3.8. SR 08-21-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent .L~u ust 21, 2006
Item Description
Resolution .LL\ppro\ring tlle Issuance of Re-~lenue Bonds lJnder
tlle IvIinnesota Ivfurucipal Industrial.L\ct by Sllerburne County,
rvIinnesota
Item Number
3.8.*
Prepared by
Lori 011nson, Ci T Administrator
Reviewed by
Introduction
Guardian ...Angels Healtll Sel\Tices llas been \vorking \Vitll Sllerburne County to issue bonds to fund
unpro\Telnents and expansion of an existing llealtll care facility at its campus on E'vans .L'\'venue. TIle City
is required to appro\Te tlle issuance by the County.
Discussion
TIllS issue includes dle refunding of outstanding bonds issued by tlle city in 1998. State Statute requires
tllat the city adopt tlus resolution authorizing tile county to finance tlle project and to refund the 1998
bonds issued by dle city. i\ppro\Ting tlle issuance of tllese bonds \vill not affect the city's debt limit or
bond rating in any \vay. TIle resolution has been re\Tie\ved and appro\Ted by tlle city's bond counsel.
Financial Impact
None
Attachments
. Resolution Appro\Ting tile Issuance of Revenue Bonds under tlle IvIinnesota Ivlunicipal Industrial.L~ct
by Sllerburne County, IvIinnesota
. Email Excerpt from CatllY Nutzlnann, Senior Paralegal for ..c\ttorney for Guardian .L~ngels Healtll
Sel\Tices
Action Requested
TIle City Council is asked to consider Resolution .t\pproving tlle Issuance of Rev~enue Bonds under tlle
Ivlinnesota :r~vfunicipal Industrial.L'\ct by Sllerburne County, 1YIinnesota.
Council Action
i\fotion by _
Second by _
'.Tote
Follow Up
S:\Council\Lon\200G\Guardian Angel Bonds.doc
RESOLUTION NO.
RESOLUTION APPROVING THE ISSUANCE OF REVENUE
BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT BY SHERBURNE COUNTY, MINNESOTA
BE IT RESOLVED by tile City Council of tIle City of Elk River, Minnesota (the "City"),
as follo\vs:
Section 1. Recitals. Guardian Angels Health Services, Inc. (tIle "Borrower"), a
Mimlesota nonprofit corporation and an organization described in Sectioll 501(c)(3) of the
Intenlal Revenue Code of 1986, as alnended (the "Code"), has advised the Board of County
Comnlissiollers of Sherbll11le COUllty (the "County") of its desire, through tIle issuance of
revenlle bOl1ds of tIle County (the "Bonds") 1111der Milll1esota Statutes, SectiollS 469.152 to
469 .1651 (tIle "Act"), to fil1allce tIle acquisition alld construction of improvelnents, including
eqlliplnent and hllnishillgs, to its existillg Ilealtl1 care facility located at 400 Eval1s Avenue in the
City, including tIle COllstructioll of all approxinlately 29,000 sqllare foot addition to tIle health
care facility (the "Project"), and to refulld in part the outstanding Pooled Revenue Bonds
(CareClloice Member Projects), Series 1998, issued by tile City in tIle original principal amOullt
of$13,550,000 (tile "Refunded Bonds"). The Project will be owned and operated the Borrower.
Section 2. AutIlorization and Approval. For purposes of Mil me sot a Statutes, Sectioll
469.153, Subdivision 3, tile City COUllcilllereby approves tIle issuance of tIle BOllds by the
COUllty to fillance tile Project al1d to renllld the Renlllded BOllds. Notwithstanding the foregoing,
110\VeVer, the adoptioll of tl1is resolutioll shallllot be deelned to establish allY obligation on tile
part of tIle City or tIlis COllncil to cause the issuance of the Bonds, and the issuance of the Bonds
is COlltillgent UpOll satisfactioll of a number of requirelnents, inclllding tile holding of a public
llearing in accordallce witll the Act and the Code, approval of the County and of the Minnesota
Depalilnent of Elnploynlent alld ECOll01l1ic Developlnellt. TIle Bonds, if issued, 811all not
COllstitute a cIlarge, liell or enculllbrance, legal or equitable, upon any property of the City.
Mayor
Attest:
City Clerk
4846-9692-1857\1
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the ulldersigJ.led, beillg the duly qualified and acting City Clerk of the City of Elk
River, Millllesota (the "City"), hereby certify that the attached resolution is a true copy of
Resollltioll No. , entitled: "RESOLUTION APPROVING THE ISSUANCE OF
REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT BY SHERBURNE COUNTY, MINNESOTA" (the "Resolution"), on
file in the original records of the City ill my legal custody; that the Resolution was duly adopted
by tIle City COUI1Cil of the City at a 11leeting on Allgust 21, 2006, and that tile meeting was duly
l1eld by tile City COU11Cil a1ld was attended throughollt by a quorlun; a1ld tIlat tile Resolution has
110t as of tIle date hereof been anlellded or repealed.
I further certify tIlat UpOll vote being take1l 011 the Resolution at said meeting, the
follovvi1lg Members voted in favor thereof:
alld the followi1lg voted against tIle same:
a1ld tile follovving abstained froll1 voting tl1ereon or were abseIlt:
WITNESS illY l1and officially this 21 st day of August, 2006.
(SEAL)
Joan Schmidt
City Clerk
Excerpt fron1 Ell1ail to City Administrator Lori Johnson from Cathy Nutzmann, Senior
Paralegal for Gllardia11 A11gel's Attorney regardi11g explanation ofproject:
You had asked about the project being financed with the County's revenue bonds. The project
consists of the acquisition and construction of improvements, including equipment and
furnishings, to Guardian Angels' existing health care facility located at 400 Evans Avenue in the
City, including the construction of an approximately 29,000 square foot addition to the health care
facility, and also including the refunding of the City's outstanding Pooled Revenue Bonds
(CareChoice Member Projects), Series 1998.
Please note that this resolution is required by the Minnesota Statutes because the project to be
financed by the Bonds is located within the City limits and the outstanding 1998 revenue bonds
were issued by the City, and accordingly the City's approval is required in order for the County to
issue the revenue bonds.
We understand that a representative from Guardian Angels does not need to be present at this
meeting.
Ca tll Y N u tZlnal1l1
Se11ior Paralegal
DORSEY & WHITNEY LLP