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NOTICE OF PUBLIC HEARING ON PROPOSED PROJECTS AND THE ISSUANCE OF PRIVATE ACTIVITY BONDS TO FINANCE HEALTH CARE FACILITIES DULUTH ECONOMIC DEVELOPMENT AUTHORITY, ST.

NOTICE OF PUBLIC HEARING ON PROPOSED PROJECTS AND THE ISSUANCE OF PRIVATE
ACTIVITY BONDS TO FINANCE HEALTH CARE FACILITIES
DULUTH ECONOMIC
DEVELOPMENT AUTHORITY,
ST. LOUIS COUNTY,
MINNESOTA
Notice is hereby given that the Board of Commissioners of the Duluth Economic Development Authority (the "Issuer") will meet on Wednesday, July 28, 2021 at 5:15 p.m., or as soon thereafter as reasonably possible, in the Duluth City Council Chambers at City Hall, 411 West First Street, in Duluth, Minnesota, to conduct a public hearing on a proposal that the Issuer issue its revenue obligations, in one or more series, under Minnesota Statues, Sections 469.152 through 469.1655, in order to undertake and finance and refinance the cost of the proposed projects described below (the "Projects").
Each of the Projects will be owned and operated by St. Luke's Hospital of Duluth (the "Borrower"), or its affiliate, Lake View Memorial Hospital, Inc. ("Lake View"). Each of the Borrower and Lake View is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code").
The Projects will consist of:
(a) currently refunding the outstanding principal amount of the Issuer's Health Care Facilities Revenue Bonds (St. Luke's Hospital of Duluth Obligated Group) Series 2012 (the "2012 Bonds"), which were issued on or about October 10, 2012, in the initial aggregate principal amount of $81,595,000, the proceeds of which were used to (i) finance the acquisition of certain real property and the acquisition, design, construction, equipping and furnishing of certain capital improvements to the facilities of the Borrower, generally located at 915 East 1st Street, and encompassing a majority of the property bounded by East Superior Street, North 9th Avenue East, East Third Street, and North 12th Avenue East (the "St. Luke's Campus Facilities"); (ii) currently refund the Issuer's Health Care Facilities Revenue Bonds (St. Luke's Hospital of Duluth Obligated Group), Series 2002, the proceeds of which were used to (1) finance the acquisition, design, construction, equipping and furnishing of certain capital improvements to the St. Luke's Campus Facilities; (2) refund certain revenue bonds of the Issuer, the proceeds of which financed or refinanced the acquisition, design, construction, equipping and furnishing of certain capital improvements to the St. Luke's Campus Facilities; (iii) fund a deposit to a debt service reserve fund for the 2012 Bonds; and (iv) pay costs of issuing the 2012 Bonds;
(b) currently refunding the City of Two Harbors Health Care Facilities Revenue Note (Lake View Memorial Hospital Project), Series 2003 (the "2003 Lake View Note"), which was issued on or about August 25, 2003, in the initial aggregate principal amount of $6,000,000, the proceeds of which were used to (i) finance the acquisition, design, construction, equipping and furnishing of certain capital improvements to the facilities of Lake View, generally located at 1010 Fourth Street and 325 11th Avenue, in Two Harbors, Minnesota (the "Lake View Facilities"); (ii) currently refund the City of Two Harbors Health Care Facilities Revenue Bonds, Series 2002 (Lake View Memorial Hospital Project), Series 2002, which were issued on or about March 1, 2002, in the initial aggregate principal amount of $4,600,000, the proceeds of which were used to (1) construct and equip an addition to the Lake View Facilities of approximately 13,300 square feet, (2) renovate and remodel approximately 14,000 square feet of the Lake View Facilities; and (3) refinance prior indebtedness, the proceeds of which were used to finance certain capital improvements to the Lake View Facilities; (iii) currently refund a line of credit, the proceeds of which were used for the acquisition, design, construction, equipping and furnishing of certain capital improvements to the Lake View Facilities; and (iv) pay costs of issuing the 2003 Lake View Note;
(c) currently refunding a taxable loan which was made on or around September 23, 2014 to the Borrower from General Electric Capital Corporation, in the initial aggregate principal amount of $9,975,000, the proceeds of which were used to finance the design, construction, build out, furnishing and equipping of the surgery department of the Borrower in a medical office building located at 1012 East 2nd Street, in Duluth, Minnesota, and a generator to service the space used by the Borrower in such building (collectively, the "2014 Project"); and
(d) currently refunding a taxable loan which was made on or around July 28, 2016 to the Borrower from North Shore Bank of Commerce, in the initial aggregate principal amount of $4,800,000, the proceeds of which were used to finance the design, acquisition, construction, furnishing and equipping of a new medical clinic of approximately 20,275 square feet located at 4190 Loberg Avenue, in Duluth Minnesota (collectively, the "2016 Project").
Costs of issuing the proposed revenue obligations will also be financed, if deemed necessary or desirable by the Borrower. The estimated total amount of the proposed revenue obligations will not exceed $90,000,000. The proposed revenue obligations will be qualified 501(c)(3) bonds, as defined in Section 145 of the Code.
The proposed 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 on 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 Employment and Economic Development for approval of the 2014 Project and the 2016 Project, together with all attachments and exhibits thereto, is available for public inspection at the office of the Executive Director at 411 West First Street, Room 402, Duluth, 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 Executive Director in advance of the hearing.
(July 14, 2021) 2896540