- Tri County Health Care Financing Request – Notice of Public Hearing WRS 10-09-2019 (download this notice)
NOTICE OF PUBLIC HEARING ON PROPOSED PROJECT AND THE ISSUANCE OF PRIVATE ACTIVITY BONDS
OTTER TAIL COUNTY, MINNESOTA
Notice is hereby given that the Board of Commissioners of Otter Tail County, Minnesota (the “County”) will meet on Tuesday, November 5, 2019, at 10:00 a.m., or as soon thereafter as reasonably possible in the Commissioners’ Room, of the Government Services Center, which is located at 515 Fir Ave W. in Fergus Falls, Minnesota, for the purpose of conducting a public hearing to consider giving host approval to the issuance by the City of Bertha, Minnesota (the “Issuer”) of revenue obligations, in one or more series, under Minnesota Statutes, Sections 469.152 through 469.1655 (the “Act”), in order to finance the cost of a project and refinance existing projects (together, the “Projects”) located in the County and the City of Wadena, Minnesota (the “City”). Each of the Projects will be owned and operated by Tri-County Hospital, d/b/a Tri-County Health Care (the “Borrower”), a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
The proposed project (the “2019 Project”) will consist of financing (a) the acquisition of land, constructing and equipping an approximately 120,000 square foot replacement critical access hospital and clinic facilities to be located at 63835 Highway 10 in Otter Tail County adjacent to the City (the “New Facilities”); (b) related renovations to the existing hospital and clinic facilities located at 415 Jefferson St N and 4 Deerwood Avenue NW, within the City of Wadena, Minnesota (the “Existing Facilities”); (c) financing capitalized interest; and (d) paying costs associated with the financing. The New Facilities will be owned and operated by the Borrower in conjunction with the Existing Facilities.
The Projects are located in the jurisdiction of the City and the County (together, the County, the Issuer and the City are referred to as the “Host Municipalities”). The total amount of the obligations to be issued presently being estimated at not to exceed $81,000,000.
The obligations and interest thereon shall not be payable from nor charged against any funds of the Host Municipalities other than revenue pledged for the payment thereof, nor shall the Host Municipalities 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 Host Municipalities to pay the obligations or the interest thereon, nor to enforce payment against any property of the Host Municipalities. Such obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Host Municipalities, nor shall the same constitute a debt of the Host Municipalities within the meaning of any constitutional or statutory limitations.
In conjunction with the refinance of existing projects, the Issuer has been requested by the Borrower to refund the following obligations (a) the Issuer’s $1,743,638 Health Care Facilities Revenue Note, Series 2017A (Tri-County Health Care Project); (b) the Issuer’s $5,456,362 Health Care Facilities Revenue Note, Series 2017B; (c) the City of Verndale, Minnesota $1,743,638 Health Care Facilities Revenue Note, Series 2017A; and (d) the City of Verndale, Minnesota $5,456,362 Health Care Facilities Revenue Note, Series 2017B (together the “Series 2017 Notes”).
The proceeds of the Series 2017 Notes were used to finance and refinance capital expenditures at the Existing Facilities, as follows: (a) constructing and equipping a portion of a 30,000 square foot expansion and remodel of the existing hospital, affecting emergency room services, surgery, lab, radiology, medical records, dietary, materials management, business office and physical therapy; (b)(i) constructing and equipping a rural health clinic located at 214 First Street NW, Bertha, Minnesota; (ii) constructing and equipping a 2,200 square foot expansion, remodeling and other improvements to the Wadena Clinic, located at 415 Jefferson Street North and 4 Deerwood Avenue NW in the City; and (iii) a remodel of the existing hospital affecting pharmacy, registration, gift shop and administration; and (c) constructing of a one-story slab on grade, free standing, approximately 17,563 square foot building and related improvements located adjacent to 240 Shady Lane Drive in the City to be used as a 16-bed short term community based residential treatment facility for persons in acute psychiatric status.
All persons interested may appear and be heard at the time and place set forth above or may submit written comments to the Clerk of the Board of Commissioners in advance of the hearing. Written comments should be submitted to the County Administrator’s office, 520 Fir Ave W., Fergus Falls, MN Fergus Falls, MN 56537. Individuals requiring special accommodations should contact the County Administrator’s office prior to the date of the public hearing.