Res 2016-78 Dissolution of NSHD
CITY OF FRIDLEY
ANOKA COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2016 - 78
A RESOLUTION OF PETITION FOR DISSOLUTION OF THE
NORTH SUBURBAN HOSPITAL DISTRICT
WHEREAS, the City of Fridley is part of the North Suburban Hospital District
(hereinafter referred to as the Hospital District); and
WHEREAS, the Hospital District is comprised of the cities of Blaine, Fridley, Hilltop,
Mounds View and Spring Lake Park; and
WHEREAS, the Hospital District has been in existence for over 50 years with a focus on
initially building and then providing funding for the physical improvements of Unity Hospital;
and
WHEREAS, Allina Health has indicated that it is moving forward with operating the
Unity campus under the Mercy Hospital license while not renewing the Unity Hospital license,
and intends to provide service under a “One Hospital, Two Campuses” approach; and
WHEREAS, as a result of the Allina Health decision to consolidate services from Unity
Hospital to Mercy Hospital, it will result in a less than a comprehensive stand alone community
hospital at the newly reorganized “Mercy Hospital – Unity Campus”’ and
WHEREAS, the currently planned service offering at “Mercy Hospital – Unity Campus”
will no longer meet or fulfill the Hospital District’s public purpose to provide a wide range of
hospital related medical services at Unity Hospital focused on citizens of the five cities
comprising the Hospital District, including the residents of the City of Fridley; and
WHEREAS, on September 14, 2016, the Hospital District’s Board unanimously
approved a resolution stating its intention to seek dissolution of the District; and
WHEREAS, the resolution of intention to seek dissolution made the finding that the
conditions for the creation and continued operation of the Hospital District no longer exist; and
WHEREAS, the Hospital District has stated it will not be able to provide tax based
funding for necessary improvements to Allina Health under the combined health services
approach noted as “Mercy Hospital – Unity Campus”; and
WHEREAS, the Hospital District determined it can no longer provide funding for
“Mercy Hospital – Unity Campus”, it is the determination of the City of Fridley to petition for
dissolution of the Hospital District under Minnesota Statute 447.38.
Resolution No. 2016-78 Page 2
NOW THEREFORE BE IT RESOLVED THAT THE CITY OF FRIDLEY HEREBY
PETITIONS THE NORTH SUBURBAN HOSPITAL DISTRICT AS FOLLOWS:
1.Based upon the findings in the aforementioned recitals and findings herein, it is the
determination of the City of Fridley that the conditions for the creation and continued operation
of the North Suburban Hospital District no longer exists.
2.The City of Fridley formally petitions, directs and requests that the District Board and
their staff proceed with the requirements of dissolution of the North Suburban Hospital District.
3.The City of Fridley proposes, pursuant to the requirements of Minnesota Statute 447.38
Subdivision 1, that all funds distributed back to the member cities - upon the final disposition of
all outstanding indebtedness, payment of all claims, and sale or transfer of all real and personal
property owned by the Hospital District – shall be divided by the County Auditor based upon the
following factors:
A.70% - population – reflecting the number of people impacted.
B.27% - market value – reflecting the basis for taxation
C.3% - payment in lieu of taxes representing Fridley’s cost to provide the hospital
with public safety services.
4.The City Clerk is directed to transmit a certified copy of this petition for dissolution to
the Board of the North Suburban Hospital District.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
TH
27 DAY OF DECEMBER, 2016.
_________________________________
SCOTT J. LUND – MAYOR
ATTEST:
_________________________________
DEBRA A. SKOGEN – CITY CLERK