(a) The county, city, or hospital district may lease hospital or nursing home facilities to be run by a nonprofit or public corporation as a community hospital or nursing home. The facilities must be open to all residents of the community on equal terms.
(b) The city, county, or district may lease related medical facilities to any person, firm, association, or corporation, at rent and on conditions agreed.
(c) The term of the lease must not exceed 30 years. The lessee may be granted an option to renew the lease for an additional term or to purchase the facilities. The terms of renewal or purchase must be provided for in the lease.
(d) The county, city, or hospital district may by resolution of its governing body agree to pay to the lessee annually, and to include in each annual budget and tax levy for hospital and nursing home purposes, a fixed compensation for services agreed to be performed by the lessee in running the hospital or nursing home as a community facility; for any investment by the lessee of its own funds or funds granted or contributed to it in the construction or equipment of the hospital or nursing home; and for any auxiliary services to be provided or made available by the lessee through other facilities owned or operated by it. Services other than those provided for in the lease agreement may be compensated at rates agreed upon later. The lease agreement must, however, require the lessee to pay a net rental not less than the amount required to pay the principal and interest when due on all revenue bonds issued by the county, city, or hospital district to acquire, improve, and refinance the leased facilities, and to maintain the agreed revenue bond reserve. The lease agreement must not grant the lessee an option to purchase the facilities at a price less than the amount of the bonds issued and interest accrued on them, except bonds and accrued interest paid from the net rentals before the option is exercised.
(e) To the extent that the facilities are leased under this section for use by persons in private medical or dental or similar practice or other private business, a tax on that use must be imposed just as though the user were the owner of the space. It must be collected as provided in section 272.01, subdivision 2.
1971 c 844 s 3; 1973 c 123 art 5 s 7; 1978 c 609 s 3; 1987 c 229 art 10 s 1
Structure Minnesota Statutes
Chapters 447 - 450 — Municipal Welfare, Recreation
Chapter 447 — Hospitals, Welfare Activities
Section 447.04 — Charity Bureau.
Section 447.045 — Liquor Dispensary Fund, Community Hospital Appropriation.
Section 447.05 — Hospitals; Charter Cities Of The Third Or Fourth Class.
Section 447.06 — Acquisition Of Sites And Property.
Section 447.10 — Tax Levy For Operating And Maintaining Hospital.
Section 447.11 — Special Fund.
Section 447.13 — Power Granted Additional To Existing Powers.
Section 447.14 — Gifts For Free Medical Dispensaries, Public Libraries.
Section 447.15 — Administration Of Trust; Designation Of Trustees.
Section 447.31 — Creation And Reorganization Of Hospital Districts.
Section 447.32 — Officers And Elections.
Section 447.331 — Student Loan; Medical School, Health-field Program.
Section 447.34 — Payment Of Expenses; Taxation.
Section 447.345 — Temporary Borrowing Authority.
Section 447.36 — Annexation Of Territory.
Section 447.37 — Powers Supplementary.
Section 447.38 — Dissolution: Detachment Of Territory.
Section 447.41 — Establishment And Operation; Withdrawal.
Section 447.42 — Community House; Developmental Disabilities.
Section 447.45 — Bonds For Hospital, Nursing Home, Related Facilities.
Section 447.46 — Revenue Pledged.
Section 447.47 — Leasing Out Hospital, Nursing Home, Related Facilities.
Section 447.48 — Security For Bonds; Pledge Of Credit For Bonds.