Item Description:
title
Loan to Hennepin Healthcare Systems, Inc. for capital medical equipment purchases
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Resolution:
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BE IT RESOLVED, pursuant to Minnesota Statutes, Section 383B.916, the County Administrator is authorized to negotiate and finalize a loan agreement with Hennepin Healthcare System, Inc. (HHS) for the purchase of capital equipment in the initial amount of $10,000,000 and with a five-year term; and
BE IT FURTHER RESOLVED, that the County Administrator is delegated the authority to increase the loan from the initial amount up to $15,000,000, after considering loan repayment performance and the overall financial condition of HHS; and
BE IT FURTHER RESOLVED, that the County Administrator is delegated the authority to extend the duration of the term of the loan, after considering loan repayment performance and the overall financial condition of HHS, with a new amortization period not to exceed five years; and
BE IT FURTHER RESOLVED, that following review and approval by the County Attorney's Office, the County Administrator be authorized to sign the agreement on the behalf of the county, that the controller be authorized to disburse funds as directed and that the approval of this loan agreement by the Hennepin County Board of Commissioners does not imply any continued lending agreements, disbursements, extensions or modifications of loans for this purpose.
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Background:
Minn. Stat. ? 383B.916 permits the county to finance capital improvements or equipment for Hennepin Healthcare System (HHS), which is a subsidiary of the County. On April 16, 2025, the interim CEO and CFO for HHS together made a formal request to the county for a loan to purchase capital medical equipment for HHS.
The county will enter into a formal loan agreement with HHS for a term of 5 years to lend cash from the general fund at an interest rate of about 4.0%. That interest rate represents an approximation of what the County would otherwise earn in investment...
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