90-1577 � rT ! � � �.;� �L . .
. . ' � Council File � � -' ' 7
Green sheet # 1110 4
RESOLUTION _
TY OF SAINT PAUL, MINNESOTA
�9
Pr sented By
Referred To � � - �jl-
Q�� Committee: Date C�
WHEREA.S:
1. On August 21, 1990, the Port Authority of the City of Saint Paul adopted
R,esolution No. 325 , giving preli.minary approval to the issuance of taxable revenue bon�ds
in the initial pri cipal amount of approximately $680,U00 to finance the construction of a
15,000 square foot office/production facility on a 1.8 acre site in Empire Builder
Industrial Park fo Sitma, U.S.A., Inc. Miller ar�d Schroeder Financial has agreed to
underwrite the t le revenue bond issue for a term of 30 years.
2. Laws of nnesota 1976, Chapter 234, provides that any issue of revenue boryds
authorized by the rt Authority of the City of Saint Paul, shall be issued only with the
consent of the Cit Council of the City of Saint Paul, by resolution adopted in accordance
with law;
3. The Port thority of the City of Saint Paul has requested that the City Council
give its requisite consent pursuant to said law to facilitate the issuance of said revenue
bonds by the Port thority of the City of Saint Paul, subject to final approval of the
details of said is ue by the Port Authority of the City of Saint Paul.
RESOLVID, by he City Council of the City of Saint Paul, that in accordance with Laws
of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the
aforesaid revenue r�c7s for the purposes described in the aforesaid Port Authority
Resolution No. 325 , the exact details of which, including, but not limited to, provisions
relating to maturi ies, interest rates, discount, redemption, aryd for the issuance of
additional bonds a e to be deternuned by the Port Authority, pursuant to resolution
adopted by the Por Authority, and the City Council hereby authorizes the issuance of any
additional bonds ('ncluding refunding bonds) by the Port Authority, fourxl by the Port
Authority to be ne ssary for carrying out the purposes for which the aforesaid bonds are
issued.
as Navs Absent Requested by Department of:
�wn'�- �- ���
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SEP 2. 0 i990, Form Approved by City Attorney
Adopted by Council: Date • �
Adoptio Certified b Council Secretary g ^ ,,-
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By° Approved by Mayor for Submission to
SEP 2 i 1990 Council
Approved by ayor: Date /'
B ����'��f
By, y:
p�sltSt�� J�� � � ���
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DEPARTMENT/OFFICE/COUNCIL DATE INITIATED
st. Paul Port Author'ty s/2�/90 GREEN SHEET N°• _11104
CONTACT PERSON S PHONE INITIAUDATE INITIAUDATf
m DEPARTMENT DIRECTOR �CITY COUNCIL
J.A. Campobasso - 2 4-5686 ASSIGN �CITYATTORNEY �CITYCLERK
MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR
ROUTINfi �BUDaET DIRECTOR �FIN.8 MQT.SERVICES DIR.
By or Before Sept. 2�, 1990 ORDER m MAYOR(ORASSISTANT) �C�unci 1 Re
TOTAL#OF SIGNATURE PAGE 1 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTIONREQUESTED: Ann1^OVa� of the issuance of $680,000 of taxable revenue bonds for the
r i�
constru tion of a 15,000 square foot facility for Sitma, U.S.A.
RECOMMENDA71oNS:Approve(A)or Reject( ) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING GUESTIONS:
_ PLANNING COMMISSION _ CI IL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department?
_CIBCOMMITfEE A P rt Authori t ves rvo
_STAFF f C 2• Has this person/firm ever been a city employee?
— YES NO
_ DiS'rRIC7 COURT _ 3. Does this person/firm possess a skill not normally possessed by any current city employee?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Economi c Devel opment Explafn all yes answers on aeparate sheeYand attach to green sheet
INITIATINO PROBLEM,ISSUE,OPPORTUNI (Who,What,When,Where,Why):
The issuance of taxab e bonds will allow Sitma, U.S.A. , to construct a 15,000 square foot
facility on 1.8 acres of land in Empire Builder Industrial Park. This will allow the
company to relocate t eir production facility from Hackensack, New Jersey, to St. Paul
and create ten new jo s.
ADVANTAGES IF APPROVED:
If approved, the new acility in the Scattered Site Tax Increment District will generate
tax revenue for that urpose. It will also create new employment opportunities for
St. Paul residents.
Contact with this com any was made through the Sister Cities Program with Modena, Italy.
DISADVANTAGES IF APPROVED:
None RECEIVED
AUG28i990
GlTY CLERK
DISADVANTAGES IF NOTAPPROVED:
The company will not e able to proceed with the construction of their new facility.
The new tax base woul not be created and the firm would not create new jobs in St. Paul.
TOTAL AMOUNT OF TRANSACTION $ 6HO�OOO COST/REVENUE BUDGETEp(CIRCLE ONE) YES NO
FUNDING SOURCE Port Auth ri t Bond ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN)
�W
NOTE: COMPLETE�[RECTIONS 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 types 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. Ciry Council
5. Ciry Cterk
8. Chief Accountant, Finance and Management Services
ADMINISTRATIVE ORDERS(al�others)
1. Department Director
2. Ciry Attorney
3. Finance and Management Services Director
4. City Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flag
each of these pages.
ACTION REQUESTED
Describe what the projecVrequest seeks to acxomplish 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 p�ivate.
SUPPORTS WHICH COUNCIL OBJECT�VE?
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 liability for workers compensation claims,taxes and proper civil service hiring rules.
INITIATING PROBLEM, ISSUE,OPP�RTUNITY
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.
DISADVANTAGES 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? Inability 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?
i
ISiH1I111Ii CITY OF SAINT PAUL
I111 1 I 1I
OFFICE OF THE CITY COUNCIL
CITY HALL-7tl� �'LOOR-SAINT PAUL,MINNESOTA 55102
612-298-5506
TOM DIMOND
COUNCILMEMBER
Members:
Tom Dimond, Chair
Paula Maccabee
Dave Thune
Date: September 12, 1990
COMMITTEE RE ORT
HOUSING AND CONOMIC DEVELOPMENT COMMITTEE
1. Approval of the Minutes of the August 29, 1990, Housing and Economic
Developm nt Committee meeting.
COMMITTE APPROVED, 3-0
2. Resoluti n 90-1409 - Adopting the St. Paul Housing Policy for the 1990s as
part of he Comprehensive Plan (Referred from Council 8-14-90) .
COMMITTE RECOMMENDED APPROVAL, 4-0
3. Authoriz tion to acquire and transfer HUD/VA repossessed property to local
non-prof t development group: Parcel 253 Banfil , West Seventh District 9
(Referre from HRA 9-11-90) .
COMMITTE RECOMMENDED APPROVAL, 4-0 (HRA)
4. Resoluti n approving a second supplemental indenture of trust for the
District Heating revenue bonds and authorizing the execution and delivery of
- the supp emental indenture (Referred from HRA 8-28-90) .
COMMITTE RECOMMENDED APPROVAL, 4-0 (HRA)
_ 5. Expo Gra hics - Enterprise Zone Credits.
COMMITTE RECOMMENDED APPROVAL, 3-0
6. Expo Gra hics - Boundary Changes.
COMMITTE RECOMMENDED APPROVAL, 3-0
Chair, Housing and Redevelopment Authority,
Commi ees: Public Works; Housing and Economic Development; Finance.
100%Recycleable ��5
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
COMMITTEE REPORT - SEPTEMBER 12, 1990
PAGE TWO
7. Sitma USA, Inc. - Enterprise Zone Credits.
COMMITTEE RECOMMENDED APPROVAL, 3-0
8. Resolution 90-1577 - Approving issuance of Port Authority taxable revenue
bonds in the amount of �680,000 to finance construction of an office/ �
production facility in the Empire Builder Industrial Park for Sitma, USA,
Inc. � %�
,
COMMITTEE RECOMMENDED APPROVAL, 3-0
9. �own own Tax Increment Financing.
COMMITTEE RECOMMENDED THIS ISSUE BE FORWARDED TO THE HRA, 3-0
chr
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� PORT AUTHORITY F THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417
'r ` 1900 LANDMARK OWERS • 345 ST, PETER STREET • ST, PAUL, MN 55102-1661 • PHONE (612) 224-5686
August 21, 1990
;r�-;,�,�.��:
Mr. Danie �Cornejo,� Director � ��'1%�?: ;�r
Planning Econanic Developnent Department ����
City of . Paul "''�4�';r,�{,
13th Flo� - City Hall Annex ��' �' � >;�
St. Paul, NLinnesota 55102
SUBJElCT: SITMA, U.S.A., INC.
$680,000 TAXABLE RE,'VEN[lE BO1�ID ISSUE
Dear Ren:
We submit here�with for your review and referral to the office of the
Mayor, Ci y Council and City Attorneg's office details pertair�ing to the
issuance f $680,000 in taxable re�renue boryds to finance the construc-
tion of a 15,000 square foot office/production facility on 1.8 acres of
land in ire &iilder Industrial Park for Sitma, U.S.A., Inc.
The Port thority staff has conducted a thorough evaluation of the
€irms or individuals that are involved in this project or in which
the princ'pals have an interest. This ir�vestig�tion has included
detailed redit ana�ysis and direct co�unication with representatives
of financ al institutions with whoan the participants have done business.
In additi to the staff inenararadtun, we are attaching a draft copy of
the pro City Council resolution arxl a copy of Fort Authority
R�esolut�o No. 3254 which authorized the sale of taxable revenue bonds
in the unt of $680,000.
Your e itious handling of this matter will be appreciated.
Yours truly,
, J s . llus
`�P sident
JJB:ca
ce. Mayor Scheibel
� J<
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Resolution No. ,��z.��
RESOLUTION OF
TH PORT AUTHORITY OF THE CITY OF SAINT PAUL
WH REAS, one of the purposes of Minnesota Statutes,
Chapter 469 hereinafter called "Act") , as found and determined
by the legis ature is to promote the welfare of the state by the
active, prom tion, attraction, encouraqement and development of
economically sound industry and commerce to prevent so far as
possible the emergence of blighted and marginal lands and areas
of chronic u employment and to aid in the development of existing
areas of bli ht, marginal land and persistent unemployment; and
WH REAS, factors necessitating the active promotion and
development f economically sound industry and commerce are the
increasinq c ncentration of population in the metropolitan areas
and the rapi ly risinq increase in the amount and cost of
qovernmental services required to meet the needs of the increased
population a d the need for development of land use which will
provide an a equate tax base to finance these increased costs and
access to em loyment opportunities for such population; and
WH REAS, The Port Authority of the City of Saint Paul
(the "Author'ty") has received from Societa Italiana Macchine
Automatiche .p.A. (hereinafter referred to as "Company") a
request that the Authority issue its revenue bonds (which may be
in the form f a sinqle note) to finance the acquisition,
installation and construction of facilities for automatic
wrapping mac ines (hereinafter collectively called the "Project")
in Enqine Bu lder Industrial Park in the City of St. Paul, all as
is more full described in the staff report on file; and
, the Authority desires to facilitate the
selective de elopment of the community, to retain and improve� its
tax base and to help it provide the range of services and
employment o ortunities required by its population, and said
Project will assist the City in achieving that objective. Said
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Project will elp to increase the assessed valuation of the City
and help main ain a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
City; and
WHE AS, the Project to be financed by revenue bonds
will result i substantial employment opportunities in the
Proj ect;
WHE EAS, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial financing
to pay the ca ital cost of the Project is available only on a
limited basis and at such high costs of borrowing that the
economic feas'bility of operating the Project would be
significantly reduced;
WHE AS, Miller & Schroeder Financial, Inc. (the
"Underwriter" has made a proposal in an agreement (the
"Underwriting Agreement") relating to the purchase of the revenue
bonds to be i sued to finance the Project;
NOW THEREFORE, BE IT RESOLVED by the Commissioners of
the Port Auth rity of the City of Saint Paul, Minnesota as
follows:
1. On the basis of information available to the
Authority it ppears, and the Authority hereby finds, that said
Project const tutes properties, used or useful in connection with
one or more r venue producing enterprises engaged in any business
within the me ninq of Subdivision 2 of Section 469. 153 of the
Act; that the Project furthers the purposes stated in Section
469. 153 of th Act, and that the effect of the Project, if
undertaken, w 11 be to encouraqe the development of economically
sound indust and commerce and assist in the prevention of the
emergence of lighted and marginal land, and will help to prevent
chronic unemp oyment, and will help the City to retain and
improve its t x base and provide the range of services and
employment op ortunities required by its population, and will
help to preve t the movement of talented and educated persons out
of the state nd to areas within the state where their services
may not be as effectively used and will result in more intensive
development a d use of land within the City and will eventually
result in an ncrease in the City's tax base; and that it is in
the best inte ests of the port district and the people of the
City of Saint Paul and in furtherance of the general plan of
development t assist the Company in financinq the Project.
2. Subject to the mutual agreement of the Authority,
the Company a d the purchaser of the revenue bonds as to the
5924
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details of he lease or other revenue agreement as defined in the
Act, and ot er documents necessary to evidence and effect the
financing o the Project and the issuance of the revenue bonds,
the Project is hereby approved and authorized and the issuance of
revenue bon s of the Authority (which may be in the form of a
single note) in an amount not to exceed approximately $680, 000
(other than such additional revenue bonds as are needed to
complete th Project) is authorized to finance the costs of the
Project and the recommendations of the Authority's staff, as set
- forth in th staff inemorandum to the Commissioners which was
presented t the Commissioners, are incorporated herein by
reference a approved.
3. There has heretofore been filed with the Authority
a form of P liminary Agreement between the Authority and
Company, rel ting to the proposed construction and financinq of
the Project nd a form of the Underwritinq Agreement. The forms
of the agree ents have been examined by the Commissioners. It is
the purpose f the aqreements to evidence the commitment of the
parties and heir intentions with respect to the proposed Project
in order tha the Company may proceed without delay with the
commencement of the acquisition, installation and construction of
the Project o allow for the issuance of industrial revenue bonds
(includinq, f deemed appropriate, any interim note or notes to
provide temp rary financinq thereof) to finance the entire cost
of the Proje t upon agreement beinq reached as to the ultimate
details of t e Project and its financinq. Said Agreements are
hereby appro ed, and the President and Secretary of the Authority
are hereby a thorized and directed to execute said Aqreements.
4. Upon execution of the Preliminary Agreement by the
Company, the staff of the Authority is authorized and directed to
continue neg tiations with the Company so as to resolve the
remaininq is ues necessary to the preparation of the lease and
other docume ts necessary to the adoption by the Authority of its
final bond r solution and the issuance and delivery of the
revenue bond ; provided that the President (or Vice-President if
the Presiden is absent) and the Secretary (or Assistant
Secretary if the Secretary is absent) of the Authority, or if
either of su h officers (and his alternative) are absent, the
Treasurer of the Authority in lieu of such absent officers, are
hereby autho ized in accordance with the provisions of Minnesota
Statutes, Se tion 475.06, Subdivision l, to accept a final offer
of the Unde iter made by the Underwriter to purchase said bonds
and to execu e an Underwritinq Agreement setting forth such offer
on behalf of the Authority. Such acceptance shall bind the
Underwriter o said offer but shall be subject to approval and
ratification by the Authority in a formal supplemental bond
5926
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resolution be adopted prior to the delivery of said revenue
bonds.
5. The revenue bonds (includinq any interim note or
notes) and 'nterest thereon shall not constitute an indebtedness
of the City of Saint Paul within the meaninq of any
constitutio al or statutory limitation and shall not constitute
or give ris to a pecuniary liability of the City or a charge
against its general credit or taxinq powers and neither the full
faith and c edit nor the taxinq powers of the City is pledged for
the payment of the bonds (and interim note or notes) or interest
thereon. T e revenue bonds will be a qeneral obliqation of the
Port Author'ty.
6. In order to facilitate completion of the revenue
bond financ'ng herein contemplated, the City Council is hereby
requested t consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds (includinq any
interim not or notes) herein contemplated and any additional
bonds which the Authority may prior to issuance or from time to
time therea ter deem necessary to complete the Project or to
refund such revenue bonds; and for such purpose the President of
the Authori y is hereby authorized and directed to forward to the
City Counci copies of this resolution and said Preliminary �
Aqreement a d any additional available information the City
Council may request.
Adopted: A gust 21, 1990
Chair
Attest The Port Authority of the City
of Saint Paul
I �
Sec ta y
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, POR � � �� , ���"�`�
' AUTHOR TY
�F n-�e cmr oF sT. P
Memoroeduin
TO: � OF IOIaRS DATE August 15, 1990
(August 21, 1990 Regular Meeting)
FROM: J.A. sso
J.J. Bell s
SUBJECT: SIZl�IA, U. .A.� INC.
PUBLIC - PRELIMINARY A1�D TJI�DE1b�iRITING A�.JrS
$680,000 REVENfJE BO1�D ISSUE
II�IRE BLJ ER II�IDiJ3I'RTAL PARR
RF.SOLITPI N0. 3 2 5 4
PUBLIC - SALE OF I.ATID
RE90�,LTPI N0. 3 2 5 5
E BY BO • ApQroval of the sale of 1.8 acres of lar�d
in �ire suilder and the issuance of $680,000 of taxable revenue bords for
the const ction of a 15,000 square foot facility.
� •
Establish in 1965, Sitiaa - Societa Italiana Macchine Autamatiche SpA. began
its activ'ty in the field of automatic wrapping machines using shrink plastic
fil�. e machines are used to package: mail, food products, constmier
goods, te iles, books and catalogs.
The Itali co�any also has divisions in the O.S.A. and Franc�e and dis-
tributes ' s machines throughout the w�orld.
Sitma U.S. . is presently locatec7 in Hackensack, New Jersey. The II.S.A.
operatio prwide sales and servioe of Sitma machines to the U.S.A. market.
�ey will relocating the entire U.S. operation to St. Paul. At the new
location, ey will maintain an inventory of �all parts and have a shawroam
display a couple of machines. These machines will be used to run ample
products r custamers. 'Il�is has been done only in Italy to date. The in-
creased t -around should help in sales.
r
The will construct a 15,000 square foot building on a 1.8 acre site in
Empire Bui ier Ladustrial Park. The building will include l0,OD0 �quare feet
of pradt�t'on space at�d 5,000 square feet of of€ice on two floors. The first
floor offi of 2,500 5q�are feet will be finished off caupletelg with the
sec:or�d fl r available for expansion. This will be an owner occupied facility
• with no ad itional tenants. The 10,000 squ�are feet wi�l be used to inventory
parts ar�d ipnent and for general light assembly. eard costs per square
foot: $36 50 - building; $10.33 - land. Total: $46.83. Soft costs per
square foo : $4.67. Construction is to begin in July with ca�letion by
Navember.
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BC�7D OF IO�RS
• August 15 1990
Page -2-
:
The c y will hire up to 12 new people within two years, and two people
will be r locating fro3a New Jersey. T�ey are extremely interested in working
with the ity in hiring and training Saint Paul people. There is the poten-
tial that the facility will grow into a light assembly operation for Sitma and
with it i reased job opportunities.
The pr s from the sale of the lar�d will contribute to the reimbursement of
the Fort hority's investment in the URAP area to the north of �npire
Builder ustrial Park. The new taxes gerierated fram the facility will cori-
tribute t the tax increment district which will repay the Fort Authority's
irivestmen i.n the URAP area as well.
This proj also presents a unique opportunity to prc�aaote business develo�-
ment ar�7 i estment on a global basis. This project was a direct result of
� the Sister Cit� program. We hope to bu�.ld fram this first ste� to tie into
more busin ss o�pportunities between Saint Paul ar�d Italy.
: Taxable 876 Bo� Issue
Uses: *
• New nstruction $587,298
Const tion Period Interest 23,800
Finan ing Costs 33,200
Larxl 154 87
Fi Asset 7.bta1 $799,176
Fort thority 876 Taxable Bo�d Iss� * $601,923
Equit ** 1g7,253
Fi Asset �otal $799,176
* s not ��ude debt service reserve
* 'ty will come in the form of $50.000 at closing aryd the re�naining
$1 7,253 when Enterprise Zone credits are received.
e•
Princi Amount of Bonds $680,000
Less bt Servi�e Reserve 78.077
Loan to Borrow�er $601,923
Intere t Rate: Est�mated Taxable Bond Rate 10.508
• P�art Authoritg l�ees .�508
Credit Enhancement Fee - To be determined
Est. Zbtal Annual Interest Rate
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HQATiU OF I�
• August 15 1990
Page -3-
Credit nt Fee:
This is t annual cost to the borr�w�er to maintain the deb�t service reserve.
It is the differenoe betw�een the reserve's coupon rate and the interest earned
on the re rve. The fee will be detern�ined follawing sale of bor�ds and in-
vestment the reserve.
�erm: 356-�nonth term
Amortizat' n: 356 months
Reserve: The $78,077 cle�t servioe reserve will be funded with bor�d
proceeds. Resolution 876 bond issues require one year's
debt service be held in reserve. The interest earnings on
the reserve will inure to the benefit of the cauQany and
will be disbursed annually. To the extend interest earnings
are insufficient to carry the bo�d interes� attributable to
the reserve, the difference is calculated as a credit
enhancement fee.
Lan�d: The e price for the laad is $2 per sqeare foot for 77,439 square feet
or 4,878. The Fort Authority will seveive an initial payaient of
� $8,0 0 for the lar�d at closing. The balanoe of the lard proceeds
($14 ,878) plus accrued interest at 108 will be paid upon rec�eipt of
Stat Enterprise Zone credits. The Fort Authority will receive approval
from the State on the Enterprise Zor� credits prior to closing.
C�arantors
In ac7diti to Sitma U.S.A. Inc.'s oorporate guarantee, w�e will be receiving a
corporate antee frann Sitma SgA, the garent canp�ar�y in Italy: Via Vig-
nolese, 85 41057 S�iilamberto (Mo) Italy. Briggs & A�organ's Bond Department
has co�nsul ed with their Caomercial Department in developing a guarantee that
will ' ' ze to t�ie extent possible the difficulty in enforcing the guarantee
of a forei corporation.
Cxed�� 6r s Bl-. This grading ind-icates that the canpany has sufficient
financial gth to caver the proposed debt.
:
The c has ttie ability to purchase the facility at year ten ar�d there-
after for outstanding principal balance on the loan.
.
• I�iller •& ro�er F�nanc�al has agreed to underwrite the 30 year bond issue
at a rate o be set at the time the bor�ds are so1d. We anticipate that the
bonds will be sold at our regular September Board meeti.ng.
�'!�
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HQ�1TiD OF IO�RS
• August 15 1990
. Page -4-
Staff rec nds approval of Resolution Nos. 3254 att1 3255 -
JAC:ca
•
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