Minutes - 2017/02/27 - Laserfiche WebLink

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Mounds View City Council February 27, 2017 Regular Meeting Page 2 the North Suburban Hospital District. He stated he was also seeking direction on how the funds should be distributed. Council Member Meehlhause asked if all five cities had to approve the dissolution. Mr. Lepak explained that the hospital board only needed approval from one city to dissolve but he was seeking input from all five cities. Council Member Meehlhause stated he was troubled by the fact that input was not sought from the member cities prior to seeking dissolution. Mr. Lepak reported the hospital board made a determination to go out of business and after this determination was made, it went to the member cities. Mayor Mueller questioned if the North Suburban Hospital Board knew of Allina’s plans to merge to two campuses under one umbrella. Gerald Maeckelberg, Hospital Board Chair, explained Allina attended several meetings in late December of 2016 where their intentions were shared. He understood people within the community were excited for the changes that would occur at Unity Hospital. He appreciated the investment that Allina had made in the hospitals and believed that the community would receive a better level of care from the two campuses. Mayor Mueller expressed frustration with the fact that Allina had not informed the member cities of their plans prior to last December. Council Member Meehlhause commented on the conduit bonds that were financed through the City for the hospital. He inquired if Allina could purchase the hospital for $1. Mr. Maeckelberg reported this was not the case. He discussed the bonds that would need to be assumed in order for Allina to purchase the hospital. Mr. Lepak provided further comment on the original bonds that were used to construct the hospital and who covered the payments. Council Member Meehlhause questioned the amount or value of hospital assets that would have to be disbursed amongst the member cities. Mr. Lepak estimated the hospital district had $1.2 million in cash with additional assets in land. Further discussion ensued regarding the distribution of the assets. Council Member Meehlhause stated he was in favor of the assets being distributed based on the total tax collection from each City since 1960. He believed this would be the most fair option as it would take into consideration the size of Blaine back in the 1960’s. He inquired how the hospital district would make a determination on how to distribute the assets. Mr. Lepak explained the board was taking comments from the member cities and would make a final decision. Council Member Meehlhause asked what city Chair Maeckelberg represented. Chair Maeckelberg explained he represented the City of Fridley.