89-982 WHITE - CITV CLERK
P�NK - FINANCE GITY OF A NT PAUL C ncil �/J'(y/�'
CANARV - DEPARTMENT [/J
BLUE - MAVOR FI NO• � �� � " �
Council solution �-��;
Presented By
Referred To Committee: D e
Out of Committee By D e
WHEREAS:
1 . On March 30, 1989, the Port Au ho ity of the City of aint Paul adopted
Resolution No. 3101, giving preliminary ap roval to the issua e of taxable revenue bonds
in the initial principal amount of appr xi ately $3,375,000 t finance the acquisition of
a new printing press at their present f ci ity, 1085 Snelling venue North, St. Paul ,
Minneosta. Norwest Bank St. Paul has a re d to underwrite th taxable revenue bond issue
for a term of l years.
2. The Port Authority of the City of Saint Paul will su mit an application for an
industrial revenue bond allocation fr th State of Minnesot Competitive Pool as the
proJect is industrlal .
3. Laws of Minnesota 1976, Chapt , provides that a y issue of revenue bonds
authorized by the Port Authority of th Ci y of Saint Paui , s all be issued only with the
consent of the City Council of the Cit of Saint Paul , by res lution adopted in accordance
with law;
4. The Port Authority of the Cit o Saint Paul has req ested that the City Council
give its requisite consent pursuant to said law to facilitat the issuance of said revenue
bonds by the Port Authority of the Cit o Saint Paul , subJe to finai approval of the
details of said issue by the Port Auth i y of the City of S nt Paul .
RESOLVED, by the City Council of he City of Saint Paul , that in accordance with Laws
of Minnesota 1976, Chapter 234, the Ci y ouncil hereby con ts to the issuance of the
aforesaid revenue bonds for the purpos s escrlbed in the af esaid Port Authority
Resolution No. 3101 the exact details f hich, including, b not limited to, provisions
relating to maturities, interest rates d scc�unt, redemptlon and for the lssuance of
additlonal bonds are to be determined y he Port Authority, ursuant to resolution
adopted by the Port Authority, and the Ci y Council hereby a horizes the issuance of any
additional bonds ( including refunding n s) by the Port Aut ity, found by the Port
Authority to be necessary for carrying ou the purposes for ich the aforesaid bonds are
issued.
COUNCIL MEMBERS Requested by Depa tme t of:
Yeas Nays
Dimond
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Goswitz
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Sonnen
Wilson �t
WN — i �9 Form Ap by City ttorney
Adopted hy Council: Date
Certified Pa-s drb Council re ry
By
A�pprove y Ylav : Dat alUN ' S �`JUG Approve y Mayo fo u citis.\on to Coun '1
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BY — —
pttji�.�D JUN 101989
St. Pau•1 Port Authori ty DE PARTMEN ; (�-'"��°�" NO 3 6 38�
J.E: Terrell , P.K. Feders CONTACT
. 224-5686 PHONE
5/23/89 DATE �e� e�
ASSIGN NUN�ER FOR ROUTING ORDER Cli All Loca io for Si nature :
1 Department Director 3 Director f Management/Mayor
Finance and Management Services Director 4 City Cle
Budget Director � Housing d Economic Development
2 City Attorney H.M. Smy Company, Inc. - 3 375,000
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE T HED MATERIALS? (Pu� pose/
Ra ional e) :
The purpose of the bond issue to finance the ac uisition of a new inting press at their
present facility, 1085 Snelling Avenue North S . Paul , Minnesota.
COST/BENEFIT BUDGETARY AND PERSONNEL IMPACTS TI IPATED:
The amount of the revenue bond issue is $3,3 5, 00 and will be for term of l years.
There will be approximately 8 new jobs and 1 0 xisting jobs.
The Port Authority will submit an applicatio f r an industrial re nue bond allocation
from the State of Minnesota Competitive Pool i 1987 as the proje is industrial .
FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CH G OR CREDITED: (May r's signa-
tur not re-
Tota1 Amount of Transaction: qui ,ed if under
$10 'OOQ)
Funding Source:
Activity Number:
ATTACHMENTS (List and Number All Attachments) :
1. Staff Memorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 3101
DEPARTMENT REVIEW CITY ATTORNEY 'REVIEW
X Yes No Council Resolution Required? Resolution Re uired? X Yes No
Yes X No Insurance Required? Insurance Suf icient? X Yes No
Yes X No Insurance Attached:
(SEE REVERSE SIDE FOR NS RUCTIONS)
Revised 12/84
HOW TO USE THE GREEN SHEET ' �
The GREEN SHEET has several PURPOSES:
1, to assist in routing documents and in securing required signatures '
2. to brief the reviewers of documents on the i.mpacts of approval
3. to help ensure that necessary supporting materials are prepared, and, if
required, attached.
Providing complete information under the listed headings enables reviewers to make
decisions on the documents and eliminates follow-up contacts that may delay.execution.
The COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS heading provides space to explain
the cost/benefit aspects of the decision. Costs and benefits related both to City
budget (General Fund and/or Special Funds) and to broader financial impacts (cost
to users, homeowners or other groups affected by the action) . The personnel impact
is a description of change or shift of Full-Time Equivalent (FTE) positions.
If a CONTRACT amount is less than $10,000, the Mayor's signature is not required,
if the department director signs. A contract must always be first signed by the
outside agency before routing through City offices.
Below is the preferred ROUTING for the five most frequent types of documents:
CONTRACTS (assumes authorized budget exists)
1. Outside Agency 4. Mayor
2. Initiating Department 5. Finance Director
3. City Attorney 6. Finance Accounting
ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others)
1. Activity Manager 1. Initiating Department
2. Department Accountant 2. City Attorney
3. Department Director 3. Director of Management/Mayor
4. Budget Director 4. City Clerk
5. City Clerk
6. Chief Accountant, F&MS
COUNCIL RE30LUTION '(Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others)
l. Department Director 1. Initiating Department
2. Budget Director 2. City Attorney
3. City Attorney 3. Director of Management/Mayor
4. Director of Management/Mayor 4. City Clerk
5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council
6. City Clerk
7. City Council
8. Chief Accountant, F&MS
SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the
Green Sheet is well done, no letter of transmittal need be included (unless signing
such a letter is one of the requested actions) .
Note: If an agreement requires evidence of insurance/co-insurance, a Certificate of
Insurance should be one of the attachments at time of routing.
. Note: Actions which require City Council Resolutions include:
1. Contractual relationship with another governmental unit.
2. Collective bargaining contracts.
3. Purchase, sale or lease of land.
4. Issuance of bonds by City.
5. Eminent domain.
6. Assumption of liability by City, or granting by City of indemnification.
7. Agreements with State or Federal Government under which they are providing
funding.
8. Budget amendments.
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FAX(612) 223-5198
PORT AUTHORITY OF THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417
1900 LANDMARK TOWERS • 345 ST. PETER RE • ST. PAUL, MN 55 2 • PHONE(612)224-5686
May 23, 1989
Mr. Kenneth Johnson, Director
Planning and Economic Development
City of St. Paul
13th Floor, City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: H.M. SMYTH COMPANY, INC.
$3,375,000 TAX EXEMPT REVE UE ND ISSUE
Dear Ken:
We submit herewith for your review a d ferral to the offi� e of the Mayor,
City Council and City Attorney�s office details pertaining o the issuance of
$3,375,000 1n tax exempt revenue bon s finance the acqui ition of a new
printing press at their present facilit , 1085 Snelling Ave ue North, St.
Paul , Minnesota.
The Port Authority will submit an ap li tion for an indus ial revenue bond
aliocation from the State of Minneso a mpetitive Pool as he proJect is
industrial . The City of Saint Paul � e titlement allocati will not be
affected by this application.
The Port Authority staff has conduct d thorough evaluati of the firms
and/or individuals that are involved in this proJect or in hich the
principals have an interest. This i ve tigation has inclu d detailed credit
analysis, Dun and Bradstreet reports, d1 ect communication ith
representatives of financial institu ,io s with whom the pa icipants have done
business and data base checks to det rmi e if any principal s) have been in
any way involved in legal proceeding a a result of securi ies fraud,
extortion, embezzlement or financial i epresentation. '�
In addition to the staff inemorandum, we re attaching a dr t copy of the
proposed City Council resolution and a py of Port Authori y Resolution No.
3101, which authorized the sale of r ve ue bonds in the am nt of $3,375,000.
Your expeditious handling of this ma te will be appreciate� .
Y rs rul
�
P rry . Fel rs
Actin Exe tive
PKF:aJc Vice Pres1 nt
cc: Mayor Latimer
EUGENE A.KRAUT,C.I D.� PERRY K FEDERS,C.P.A. JOHN A,CAM BAS O,C.LD,' JAMES F FAU I.D.' JAMES E TERRELL,C.I.D.�
EXECUTNE VICE PRESIDENT,C.E.O. ASS?.EXEC.VICE PRESIDENT,GF.O. DIRECTOR INDUS IAL D ELOPMENT DIRECTOR REAL ESTAIE PERATIONS DIRECTOR ECONOMIC DEVELOPMENi
LAWRENCE H.L4NGER,P.E RICHARD A.GIERDAL PATRICK E.DEAN,C,P,A, OBERT A.MITTET,C.PA. KAME N L CARLSON,C.P.A, WILLIAM E McGNERN
CHIEF ENGINEER PROPERTY MANAGER FlNANCE DIRECTOR SST.FlNANCE DIRECTOR A� OUNTING MANAGER DIRECTOR PUBLIC RELATIONS
COMMISSIONERS GEORGE W.WINTER WILLIAM R.PETERSON HOWARD M. UTH ANN JEAN M.WEST VIC�L R P.REIM JAMES SCHEIBEL ROBERT C.LONG
PRESIDENT VICE PRESIDENT SECRE ARV ASST.SECRETARV Tq�ASURER ASST.TREASURER COMMISSIONER
�C.I.D.CERTIFlED INDU TRIAL EVELOPER I�
I
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. PORT
AUTHORITY
OF THE CITY OF ST. PAUL
Me r ndum
TO: BOARD OF COMM I SS I ONERS �'E: March 30, 1989
(March 30, 1989 Speciai Meeting)
FROM: J.E. Terrel
SUBJECT: PUBLIC HEARING
PREL 1 M 1 NNtY AGREEIYENT
53,750,000 TAX EXENPT MORTGAGE — N 76
H.M. SMYTH OOI�PANY, I NC.
RESOLUTION N0. 3101
TF� OOMPANY
H.M. Smyth Company, Inc. is a maj S int Paul printing irm located at 1085
Snelling Avenue North. The Compa plans to acquire a n w Komori. press and
related equipment, as well as make s e minor mechanicai improvements to their
.
building.
On August 15, 1978, the Port Auth it Commission approv d the issuance of
$650,000 non 876 equipment note f H M. Smyth,which was paid otf in November
of 1985. On March 20, 1979, the rt Authority Commissi n authorized the
issuance of $1,000,000 in 876 reve ue bonds to finance t e construction of a
32,000 square foot addition to th Co pany's present pla t. On December 17,
1985, the Commission approved a $4 20 ,000 non 876 tax e empt mortgage for the
acquisition of three Komori presse .
THE PROJECT
The Company is negotiating a priva e lacement for the t x exempt mortgage
with a Saint Paul bank and is near fi alizing the terms or that agreement.
The revenue bond allocation for this roJect will come f om the 1989 State
Competitive Pool .
FINANCING AND IERMS
The financing would be done as a n n 76 tax exempt mort age for a term of
seven years and would not require he Port Authority's c edit backing. It is
estimated that the mortgage will s II at the regular Apr.il commission meeting.
The Port Authority would receive i s ustomary fiscal an administrative fee
of .42$ per million and would rece ve sinking fund earni gs.
RECOMYENDAT I ON
Staff recommends approval of the P el minary Agreement b Resolution No. 3101.
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593AA
Resoluti No . ,� U/
RES LU ION OF
THE PORT AUTHORITY F HE CITY OF SAI PAUL
WHEREAS, one of th rposes of Minn ota Statutes,
Chapter 469 ( hereinafter cal e "Act" ) , as fou and
determined by the legislatur to promote th welfare of the
state by the active, promoti n, attraction, en uragement and
development of economically o d industry and ommerce to
prevent so far as possible t e mergence of bl ' hted and
marginal lands and areas of h nic unemployme and to aid in
the development of existing re s of blight, m ginal land and
persistent unemployment; andl
WHEREAS, factors n ce sitating the a ive promotion�
and development of economica 1 sound industry nd commerce
are the increasing concentra io of population ' n the
metropolitan areas and the r pi ly rising incr se in the
amount and cost of governmen al services regui d to meet the
needs of the increased popul ti n and the need or development
of land use which will provi e n adequate tax ase to finance
these increased costs and ac es to employment pportunities
for such population; and
WHEREAS, the Port ut ority of the Ci� y of Saint
Paul ( the "Authority" ) has r ce 'ved from the H.� M. Smyth
Company, Inc . (hereinafter r fe red to as "Com ny" ) a request
that the Authority issue its re enue bonds (wh' h may be in
the form of a single note) t f ' nance the acqu' ition and
installation of equipment an c nstruction of rtain
improvements to its faciliti s (hereinafter co ectively
called the "Project" ) at 108 E st Snelling in he City of St .
Pavl , all as is more fully d sc ibed in the st� f report on
file; and
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WHEREAS, the Author t desires to fac ' itate the
selective development of the o unity, to reta ' and improve
its tax base and to help it p o ide the range o services and
employment opportunities requ r d by its popula 'on, and said
Project will assist the City n achieving that jective.
Said Project will help to inc e se the assessed aluation of
the City and help maintain a o itive relations ip between
assessed valuation and debt a d enhance the ima and
reputation of the City; and
WHEREAS, the Projec o be financed b revenue bonds
will result in substantial em 1 yment opportuni ies in the
Project;
WHEREAS, the Author' t has been advis d by repre-
sentatives of the Company tha onventional, co ercial
financing to pay the capital o t of the Projec is available
only on a limited basis and uch high costs f borrowing
that the economic feasibilit o operating the roject would
be significantly reduced;
WHEREAS, it is pre en ly anticipated hat the Bonds
will be privately placed and se ured by an irre ocable letter
of credit issued by Norwest an Minnesota, Nat onal
Association; .
WHEREAS, the Autho it , pursuant to nnesota
Statutes , Section 469 . 154 , S bd vision 4 did pu lish a notice,
a copy of which with proof o p blication is on file in the
office of the Authority, of p blic hearing on the proposal
of the Company that the Auth ri y finance the P oject
hereinbefore described by th i suance of its i dustrial
revenue bonds; and
WHEREAS, the Autho it did conduct a ublic hearing
pursuant to said notice, at hi h hearing the commendations
contained in the Authority' s st ff inemorandum the
Commissioners were reviewed, a all persons w appeared at
the hearing were given an op o unity to expre their views
with respect to the proposal
NOW, THEREFORE, BE I RESOLVED by th Commiss.ioners
of the Port Authority of the C ' ty of Saint Pau , Minnesota as
follows :
1 . On the basis f information ava lable to the
Authority it appears , and th uthority hereby finds, that
said Project constitutes pro e ties, used or u ful in
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connection with one or more r v nue producing e erprises
engaged in any business withi he meaning o,f S division 2 (a)
of Section 469 . 153 of the Act hat the Project furthers the
purposes stated in Section 46 . 53 of the Act, d that the
effect of the Project, if und r aken, will be t encourage the
development of economically s u d industry and mmerce and
assist in the prevention of t e emergence of bl hted and
marginal land, and will help o prevent chronic nemployment,
and will help the City to ret i and improve it tax base and
provide the range of services a d employment op rtunities
required by its population, a d will help to pr ent the
movement of talented and educ t d persons out o the state and
to areas within the state whe e their services ay not be as
effectively used and will res 1 in more intens e development
and use of land within the Ci y and will eventu lly result in
an increase in the City' s tax b se; and that it is in the best
interests of� the port distric nd the people o the City of
Saint Paul and in furtherance o the general pl n of
development to assist the Co a y in financing he Project.
2 . Subject to th m tual agreement f the
Authority, the Company and t urchaser of the revenue bonds
as to the details of the rev u agreement as d fined in the
Act, and other documents nec ss ry to evidence nd effect the
financing of the Project and th issuance of th revenue
bonds, the Project is hereby ap roved and autho ized and the
issuance of revenue bonds of th Authority (whi h may be in
the form of a single note) i a amount not to xceed
approximately $3, 750, 000 (ot er than such addit 'onal revenue
bonds as are needed to compl te the Project) is authorized to
finance the costs of the Pro 'ec and the recomm ndations of
the Authority' s staff, as se f rth in the staf inemorandum to
the Commissioners which was re ented to the Co issioners ,
are incorporated herein by r fe ence and approv d.
3 . In accordance 'wi h Subdivision 3 of Section
469 . 154 , Minnesota Statutes, th Executive Vice President of
the AUTHORITY is hereby auth ri ed and directed to submit the
proposal for the above descr be Project to the Commissioner
of Trade and Economic Develo me t, requesting h s approval,
and other officers, employee a d agents of the AUTHORITY are
hereby authorized to provide th Conunissioner th such
preliminary information as h m y require.
4 . There has her to ore been filed ith the
Authority a form of Prelimin ry Agreement betw n the
Authority and Company, relat ng to the propose financing of
the Project . It is the purp se of the Prelimi ry Agreement
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to evidence the commitment o e parties and eir intentions
with respect to the proposed P ject in order at the Company
may proceed without delay wi h he commencemen of the
acquisition, installation an c nstruction of e Project with
the assurance that there has b n sufficient " � ficial action"
within the meaning of the In ei al Revenue Cod of 1986, as
amended, to allow for the is ua ce of industri revenue bonds
( including, if deemed approp ia e, any interim ote or notes
to provide temporary financi g hereof ) to fin ce the entire
cost of the Project upon agr e nt being reach as to the
ultimate details of the Proj ct and its financ ' g. Said
Agreements are hereby approv d, and the Presid t and
Secretary of the Authority a e ereby authoriz and directed
to execute said Preliminary gr ement.
5 . Upon executio o the Prelimina Agreement by
the Company, the staff of th A thority is aut rized and
directed to continue negotia io s with the Com ny so as to
resolve the remaining issues ne essary to the eparation of
the loan agreement and other do uments necessa to the
adoption by the Authority of it final resoluti n and the
issuance and delivery of the re enue bonds .
6 . The revenue b nd ( including an interim note
or notes ) and interest there n hall not consti ute an
indebtedness of the Authorit o the City of Sa nt Paul within
the meaning of any constitut on 1 or statutory imitation and
shall not constitute or give ri e to a pecuniar liability of
the Authority or the City or a harge against t eir general
credit or taxing powers and ei her the full fa th and credit
nor the taxing powers of the Au hority or the C ty is pledged
for the payment of the bonds (a d interim note r notes) or
interest thereon.
7 . In order to f ci itate completio of the
revenue bond financing herei c ntemplated, the City Council
is hereby requested to conse t, pursuant to Law of Minnesota,
1976 , Chapter 234 , to the is ua ce of the reven e bonds
( including any interim note r otes) herein co templated and
any additional bonds which t e uthority may pr or to issuance
or from time to time thereaf er deem necessary o complete the
Project or to refund such re en e bonds; and fo such purpose
the Executive Vice President of the Authority i hereby
authorized and directed to f rw rd to the City ouncil copies
of this resolution and said re iminary Agreeme t ancl any
additional available informa io the City Counc 1 may request .
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8 . The actions of, t e Executive Vic -President of
the Authority in causing publ ' c notice of the p blic hearing
and in describing the general n ture of the Pro 'ect and
estimating the principal amou t of bonds to be ssued to
finance the Project and in pr p ring a draft of the proposed
application to the Commission r of Trade and Ec nomic
Development, State of Minneso a for approval o the Project,
which has been available for ' n pection by the ublic at the
office of the Authority from n after the publ cation of
notice of the hearing, are in a 1 respects rati ied and
confirmed. �
Ado ted March 30 1989 �
P �
Attest
� _�
, Pres 'd nt
The o t Authority of he City
r ^ of S ii t Paul
.�;�,�� �" . .��
���L. Secretary
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Page Two
Committee Report - May 24, 89
HOUSING AND ECONOMIC DEVELO E COMMITTEE
Bill Wilson, Chair
SUSPENSION ITEMS:
Resolution for referral of Highwood T sk Force Report to P1 nning
Commission
COMMITTEE RECOMMENDED APPROVAL
Resolution approving Port Authority a ti n on $3,375,000 re enue bond
issue for the H.M. Smyth Company, Inc
COMMITTEE RECOMMENDED APPROVAL
�I
Members:
Bill Wiison, chair
� -CZTY OF SAINT PAUL Tom Dimond
ie1�'���p � � � Kiki Sonnen
� OFFICE OF THE CITY COIINCIL �
Date: May 24, 1989
W(LLIAM L. WILSON Committee Report ����TCD MARK VOERDING
CouIICilman Legislative Aide
To: Saint Paui Ci Councii ��Y 251989
� C�TY CLERK
From : Housing and Economic Development Committee
Bill Wilson, Chair
1. Approval of Minutes
MINUTES of the APRIL 26, 1989, committee meeting were APPROVED
2. Resolution approving the reappointments by the Mayor of Gerald Beedle,
Robert Reistad, Thomas Delaney and James Yannarely to serve on the
Examining Board of Truth-in-Housing Evaluators (C.F. 89-602)
COMMITTEE RECOMMENDED APPROVAL
3. Resolution adopting the amended Recreation Section of the District 14 Plan
as part of the St. Paul Comprehensive Plan (C.F. 89-628)
CO*�II�ITTEE RECOI�IENDED APPROVAL
4. Resolution authorizing proper City officials to execute an agreement with
the City of Minneapolis agreeing to cooperate in the participation with the
Ztain City Area Urban Corps Program (C.F. 89-b90)
COMMITTEE RECOI�IENDED APPROVAL
5. Resolution authorizing proper City officials to execute an agreement with
Ramsey County agreeing to cooperate in the participation with the Twin City
Area Urban Corps Program and appropriating funds to the adninistration of
said program (C.F. 89-691)
COMMITTEE RECOMMENDED APPROVAL
6. Resolution adopting the 1988-1991 Housing Assistance Plan and providing for
the development of a new Housing Plan element of the Comprehensive Plan
(C.F. 89-708) . ~
COMMITTEE RECOMMENDED APPROVAL, WITH AMENDMENTS
(AMENDED PLAN TO BE AVAILABLE BY COUNCIL MEETING FOR APPROVAL)
(Continued - 2 Suspension Items)
CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4646
8�46