Notice of Public HearingPublic Notice is hereby given that the City Council of the City of Luverne, Minnesota (the "City"), will meet on August 10, 2004, at 5:00 p.m., at the Municipal Building Council Chambers, 203 Main Street, in Luverne, Minnesota, for the purpose of conducting a public hearing on a proposal that the South Dakota Health and Educational Facilities Authority (the "Issuer") issue bonds in an aggregate principal amount not to exceed $78,000,000 (the "Bonds") for Sioux Valley Hospital and Sioux Valley Regional Health Services, each a South Dakota nonprofit corporation, or any corporate affiliate thereof (collectively, the "Borrowers"). The Bonds will be issued in one or more series pursuant to Sections 1-16A-1 through 1-16A-92 of the South Dakota Codified Laws, as part of a plan of finance to provide the Borrowers with moneys for projects located in the States of South Dakota and Minnesota. Public approval by the State of South Dakota will be obtained following a public notice and public hearing regarding the Bonds and the projects financed in the State of South Dakota. In Minnesota, proceeds of the Bonds will be used, together with certain other moneys, to pay or reimburse the Borrowers for the payment of the costs of acquiring, constructing, remodeling, renovating and equipping replacement facilities for Luverne Community Hospital, including an 82,000 square foot 28-bed hospital with expanded surgical and rehabilitation areas and updated medical and obstetrics space and an attached 17,000 square foot physician clinic, and the acquisition and installation of equipment therein, including necessary and attendant land acquisition, facilities, equipment, site work and utilities thereto (collectively, the "Project"). In addition, a portion of the proceeds of the Bonds will be applied to pay expenses incurred in connection with the issuance of the Bonds including, if deemed necessary, bond insurance premiums and/or liquidity or credit facility provider fees, a deposit to a debt service reserve fund and capitalized interest and related working capital. All of the improvements financed or refinanced by the Bonds in Minnesota are or will be initially owned, operated or managed by Sioux Valley Regional Health Services at: 1600 North Kniss Avenue, Luverne, Minnesota. The Bonds shall not be deemed to constitute a debt or liability of the City, the State of Minnesota, the State of South Dakota or of any political subdivision thereof other than the Issuer or a pledge of the faith and credit of the City, the State of Minnesota, the State of South Dakota or of any such political subdivision other than the Issuer, and neither the City, the State of Minnesota, the State of South Dakota nor any political subdivision thereof will be liable on the Bonds nor will the Bonds be payable out of any funds other than those pledged and assigned under the Loan Agreement between the Issuer and the Borrowers and the Master Trust Indenture among the Borrowers, certain affiliates of the Borrowers and the First National Bank in Sioux Falls, Sioux Falls, South Dakota, as master trustee, as amended. The Bonds will not be issued by the City, nor will the City have any liability with respect to the Bonds. The public hearing is required by Section 147(f) of the Internal Revenue Code of 1986. Written comments may be submitted to Greg La Fond, City Administrator of the City of Luverne, Minnesota at his office located at 203 Main Street, Luverne, Minnesota 56156, until August 10, 2004. Immediately following the public hearing, the City Council will meet to consider approval of the issuance of the Bonds. Notice dated: July 22, 2004(7-29)