Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Allina Health System bond issuance: 800 E 28th St (RCA-2023-00377)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | April 18, 2023 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Bond | Passage of Resolution authorizing the issuance of up to $400 million in tax-exempt revenue bonds for Allina Health System for the construction of a surgical and critical care pavilion, related infrastructure, and renovations as part of the Abbott Northwestern Hospital Campus Revitalization Project located at 800 E 28th St and the potential refunding of outstanding bonds. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 9 | Midtown Phillips | 800 E 28th St, Minneapolis, MN |
Background Analysis
Abbott Northwestern Hospital has provided patient care in the Midtown Phillips Neighborhood for over 140 years. Allina Health is currently undergoing a multi-year project as part of its Abbott Northwestern Hospital Campus Revitalization Plan to improve critical infrastructure and replace old inefficient facilities with technologically advanced ones.
In 2021, the City issued $200 million in tax-exempt revenue bonds for the first phase of the Campus Revitalization Plan, which consisted of constructing a central utility plant and new parking facility to support future projects. With those projects nearing completion, Allina is preparing to build a new Surgical and Critical Care Pavilion in the middle of the campus. The existing hospital building was constructed in the mid-1900s with surgical rooms too small to accommodate modern surgical technologies limiting the types of surgical procedures performed at Abbott Northwestern. The demolition of the building and a four-story parking ramp will make room for a 575,000-square-foot, nine-story surgical and critical care pavilion. The tunnel and skyway connected pavilion will host thirty operating rooms with associated prep and recovery space, 192 inpatient beds, lobby, and room for future buildout.
Allina Health System is requesting the issuance of up to $400 million in tax-exempt revenue bonds to construct the surgical and critical care pavilion. As with any revenue bond issuance, the funds will come from bondholders purchasing the bonds, not City funds. As conduit revenue bonds, the borrower will be responsible for the repayment of the bonds, not the City. Construction would commence when bonds are issued, with planned completion in mid-2026.