HomeMy WebLinkAboutResolution No. 033-08 RESOLUTION NO.
RESOLUTION RELATING TO A PROJECT UNDER MINNESOTA STATUTES,
SECTIONS 469.152 THROUGH 469.165, ON BEHALF OF MAYO CLINIC; CALLING
FOR A PUBLIC HEARING THEREON
BE IT RESOLVED by the Common Council of the City of Rochester, Minnesota
(the City), as follows:
Section 1. Recitals
1.1 , Mayo Clinic, a Minnesota nonprofit corporation (the Corporation), has advised
this Council of its desire to undertake a project(the Project) located within the City consisting of:
a) the improvement of and acquisition of equipment to be located at Corporation facilities in the
City, including Mayo Clinic buildings at or near 200 First Street SW, Rochester Methodist
Hospital at 201 West Center Street and St. Mary's Hospital located at the 1200 to 1400 block of
2nd Street SW in the City and b)the refinancing of certain outstanding obligations of the
Corporation issued to finance projects within the City.
1.2 The City is authorized by Minnesota Statutes, Sections 469.152 through 469.165,
as amended (the Act), to issue its revenue bonds to finance projects consisting of properties,real
or personal, used or useful in connection with a revenue producing enterprise, whether or not
operated for profit, engaged in providing health care services, including hospitals, nursing homes
and related medical facilities. The Corporation has requested the City to issue, in one or more
series, its revenue bonds (the Bonds) in the approximate aggregate principal amount of
$325,000,000 to finance all or a portion of the cost of the Project.
Section 2. Public Hearing
2.1 Section 469.154, Subdivision 4 of the Act requires that,prior to submission of an
Application to the Minnesota Department of Employment and Economic Development
requesting approval of the Project, as required by Section 469.154, Subdivision 3 of the Act, this
Council conduct a public hearing on the proposal to undertake and finance the Project. In
addition, Section 147(f) of the Internal Revenue Code of 1986, as amended, requires that, as a
condition to the exemption from federal income taxation of interest on the Bonds,this Council
conduct a public hearing on the proposal to undertake and finance the Project. A public hearing
on the proposal to undertake and finance the Project through the issuance of the Bonds is hereby
called and shall be held on February 20, 2008, at 7:00 o'clock P.M., at the Council/Board
Chambers located in the Government Center.
2.2 The City Clerk shall cause notice of the public hearing to be published in the
official newspaper of the City and a newspaper of general circulation in the City at least once not
less than fourteen (14) nor more than thirty (30) days prior to the date fixed for the public
hearing. The notice to be published shall be in substantially the following form:
NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF
REVENUE BONDS UNDER MINNESOTA STATUTES,SECTIONS 469.152 THROUGH
469.165,AS AMENDED, ON BEHALF OF MAYO CLINIC
CITY OF ROCHESTER,MINNESOTA
NOTICE IS HEREBY GIVEN that the Common Council of the City of Rochester,Minnesota
(the City), will meet on February 20,2008, at 7:00 P.M., at the Council/Board Chambers located in the
Government Center, 151 Fourth Street SE, in Rochester,Minnesota,for the purpose of conducting a
public hearing on a proposal that the City issue its revenue bonds (the Bonds), in one or more series,
under Minnesota Statutes, Sections 469.152 through 469.165, as amended, in order to finance, on behalf
of Mayo Clinic, a Minnesota nonprofit corporation(the Corporation)the cost of a project(the Project)
consisting of. a)the improvement of and acquisition of equipment to be located at Corporation facilities
in the City including Mayo Clinic buildings at or near 200 First Street SW, Rochester Methodist Hospital
at 201 West Center Street and St. Mary's Hospital located at the 1200 to 1400 block of 2°a Street SW in
the City and b)the refinancing of certain outstanding obligations of the Corporation issued to finance
projects within the City.
The approximate aggregate principal amount of the proposed Bond issue is$325,000,000. The
Bonds shall be limited obligations of the City, and the Bonds and interest thereon shall be payable solely
from the revenue pledged to the payment thereof. No holder of any such Bonds shall ever have the right
to compel any exercise of the taxing power of the City to pay the Bonds or the interest thereon,nor to
enforce payment against any property of the City except the property pledged to the payment thereof.
Before issuing the Bonds,the City will enter into an agreement with the Corporation,whereby the
Corporation will be obligated to make payments at least sufficient at all times to pay the principal of and
interest on the Bonds when due.
A draft copy of the proposed Application to the Minnesota Department of Employment and
Economic Development for approval of the Project,together with draft copies of all attachments and
exhibits thereto, is available for public inspection at the office of the City Clerk, located in the City Hall,
between the hours of 8:00 A.M. and 4:30 P.M., on normal City business days.
The Bonds are expected to be issued at approximately the same time as obligations to be issued
by the Wisconsin Health and Educational Facilities Authority(the"Wisconsin Bonds")to finance or
refinance facilities of the Corporation and other affiliates located in Wisconsin. The aggregate of the
Wisconsin Bonds and the Bonds is not expected to exceed$437,500,000.
All persons interested may appear and be heard at the time and place set forth above, or may file
written comments with the City Clerk prior to the date of the hearing set forth above.
Dated: January 23, 2008
BY ORDER OF THE COMMON COUNCIL
/s/ Judy Kay Scherr.
City Clerk
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2.3 A draft copy of the proposed Application to the Minnesota Department of
Employment and Economic Development, together with draft copies of all attachments and
exhibits thereto, is hereby ordered placed on file with the City Clerk and shall be available for
public inspection, following publication of the notice of public hearing, between the hours of
8:00 A.M. and 4:30 P.M., on normal City business days.
2.4 The Bonds are expected to be issued at approximately the same time as
obligations to be issued by the Wisconsin Health and Educational Facilities Authority (the
"Wisconsin Bonds")to finance or refinance facilities of the Corporation and other affiliates
located in Wisconsin. The aggregate of the Wisconsin Bonds and the Bonds is not expected to
exceed $437,500,000.
Adopted this 23rd day of January, 2008.
President of the Common Council
KI
Attest: 41,
City Clerk
Approved the Z h day of , 2008. ,
Mayor
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