90-1263 � ����A�, � � �
� Council File � �O-/oi�i3
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Green Sheet ,� //
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA .��- ._,; ;
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Presented By "`�
Referred To Committee: Date
RESOLUTION APPROVING APPLICATION OF
CHARGO PRINTING, INC. FOR CLASSIFICATION
OF PROPERTY LOCATED IN THE SAINT PAUL
RIVERFRONT ENTERPRISE ZONE AS CLASS 4d
EMPLOYMENT PROPERTY
WHEREAS, Chargo Printing, Inc. (the "Company") f i led with the City Clerk an
� Application for ciassification of its property located in the northwesterly portlon
of Empire Builder Industrial Park as Employment Property pursuant to Minnesota
Statutes Sectlon 273. 1313 and the Saint Paul Riverfront Enterprise Zone Program (the
"Program"); and
WHEREAS, the new investment, tax classification, and State tax credits as set
forth in detail in the July 6, 1990, Staff Report wlll result in the creation of 10
new positions in Saint Paul with the acquisition and new construction on a 1 .9 acre
site in Empire Builder Industrial Park by Chargo Printing, Inc.; and
WHEREAS, there has been presented to and considered at this meeting a
Part i c i pat ion Agreement between the C i ty and the Company whereby the Company
covenants respecting the completion of property Improvements; and
WHEREAS, the City Clerk duly publ ished on June 19, 1990, in the Saint Paul
Legal Ledger, the officlal newspaper for the City a notice of public hearing before
the City Council upon the Company's Application; and
WHEREAS, Distrtct 7 Planning Counct I and District 6 Planning Counci I have
reviewed and recanmended approval of the Application; and
WF�REAS, the City Councll conducted a pubiic hearing on July 19, 1990, upon the
Appi lcation at which hearing opportunity was provided for the Appl icant, the County
Assessor, representatives of affected taxing authorities and any taxpayer of the
City or member of the publlc to present their views orally or in writing at or
before the hearing, and having duly considered the testimony and written views
presented at the hearing and the Application, staff report and draft Partictpation
Agreement; now therefore, be it
RESOLVED by the Council of the City of Saint Paul that it hereby determines
that the Application of Chargo Printing, Inc., the proper ty improvements, retained
and new Jobs and tax benefits proposed meet the obJectives of the Saint Paul
Riverfront Enterprise Zone Program.
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RESOLVED FURTHER that the City Council additionally finds and determines that
the construction of the new faci I ity (1 ) is reasonably I ikely to create new
employment in the City; (2) wili not have the effect of transferring existing
employment fr an one or more other cities within Minnesota; (3) will result in an
increase in market value of the employment property of $1 million whtch is .00014�
ot the market value of all taxable property in Saint Paul ; and (4) should not result
in the reduction of the assessed value of existing property within the City owned by
Applicant.
RESOLVED FURTHER that the Application and employment property reclassification
thereby proposed is hereby approved and the City Clerk is directed to transmit the
Application together with a certified copy of this resolution to the Commissioner of
Trade and Econcmic Development for consideration and final approval .
RESOLVED FURTHER that the Participation Agreement between the City and the
Ap p I i cant i s hereby ap proved, and the proper C i ty off i cers are author i zed to s i gn
the same on behaif of the City, and upon its signature by the Applicant to transmit
Attachment C of sald Agreement to the Canmissioner of Trade and Economic Development
for signature by the Commissioner or destgnee upon ftnal approvai of the
Application.
�Ye_as Navs Absent Requested by Department of:
s.mon
oswitz '�"- ��
on -,+
acca ee �—
ettman �— \,
c�n e �j
z son � BY� �''� �
Adopted by Council: Date JUL � g �ggp Form Approved by City Attorney
Adoption Certified by Council Secretary r'
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By: _.S�
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8y' k--�- Approved by Mayor for Submission to
Approved by Mayor: Date JU L 2 0 1990 Council
Ey:
< <i'.G.�,��°/�`�'� By; t / ,.�.C!,�".�
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. DUBIiSl��D ��L 2 81990
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED NOi _11114
� St. Paul Port Authority 7/6/90 GREfN SHEET
CONTACT PERSON&PHONE INITIAUDATE INITIAUDATE
�DEPARTMENT DIRECTOR �CITY COUNCIL
D$V1Ci M. StOk@3 ASSIGN �CITYATTORNEY �CITYCLERK
MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR gUDGET DIRECTOR FIN.8 MGT.SERVICES DIR.
ROUTING O �
eTUly 1.9, 1990 - Final Approval ORDER �MAYOR(OR ASSISTANT) �Council R
TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
Approval of City Council Resolution for classification of property lacated in the Riverfront
Enterprise Zone as Class 4d Employment Property.
Execution of the Participation Agreement with Chargo Printing, Inc.
RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_PLANNING COMMISSION _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department7
_CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
_STAFF
— YES NO
_ DISTRICT COURr _ 3. Does this person/firm possess a skill not normally possessed by any current city employee?
SUPPORTS WHICH COUNCIL OB.IECTIVE7 YES NO
Explaln all yes answers on separate sheet and attach to grosn sheet
Economic Development
INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why):
Enterprise Zone credits will be used to assist Chargo Printing in the construction of a new
facility in Empire Builder Industrial Park.
ADVANTAGES IF APPROVED:
The company presently has 30 employees and will create 10 new positions within the next
two years.
This project will increase the tax revenues generated in the Scattered Site Tax Increment
District, will result in a new facility on land that is currently unimproved and will allow
the company to continue to grow and expand in Saint Paul. '
DISADVANTAGES IFAPPROVED:
None
DISADVANTAGES IF NOT APPROVED:
The company may not proceed with the renovation and additions to the property and may
have to look elsewhere or potentially outside of the City to address their needs. -
TOTAL AMOUNT OF TRANSACTION s �i�5OO�QOO COST/REVENUE BUDGETEp(CIRCLE ONE) YES NO
FUNDING SOURCE P�vate Financing and State Tax CP���^Y NUMBER
FINANCIAL INFORMATION:(EXPLAIN)
r �
NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL �
MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225).
ROUTING ORDER:
Below are correct routings for the five most frequent rypes of documents:
CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept.Grants)
1. Outside Agency 1. Department Director
2. Department Director 2. City Attorney
3. City Attorney 3. Budget Director
4. Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. City Council
6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
7. Finance Accounting
ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION(all others,and Ordinances)
1. Activity Manager 1. Department Director
2. Department Accountant 2. City Attorney
3. Department Director 3. Mayor Assistant
4. Budget Director 4. City Council
5. Ciry Clerk
6. Chief Accountant, Finance a�d Management Services
ADMINISTRATIVE ORDERS(ail others)
1. Department Director
2. City Attorney
3. Finance and Management Services Director
4. Ciry Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flag
eaCh of these pagas.
ACTION REQUESTED
Descxibe what the projecVrequest seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
issue.Do not write complete sentences. Begin each item in your list with
a Verb.
RECOMMENDATIONS
Complete if the issue in question has been presented before any body,public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
Indicate which Council objective(s)your projecUrequest supports by listing
the key word(s) (HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET,SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
PERSONAL SERVICE CONTRACTS:
This information will be used to determine the city's liabiliry for workers compensation claims,taxes�and proper civil service hiring rules.
INITIATING PROBLEM, ISSUE, OPPORTUNITY
Explain the situation or conditions that created a need for your project
or request.
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by law/
charter or whether there are specific ways in which the City of Saint Paul
and its citizens will benefit from this projecUaction.
DISAOVANTAGES IF APPROVED
What negative effects or major changes to existing or past processes might
this project/request produce if it is passed(e.g.,traffic delays, noise,
tax increases or assessments)?To Whom?When? For how long?
DISADVANTAGES IF NOT APPROVED
What will be the negative consequences if the promised action is not
approved? Inabiliry to deliver service?Continued high traffic, noise,
accident rate?Loss of revenue?
FINANCIAL IMPACT
Although you must tailor the information you provide here to the issue you -
are addressing, in general you must answer two questions:How much is it
going to cost?Who is going to pay?
�., ' � %��
•� e � ORT - �� �a�3
� AUTHORITY
OF THE CITY OF ST. PAUL
� Memorandum
TO: Riverfront Developnent Task Force DATE July 6, 1990
FROM: D.M. Stokes��
SUBJECT: STAFF REPORT
C��P►RC�O PRII�IlJG► INC.
EL�TPERPRISE ZOl� APPLICATION
A. PROPOSID EMIPI,,OYMENr PROPERTY
Chargo Printing Inc. proposes that approximately 82,764 sq.ft. (1.9 acres) of
land be acquired fran the Port Authority of the City of Saint Paul in Em�ire
Builder Industrial Park be determined eligible for reclassification as employ-
ment property through the City's Riverfront Ehterprise Zane program. The
property will not be forntially reclassified for tax purposes as an alternative
contribution of infrastructure impravements is being provided in lieu of local
property tax reduction. This alternative contribution has been approved by
the Minnesota Department of Trade and Econanic Develogrent. The property
description is attached. This property is identified by the Ramsey County Tax
Department through the follvwing property identification numbers: .
31-29-22-22-0003
31-29-22-22-0004
31-29-22-22-0086
This property is presently tax exem�t and awned by the Port Authority. The
property is within the City of Saint Paul's Scattered Site Tax Increment Dis-
trict.
B. IM�ROVEN�TPS AI�ID PR�OSID USE
Chargo Printing, Inc. is a high-quality, medium fomiat, lithographic printing
canpany. Their firm is currently leasing 9,000 square feet of space at 1336
Energy Park Drive. The firm does four-color printing for sheet-fed printing
up to 28 inches wide. .
Chargo Printing, Inc. will construct a 20,000 square foot printing facility on
the site. The investment in the project, including land, building, ar�d equig-
merit will total approximately $1.5 mi.11ion.
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Staff Report
July 6, 1990
Page -2-
C. P1�O�TECTID IlJQtF�ASID MARI�T VALUE
The market value will increase by the amount of the i�rovements plus the land
value since the property has not generated ariy taxes while under Port
Authority awnership. The development will result i.n an estimated market value
of $1 million which is .00014 of the market value of all taxable property in
St. Paul. The project is within the City of Saint Paul Housing and Redevelo�r
ment Authority's Scattered Site Tax Increment District. This project will
have a positive im�act on the District's revenues. ,
D. RETAINID AI�ID NF7n1 JOBS
The canpany has 30 full-time employees who will be retained in Saint Paul with
the construction of the new facility. In a�3dition, the ca�any estimates they
will hire ten new e�nployees within the next two years. The co�npany has en-
tered into a City of Saint Paul Employment and Training Participation Agree-
mern.
E. DRAF'P PAR�lCIPATION AGREII�Tr
A draft Participation Agreenent has been negotiated with the follawing tax
benef it s: .
5-Year Total
State New Employee Credits $30,000
State Debt Financing Credits $345,000
This represents a private-to-public ratio of approximately $3.00 private per
$1 p�lic tax reduction or credit. The original City Council guidelines call
for a minim�un 8:1 private-to-public irrvestment ratio an�d a maxim�nn of $10,000
per retained job an�7 $20,000 per new job. This project re�preserits a credit of
12:1 for private-to-public irivestment, plus $6,000 per retained job and :
$10,850 per new job.
F. OOUNCII, FII�INCS
Chargo Printing, Inc. 's application proposes to create up to 10 new jobs, none
of which would be a transfer fran another Minnesota nunicipality. The
proposal will not result in the abandornient or demolition of other property
awned by the applicant in Saint Paul, which could potentially cause a reduc-
tion in the assessed value of existing property within the City. The space
C�argo Printing is currently leasing will be used by the building's awner as
that c�mer's manufacturing facility expands as well.
. G;�Yo,���
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Staff Report
July 6, 1990
Page -3-
G. RE�NIl��I�IDATION
The staff of the Port Authority of the City of Saint Paul reco�nner�ls the City
Council approve the attached Participation Agreement for Qiargo Printing, Inc.
as drafted. Staff further rec�amner�ds the City Council determine that the
project is eligible for employment property reclassification aryd that Attach-
ment C of the Participation Agreement be forwarded to the Camnissioner of
Trade and Econanic Develog�nt.
Dl�:ajc
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' ' FAX(612)223-5198
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PORT AUTHORITY OF THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417
[�..-r. 1900 LANDMARK TOWERS • 345 ST. PETER STREET • ST. PAUL, MN 55102-1661 • PHONE(612)224-5686
Ju(y 6, 1990
Mr. Daniel CorneJo, Director
Planning b Econanic Development Department
City of Saint Paul
13th Floor City Hall Annex
St. Paul, Minnesota 55102
SUBJECT: ENTERPRISE ZONE CREDITS
CHARGO PRINTINGy INC.
Dear Mr. Corne,jo:
We submit herew i th for your rev iew and referral to the off ice of the Mayor,
City Councii and City Attorney's Office details pertaining to the issuance of
Enterprise Zone Credits to Chargo Printing, Inc. The credits wlll be in the
form of $375,000 in State income tax credits made up of 5345,000 in debt
financing credits and up to 530,000 in new employee credits.
Enterprise Zone credlts will be used to assist in the construction of a new
20,000 square foot manufacturing factiity in Empire Builder Industrial Park.
The company presently has 30 employees and will create 10 new positions withi�
the next two years.
In addition to the staff report, we are attaching the Participatiofi Agreement
and a draft copy of the proposed City Council resolution which authorizes the
execution of the Participatton Agreement and the submittai of the proposai to
the Department of Trade and Economic Development.
Your expeditious handfing of this matter will be appreciate.
Yours truly,
` ame J. Be
P sident
JJB/DMS:aJc
Attach.
cc: Mayor Scheibel
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�ail�I i�e3! �� � CITY O�' SAI101T PAUL
` �` 4FFICE OF THE CITY COUNCIL
CITY�IALL- 7th FLOOR-SAINT PAUL,MINNESOTA 55102
' 612-298- 5506
TOM DIMOND
COUNCILMEMBER
Members:
Tom Dimond, Chair
Paula Maccabee
Dave Thune
Date: July 11, 1990
COMMITTEE REPORT
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
1 . Approval of the Minutes of the Housing and Economic Development meetings for:
June 13, 1990; June 22, 1990; June 27, 1990; and June 28, 1990.
COMMITTEE RECOMMENDED APPROVAL, 3-0
2. Sibley Apartments (Galtier Plaza) -- Redevelopment Company contract terms
(Property Tax Abatement) (Laid Over in HED on 6/27/90) .
THIS ITEM WILL BE LAID OVER TO THE JULY 25, 1990, HOUSING AND ECONOMIC
DEVELOPMENT COMMITTEE MEETING FOR FURTHER DISCUSSION.
3. Resolution 90-985 -- Resolution Approving Agreements with Respect to City
Walk Parking Ramp -- Request for the Termination of Sublease between TGA,
Inc. , and the City of Saint Paul on the City Walk Parking Ramp (Laid Over in
HED on 6/27/90) .
COMMITTEE RECOMMENDED APPROVAL AS AMENDED, 3-0
4. Authorization to Expend Rehab Initiative -- Code Enforcement Fund (Laid Over
in HED on 6/27/90) .
x
NO COMMITTEE ACTION REQUIRED -- DISCUSSED IN HRA
5. Resolution 90-1017 -- Resolution Approving the Comprehensive Homeless
Assistance Plan and Directing that it be submitted to the U.S. Department of
Housing and Urban Development.
COMMITTEE RECOMMENDED APPROVAL AS AMENDED, WITH AN ADDITIONAL RESOLUTION TO
FOLLOW, 3-0
Chair, Housing and Redevelopment Authority,
Committees: Public Works; Housing and Economic Development; Finance.
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
COMMITTEE REPORT - JULY 11, 1990
PAGE TWO
6. Budget Goals and Policies (Laid Over on 6/27/90) .
COMMITTEE RECOMMENDED APPROVAL OF ITEMS AS AMENDED, AND LAID OVER ITEMS F-17
AND F-35, 3-0.
7. Third & Maria Redevelopment Plan (Laid Over on 6/27/90) .
COMMITTEE RECOMMENDED APPROVAL FO THE PLAN, 3-0
8. Lower Dayton's Bluff/40 Acre Study (Laid Over on 6/27/90) .
COMMITTEE RECOMMENDED APPROVAL OF THE PLAN, 3-0
9. Authorization to Schedule a Public Hearing for Issueance of Nursing Home
Facilities Revenue bonds for Acquisition and Improveemnt of Lynnhurst Nursing
Home, District 13.
COMMITTEE RECOMMENDED APPROVAL, 3-0 (HRA)
10. Authorization to Accept MHFA Urban and Rural Homestead Program Funding, and
authorization to enter into a Management Contract with the Thomas/Dale
District 7 Planning Council (Referred from HRA 6/26/90) .
COMMITTEE RECOMMENDED APPROVAL, 3-0 (HRA)
11. Commit UDAG Funding for Home Improvement Energy Loans.
COMMITTEE RECOMMENDED APPROVAL, 3-0 (HRA)
12. Mary Hall .
COMMITTEE RECOMMENDED APPROVAL WITH AMENDMENTS, 3-0 (HRA)
Chargo Printing -- Enterprise Zone Credits. ��� fl
COMMITTEE RECOMMENDED APPROVAL, 3-0
14. 7 Corners Hardware -- Enterprise Zone Credits.
COMMITTEE RECOMMENDED APPROVAL, 3-0
chr
y.,,: ,.. '.• ",__ C��1°'
t�'r - '� ' ,: pUBI.IC HEARING ON //
,�NOTI�E OF - `�
x:. : APPLICATLON FOB : �
��g,gCI,ASSIFICA1?�N OF PROPER'TY
�.�: ppg,p03ES UNDER THE .
; FOB TAX AFFIDAVIT OF PUBLICATION
• E�Eg,pRISE ZONE PR�GRA�
�t_t - •. .�---- '
; ' . '. . Section '.
' �„�u�t to M��esota Statutes 1g8�. State of Minnesota
of Sa�nt Paul Riverfront Enterp�se Zone COUIlt}�Of R.BIriS@y
I 469.170 Subdivision 2 and'to pruvision of the P�'°g�R '
For City GI�N �AT A PUB�C
ppTICE IS HEREBY.
x�pg�G will be held before the C°��i1°f the City
a{Saint Paul in the Council Chamben�third iloor
cscy H��. 15 West Kellogg�ulev ot�Juirnl��uai Samuel E. Lewis,Jr.,being duly sworn, on oath says that he is the publisher of the
��,nesoca on'rt�ursear•�1�'�Y�e ' newspaper known as the Saint Paul Legal Ledger and has full knowledge of the facts
9:00 am.,or as soon therc4'� o P��n6.Inc..
�� n the ApPL�tion oi C�I'6 ��,a tor which are stated below:
h��•u� putic Ddve.Saint Paul.Minn
1596 F�►�' ���p�opertY laated in the
�eelyssitleatWn of certa' rise Zone. Ramsey
��t-paul Rivetfront EnterP�t p��rty�a tor , (A) T�1Q newspaper has rnmplied with all of the requirements constituting
CountY.M�n�Ota.as emp��
assessmmt of said P�Pe�Y�PiO�d�for class 3b
pro��Y��innesota Statutes 1988.SeMion 273•13' �1ua11f1C1tlOri as a qualified newspaper, as provided by Minnesota Statute 331A.02,
Subdivision 24,ParaB�Ph ro�for tazes 1e�ied tn 1991, , 331A.O�, and other applicable laws,as amended.
�'�a,nd for tour succeedin8 Y����aiter.
'AT SAID pt1B�C HEAR�NC'�e Ciiq Co�cil aill
� consider whether to apP�Ve�e �Id Application�� NO t 1 C@ O f P Ub 11 C h e a r i n
. upon findings u re4�nd bq Ml°°eso�S�tutes 1988.I (B) �e printed a
Section 4B9•170 Subdivision 2. At said heari�B� the which is attached was cut from the columns of said newspaper and was printed and
licant, the Ramsey County Assessor,,
p�pp ublished once; it was ublished on Tuesda� , the 1 9th day of
representAtives of affe�ted taxing aathoritles and any p p
a er of the municipality or repre��tative af anY June
� t�,cp y rcun;cy co t�e , 19 9 a and printed below is a copy of the lower case alphabet
' ro�nunity organre�t thei;l vi ws in wrttinB at or
heard o�may p from A to Z,both inclusive,which is hereby acknowledged as being the size and kind of
befott the Hearing. ' . rt of the PorE t e used in the com
he Application.the.repo YP position and publication of said notice:
Copies,of.S of Saint Paul and the p�P��
Authcr�tY at�e City, ll�t and
Participation AB��eni betwee°the ApP�
the City may be insp�ed at the offices of the City abcdefghijkimnopqrstuvwxyz
Clerk�or the Port Authority of the City of�1°t ents
d'uring nonnal business hours,and Clerk,.Room 386.
�y be delivered or mail$oulevard.Sa�t paa1'�N
City Ha11,15 U�1est KellogB af the City of Saint Paul.
55102,or c/o Port Authotity �int
lgpp.�ngmark Towers.345 St. Peter Street, .
paul,MN 55102.Telephone in4uiries maY be made to ��� � �Xil��
David Stokes.2245fi86.
pLBERT B.OLSON.City Clerk .
(June 191
�����ST. PAUL LEGAL LEDGER►►►►►
Subscribed and sworn to before me this��h day of �TUrie , 19�..p_
��,`���. C. M. LEWIS �
NU7ARY PUBtIC—MlNNE50TA
WASHINGTOPJ COUNTY
�" My Camm.Exp(res Mar 15.1995
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Rate Information
(1) Lowest classified rate paid by commercial
users for comparable space is
a .
(2) Maximum rate ailowed by law for the
above publication is� .
(3) Rate actually charged for the above
publication is a _