Agenda - Council - 10/13/2009 - Laserfiche WebLink

Home

AUTHORIZATION OF RESOLUTION #09- 10 -X:XX APPROVING THE ISSUANCE OF BONDS BY THE CITY OF MINNEAPOLIS AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ST. PAUL ON BEHALF OF ALLINA HEALTH SYSTEM Background: By: Diana Lund, Finance Officer Allina Health Systems is planning to build a new clinic in the City of Ramsey. Allina plans to fund the project with a revenue bond issued through the City of Minneapolis and St. Paul's HRA. Allina proposes to issue an amount not to exceed $420,000,000 for refunding of previous bond issues and new sites. Approximately $8 8 million of this issue will be for the Ramsey site. As the bonds are not being issued by the City, this issuance has no effect on the City's debt limit, nor is the City in anyway responsible for debt service payments or defaults. PH #1 Because a portion of the bond proceeds will be used for a new Allina Health System Site in Ramsey, state law requires the Ramsey City Council to schedule a public hearing on the bond issue attributed to the project. At its regular meeting of September 22, 2009, City Council passed a resolution calling for a public hearing on the issuance of revenue bonds on behalf of Allina Health Systems. Allina still has not confirmed the location of the new clinic. They state that final site selection is still a few weeks out as they are still negotiating prices on sites. Per State Statute and Internal Revenue Code, Allina is not required to be site specific at the time of bond issuance. Representatives from Allina and their bond council, Dorsey & Whitney will be present at the council meeting. Funding Source: None required. Approval needed by City only. Council Action: Adopt Resolution #09- 10 -XXX APPROVING THE ISSUANCE OF BONDS BY THE CITY OF MINNEAPOLIS AND THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ST. PAUL ON BEHALF OF ALLINA HEALTH SYSTEM UNDER MINNESOTA STATUTES, SECTIONS 469.152 TO 469.165. CmsS/