No provision of the Plan is to be taken to lixnit the full
exercise of these powers. The following teclmiques are cited as examples of ineans to achieve the
objectives presented in Section IV above.
A. Support Private Inifiatives.
Private iniriatives, including the Regions Hospital Expansion more fully described in Exhibit B
and investment are the preferred means of achieving the objectives of tYus Plan, and will be
encouraged. The HRA, Port Authority or the City may enter into agreements with property
owners or other persons in control of a project site which identify specific private responsibilities for
the improvement of the site and will seek to undertake redevelopment in accordance with tlus Plan.
To induce such agreement, the HRA, Port Authority and the City will provide for, or cause to
provide for, the following as is necessary and appropriate:
Administration of those public processes and requirements deemed necessary to
support or allow development/redevelopment of property to occur in accordance with
this Plan. If applicable and advisable, the HRA, Port Authority and the City will
provide assistance to developers/property owners to allow them to take
responsibility for administrative activiries. These include, but are not limited to:
• Coordination ofproject activity, including, but not limited to, review
with human services agencies, cirizen participation entities, and other
state, regional and federal government agencies;
• Initiation of vacations, rezoxung, dedication of public rights-of-way,
or other public actions as may become necessary to implement this
Plan, in accordance with state, regonal and federal govenunent
agencies and laws;
• Provision of standard municipal services to adequately insure
public healtY�, safery and welfare;
• Enforcement of building codes, design controls, site covenants,
provisions to ensure compliance with state and local requirements
relating to non-discrimination, income levels, environmental quality,
faithfixl performance and any other public objectives relating to the
purchase, development, improvement or use of the land;
• Facilitation ofproperty exchanges.
2. Public improvements that include, but are not limited to, installation, construction or
reconstrucfion of streets, parkways, parking faciliries, utilities, parks, walkways and
trails, bridges and other public improvements or facilities as necessary or desirable to
carry out the objecrives ofthis Plan.
Public nnprovements will be undertaken in phases (of time and location) that
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coincide with and promote rational development pattems. Costs of such
improvements may be assessed to the sites served by them.
Financing to provide affordable sources of financing to private companies
involved in developing components of this Plan. There aze several financing
mechanisms that can be used as appropriate to accomplish the obj ectives of this Plan.
They include, but are not limited to:
-Stand by L,ease
-Tax Increment Financing
-Indush Development Revenue Bond Loans (TaYable or TaY-exempt)
-Other Revenue Bond L.oans (Tasable or Taac-exempt)
-Acquisition/Lease/Sublease
-Land I.ease
-Ixnplementarion of statutory authority for creation of projects and
-Undertaking of activiries where it is appropriate to use other financing
methods
In selecting methods of proj ect finance, the HRA, Port Authority and the City will take into account
the forms of other assistance auailable and negotiate with Regions Hospital, individual
developers/property owners so that a method can be chosen which provides sufficient incentive for
Regions HospitaUdeveloperlproperty owner to create a quality product.
B. Property Acquisifion
As an altemative and/or complementary redevelopment technique, the TIl2A, the Port Authority or
the City may choose to acquire certain property either through exercise of eminent domain according
to the procedures established under Minnesota Statutes, Chapter 117 or through voluntary purchase.
Specific properties to be acquired by the HRA of the City pursuant to the exercise of the power of
eminent domain will be identified by resolution ar by final order and follow applicable state law
procedL�res. Acquisition of properry by the HRA or the City will be undertaken in accordance with state
statutes goveming procedures for such activity, including the provision of relocation assistance, services,
payments and benefits in accordance with Minnesota Statutes Chapter 117.
C. Site Preparation
The III2A, the Port Authority or the City wi ll undertake or cause to undertake those actions deemed
necessary to prepare acquired sites for redevelopment. These include, but are not limited to:
Demolition, removal or rehabilitation of buildings and 'unprovements;
2. Activities to correct adverse characteristics of the land, soil or subsoil conditions,
unusable subdivision or plat of lots, inadequate access or utility service, flood
protection or other development-inhibiting conditions;
3. Activities deemed necessary or desirable tp remove, reduce or prevent other
blighting factors and cause ofblight;
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4. Other activities deemed necessary or desirable to improve and prepare sites for
development, rehabilitation or redevelopment for uses in accordance with tivs
Plzn;
5. Installation, conshi�ction or reconstruction of s�eets, parkways, utilities, pazks,
walkways and tcails, and other public improvement or facilities as necessary or
desiiable for cauying out the objectives oftUis Plan;
D. Land Disposition and Improvement Agreements
The HRA, Port Authority and the City will sell, lease or otheiwise dispose of acquired properiy in
accordance with the requirements of applicable laws and plans, and subj ect to such terms and
conditions as the HRA, the Port Authority or the City deem appropriate to carry out the
implementafion of the Plan.
VII.OTHER NECESSARY PROVISIONS TO MEET STATE/LOCAL REQUIREMENTS
A. Non-Discriminafion.
Every contract for sale, lease or redevelopment of property within the Redevelopment Project Area
will require compliance with all state and local laws in effect from time to rime, prohibit
discrimination or segregation by reasons of race, religion, color, sex, or national origin in the sale,
lease or occupancy of the property, and require that this latter provision be made a covenant running
with the land and be binding upon the redeveloper and every successor in interest to the property.
B. Vacations, Rezonings, Dedications and Covenants.
Vacations, rezonings, and dedications of public rights-of-way as may become necessary shall be
accomplished by separate actions in accordance with state law and local ordinances.
VIII. PROVISIONS FOR AMENDING PLAN AND LENGTH OF PLAN
The Redevelopment Plan may be modified at any time in the manner provided by law. This
Redevelopment Plan will be in force for 30 years form the adoption of the Plan by the City Cotmcil.
EXFIIBITS
Eachibit A Illustrative Map and List of Parcels of the Redevelopment Project Area
Exhibit B— Description of Regions Hospital Eacpansion Project (2006-2009)
E�ibit C- Site Plan of Regions Employee Padang Ramp
��P
Eulvbit A Illustrative Map and List of Parcels of the Itedevelopment Project Area
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12edevelopment Area Pazcels
1. 640 Jackson Street (31.29.22.13.0019) Regions Hospital. Use: HospitaUNursing
Home
2. 0 University Ave. (31.29.22.13.0017) Gillette Childrens Hospital — Use: Vacant
Land
3. 183 University Ave. (31.29.22.24.0080) Gillette Childrens Hospital — Use:
Hospital
4. 149 University Ave. (31.29.22.24.0070) Amrut Patel and Sita Patel. Use: Motel
5. �00 Robert St. (31.29.22.24.0130) and 0 University Ave. (31.29.22.24.0072)
Regions Hospital. Use: V acant land for Farking ramp.
6. 690 Robert (31.29.22.31.0032) Regions Hospitai — Use: HospitallAdmin.
7. 670 Robert (31.29.2231.0007) Women's Division Board Missions — Missions
The Methodist Church. Use: Transitional Housing. Commonly known as Emma
Norton Residence.
8. 639 Jackson (31.29.2231.0041 and ) Central Pazk Methodist Church — Use:
Church and 0 Jackson (31.29.22.42.0013) Central Pazk United Methodist — Use:
vacant land
v� ����
Exhibit B— Deseription of Regions Hospital Expansion Project (2006-2009)
Project Description
Regions Hospital, at 7ackson and University Streets, is planning a major expansion project
between 2006 and 2009, which requires "�205-258 million in financing. The Proj ect includes
constructing a new 385,000 square foot state-of-the-art 10-stozy tower for surgery and single
patient rooms atop a pazking ramp with 458 pazking stalls for visitors located on the existing
south parking ramp; renovating 62,000 square feet of existing space in the mental health facility;
and building a new 907 space employee pazking faciliry on the north side of University Avenue
west of Jackson Street (see Exhibit B-1 — Regions Expansion 2009.• Pacilzty Expansion and
Improvement Project). Consmxcrion completion is anticipated at the end of 2009.
Regions has also asked to refund up to two prior conduit issues - the 1993 and 1998 Regions
Bonds. As cash permits, the hospital would also make $40 -$50 million of additional multi-yeaz
improvements to the campus. They currently employ approximately 4,100 people (3,350 full-
time equivalents), and expect to add 250 employees as a direct result of this project.
Financing Description
1) HRA Conduit Bonds (Series A 2006 Regions Healthcare Revenue Bonds). The current
estimated amount is $235 million, assuming the 1998 conduit debt is refunded. This would
include approximately $152M toward construction, $31 million to refund prior HRA 1993
Regions bonds and, at Regions election, the 1998 Regions Bonds of $52 million. This 30 year
revenue conduit debt is anticipated to be rated BBB+ by Standard and Poors. The anticipated
auerage interest rate is 5.25%. The Obligated Group, who pays back the conduit debt, includes
Health Partners, Inc., Regions Hospital, Group Health Plan, Inc., Health Partners Admuustrators,
Inc., and Midwest Assurance Company. The financing will be done with revenue bonds for the
Project. These are conduit bonds and the City and H12A have no responsibility towards
making debt service payment.
2) Reffions Emplovee Ramp Bonds. Regions has requested this financing to be structured as an
operating lease. This is a separate bond issue of $21 to $23 million for the Regions employees
parking ramp ("Employee Ramp"). The Port Authority (the owner of the ramp, through its
affiliate CCP), would issue the debt and lease the Employee Ramp to Regions. To make this 30
year debt marketable, the HRA would enter into a stand-by lease beginning in 2031 through
2036 should Regions not renew its operating lease in 2030).
3) Summarv of Exnansion Proiect N`inancing:
III2A Series A(New money) $152 M including $20 M for underg�ound ramp below tower
(Refundiug) $31 M refunds HRA 1993 prior Regions Bonds
Possible Refunding $52 M refunds HRA 1998 prior Regions Bonds
HRA Subtotal up to
Port Ramp Bonds
Total
$ 235 M (Current Sizing)
$ 23 M far the Regions employee ramp
$258 M(up to $205 M without the 1998 Refunding)
10
D(�-1 D95�
Public Purposes
The Project will allow Regions to expand its clinical infrastructure, which are already at
tunes operating at capacity, to serve a�owing and aging population, with their growing
demand for health care services (emergency medicine, trauma care, cardiology, orthopedics
and behavioral health). The Project will improve hospital efficiency (by reducing patient
room transfers), clinical outcomes (by allowing isolation of infectious conditions), and the
patient experience (by increasing the number of private rooms).
• Already among the lazgest training sites in the Twin Cities for physicians, the Pro}ect will
improve Regions ability to provide call rooms for training the next generation of
physicians.
• Already among the largest employers in Saint Paul, the Project will add 250 new jobs to
its existing employee base of4,100 people, ofwhich over 1,700 reside in Ramsey
County, including 980 in Saint Paul.
• With a payroll already in excess of $200 million a year in 2005, the payroll upon
completion of the project at the end of 2009 is estimated to be $343 million
• Already serving more low income uninsured patients than any other hospital in the East
Metro region, the Project will allow Regions to expand its services to the low income and
uninsured residents of Saint Paul and Ramsey County in a new facility that will be fully
accessible to this population.
11
D(� io��
a��Feo Regions Hospital�
��aaxzsi�� �QQ�
R��ian� Hrasp���alJH�alt.�.�'ar�n�rs
Septemb�r s$, �Qa�
����c�r�� ��� `I`��� ����e�t
a Essentia{ To Our Futurei
• Hospitai Capacity Shortage on Eastside
With More Demand To Come
• Crifical Need for Enhanced Services:
—Mental Hea{th
—Surgery
— Bed Capacity
—Emergency Department
��:; Regions Hospital'
I ;�, � a ., ,� .� � , r f , ��,' o
e Bmproved Effiiciency, Operafiing
PerForr�ance and Qualifiy
—Rectangular Patient Care Units
—Levef of Occupancy Rate
—Flexible Intensive Care Unifs
—Privafe Rooms (Quafity)
.�-� Regions Hospital
�(�
7
. Df� /l� 9�
l
�����x�� ��� ��� ��o� ���
• Lower Cost of Care for the Cu�tomers
and Health Pian
• Opportunity for Further Growth arrd
Consolidation of HPMG Business
• Supporfs member and pafiient view of
HealthPartners.
sic RegionsHospital°
i ' � Q _
• Whife Project has ris6cs, the time is
now and critical.
m Advances integrated model of care
delivery and market differentiation.
° Supports Hospital of Choice for
H�afth Plan, HPMG, and patier�fs.
�� RegionsHospital'
3
`' Expansion 2009
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The Project:
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lobby, circulation, tnfresVUCture to
P8f supportfaterphases
ftefund 1993 28,000,000
Port AUthority Le85e 22,U00�0�0 University Avenue Parking Facility.
TOt�I 200,000,000
, : i�` Regions Hospital'
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