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HomeMy WebLinkAboutResolution No. 413-04 • CITY OF ROCHESTER, MINNESOTA RESOLUTION NO. '0 APPROVING AND AUTHORIZING THE ISSUANCE OF REVENUE BONDS BY THE CITY OF CHATFIELD, MINNESOTA UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED, TO FINANCE AND REFINANCE IMPROVEMENTS EXISTING FACILITIES OF OLMSTED MEDICAL CENTER LOCATED IN THE CITY OF ROCHESTER, MINNESOTA WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152-469.165, as amended (the "Act"), each municipality and redevelopment agency of the State of Minnesota (as defined in the Act), including the City of Chatfield, Minnesota (the "City of Chatfield"), is authorized to issue revenue obligations to finance and refinance improvements to land and buildings for the benefit of a revenue producing enterprise to be owned by a contracting party (as defined in the Act); WHEREAS, under Section 469.155, subdivision 9, of the Act, municipalities are authorized to enter into and perform contracts and agreements with other municipalities • as the governing bodies of the municipalities may deem proper and feasible for or concerning the financing of a project under the Act, including an agreement whereby one municipality issues its revenue obligations in behalf of one or more other municipalities; WHEREAS, the City of Chatfield, Minnesota ("Chatfield") has proposed to issue one or more revenue bonds (the "Bonds") and loan the proceeds derived from the sale of the Bonds to Olmsted Medical Center, a nonprofit organization (the "Borrower"), to finance of all or a portion of the costs of: (i) the construction of an expansion and other improvements to the regional medical center of the Borrower located at 1650 Fourth Street S.E., Rochester, Minnesota (the "Facility"), and the acquisition and installation of equipment for the Facility; (ii) the construction of an expansion and other improvements to the medical clinic of the Borrower located at 207 Twiford Street S.W. in the City of Chatfield (the "Clinic" and collectively with the Facility, the "Project"); and (iii) the redemption and prepayment of certain outstanding indebtedness of the Borrower and the redemption and prepayment of certain obligations issued pursuant to the Act for the benefit of the Borrower (the "Prior Obligations"); and (iv) paying the costs of issuing the Bonds, funding one or more reserve funds to secure the Bonds, and paying financing costs with respect to the Bonds and the Project. The Project will be owned by the Borrower; and WHEREAS, the Bonds will be allocated to the costs of the Project and the • redemption and prepayment of the Prior Obligations in the following approximate 1 • amounts: (i) $6,800,000 to the Facility; (ii) $400,000 to the Clinic; and (iii) $800,000 to the redemption and prepayment of the Prior Obligations. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The financing of the construction, and equipping of the portion of the Project to be located in the City is hereby approved by the City and the issuance of the Bonds by the City of Chatfield for such purpose in the amounts described above and in an aggregate principal not to exceed $8,000,000 is hereby approved. 2. The Bonds to be issued by the City of Chatfield to finance the Project shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City or the City of Chatfield; and the Bonds, when, as, and if issued, shall recite in substance that the Bonds, including the interest thereon, are payable solely from the revenues received from the Borrower and the property pledged to the payment thereof; and the Bonds shall not constitute an obligation of the City and shall not be secured by the taxing power or any property or assets of the City. 3. The City Council hereby approves a Joint Powers Agreement between the City and the Issuer (the "Joint Powers Agreement"). The City Council hereby authorizes the execution and delivery of the Joint Powers Agreement by the Mayor and City Administrator of the City (or by other members of the City Council or other officers of the • City who are authorized to execute and deliver the Joint Powers Agreement on behalf of the City) consistent with the provisions of this resolution. The Mayor and City Administrator are hereby authorized in their discretion to execute and deliver, on behalf of the City, affidavits, certificates, and other documents in connection with the issuance, sale, and delivery of the Bonds. The Joint Powers Agreement shall be substantially in the form of the Joint Powers Agreement now on file with the City, with such necessary and appropriate variations, omissions, and insertions as do not materially change the substance thereof, or as the Mayor and the City Administrator, in their discretion, shall determine, and the execution and delivery thereof by the Mayor and the City Administrator shall be conclusive evidence of such determination. 4. The Borrower shall pay any and all costs incurred by the City in conjunction with the approval of this resolution, the issuance of the Bonds, the acquisition, construction, and equipping of the Project, and all other costs or expenses paid or incurred by the City with respect to the foregoing, whether or not this resolution is approved, the Bonds are issued, or the transaction is carried to completion. • 2 • O PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY F ROCHESTER, MINNESOTA, THIS IbTH DAY OF S -r- , 2004. P,E SIDENT OF SAID COMMON COUNCIL ATTEST: a ��'e-j CITY CLERK APPROVED THIS DAY OF 12004. -s MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Res20001BondCnatfield • 3