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HomeMy WebLinkAboutResolution No. 159-06 CITY OF ROCHESTER,MINNESOTA RESOLUTION NO. I59_a& APPROVING THE ISSUANCE OF A REVENUE NOTE 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 ("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, Chatfield has proposed to issue one or more revenue notes (the"Note")and loan the proceeds derived from the sale of the Note to Olmsted Medical Center, a nonprofit organization (the "Borrower"), to finance of all or a portion of the costs of: (i)the completion of 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 "Project"), and the acquisition and installation of equipment for the Project; and(ii)paying the costs of issuing the Note. The Project will be owned by the Borrower; and WHEREAS, pursuant to Minnesota Statutes, Section 471.656, Subdivision 2(2), a municipality • may issue obligations to finance the acquisition or improvement of real property located outside of its corporate boundaries for property constituting a single project located in a city if the governing body of the city consents,by resolution,to issuance of such obligations. NOW,THEREFORE,BE IT RESOLVED THAT: 1. The City hereby consents to the financing of the acquisition, construction, and equipping of the Project, which will be located in the City, by Chatfield through the issuance of the Note by Chatfield in an aggregate principal not to exceed$2,600,000. 2. The Note to be issued by Chatfield to finance the Project shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City or Chatfield; and the Note, when, as, and if issued, shall recite in substance that the Note, including the interest thereon, are payable solely from the revenues received from the Borrower and the property pledged to the payment thereof; and the Note 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 Borrower shall pay any and all costs incurred by the City in conjunction with the approval of this resolution, the issuance of the Note, 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 the Note is issued or the transaction is carried to completion. • 1 Adopted this 20th day of March,2006. • CITY OF ROCHESTER,MINNESOTA By li Its President of the Common Council Attest: By Its City Clerk Approved the Z1<5r day of 2006 r By Its Mayor CH285-21 (JAE) 275699v.4 2