89-1186 WHITE CITV CLERK � COUflCII //J
PINK � FINANCE
CANARV - DEPARTMENT G I TY O A I NT PAU L . � //�
B4UE - MAVOR File NO• �'f• �
Counc 'l Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date �
RESOLVED, by the City Council t e City of Saint PaUI, that in accordance with Laws
of Minnesota 1976, Chapter 234, the i Council hereby consents to the issuance of the
aforesaid revenue bonds for the pur s described in the aforesaid Port Authority Resolu-
tion No. 3136 the exact details of hi h, including, but not limited to, provisions
relating to maturities, interest ra s, discount, redemptimn, and for the issuance of ad-
ditional bonds are to be determined by he Port Authority, pursuant to resolution adopted
by the Port Authority, and the City ' cil hereby autMorizes the issuance of any addi-
tional bonds ( including refunding b nd ) by the Port Author^ity, found by the Port
Authority to be necessary for carrying ut the purposes for which the aforesaid bonds are
issued.
s
COUNCIL MEMBERS Requested by Dep�rtment of:
Yeas Nays —, -
Dimond
Long � In Fa r
cosw;tz f�'
O g
scbe t�i _ A ga i n t Y ��_
Sonnen '
Wilson �.
�� 6 Form Appro �City Attorney -
Adopted by Council: Date ��j
Certified Pass b ouncil ret BY !
sy�
Appro y Mavor: Date _ — � Appr by Mayot for Sub io 'to Coun il
.
PUBIiSl�D J U L 1 � 1989
— - — —
, � M �� //��
embers.
CITY OF s ZNT PAUL Bili Wilson, chair
� ������ �� Tom Dimond
�it1l 11
• �� OFFICF OF H CITY COIINGIL Kiki Sonnen
Date:
WILLIAM L. WILSON RECEIVED MARK VOERDING
CouIICilman ��m it ee Report LegisiativeAide
��N 2 9�9a9
To: Saint Paul City Counci CITY CLE�t� �
From : Housing and Eco Developmen�� Committee
Bifl Wilson, Chair �
l. Approval of Minutes ,
MINUTES of the MAY 10, 1989, o ittee meeting were �PPROVED.
2. Consent to issuance of $2,890,00 tax exempt Port Au�hority revenue
bonds for Source, Inc. ',
COMMITTEE RECOMMENDED APPROVA 0 PROPOSED RESOLUTIO�T (original
resolution and green sheet at ac ed) �,
3. Summary presentation on Econo ic evelopment Strateg�
I
COMMITTEE RECOMMENDED APPROVA 0 THE PROPOSED REVIE�T PROCESS
(no Council action required) i
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. Approval of bonds for COPC�, b ase to Colder Prod�cts Company"��.
COMMITTEE RECOMMENDED APPROVA 0 PROPOSED RESOLUTIOD� (original
resolution and green sheet at ac d)
__�__-___---_.._�___�.�
5. Resolution accepting the Near Ea Side Neighborhood Improvement
Strategy, requesting the shor er ist of priority strategies be
incorporated into the City' s dm' istration' s work p�ogram, requesting
said Strategy be used as back ro d information for updating the
Comprehensive Plan and to eva a private development proposals to
guide city and neighborhood a ti and investments on the Near East Side
(C.F. 89-844)
COMMITTEE RECOMMENDED APPROVA , AMENDED
(map clarifications listed on t ched sheet)
6. Resolution supporting the pos'tio of Governor Perpidh pertaining to the
U of M sports facilities, enc r ing the continued �nd expanded use of
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CITY HALL SEVENTH FLOOR AINT PAUL, MINNESOTA 55102 � 6l2/298-4646
9 46
COMMITTEE REPORT
Page Two
Housing and Economic Development Committee
Meeting Date: June 28, 1989
the St. Paul Civic Center for athletic events, and requesting the Mayo�
to form an ad hoc committee of representatives as listed to study the
feasibility of cooperation with the U of M to host hockey games
(C.F. 89-946)
COMMITTEE RECONIl�IENDED APPROVAL
7. Hearing to consider the Appeal of Laurel Ann March to a Summary
Abatement Order for property locted at 230-240 Dale
COMMITTEE RECOMMENDED TO DENY THE APPEAL AND TO PROCEED WITH THE
ASSESSMENT
8. Appeal of Charles Rafferty to a decision of the Heritage Preservation
Commission regarding the west wing of Gillette Hospital located at
1003 E. Ivy Street
CONIl�IITTEE RECOMMENDED THE APPEAL BE LAID OVER IN COI�IlriITTEE UNTIL AFTER
AUGUST 31, 1989, AND THAT IT ALSO BE REFERRED TO THE HERITAGE
PRESERVATION COMMISSION FOR FURTHER ACTION
9. Resolution requesting the HR.A and Port Authority consider and adopt
replacement housing policies similar to St. Paul' s (C.F. 89-867)
CONIl�IZTTEE RECOMMENDED APPROVAL
10. Ordinance enacting the replacement housing policy and providing
procedures for its implementation (C.F. 89-760)
COMMITTEE RECOMMENDED APPROVAL
11. Resolution to bring city to compliance with the new state law on
replacement housing (C.F. 89-1038)
COMMITTEE RECOMMENDED WITHDRAWAL OF THE RESOLUTION
12. Ordinance amending Section 189.04 (4) of the Legislative Code pertaining
to Truth in Housing forms and requiring a zoning classification
(C.F. 89-1045)
CONINIITTEE RECOMMENDED AN INDEFINITE LAYOVER IN COI�IITTEE, PENDING A
STAFF RECOMMENDATION
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552��
Resolution No.�/--3�
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RE OL TION OF �
THE PORT AUTHORITY O THE CITY OF SAINT PAUL
WHEREAS, one of he purposes of Minnesota Statutes,
Chapter 469 (hereinafter c 'll d "Act" ) , as found and
determined by the legislat re is to promote the welfare of the
state by the active, promo io , attraction, encouragement and
development of economicall s und industry and commerce to
prevent so far as possible 'th emergence of blighted and
marginal lands and areas o c ronic unemployment and to aid in
the development of existin a eas of blight, marginal land and
persistent unemployment; a d
WHEREAS, factors ' ne essitating the active promotion
and development of economi al y sound industry and commerce
are the increasing concent ation of population in the
metropolitan areas and the r idly rising increase in the
amount and cost of govermm � al services required to meet the
needs of the increased pop 1 tion and the need for development
of land use which will pro i e an adequate ta�c base to finance
these increased costs and c ess t� employment opportunities
for such population; and
WHEREAS, The Por uthority of the City of Saint
Paul (the "Authority" ) has r ceived from COPCO Partnership
(hereinafter referred to a ' Company" ) a request that the
Authority issue its revenu onds (wllich may be in the form
of a single note) to fina e the acquisition, installation and
construction of a manufac r ng facility (hereinafter
collectively called the " ro ect" ) in westgate Office and
Industrial Center in the it of St. Paul , all as is more
fully described in the st ff report on file; and
WHEREAS, the Au ho ity desires to facilitate the
selective development of he community, to retain and improve
1� I '�.. �� //��
its tax base and to help t rovide the range of services and
employment opportunities eq ired by its population, and said
Project will assist the C ty in achieving th�3t objective.
Said Project will help to in rease the asses�ed valuation of
the City and help maintai a positive relationship between
assessed valuation and de t nd enhance the image and �
reputation of the City; a d
WHEREAS, the Pr je t to be financeCi by revenue bonds
will result in substantia e ployment opportw�nities in the
Project;
WHEREAS, the Au ho ity has been ad�ised by repre-
sentatives of the Company th t conventional, commercial
financing to pay the capi al cost of the Pro�ect is available
only on a limited basis a d t such high cos�s of borrowing
that the economic feasibi it of operating t e Project would
be significantly reduced; , ',
WHEREAS, Miller � & chroeder Financ�al, Inc . {the
"Underwriter" ) has made a ' p posal in an agreement (the
"Underwriting Agreement" ) r lating to the purchase of the
revenue bonds to be issue finance the Project;
WHEREAS, the Au h ity, pursuant to Minnesota
Statutes , Section 469 . 154 bdivision 4 did publish a notice,
a copy of which with proo f publication is on file in the
office of the Authority, f public hearing on the proposal
of the Company that the A t rity finance the Project
hereinbefore described by t issuance of it�s industrial
revenue bonds; and '
WHEREAS, the Au h rity did conduct' a public hearing
pursuant to said notice, t hich hearing thie recommendations
contained in the Authorit ' staff inemorandum to the
Commissioners were review d, and all persons who appeared at
the hearing were given an'� o portunity to express their views
with respect to the propo' a .
NOW, THEREFORE, B IT RESOLVED by the Commissioners
of the Rort Authority of h City of Saint Paul, Minnesota as
follows :
1 . On the bas ' s of information available to the
Authority it appears, and t e Authority hereby finds, that
said Project constitutes r perties, used or useful in
connection with one or mo e revenue producing enterprises
engaged in any business w' t in the meaning of Subdivision 2 of
2
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Section 469 . 153 of the Act; th t the Project furthers the
purposes stated in Section 69 153 of the Act, and that the
effect of the Project, if u de taken, will be to encourage the
development of economically so nd industry and commerce and
assist in the prevention of th emergence of blighted and
marginal land, and will hel t prevent chroniC unemployment,
and will help the City to r ta n and improve i�s tax base and
provide the range of servic s nd employment o�portunities
required by its population, an will help to p�'event the
movement of talented and ed ca ed persons out bf the state and
to areas within the state w er their services ', may not be as
effectively used and will r su t in more inten�ive development
and use of land within the it and will event�ally result in
an increase in the City' s t x ase; and that i� is in the best
interests of the port distr c and the people Of the City of
Saint Paul and in furtheran e f the general plan of
development to assist the C m any in financing the Project.
2 . Subject to t e mutual agreement of the
Authority, the Company and h purchaser of the revenue bonds
as to the details of the le s or other revenue agreement as
defined in the Act, and oth r documents necessary to evidence
and effect the financing of t e Project and the issuance of
the revenue bonds, the Proj c is hereby approved and
authorized anci the issuance o revenue bonds of the Authority
(which may be in the form f single note) in an amount not
to exceed approximately $1, 30 , 000 (other than such additional
revenue bonds as are neede t complete the Project) is
authorized to finance the os s of the Project and the
recommendations of the Aut or ty ' s staff, as set forth in the
staff inemorandum to the Co i sioners which was presented to
the Commissioners , are inc rp rated herein by reference and
approved.
3 . In accordan e ith Subdivision 3 of Section
469 . 154 , Minnesota Statute , he Executive Vice-President of
the AUTHORITY is hereby au ho ized and directed to submit the
proposal for the above des ri ed Project to the Commissioner
of Trade and Economic Deve op ent, requesting his approval,
and other afficers, employ es and agents of the AUTHORITY are
hereby authorized to provi e he Commissioner with such
preliminary information as h may require.
4 . There has h r tofore been filed with the
Authority a form of Prelim n ry Agreement between the
Authority and Company, rel t 'ng to the proposed construction
and financing of the Proje t and a form of the Underwriting
Agreement . The forms of t e agreements have been examined by
3 '
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the Commissioners . It is th purpose of the agreements to
evidence the commitment o t e parties and their intentions
with respect to the propo ed Project in order that the Company
may proceed without delay wi h the commencem�nt of the
acquisition, installation an construction of the Project with
the assurance that there as been sufficient "official action"
within the meaning of the In ernal Revenue Code of 1986, as
amended, to allow for the is uance of industrial revenue bonds
( including, if deemed app op iate, any interim note or notes
to provide temporary fina ci g thereof) to finance the entire
cost of the Project upon g ement being reached as to the
ultimate details of the P oj ct and its financing. Said
Agreements are hereby app o d, and the President and
Secretary of the Authorit re hereby authorized and directed
to execute said Agreement .
5 . Upon execu i n of the Preliminary Agreement by
the Company, the staff of t e Authority is authorized and
directed to continue nego i tions with the Company so as to
resolve the remaining iss e necessary to the preparation of
the lease and other docum n s necessary to the adoption by the
Authority of its final bo d resolution and the issuance and
delivery of the revenue b n s; provided that the President (or
Vice-President if the Pre i ent is absent) and the Secretary
(or Assistant Secretary i he Secretary is absent) of the
Authority, or if either o uch officers (ar�d his alternative)
are absent, the Treasurer' o the Authority in lieu of such
absent officers, are her y authorized in accordance with the
provisions of Minnesota a utes, Section 475 .06 , Subdivision
1 , to accept a final off r f the Underwriter made by the
Underwriter to purchase 'ai bonds and to e�ecute an
Underwriting Agreement s tt ng forth such o�fer on behalf of
the Authority. Such acc pt nce shall bind tihe Underwriter to
said offer but shall be ub ect to approval and ratification
by the Authority in a fo ma supplemental bond resolution to
be adopted prior to the el very of said revenue bonds .
6 . The reven e onds ( including any interim note
or notes ) and interest t er on shall not constitute an
indebtedness of the Auth ri y or the City of Saint Paul within
the meaning of any const tu ional or statutory limitation and
shall not constitute or iv rise to a pecuniary liability of
the Authority or the Cit o a charge again�t their general
credit or taxing powers nd neither the full faith and credit
nor the taxing powers of th Authority or the City is pledged
for the payment of the b n (and interim note or notes ) or
interest thereon; provid d owever, that if any of the revenue
bonds are issued as taxa 1 obligations, the full, faith and
credit of the Authority h 11 be pledged to their payment.
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7 . In order to fac ' 1 ' tate completion of the
revenue bond financing herein o templated, the City Council
is hereby requested to consent ursuant to Laws of Minnesota,
1976 , Chapter 234 , to the issu n e of the revenue bonds
( including any interim note or n tes ) herein con�emplated and
any additional bonds which the A thority may pri4r to issuance
or from time to time thereafte eem necessary tq complete the
Project or to refund such reve u bonds; and for � such purpose
the Executive Vice President o he Authority is ' hereby
authorized and directed to for a d to the City C�uncil copies
of this resolution and said Pr l minary Agreemenit and any
additional available informati n the City Council may request .
8 . The actions of h Executive Vice-President of
the Authority in causing publi otice of the public hearing
and in describing the general a ure of the Project and
estimating the principal amou f bonds to be issued to
finance the Project and in pre' a ing a draft of the proposed
application to the Commission f Trade and Economic
Development, State of Minnesot , for approval of the Project,
which has been available for ' s ection by the public at the
office of the Authority from d after the publication of
notice of the hearing, are in al r ts ratified and
confirmed.
Adopted June 20, 1989
Attest '
� Pres 'de t '
The or Authority of the City
of S in Paul
� � �
\� � � � �� ,
Se' retary
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POR �'
AUTHO � ITY
OF THE CITY OF ST. P11UL
Me o aAdum
TO: BOARD OF COMMISSIONERS DATE June 1, 1989
(June 20, 1989 Regular Meeting> '
FROM: J. A. Campobasso �Yl�
J.J. Bellus �j�
SUBJECT: COPCO PARTNERSHIP WITH A SUBLEA E 0 COLDER PRODUCTS CpMPANY 8 FASTEST, INC.
PUBLIC HEARING - PRELIMINARY AN U DERWRITING AGREEMEN�S
$870,000 TAX EXEMPT REVENUE BON I SUE I,
$445,000 TAXABLE REVENUE BOND I SU I
WESTGATE OFFICE AND INDUSTRIAL EN ER
RESOLUTION N0. 3136 '
PUBLIC HEARING - SALE OF LAND �
RESOLUTION N0. 3137 �
1 . THE COMPANY
The COPCO Partnership is c prised of the five aci�ing principals of
Colder Products (CPC). Th 70 owner is Mlchael D. Lyon, the president
and one of the initial fou er of the corporation in 1978. CPC manufac-
tures a unique easy-to-oper te quick disconnect coupling designed
specifically for low pressu e luids, gases and vacuum applications where
plastic tubing is used.
The company selis its produ ts thro�gh an extensiv�e network of industrial
distributors located in all th United States, Europe, Japan, and
Australia. The market for PC quick disconnects is extremely broad in-
cluding all users ot plasti t bing. Examples of applications and
specific markets incl �de bi me ical instrumentation (hypothermia blanket
equipment, dialysis water t an fer, inhalation therapy equipment, blood
analysis equipment). office eq ipment machines for pneumatic power trans-
fer, carpet cleaners, resta ra t and food processing equipment,
laboratory and education in ti utions usage, and a variety of other ap-
plications. Colder Product i the sole manufacturer of this product and
has developed its market th ou h quality product applications, strong
customer service and economica product design.
CPC has a wholly owned subsidi ry, FasTest, Inc., 'which is approximately
five years old. FasTest pr du es quick connector� for pressure and
vacuum industrial and testi g pplications. Its products are sold
through industrial distribu or to manufacturers ctf components that re-
quire pressure or vacuum te ti g. FasTest shares 'facilities with CPC.
FasTest's products are incr� as ngly being used by ',all types of manufac-
turers who continually incr as their quality tesi^ing needs.
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BOARD OF COMMISSIONERS
June 1, 1989
Page 2
CPC is located at 2367 Univ si y Avenue and leases approximately 16,000
square feet in several building . The company is at 100� capacity and
proposes to relocate in orde t continue growing. ' CPC and its sub-
sidiary presently have over 0 mployees and with the expansion expect to
increase employment to betwe n 00 and 120 in the near future. The com-
pany has signed a First Sour e greement and is intferested in working
with the City's Job� Creation an Training Oftice.
2. THE PROJECT
CPC proposes to consolidate he r operation into a new 25,000 square foot
facility in Westgate Office nd strial Center. The building will contain
approximately 8,000 square f et of office and 17,000 square feet of
manufacturing space. The pl n Ilows for a 9,600 square feet addition to
be constructed to the west a t e company continues to grow. Total
project costs tor the new fa il ty are $1, 178,285 o�r approxfmately $47
per square foot.
The Port Authority would Iea e site containing 73,540 square feet at a
rate of $3.50 per square foo a 10� interest for a 30-year term. The
initial bui �ding will cover 4� of the site. This lease will resuit in a
monthly payment of $2,313.88 an an annual payment of 527,766.51 . Pay-
ments will commence six mont s fter the sale of bonds
The company will also be gra te a right of first refusal for the 32,974
square foot, landlocked parc I f land to the west of the site at $1 .00
per square foot to accommoda �e heir future expansion plans. The right
would be for a period of fiv y ars with the company required to maintain
the site including cutting o w eds during that perlod. The company
would be allowed a 30-day pe io to respond to any �ffer. Financing for
the land would be provided a a 10� interest rate amortized over the
remaining term of the origin I I nd lease. In the event they acquire the
additional land, they will b r uired to grant access through the site
to the University of hlinneso a r the busway at no cost.
3. FINANCING
The proposed financing would be one as an industri�l revenue bond issue
with a 30-year term. The $8 ,0 0 tax exempt bond will be issued to fund
the portion of the faciltiy a is eligibie under the Federal guidelines
for manufacturing faciltiies. I addition, a $445,000 taxable bond will
cover construction costs for ' he office area and other space not eligible
for tax exempt financing. Pr ce ds from the combined bond issues would
be as follows: '
Construction $1�098,075.00
Construction Period In e st - 6 Months ' 57,050.00
Debt Service Reserve ',131,400.00
Bond Discount ' 28,475.00
TOTAL $1,',315,000.00
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BOARD OF COMMISSIONERS
June 1, 1989
Page 3
The company will pay bond ss ance and discount costs beyond those allow-
able in the bond issue of 0 000.
The Port Authority will re ei e sinking fund earnings as well as its cus-
tomary fiscal and administ at ve tees based on a formula of .42� per mil-
lion per year for the firs t n years, .54� per miillon per year for the
second ten years and .66� er million per year for the final ten years.
The Port Authority also wi l eceive the earnings on the debt service
reserve.
The Port Authority will su mi this proJect to the State of Minnesota's
revenue bond competitive p ol for allocation as an industrial projecfi.
The company will submit a � eposit to secure this aliocation which will .
be refunded at the time of cl sing of the project.
The proposed financing wou d e structured as a lease to COPCO partner-
ship wlth s�bleases to Col er Products Company and FasTest, Inc. The
bond issue would be guaran ee by Mr. Lyon individually as well as a cor-
porate guarantee from Cold r roducts Company.
5. UNDERWRITING
Miller b Schroeder Financi I as agreed to underwrite the 30-year bond
issue at a rate to be set t he time the bonds are sold. We anticipate
that the bonds will be sol a our regular July Board Meeting.
6. OPTIONS TO PURCHASE
The term of the lease woul b for 30 years with options to purchase as
outlined below:
�,ui Idin�
10 years $3 0, 88.33 $131,500.00
' 20 years 2 4, 91 .67 131,500.00
30 yea�s 1 8, 95.00 131,500.00
7. RECOMMENDATIONS
Staff has interviewed ofti er of the company and reviewed the company's
financial statements. We av also discussed the project with
District 12, and they were su portive. Staff recommends approval of
Resolution Nos. 3136 and 3 37.
JAC:jed
WHITE� • CITV, CLERK • � � COURCIl
. PiNK -�FINANCE � �GITY OF �s INT �AUL � File N0. ��'�1�.�
'tANAR'.`'- DEPARTMENT � ,
BLUE - MAVOR
. . Co ci esolution �"��
� / �._ -
Presented By `� �-3 �
eferre �� Committee: ! Date �`G ,A
Out of Committee By ' Date
A RESOLUTI N STABLISHING AN
ADVISORY T SK FORCE TO STUDY i
PUBLIC FINANC G OF CTTY CAMPAIG�TS
WHEREAS, the financing of presidenti c mpaigns and campai s for U.S. Senate and
House of and Re resentatives is rovid d y the public through a�n income tax check-off
P P
system; and '
WHEREAS, financing for campaigns fo st te senate and house eats is provided by the
public through a check-off on the Minn so state income ta�c an� property tax refund
forms; and
WHEREAS, candidates for city electiv of 'ces have found it incrjeasingly difficult to
raise the necessary funds to conduct a 'ab e, informative campai�n; and
WHEREAS, candidates new to the pol' ic process or of limited income find it
impossible to conduct a viable campaig f public office at the lbcal level because of
the lack of funds; and
WHEREAS, it is imperative that the v tin public be given the full opportunity to know
and understand the position of each ca di te on various issues i� order to make an
educated choice; now, therefore, be it ''�,
RESOLVED, that the Council of the 'ty f St. Paul hereby esta�blishes an advisory task
force to determine the viability of publ fi ancing for St. Paul el�ctions, identify
possible altematives for funding, identi c anges necessary in state statute or city
ordinance and to make final recomme at ns to the City Council and Charter
Commission; and be it further
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
�� [n Favo
coswitz
RetUnan
��;be� Against BY
Sonnen
Wilson
Focm Approved by City Attorney
Adopted by Council: Date
Certified Yassed by Council Secretary BY
By�
A►pproved by IVlavor: Date _ Approved by Mayor fpr Submission to Council
By BY