United Hospital District

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 17, 2016 NEW ISSUE -- BOOK-ENTRY ONLY RATING: Series 2016A Notes: Moody’s MIG-1 Series 2016B Notes: Moody’s MIG-1 See “RATINGS” herein In the opinion of the Bond Counsel, according to laws, regulations, rulings and decisions in effect on the date of delivery of the Series 2016 Notes, interest on the Series 2016 Notes is not includable in gross income for federal income tax purposes or in taxable net income of individuals, estates or trusts for State of Minnesota income tax purposes. Interest on the Series 2016 Notes is not an item of tax preference for purposes of determining the federal alternative minimum tax imposed on individuals or for purposes of determining the Minnesota alternative minimum tax imposed on individuals, estates or trusts. Interest on the Series 2016 Notes is subject to the Minnesota franchise tax imposed on corporations and financial institutions and is includable in adjusted current earnings for purposes of the federal and Minnesota alternative minimum taxes imposed on corporations. See “TAX EXEMPTION AND RELATED CONSIDERATIONS” herein. $22,090,000* $22,085,000* UNITED HOSPITAL DISTRICT UNITED HOSPITAL DISTRICT TODD, MORRISON, CASS AND WADENA COUNTIES, TODD, MORRISON, CASS AND WADENA COUNTIES, MINNESOTA MINNESOTA Health Care Facilities General Obligation Health Care Facilities Revenue Bond Anticipation Notes Refunding Revenue Bond Anticipation Notes (Lakewood Health System), Series 2016A (Lakewood Health System), Series 2016B CUSIP # ________ CUSIP # ________ Interest Rate ____% Interest Rate ____% Price ____% Price ____% The $22,090,000* Health Care Facilities Revenue Bond Anticipation Notes (Lakewood Health System), Series 2016A (the “Series 2016A Notes”) and the $22,085,000* General Obligation Health Care Facilities Refunding Revenue Bond Anticipation Notes (Lakewood Health System), Series 2016B (the “Series 2016B Notes” and, together with the Series 2016A Notes, the “Series 2016 Notes”) are issuable only as fully registered notes without coupons, and when issued will be registered in the name of Cede & Co., as Noteholder and nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Series 2016 Notes. Purchases of the Series 2016 Notes will be made in book entry form, in the denominations of $100,000 or integral multiples of $5,000 in excess thereof. Purchasers of the Series 2016 Notes will not receive certificates representing their interest in the Series 2016 Notes purchased. See “THE SERIES 2016 NOTES -- Book- Entry Only System herein.” Principal of, premium, if any, and interest on the Series 2016 Notes will be paid by The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), as trustee under the Indenture of Trust dated as November 1, 2016 (the “Indenture”) between the Trustee and United Hospital District (the “District”). So long as DTC or its mstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an nominee, Cede & Co., is the Noteholder, such payments will be made directly to such Noteholder, and disbursal of such payments to the Beneficial Owners is the responsibility of the DTC Participants as more fully described herein. Neither the District nor the Trustee will have any responsibility or obligation to such DTC Participants, indirect participants or the persons for whom they act as nominee with respect to the Series 2016 Notes. Interest on the Series 2016 Notes will be payable on June 1, 2017* and semiannually thereafter on each June 1 and December 1, in each case until the respective maturity or earlier redemption thereof at the applicable rates be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. set forth above. THE SERIES 2016 NOTES INVOLVE RISK, INCLUDING, AMONG OTHERS, THOSE DESCRIBED UNDER THE HEADING “NOTEHOLDERS’ RISKS” HEREIN. NO PROSPECTIVE PURCHASER OF THE SERIES 2016 NOTES SHOULD MAKE A DECISION TO PURCHASE ANY SERIES 2016 NOTES WITHOUT FIRST READING AND CONSIDERING THE ENTIRE OFFICIAL STATEMENT, INCLUDING WITHOUT LIMITATION THE SECTION ENTITIED “NOTEHOLDERS’ RISKS” HEREIN. THE SERIES 2016A NOTES ARE SPECIAL LIMITED OBLIGATIONS OF THE DISTRICT, PAYABLE FROM USDA DIRECT LOAN PROCEEDS (DEFINED HEREIN), FROM THE PLEDGED FUNDS AND ACCOUNTS (OTHER THAN THE REBATE FUND AND THE SERIES 2016B TAX LEVY ACCOUNT) ESTABLISHED UNDER THE INDENTURE, FROM NET REVENUES (DEFINED HEREIN) AND FROM OTHER MORTGAGED PROPERTY AND COLLATERAL (AS EACH IS DEFINED HEREIN) ON A PARITY WITH THE OTHER PARITY OBLIGATIONS (DEFINED HEREIN), ALL AS FURTHER DESCRIBED HEREIN. THE SERIES 2016A NOTES ARE NOT PAYABLE IN ANY MANNER BY TAXATION, DO NOT CONSTITUTE A GENERAL OR MORAL OBLIGATION OF THE DISTRICT AND ARE NOT PAYABLE FROM OR SECURED BY ANY OTHER FUNDS OR PROPERTY OF THE DISTRICT. THE SERIES 2016B NOTES ARE GENERAL OBLIGATIONS OF THE DISTRICT PAYABLE PRIMARILY FROM USDA DIRECT LOAN PROCEEDS, NET REVENUES ON A SUBORDINATE BASIS TO THE NET REVENUES PLEDGED TO THE PARITY OBLIGATIONS BUT ON A PARITY WITH THE PLEDGE OF NET REVENUES TO THE SERIES 2016 BONDS AND ANY OTHER SUBORDINATE OBLIGATIONS (AS EACH IS DEFINED HEREIN) AND CERTAIN PLEDGED FUNDS AND ACCOUNTS HELD BY THE TRUSTEE UNDER THE INDENTURE, AND, IF NECESSARY, THE PROCEEDS OF FUTURE GENERAL OBLIGATION BONDS OR NOTES PAYABLE FROM AD VALOREM TAXES LEVIED UPON ALL TAXABLE PROPERTY OF THE DISTRICT WITHOUT LIMITATION AS TO RATE OR AMOUNT. See “SECURITY FOR THE SERIES 2016 NOTES” herein for additional information. The Series 2016 Notes are subject to optional redemption prior to maturity. See “DESCRIPTION OF THE SERIES 2016 NOTES” herein for additional information. The Series 2016 Notes are offered when, as and if issued by the District and received by Raymond James & Associates, Inc. (the “Underwriter”), subject to prior sale, to withdrawal or modification of the offer without any notice and subject to the approval of legality of the Series 2016 Notes by Faegre Baker Daniels LLP, Minneapolis, Minnesota, Bond Counsel. Certain legal matters will be passed on for the Underwriter by its counsel, Dorsey & Whitney LLP, Des Moines, Iowa and for the District and Lakewood Health System by their counsel, Fredrikson & Byron, P.A., Minneapolis, Minnesota. The Underwriter intends, but is not obligated, to make a market in the Series 2016 Notes. No assurance can be given that a secondary market will develop for the Series 2016 Notes. For details of the Underwriter’s compensation, see “UNDERWRITING” herein. It is expected that the Series 2016 Notes in definitive form will be available for delivery through the facilities of DTC in New York, New York, on or about November 15, 2016. RAYMOND JAMES This Official Statement dated ___________, 2016. offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would would or sale such offer, solicitation in which in jurisdiction any of be any the there sale securities nor shall offer to buy This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circu no Under or amendment. to completion are subject herein contained information the and Statement Official This Preliminary * Preliminary, subject to change. No dealer, broker, salesman or other person has been authorized by the District, Lakewood or the Underwriter to give any information or to make any representations with respect to the Series 2016 Notes, other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale hereunder implies that there has been no change in the matters described herein since the date hereof. The information set forth herein has been obtained from the District, Lakewood, USDA and from other sources which are believed to be reliable. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. THE SERIES 2016 NOTES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON THE EXEMPTION CONTAINED IN SECTION 3(a)(2) OF SUCH ACT. THE REGISTRATION OR QUALIFICATION OF THESE SECURITIES IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF THE JURISDICTIONS IN WHICH THEY HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER JURISDICTIONS SHALL NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE SECURITIES OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE BORROWER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.

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