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St. Paul HRA approves up-to $300 million conduit bond refinancing for HealthPartners projects
Summary
The St. Paul Housing and Redevelopment Authority voted 5-0 to authorize issuance of conduit revenue bonds of up to $300 million to refinance prior bonds for HealthPartners’ obligated group, including about $114 million attributable to Regions Hospital; the bonds are limited obligations of the HRA and not backed by the city’s taxing power.
The St. Paul Housing and Redevelopment Authority on Monday voted 5-0 to authorize issuance of conduit revenue bonds of up to $300 million to refinance prior bonds for the HealthPartners obligated group, including approximately $114 million attributable to Regions Hospital.
The measure, introduced as a resolution authorizing conduit revenue bonds under Minnesota Statutes section 469.152 through 469.1655, was described by staff as a refinancing of bonds the HRA previously issued in 2015 (which themselves had refinanced 2006 bonds used to complete a major renovation of Regions Hospital). Director Newton said the bonds would be “repayable solely from the revenues of HealthPartners and Regions Hospital” and “do not include a general or moral obligation of the city or HRA and are not secured by any of our taxing powers.”
The HRA noted the remainder of the issuance would relate to a Park Nicollet project in St. Louis Park. Staff told commissioners the HRA receives issuance fees and expects fee revenue associated with the new series to increase by about $61,000. Penny Cermak, chief financial officer with HealthPartners, attended the meeting on behalf of the obligated group.
Chair Johnson opened the item to questions; seeing none, Commissioner Naker moved approval and the HRA adopted the resolution by a 5-0 vote.
Because these are conduit revenue bonds, the HRA’s action authorizes the issuance and related documents; repayment will rely on HealthPartners’ revenues and not on HRA or city general taxing authority. Staff recommended approval and the board approved the resolution.
The HRA’s authorization follows the statutory framework cited in the staff report and will permit closing and issuance under terms negotiated by HealthPartners and its financing team, subject to the documents returned to HRA staff for signature.
No additional conditions or amendments were recorded in the meeting minutes.
