Edina council grants host approval for Children’s Health Care revenue bonds; city not financially liable, staff says

The Edina City Council on Dec. 3 approved Resolution 2024‑114 granting “host approval” for revenue bonds to be issued by the City of Minneapolis and the City of Saint Paul Housing and Redevelopment Authority acting jointly on behalf of Children’s Health Care. The proposed issuance is not expected to exceed $221 million in aggregate; roughly $3 million of that amount would relate to facilities located in Edina.

City staff explained that Minnesota law requires host‑municipality approval for tax‑exempt bonds when bond proceeds will finance facilities inside a city. Finance staff and bond counsel told the council the approval is procedural and that the City of Edina will not be liable for the debt or have its credit counted against the borrowing entity. “There’s no risk,” bond counsel Julie Berger said during the hearing.

Brenda McCormick, chief financial officer for Children’s Health Care, described the project as primarily an investment in an updated electronic health‑records system and associated IT infrastructure located at the organization’s Edina business center. She said proceeds would finance eligible projects across the issuer’s service area, including Minneapolis, St. Paul and Minnetonka.

A member of the public asked what would happen if a host municipality withheld approval; bond counsel explained that, without host approval, Children’s could not spend tax‑exempt bond proceeds in that host city. Council member Risser recused herself from the resolution at the start of the item because of a family connection to Children’s Health Care; she returned to the dais after the matter concluded.

The council moved, seconded and adopted the resolution on the record without further amendment.