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90-2067 0 R�I Gi��IA L _ �' �' f Council File � �D a�Pop�� ` Green Sheet # ' t �-�d`ci a RES LUTI CITY OF�- - �i� INNESOTA � � / Presented By ` / �� Referred To , `� JOINT RESOLUTION OF THE �, CITY OOUNCIL OF THE ,' CITY OF SAINT PAUL AND THE PORT AUTHORITY OF THE CITY OF SAtNT PAUL WHEREAS, the Por``t, Author i ty of the C i ty of Sa i nt Pau I (the "Port Authority") is a body cor�arate and politic initially created by the Minnesota legislature in 1929, founde"�,, in 1932, and subject to the provisions of Minn. Stat., Chap�ter 469, the Minne�ota Economic Development Act (the "Act"); and WHEREAS, since approximatel�`'y�,, 1932, the Port Authority has been using its powers und�er the Act and its pr�.rdecessor statutes to cause industrial , canmercial and econanic development i� occur in the City of Saint Paul and its surrounding cornmunities, and in corl^�ection with such development, since approximately 1957, has issued its indu°��trial development revenue bonds under the Act to aid in the financing of such dB�Yelopment; and �L,. WHEREAS, i n 1960 the C i ty of Sa i nt Pa�,,l and the Port Author i ty jo i ntl y undertook the redevelopment of the City's riv�rfront through the issuance of general obligation bonds supported by tax re�enues which in the subsequent 30 years has resulted in the creation of 5,720 �'�bs, total property taxes of approximately $5 mil I ion annual ly, the locatio� of 65 businesses on the redeveloped land and the removal of blighted land ir�rluding the City dump; and WHEREAS, si nce 1974, the Port Author i ty has bA,en i ssu i ng i ndustr i al development revenue bonds under its Basic Resolution No,T 876, which created a common bond fund and reserve system that enabled the Port, Authority to provide long term Iow interest rate financing in support of its irt,dustrial , commercial and economic development activities, and currently has mor� than $335,000,000 of its industrial development revenue bonds outstanding under Basic Resolution No. 876, providing financing to more than 150 individual pro,fects; and WHEREAS, through the issuance of revenue bonds, the Port Authority has provided a valuable service to the City of Saint Paul and its surrounding communitie�, and has promoted the general welfare of the City of Saint Paul through the active attraction, encouragement and development of industry and commerce, and fihe corresponding retentlon and improvement of the City's tax base; end WHEREAS, Port Authority-supported projects currently generate more than $25 millio� annually in property tax revenues, have created or retained 38,000 jobs in Saint Paul and account for almost 30� of the City�s commercial industrial tax base; and OR1 � INAL ��a-�� WHEREAS, under Section 469.053, Subd. 4 of the Act, the Port Authority is entitled to request, and tne City of Saint Paul is required, upon such request, to levy a tax for the benef it of the Port Author ity, up to 0.01813 percent of the taxable market value of the property in the City of Saint Paul , which sum shall be paid by the City Treasurer to the Treasurer of the Port Authority, to be spent by the Port Authority (the "Tax Levy"); and WHEREAS, m�mbers of the City Council of the City of Saint Paul have suggested that it`�.;is not in the best interests of the taxpayers of the City of Sa i nt Pau I to a I I o�, the Port Author i ty to use the Tax Levy for purposes of paying operating or b,ther costs attributable to existing projects, funded either under Basic Re'§�,olution No. 876 or otherwise, and have suggested that the Port Authority�s ri'�ht to use that Tax Levy should be restricted by the legislature to avoid such':use; and WHEREAS, the Ci ty Co°�nc i I of the Ci ty of Sa i nt Pau I and the Port Author i ty have agreed that th�, best i nterests of the C i ty of Sa i nt Pau I , and i ts taxpayers, wou I d be served��•.by encourag i ng the Port Author i ty to cont i nue to provide for new economic dev��opment opportunities, and to that end that the Tax Levy continue to be availa�le to the Port Authority for that purpose; and ,, �k WHEREAS, the Port Authority simi''�,arly beI ieves that it is important to the City of Saint Paul and its taxpayer�kthat it continue to provide economlc development support to the area through t�,e use of the Tax Levy and otherwise, and is willing to restrict its use of tha�, Tax Levy to pay for or support � future economic development; and WHEREAS, Port Authority staff has identZfied plans for the use of the Tax Levy in support of new business develop�ent which (a) call for the issuance of revenue bonds in the approxima°�e amount of $8,280,000 to capitalize a new $61 ,000,000 Business Developmen# Bond Program (the "Bond Program") to directly assist in financing project�, whlch add to the job and tax base of the City of Saint Paul ; (b) requir�� the Port Authority�s commitment to request the Tax Levy in an annual'; amount not to exceed $1 ,300,000 in each year for at least 20 years beginni`�g in 1990, to secure those bonds; (c) allow the Port Authority to transfer �arnings from the Bond Program, as well as portions of the Tax Levy not needed �'to support the bonds referred to i n cl ause (a) to a Job creation fund (the '�Job Creation Fund") to be used by the Port Authority only to ( i ) support the acqui,sition of land for new development, ( ii ) support a small business loan guaranfy program or other s i m i I ar program, ( i i i ) prov i de d i rect subs i d 1 es to attract or reta i n businesses in Saint Paul ; and ( iv) to undertake other new ecor�omic development activities; (d) result in the leveraging of the Tax Levy to support future economic development in an amount far greater than that which would be supported by the direct use of the Tax Levy; (e) call for the Bond Program to be used to assist projects generally in the $3,000,000 to $5,000,000 range consistent with the Port Authority's existing mission statement and loan criteria; (f) result in the generation of estimated annual real estate taxes which will exceed the amount of the annual Tax Levy within six years, and will be double the amount of the annual Tax Levy within ten years; and (g) preclude the use of the Tax Levy to pay debt service on existing bonds or otherwise to support existing projects or staff costs. n 0 R 1�� I !�A L ��,��o�d�� WHEREAS, the City Council and Port Authority both agree that the implementation af such a plan should be pursued, for the benefit of the City of Saint Paul and its taxpayers. NOW, THEREFORE, IN OONSIDERATION OF THE AB�OVE REPRESENTATIONS, IT IS HEREBY JO i NTLY R�SQIVED by the C i ty Cou nc i I of the C i ty of Sa i nt Pau I and the Board of Commissioner� of the Port Authority of the City of Saint Paul as fol lows: `�� '�. 1 . The Bond Progr�m and the Job Creation Fund as general ly described in this Resolution are hereby approved. , `'�� 2. In order to enable��,,the Port Authority to fulfill the purposes of the 8ond Program and the Job Cr°eat ion Fund descr i bed i n th i s Resol ut ion, the City Council of the City of Saint``�.�aul hereby agrees that it will not take any action to eliminate or modity the 1`ex Levy which is to be pledged thereto, and that it will actively oppose any su�h action proposed by the legislature or any other party. 3. The Port Authority is h�:reby authorized and directed to immediately prooeed to structure and sell'`�.revenue bonds in the approximate amount of $8,280,000 to capitalize the Bond`�Program. 4. Any portion of the Levy not ne�ded to support the initial bond issue shall be captured in a Job Creation Funi�, and used only to support the acquisition of land for new development, the sup;port of a smal I business loan guarantee program or other such similar uses, 'gap financing subsidies to attract or retain businesses in Saint Paul or othe�r such uses consistent with the mission of the Port Authority. Yeas Navs Absent Requested by Department of: zmon oswi z on � acca ee ettman une z son BY� Form Approved by City Attorney Adopted by Council: Date Adoption Certified by Council Secretary g � Y• �� - �'''»� By' Approved by Mayor for Sub�sion to Approved by Mayor: Date Council By: By� . � � . � � � �f�--��J j� R4'��r ��%, CITY OF SAINT PAUL ' " OFFICE OF THE CITY ATTORNEY � ��iiin� : + �v • �••• JANE A. MC PEAK, CITY ATTORNEY 647 City Hall,Saint Paul, Minnesota 55102 61�298-5121 JAMES SCHEIBEL FAX 612-298-5619 MAYOR 12-6-90 F2ECEIVCD To: A1 Olson 7 Fr: Jim Hart� �.�---�� D 1990 , Re: Joint Resolution of City Council ��Y�S�"5 �FFIC� and Fort Authority Board Council File # 90-2067 Enclosed are two signature copies of the Resolution adopted by the Council today. Because it was prepared as a joint resolution duplicate originals signed on behalf of both the Council and Authority Board should be completed. When City adoption and approval signature are complete, both copies should be submitted to the Authority with request that upon Authority approval and execution one copy be returned to you. It is my understanding that the Port Authority Board will consider the resolution at its December 18, 1990 meeting. cc: Terry Garvey �i- qa -ao� l ��c. 4`,tt o• �! R� :� CITY OF SAINT PAUL o a � ��;,��n� ; OFFICE OF THE CITY ATTORNEY � AO • t••• � JANE A. MC PEAK, CITY ATTORNEY 647 City Hatl,Saint Paul,Minnesota 55102 612-298-5121 JAMFS SCHEIBEL ' FEvc 612-2vg-561v MAYOR � R�CEIVED �, �2-4-90 �� DEC051990 Distributi�on L�.st f �T}� G�,ERK � ' Re: �Toin� Resolution of the �City�Council and Port Authority �Busi ess Development Program; �Coun�il Resolution Approving Short Term Loan Dear Ladies and Gentlemen: Transmitted herewith is the revised Joint Resolution incorporating the amendments approved in the Finance Committee. This Resolution will be on the December 6, 1990 Council Agenda together with a Tax Levy Resolution authorizing the 1990 mandatory Port Authority levy under Minnesota Statutes 469.053 Subdivision 4 . Transmitted al�o is a draft Council Resolution approving a short term loan from the City to the Port Authority for the purpose of meeting a shortfall in 1990 debt service payments on the Authority's general obligation debt occasioned by the suspension of the State �iACA Credit. This resolution was recommended for approval by the Finance Committee for consideration by the Council on December 6th under suspension of rules. If you have any questions regarding these resolutions please call me at 298-�134. i Yours very ;tr ly, ��/ ' � ames T. Hart Assistant City Attorney � �.,�r..,�.,_.-..�.-�.x..,�..aa:.a.�.....�.,,__�,_��-.�,�.-_.,..,w.-.n.:�.�x�.. ..>.�xr.�.-=.>:,,�m. .,e....,�.�,.� ,.:x-:,�,.�.�:4,�...��.�,:_,, .�f .�.a..-Y.,...:v�m... C�= 90 - �0� ? DISTRIBUTION LIST President & Cauncil Members Stacy Bec}�er ' James Bell.us Lisa Clemens Thomas Cran � Terry Garvey Robyn Hansen Kenneth Johnson George McMahon Gary Norstrem Albert Olson Peter Seed Jerome Segal George Splichal -"S.�".n -' a�:�se.3V_.�a..a...a�i:�...Sd'_:l�.tiz' '.,:ul�" � J1C'_i,:�a.Vin2`iT':sVeroi':�w:i4e.� .'�`S':vi�.,>e...a...a.:deJ!51..r....cr54°?nd.61'.-'1.::lr.Si:6v+<.e'L..Nwe3.`+.E?.Y.e...L:£:.i.fue.Lw^'17Yx...t�-�bsv c+�_a._a. ._, a..�r.'S�� -.� C� 9'��. �� Rs``'_'°'�� + * CITY OF SAINT PAUL 4 ��,��,�` � OFFICE OF THE CITY ATTORNEY . „� • . �••• JANE A. MC PEAK, CTTY ATTORNEY 647 City Hall,Saint Paul,Minnesota 55102 612-298-5121 JAMES SCHEIBEL FAX 612-298-5619 MAYOR REC��vEo 12-5-90 D��c��o J Distribution List �i''Y CLERK . I Re. Join±t Resolution of the City Council and Port Authority Busihess Development Program; Port' Authority Short Term Loan Prom�sory Note Dear Ladies and Gentlemen: Transmitted herewith is the second page of the Joint Resolution which was inadvertently omitted from the 12-4-90 transmittal and the Promisory Note to be executed by the Port Authority which is provided for your information. Yours very ru , ��' a, ,. �/.- J es T. Hart ssistant City Attorney Cr� �10 -�o� DISTRIBUTION LTST President & Council Members Stacy Becker James Bellus Lisa Clemens � Thomas Cran Terry Garvey ' Robyn Hansen Kenneth Johnsorl George McMahon Gary Norstrem Albert Olson Peter Seed Jerome Segal George Splichal �� CF Rb - ao�� WHEREAS, under Section 469.053, Subd. 4 of the Act, the Port Authority is entitled to request, and the City is required, upon such request, to levy a tax for the benefit of the Port Authority, up to 0.01813 percent of the taxable market value of the property in the City, which sum shall be paid by the City Treasurer to the Treasurer of the Port Authority, to be spent by the Port Authority (the "Tax Levy"); and WHEREAS, memb�ers of the City Council of the City have suggested that it is not in the best interests of the taxpayers of the City to allow the Port Authority to use the Tax Levy for purposes of paying operating or other costs attributable to existing projects, funded either under Basic Resolution No. 876 or otherwise, and have suggested that the Port Authority's right to use that Tax Levy should be restricted by the legislature to avoid such use; and WHEREAS, the City Council of the City and the Port Authority have agreed that the best interests of the City, and its ta�cpayers, would be served by encouraging the Port Authority to continue to provide for new economic development opportunities, and to that end that the Tax Levy continue to be available �o the Port Authority for that purpose; and WHEREAS, the Part Authority similarly believes that it is important to the City and its taxpayers that it continue to provide economic development support to the area through the use of the Tax Levy and otherwise, and is willing to restrict its use of that Ta�c Levy to pay for or support future economic development; and WHEREAS, Port Authority staff has identified plans for the use of the Tax Levy in support of new business development which (a) call for the issuance of revenue bonds in the approximate amount of $8,280,000 (the "Reserve Bonds") to capitalize a new $61,000,000 Business Development Program (the "Business D�evelopment Program") to directly assist in financing projects which add to the job and tax base of th�e City; (b) require the Port Authority's commitment to request the Tax Levy in each year for at l�ast 20 years beginning in 1990, to secure those bonds or any other obligations entered into by the Port Authority in furtherance of the purposes to be served by the Job Creation Fund described below; (c) allow the Port Authority to transfer earnings from the Business Development Prpgram, as well as portions of the Tax Levy not needed to support the Reserve Bonds referred to in clause (a), to a job creation fund (the "Job Creation Fund") to be used by the Port Au�thority only to (i) support the acquisition of land for new development, (ii) support a small business loan guaranty program or other similar program, which does not compete with existing programs, (iii) provide direct subsidies to attract or retain businesses in the City; and (iv) to undertake otl�er new economic development activities; (d) result in the leveraging of the Ta�c Levy to support future ecanomic development in an amount far greater than that which would be supported by the direct use of the Tax Levy; (e) call for the Business Development Program to be used to assist projects gen�rally in the $3,000,000 to $5,000,000 range consistent with the Port Authority's existing missio� statement and loan criteria; (f� result in the generation of estimated annual real estate taxes which will exceed the amount of the annual Tau Levy within six years, and will be double the amount of the annual Tax Levy within ten years; and (g) preclude the use of the Tax Levy to pay debt service on etcisting bonds or otherwise to support existing projects or staff costs; and WHEREAS, the City Council and Port Authority both agree that the implementation of such a plan should be pur�ued, �or the benefit of the City and its taxpayers. NOW, THER�FOR�, IN CONSIDERATTON OF THE ABOVE REPRESENTATIONS, IT IS HEREBY JOINTt.Y RESOLVED by the City Council of the City of Saint Paul and the Board of Commissioners of'the Port Authority of the City of Saint Paul as follows: 1. The Business Development Program and the Job Creation Fund as generally described in this Resolution are hereby approved. The Board of Commissioners of the Port Authority hereby understand and agre� that the Port Authority shall (a) use the Tax Levy, (b) issue the Reserve Bonds; (c) issue obligations to fund loans made to businesses (the "Development Obligations"); and -- . ' C � qo -�o� � PROMISSORY NOTE $295, 000 Saint Paul, Minnesota December _, 1990 FOR VALUE RECEIVED, the undersigned (herein called the "Borrower") , p�omises to pay to the order of the City of Saint Paul, Minnesota, a public body corporate and politic (herein called the "LendeX") , or its assigns, the sum of Two Hundred Ninety Five Thousand and Np/100 Dollars ($295, 000.00) (the "Loan") . Said sum was made available to Borrower to enable Borrower to fund debt service payments on certain of Borrowers general obligation bonds issued pursuan� to Minnesota Statutes Section 469.060 coming due December 3 , 1990. The Loan shall bear interest at the rate of eight and two- tenths percent (8.2%) per annum. Interest shall be computed on the basis of the actual number of days elapsed in a 360-day year. The Loan shall be p�ayable in the principal amount of $35, 000, together with accrued interest on December 16, 1991, in the amount of $180, 000 together with accrued interest on December 16, 1992 , and the remaining principal balance with accrued interest on December 16, 1993 . Borrower agrees to request of the Lender levy of taxes under Minnesota Statutes Section 469.053 Subdivisions 4 and 6 timely to permit levy, collection and receipt of tax levy proceeds to meet the payment of principal and interest on the dates as above provided. Therie shall be no penalty for pre-payment of the principal of tY�e Note. If suit is instituted by Lender, or its successors or assigns, to recover on this Note, the undersigned agrees to pay all costs of such coll�ction actually incurred, including reasonable attorney's fee� and court costs. If this Note be reduced to judgment, such' judgment shall bear the lawful interest rate pertaining to liquidated demands, but not to exceed 6% per annum. DEMANLI, protest and notice of demand and protest are hereby waived, and� the undersigned hereby waives, to the extent authorized by law, an and all homestead and other exemption rights which otherwise �ould apply to the debt evidenced by this Note. 1 . Cr 9� �o�� IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of the day and year above first written. "BORROWER" PORT AUTHORITY OF THE CITY OF SAINT PAUL By Its By Its Promissory� Not� by Port Authority. � i � 2 i � . . . �F �io -�� STATE OF MINNE�OTA ) ) ss. COUNTY OF RAMS�Y ) The foregoing instrument was acknowledged before me this day of , 1990, by and , the and of the Port Authority of the City of Saint Paul, a Minnesota governmental subdivision, the Borrower on the foregoing Promi'ssory Note, on behalf of the subdivision. Notary Public This instrument drafted by: City Attorney's Office City of Saint Paul 647 City Hall St. Pau1, Minnesota 55102 � � I � I Promissor� Note by Port Authority. 3 I