Agreement allows RiverView to access City of Crookston’s tax-exempt status, Arvidson says
After holding a required public hearing, the Crookston City Council this week approved a resolution clearing the way for the City to issue and sell revenue bonds that will finance RiverView Health’s estimated $48 million construction project at its Crookston campus.
RiverView Chief Financial Officer Betty Arvidson said the agreement makes it possible for RiverView to access the City’s tax-exempt status.
While acknowledging that he doesn’t understand the nuances involved with issuing and selling various types of bonds for large projects, At Large Council Member Tom Vedbraaten expressed concern that if the City agreed to issue and sell the RiverView bonds it would tie the City’s hands if it needed to issue bonds for any of its own projects, especially if the need to pops up unexpectedly.
“That’s a lot of money that could tie us up,” Vedbraaten said of RiverView Healthcare Association’s request. “…If another project comes up, can we still bond for it? …It’s a great project, don’t get me wrong on that. But we have other irons on the fire. If we need funds can we get funds?”
Arvidson said she’d had discussions with City Administrator Shannon Stassen and City Finance Director Angel Weasner and confirmed that the City was not anticipating the need to bond for anything for the remainder of 2019. Once the calendar turns to 2020, Weasner explained, the City wouldn’t face any potential hindrances in the way of potentially bonding for any of its own projects.