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 up to $15,000,000 and with a five-year term for repayment including interest; and
BE IT FURTHER RESOLVED, that the County Administrator is delegated the authority to increase the loan from the initial amount of up to $15,000,000 up to a new total amount of $20,000,000, 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 from the initial five-year term to an additional five-year term, after considering loan repayment performance and the overall financial condition of HHS; and
BE IT FURTHER RESOLVED, that following review and approval by the County Attorney's Office, the County Administrator is authorized to sign the agreement on behalf of the county, that the Controller is 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 or any other purpose;
BE IT FURTHER RESOLVED, that the County Board does not provide its approval, as required under Section 3.4 of the HHS Bylaws, for HHS to incur additional debt from any other source.
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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 me...
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