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City of Mountain Iron, Minnesota



Resolution 01-03 Calling for a Hearing

RESOLUTION NUMBER 01-03
CALLING FOR A PUBLIC HEARING ON A PROJECT BY THE DULUTH REGIONAL CARE CENTER, INC. UNDER MINNESOTA STATUTES, CHAPTER 469

BE IT RESOLVED BY THE CITY OF MOUNTAIN IRON, St. Louis County, Minnesota (the Issuer), as follows:

1. Authority. Minnesota Statutes Sections 469.152 through 469.165, as amended (the Act), authorizes a municipality or redevelopment agency to issue revenue obligations to finance a project consisting of any properties, real or personal, used or useful in connection with a revenue producing enterprise engaged in providing health care services, including hospitals, nursing homes, and related medical facilities.

2. The Project.

a. Representatives of The Duluth Regional Care Center, Inc., a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Corporation), have advised the Issuer that the Corporation desires to undertake the project described on Exhibit A attached hereto (the Project) located within the jurisdiction of the Issuer, the City of Hermantown, Minnesota, and in the City of Duluth, Minnesota, within the jurisdiction of the Duluth Economic Development Authority (collectively with the Issuer, the Host Municipalities).

b. The proposed Project is a project under Section 469.153, Subdivision 2 of the Act.

3. The Obligations. The Corporation has requested that the Host Municipalities cooperate, through a joint powers agreement, to finance the Project through the issuance of obligations pursuant to the Act. The Corporation has requested that the Issuer issue such obligations, in one or more series, in order to finance the cost of the Project (the Obligations).

4. Issuance of Obligations.

a. The Obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer, and the Obligations, when, as and if issued, shall recite in substance that the Obligations, including interest thereon, are payable solely from the revenues received from the Corporation and the property pledged to the payment thereof and shall not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation.

b. All details of and conditions precedent to the issuance of the Obligations and the provisions for payment thereof shall be subject to final approval of the Issuer.

5. Public Hearing. The Issuer will conduct a public hearing on the issuance of the Obligations and the proposal to undertake and finance the Project, pursuant to the requirements of Minnesota Statutes, Section 469.154, Subd. 4, and Section 147(f) of the Internal Revenue Code of 1986, as amended.

6. Authorization to Staff.

a. The Administrator is authorized and directed to complete the public notice, substantially in the form attached hereto as Exhibit B, and cause the notice to be published in the official newspaper of the Issuer and a newspaper of general circulation in the jurisdiction of the Issuer not less than 14 days nor more than 30 days prior to the date set for the public hearing; provided that if the official newspaper of the Issuer is a newspaper of general circulation in the jurisdiction of the Issuer, the notice may be published only once.

b. The administrative staff of the issuer and its agents are hereby authorized to take such further action necessary to carry out the intent and purpose of this resolution and the requirements of the Act.

7. Issuer Costs. Approval of this resolution is subject to the agreement by the Corporation that it will pay the administrative fees of the Issuer and pay, or, upon demand, reimburse the Issuer for payment of, any and all costs incurred by the Issuer in connection with the Project and the issuance of the Obligations, whether or not the Project is carried to completion, or the Obligations are issued.

8. Rights Reserved. Nothing in this resolution shall be construed as an indication of intent to approve this Project and issue the proposed Obligations. The Council specifically reserves the right to approve or disapprove the request after said public hearing.

9. Declaration of Official Intent. This resolution constitutes a declaration of official intent under U.S. Treasury Regulations, �1.150-2.

DULY ADOPTED BY THE CITY COUNCIL THIS 6th DAY OF JANUARY, 2003.

EXHIBIT A

PROJECT DESCRIPTION

MOUNTAIN IRON, MINNESOTA

(THE DULUTH REGIONAL CARE CENTER PROJECT)

SERIES 2003A NOTE 
LOCATION TYPE OF FACILITY ACTIVITIES TO BE FINANCED 
1530 East 2nd Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons refinancing 
320 West Winona
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons refinancing 
4 North 59th Avenue West
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons refinancing 
4861 Glendale Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons refinancing 
Total for Series 2003A Note $648,800 
SERIES 2003B NOTE 
LOCATION TYPE OF FACILITY ACTIVITIES TO BE FINANCED 
3715 West Fifth Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons refinancing 
5495 Marion Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons refinancing 
Total for Series 2003B Note $244,900 
SERIES 2003C NOTE 
LOCATION TYPE OF FACILITY ACTIVITIES TO BE FINANCED 
Oak Ridge Drive, two blocks east of Stebner Road
Hermantown, Minnesota
4-bed residential facility serving developmentally disabled persons New Construction 
323 90th Avenue West
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
1530 East 2nd Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
1514 East 5th Street
Duluth, Minnesota
6-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
204-206 South 21st Avenue East
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
5495 Marion Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
101 West Mankato Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
1410 Brainerd Avenue
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
430 West Faribault Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
552 Anderson Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
2920 Piedmont Avenue
Duluth, Minnesota
2-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
4861 Glendale Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
4824 Daniels Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
420 East McCuen Street
Duluth, Minnesota
9-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
8790 Arbor Lane
Mountain Iron, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
4 North 59th Avenue West
Duluth, Minnesota
7-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
5729 West 8th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
320 West Winona Street
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
3715 West 5th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
1819 Melrose Avenue
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
4357 Martin Road
Duluth, Minnesota
4-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
2812 Triggs Avenue
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
4130 West 8th Street
Duluth, Minnesota
3-bed residential facility serving developmentally disabled persons Capital Improvements and Remodeling 
Total for Series 2003C Note $635,700 
NOTE AMOUNT 
Series 2003A Note $648,800 
Series 2003B Note $244,900 
Series 2003C Note $635,700 
TOTAL, all Series 2003 Notes $1,529,400

EXHIBIT B

NOTICE OF PUBLIC HEARING 

ON PROPOSED PROJECT

AND THE ISSUANCE OF PRIVATE ACTIVITY BONDS

TO FINANCE HEALTH CARE FACILITIES

CITY OF MOUNTAIN IRON, ST. LOUIS COUNTY, MINNESOTA

NOTICE IS HEREBY GIVEN that the City Council of Mountain Iron, Minnesota (the Issuer) will meet on Monday, February 3, 2003, at _____ p.m. in the City Hall in Mountain Iron, Minnesota, for the purpose of conducting a public hearing on the proposal that the Issuer issue its health care facilities revenue obligations, in one or more series, under Minnesota Statutes, Sections 469.152 through 469.165, in order to undertake and finance the cost of a project. The proposed project will be owned by The Duluth Regional Care Center, Inc., a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and will consist of (1) refinancing debt previously incurred for capital improvements to the following residential facilities serving developmentally disabled persons: (a) 6-bed facility located at 1530 East 2nd Street, Duluth, Minnesota; (b) 4-bed facility located at 320 West Winona, Duluth, Minnesota; (c) 7-bed facility located at 4 North 59th Avenue West, Duluth, Minnesota; (d) 4-bed facility located at 4861 Glendale Street, Duluth, Minnesota; (e) 3-bed facility located at 3715 West Fifth Street, Duluth, Minnesota; and (f) 4-bed facility located at 5494 Marion Lane, Mountain Iron, Minnesota; and (2) financing the costs of new construction of a 4-bed facility serving developmentally disabled persons to be located at Oak Ridge Drive, two blocks eat of Stebner Road, Hermantown, Minnesota; and (3) financing the costs of capital improvements and remodeling to the following residential facilities serving developmentally disabled persons: (a) 4-bed facility located at 323 90th Avenue West, Duluth, Minnesota; (b) 6-bed facility located at 1530 East 2nd Street, Duluth, Minnesota; (c) 6-bed facility located at 1514 East 5th Street, Duluth, Minnesota; (d) 7-bed facility located at 204-206 South 21st Avenue East, Duluth, Minnesota; (e) 4-bed facility located at 5495 Marion Lane, Mountain Iron, Minnesota; (f) 3-bed facility located at 101 West Mankato Street, Duluth, Minnesota; (g) 4-bed facility located at 1410 Brainerd Avenue, Duluth, Minnesota; (h) 4-bed facility located at 430 West Faribault Street, Duluth, Minnesota; (i) 4-bed facility located at 552 Anderson Road, Duluth, Minnesota; (j) 2-bed facility located at 2920 Piedmont Avenue, Duluth, Minnesota; (k) 4-bed facility located at 4861 Glendale Street, Duluth, Minnesota; (l) 4-bed facility located at 4824 Daniels Road, Duluth, Minnesota; (m) 9-bed facility located at 420 East McCuen Street, Duluth, Minnesota; (n) 4-bed facility located at 8790 Arbor Lane, Mountain Iron, Minnesota; (o) 7-bed facility located at 4 North 59th Avenue West, Duluth, Minnesota; (p) 3-bed facility located at 5729 West 8th Street, Duluth, Minnesota; (q) 4-bed facility located at 320 West Winona Street, Duluth, Minnesota; (r) 3-bed facility located at 3715 West 5th Street, Duluth, Minnesota; (s) 4-bed facility located at 1819 Melrose Avenue, Duluth, Minnesota; (t) 4-bed facility located at 4357 Martin Road, Duluth, Minnesota; (u) 3-bed facility located at 2812 Triggs Avenue, Duluth, Minnesota; and (v) 3-bed facility located at 4130 West 8th Street, Duluth, Minnesota (the Project). The estimated total amount of the proposed revenue obligations will not exceed $1,600,000.

The obligations and the interest thereon shall be limited obligations of the Issuer and shall not be payable from nor charged upon any funds other than the revenue pledged to their payment, nor shall the Issuer be subject to any liability on them. No holder of the obligations shall ever have the right to compel any exercise of the taxing power of the Issuer to pay the obligations or the interest thereon, nor to enforce payment of them against any property of the Issuer except those projects, or portions thereof, mortgaged or otherwise encumbered.

A draft copy of the proposed Application to the Minnesota Department of Trade and Economic Development for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the office of the Administrator at City Hall, 8586 Enterprise Drive South, Mountain Iron, Minnesota, between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday, except legal holidays.

All persons interested may appear and be heard at the time and place set forth above or may submit written comments to the Administrator in advance of the hearing.

Dated: January 6, 2003.

CITY OF MOUNTAIN IRON

By /s/Craig J. Wainio 

Administrator

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