Resolution 12-99 Calling a Hearing
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 Council of the City of Mountain Iron, St. Louis County, Minnesota (the “City”), as follows:
1. Authority. Minnesota Statutes Sections 469.152 through 469.165, as amended (the “Act”), authorizes a city to issue revenue bonds or a revenue note to finance or refinance 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 (the “Developer”), have advised the City that the Developer desires to refinance debt incurred by the Developer for the acquisition and betterment of real and personal property, all with respect to South Grove, a 4-bed supervised living services facility for the developmentally disabled, located at 15 Arbor Lane, Mountain Iron, Minnesota (the “Mountain Iron Project”).
B. Such representatives further advise the City that the Developer also desires to finance other projects under the Act which are located in Aurora, Duluth, Two Harbors and Virginia, Minnesota, generally consisting of (a) financing the acquisition of a new facility; (b) refinancing debt incurred by the Developer with respect to the acquisition and betterment of real and personal property and (c) financing real property improvements (collectively, the “Project”).
3. Financing; Joint Powers Agreement.
A. The Developer desires to finance the Project, which includes the Mountain Iron Project, through the issuance of tax exempt revenue obligations by the City of Two Harbors, Minnesota. The Developer has requested that the City of Two Harbors, Minnesota, issue such obligations for the Project.
B. The Developer has further requested that the City and the Cities of Aurora, Duluth, Two Harbors and Virginia, Minnesota, cooperate, through a joint powers agreement, to finance the Project through the issuance of obligations pursuant to the Act.
4. Public Hearing.
A. As a portion of the Project is to be located within the City, the City will conduct a public hearing on 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.
B. Upon receipt of notice from the Developer that it has received a commitment to purchase the note or bonds, the City Administrator is authorized and directed to complete the public notice, substantially in the form attached hereto as Exhibit A, and cause the notice to be published in the official newspaper of the City and a newspaper of general circulation in the City 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 City is a newspaper of general circulation in the City, the notice may be published only once.
5. Rights Reserved. Nothing in this resolution shall be construed as an indication of an intent to approve this Project and issue the proposed note or bonds. The Council specifically reserves the right to approve or disapprove the request after said public hearing.
Adopted this 3rd day of May, 1999.
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 “City”) will meet on Monday, June 7, 1999, at 6:45 p.m. in the City Hall in Mountain Iron, Minnesota, for the purpose of conducting a public hearing on the proposal that the City approve the issuance by the City of Two Harbors, Minnesota of health care facilities revenue note or revenue bonds, in one or more series (the “Obligations”), under Minnesota Statutes, Sections 469.152 through 469.165 (the “Act”), in order to finance the cost of a project. The project will consist of refinancing the costs of acquisition and betterment of real and personal property, all with respect to South Grove, a 4-bed supervised living services facility for the developmentally disabled, located at 15 Arbor Lane, Mountain Iron, Minnesota, in the maximum amount of $103,000 (the “Project”) all on behalf of the owner, The Duluth Regional Care Center, Inc., a Minnesota nonprofit corporation (the “Corporation”). The Corporation has proposed combining the financing for the Project with the financing of other projects under the Act which are located in the Cities of Aurora, Duluth, Two Harbors and Virginia, Minnesota, with the total amount of the Obligations to be issued presently being estimated at not to exceed $1,926,000. The Obligations and interest thereon shall not be payable from nor charged against any funds of the City other than revenue pledged for the payment thereof, nor shall the City be subject to any liability thereon. No holders of the Obligations shall ever have the right to compel any exercise of the taxing power of the City to pay the Obligations or the interest thereon, nor to enforce payment against any property of the City. Such Obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, nor shall the same constitute a debt of the City within the meaning of any constitutional or statutory limitations.
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 City Administrator at the City Hall in Mountain Iron, Minnesota, between the hours of 7:30 a.m. and 4:00 p.m. Monday through Friday.
All persons interested may appear and be heard at the time and place set forth above.
Dated: May 3, 1999. CITY OF MOUNTAIN IRON, MINNESOTA
By /s/Craig Wainio