99-1178�
�o,���� File # 9q —��Rg'
Resolution #
Green Sheet # � 0� �o O 3
RESOLUTION
CITY OF SAINT PAUL,,MINNESOTA
�
Preseated By ��� �� � � � _ _
Referred To
Committee:Date
RESOLUTION RECITING A PROPOSAL FOR FINANCING
A MULTIFAMILY RENTAL HOUSING DEVELOPMENT PROJECT
AND AUTHORIZING THE HOUSING AND REDEVELOPMENT
AUTHORITY TO EXERCISE THE POWERS GRANTED IN
MINNESOTA STATUTES, SECTIONS 462C.01 TO 462C.08
./[� :I�1:i�/:G�l
3 Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, or housing and redevelopment
4 authorities authorized by ordinance to exercise on behalf of a city, the powers confened by the Act,
5 the power to issue revenue bonds to finance a program far the purposes of planning, administering,
6 making or purchasing loans with respect to one or more multifamily housing developments within
7 the boundaries of the city; and
8 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has
9 received from Avex Lowiy Limited Partnership, (the "Developer"), a proposal that the HRA
10 undertake to finance the rehabilitation of a multifamily rental housing development as hereinafter
11 described, through the issuance of revenue bonds or obligations in one or more series (collectively,
12 the "Bonds") pursuant to the Act for the purpose of loaning the proceeds thereof to the Developer
13 to finance the rehabilitation by the Developer of the Lowry Professional Building to include 112
14 apartments (the "Project") pursuant to the "housing program" described below; and
15 Prior to publication of a notice of public heazing for the public hearing described in (F) below, the
16 City prepazed a"housing program" (the "Program") under the Act and submitted the Program for
17 review to the Metropolitan Council; and
18 The Developer's proposal calls for the HRA to loan the proceeds realized upon the sale ofthe Bonds
19 to the Developer pursuant to a revenue agreement or agreements wherein the Developer will be
20 obligated to make payments at the times and in the amounts sufficient to provide for the prompt
21 payment of principal of, premium, if any, and interest on the Bonds and all costs and expenses of
22 the HRA and the City incident to the issuance and sale of the Bonds; and
1878340v1 (149C4011DOC)
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23 T'he City desires to encourage the development and continued operation of housing facilities
24 designed for occupancy by persons of low and moderate income and assist the City in achieving
25 these objectives; and
26 A public hearing on the Program and the proposed fmancing of the Project was held on December
27 8,1999 following duly published notice, at which tune all persons that desired to speak were heard.
28 NOW THEREFORE BE IT RESOLVED by the City Council ofthe City of Saint Paul, as follows:
29 The City hereby approves the Program and gives preliminary approval to the issuance of the Bonds
30 for the financing of the Project and, pursuant to Section 72 of the Saint Pau1 Administrative Code,
31 hereby authorizes and directs the HRA to exercise the powers granted in Minnesota Statutes 462C.01
32 to 462C.08.
33
34
35
36
37
38
39
40
41
42
On the basis of information available to the City Council, it appeazs, and the City Council hereby
finds, thatthe proj ect constitutes amultifamily rental housing development and fixrthers the purposes
of the Act; that the Proj ect is reserved for rental in part by persons of low and moderate income; that
the availability of financing under the Act and the willingness of the HRA to fiunish such financing
will be a substantial inducement to the Developer to operate the Project, and that the effect of the
financing of the Project, if undertaken, will be to assure that adequate housing will continue to be
auailable to residents of the City at a reasonable cost.
The Executive Director of the HRA, is hereby authorized to execute a Memorandum of
Understanding with respect to the financing ofthe Project in substantially the form on file with the
HRA.
43 Leonard, Street and Deinard Professional Association, is hereby retained as Bond Counsel for the
44 issuance of the Bonds. Dougheriy Summit Securities LLC is hereby retained as the investment
45 banker for this transaction. Leonard, Street and Deinard and Dougherty Suinmit Securities LLC are
46 hereby authorized to assist in the preparation and review of necessary docuxnents relating to the
47 issuance of the Bonds, to consult with the City Attorney, Developer and purchasers of the Bonds as
48 to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants
49 and other provisions of the necessary documents and submit such documents to the IIRA for final
50 approval.
51 The Developer has agreed and it is hereby determined that any and a11 costs incurred by the City or
52 the HRA in connection with the financing of the Project, whether or not the proposed financing of
53 the Project is carried to completion and whether or not the issuance of Bonds is approved by the
54 HRA, will be paid by the Developer.
55 Pursuant to Minn. Stat. Ch. 474A, the City allocates an amount of tas exempt bonding authority,
56 from the City's entitlement allocation far calendar year 2000, the amount of $10,175,000 for the
57 purposes of financing the Project. There is hereby reserved from the 2000 entitlement the amount
58 of $10,175,000 for the Bonds. The foregoing allocation of bonding authority assumes that t�
59 exempt t� increment bonds to be issued to finance a portion of the costs of the project will be
60 "private activity bonds" which require an allocation of bonding authority. In the event the tax
61 increment bonds do not require bond authority allocation, the amount allocated for the Project shall
62 be reduced accordingly.
`lR -1 t'1�'
63 Nothing in this resolution shall be construed to require the City or the I-IRA to approve any element
64 of the Project ar the issuance of the Bonds, nor shall this resolution be construed as vesting in the
65 Developer any cause of action against the City or the HRA arising from any failure or refusal by the
66 City or the HR A to approve the issuance of the Bonds.
67 Nothing in this resolution or the documents prepared pursuant hereto shall authorize the expenditure
68 of any municipal funds on the financing of the Project or the payment of the Bonds other than the
69 revenues derived from the Proj ect or otherwise granted to the City or the HRA for this purpose. The
70 Bonds shall not constitute a change, lien or encumbrance, legal or equitable, upon any property ar
71 funds of the City or the HRA except the revenue and proceeds pledged to the payment thereof, nor
72 sha11 the City or the HRA be subject to any direct liability thereon. The holder of the Bonds hall
73 never have the right to compel any exercise of the taacing power of the City or the IIIZA to pay the
74 outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any
75 property of the City or the HRA. The Bonds sha11 recite in substance that the Bonds, including the
76 interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof.
77 The Bonds shall not constitute an indebtedness of the City or the HRA within the meaning of any
constitutional or statutory provision.
1878340v1 (149C40]!.DOC)
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GREEN SHEET
No 101683
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EXHIBIT A
[Map of District and Project Area]
NOV 23 1999 14�34 FR L.S.B D 651Geerb44 w S�eeRaoo�ea47u5i r.GO�no
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CITY OF SA1NT PAUL, NIINNESOTA
PROGRAM FOR A
IvIf.7LTIFAMILY HOUSING DEVELOPMENT
(LOWRY PROFESSIONAL BUILDING)
Introduction. This housing finance program (the "Program") under Mimiesota Statutes,
Chapter 462C (the "AcP') describes the proposed issuance by the Housing and Redevelopment
Authority of the City of Saint Paul, Mimiesota (the "HRA") of up to $10,175,000 of revenue bonds
(the "Bonds") to finance, in part, the acquisition and construction of a rental housing development
(the "Project") by Avex Lowry Limited Partnership (the "Bonower"). The Bonds wi11 be revenue
obligations, secured by the repayment obligation of the Borrower, mortgages and other security
interests in property owned by the Borrower, and a first lien on tax increments (the "Tax
Increments") to be derived fromthe Lowry Professional Building Housing Tas Increment Financing
District (the "Aistrict"), as described below; provided that the bonds payable from tas increments
may be issued separately or a separate series. The Bonds wili not be a general obligation of the City
of Saint Paul, Minnesota (the "City") or the HRA, nor will any assets or revenues ofthe City or HRA
be pledged to the payment of the Bonds other than as described above.
Issuer. The issuer of the Bonds will be the HRA. Under Chapter 72 of the Saint Paul
Legislative Code, the HRA is authorized to exercise the powers of the Clty under the Act upon
approval by the City of the Program and delegation by the City to the HRA of those powers far the
purposes of the Program.
Tax Increment District and Housing Development Project. In connection with the
Project, the HRA will establish the District. The I3RA has prepared a taac increment financing plan
for the District, pursuant to Minnesota Statutes, Sections 469.174 through 469.179, as amended (the
"TIF Act"). The TIF Act requires that a tax increment district be established within a"proj ect area".
Therefore, the IIRA will also expand the boundaries of the Downtown and Seventh Place
Redevelopment Project to include the geographic area comprising the District as shown on E�ibit
A attached hereto. The boundaries of the District aze set forth on the map attached hereto as E�ibit
A.
Housing Plan and Program. This Program will be undertaken pursuant to the Act and the
Housing Pian of the City required by the Act. The Housing Plan, as amended, was adopted by the
CiTy in March of 1990. This Program will be adopted after review by the Metropolitan Council, and
a public hearing on the Program, held after notice is given, all as required by Section 462C.04 of the
Act.
The Program is consistent with both the Housing Plan (and other housing plans of the Ciry
developed under other laws), and is consistent with development guides applicable within the City
and developed by the Metropolitan Council.
Borrower. The Borrower is Avex Lowry Limited Partnership, a Minnesota limited
1819290v1 (12ZR%O1!.DOC)
aq-�»Y
parinerslup company, whose members are initially Avex Realty Services, Inc., the general partner,
and 3ohn Knapp.
Project. Lowry Professional Building Development Project will be a 112-unit rental housing
project. The Project will be newly constructed, with construction to begin shortly after the Bonds
are issued. The Project is a multifamily housing development witlun the meaning of Secrion
462C.05 of the Act. The Project will be located at 350 St. Peter Street. The amount of Bonds
attributable to the Project is expected to be approximately $10,175,000.
The Project complies or will comply with all applicable building code, zoning and land use
planning requirements.
Need for the Project; Income and Rent Limitations. The development of the Project will
provide needed additional rental housing opportunities within the City.
Under the Act, and under Section 145 of the Internal Revenue Code of 1986, as amended,
which will govern the Bonds, no income limits apply to residents of the Project. However, the TIF
Act imposes certain requirements in connection with the creation ofahousing tax increment district,
and in order to comply with such requirements, at least 20% of the units in the Project will be
occupied by individuals whose income is 50% or less of the azea median gross income, adjusted for
family size. The statutory authority for various sources of subordinated financing also impose
income or rent limits, or both, which may be more restrictive than the TIF Act. The Project will
comply with the most restrictive limitations.
The Borrower, and any subsequent owner of the Project, will not arbitrarily reject an
application from a proposed resident because of race, color, creed, religion or national arigin, sex,
affectional preference, marital status, or status with regazd to public assistance ar disability.
Bonds. The HRA will issue the Bonds, in one or more series, in an aggregate original
principal aniount of up to $10,175,000. Substantially all of the proceeds of the Bonds attributable
to the Project will be applied to pay or reimburse for the costs ofpurchasing consUucting, installing
and equipping the Project. "Substantially a11" means a11 ofthe proceeds of such Bonds, less amounts
deposited in a debt service reserve fund or used to pay the costs of issuance of the Bonds.
It is expected that the Bonds will have a term of uot more than 40 years, and will mature
serially ar be subject to sinking fixnd payxnents. The Bonds will bear interest excludable from gross
income for federal income taa purposes, and, to the same extent, excludable from the gross and
taxable net income of individuals, estates and trusts for Minnesota tax purposes.
The Bonds will be special, limited obligations of the HRA, payable solely from (a) tax
increment aud (b) revenues provided by the Borrower under one or more revenue agreements with
the HRA. The Bonds will be further secured by mortgages and other security interests in the
properry owned by the Borrower. The Bonds will not be a general obligation, moral obligation or
annual appropriation obligation of the City or the HRA, nor will any revenues or assets of the City
181929�V1 (12ZR%41!.DOC)
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or HRA (other revenues paid by the Borrower, Taac Increments and other revenues pledged under
ttae Indenture) be pledged to the payment of the Bonds.
The City or HRA may require the Borrower to provide evidence satisfactory to the City or
HRA of the ability and intention of the Borrower to complete the construction of the Project, and
evidence satisfactory to the City or HRA of compliance with the standazds and requirements for the
makiug of the financing established by the HRA, as set forth herein and in connection therewith, the
City, the HRA or its representatives may inspect the relevant books and record of the Borrower in
order to co�rm such ability, intention and compliance. In addition, the City or HRA may
periodically require certification from the Borrower or such other person deemed necessary
concerning compliance with various aspects of this Program.
The provisions of tlus Program are severable and if any of its provisions, sentences, clauses
or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City
or the HRA or otherwise illegal or inoperative by an court of competent jurisdiction, the decision
of such court shall not affect or impair any of the remaining provisions.
The City sha11 not amend this Program, while the Bonds authorized hereby are outstanding,
to the detriment of the holders of such Bonds.
Adopted:
1819290v1 (12ZRo01!.DOC)
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USES OF FUNDS
Acquisifion
Development Costs
Total Costs
Lotivey PrafessionaI Bnilding
Funding Proposal
Commercial
1,�00,000
4.SOOA00
�6,000,000
SOURCE5 OF FUNDS
Private Equity 3,000,000
Private Financing 3.00�,OOQ
Revenue Bonds
Tax Increment
Consrtuction Earnings Interest
Low Income Housing Tax Credits
Staz Loan
HRA Grant
MHFA/FHF
Residential
1,500,000
10166,QQ0
$11,666,000
7,340,000
2,435,000
710,000
31,000
500,000
250,000
480 000
Total Sources $6,000,000 $11,666,000
Total
3,000,000
14.666.000
$17,666,000
3,000,000
3,000,000
7,340,000
2,43 5,000
710,000
31,000
500,000
250,600
480,OQ0
$17,666,000
.. � �� - l ���
Lowry Professional Building
Redevelopment Project
Support Documentation
December 8, 1999
Lowry Professional Building �yoe��es9 �/
Relocation Summary � Q � i I�/�
� y t v
Suite Tenant Footage Eupiration
Tenants on Month-to-Month and Short Exoiratians Floors 6-12�
613 John W. Bumham, DDS 600 04/30/99 m-t-m
6'15 David w. Tudc, ODS 493 OS/31(96 m-t-m
646 Lee Dental Studio 960 08/31/98 m-t-m
715 Valiey Creek Enterprises 207 02/01l99 - 0�/3�/Z000
729 Chades W. Salmen, DDS 198 04i30/95 m-t-m
732 Foot Clinics, LTD 546 06lO7/94 m-t-m
733 Dr. Olin 240 17/10/96 m-t-m
746 Wiiliam Gavin, DDS 924 0�/Ot/98 m-t-m
809 John A. Stemper DDS 716 OSl3�l97 m-t-m
814 Gerald McEllistrem, MD 826 t�f31l94 m-t-m
830 SCORE 874 02/01/9S-O7/31/2000
9�4RobertJones,DDS 968 07l31/98m-t-m
925 Broude & BaRhel, DDS 1,372 02/27/98 m-t-m
1002 Wiliem Dieperink, MD 276 1�/30/93 m-t-m
1025 St. Paui Public Schools 1,228 06/30/98 m-t-m
1033 Jerry Jo Brandt 427 05f31/96 m-t-m
1034 Gary Livermore, PHD 300 10/01/95 m-t-m
1040 Pearl Bamer, PHD 354 02/28/99 m-t-m
1042 Dr. William Spring 420 O6/30/98 m-t-m
1048 Michael Printon, ODS 478 09/30/93 m-t-m
t l24 Peter Cannon, DDS 976 07l31/98 m-t-m
1206 Peter Nord, DDS 1,939 5/31/1999 m-t-m
1220 Michael Graff 655 6/30/1999 m-t-m
15,977
Tenants with Landlard Relocation Riaht 6-12
623APCOAlSta�dardParking 362 O6lOtf99-OS/31l2000
632FamilyDentalAssociates 2,268 01/01/93-12/31/2003
825MichaelFreischel,DDS �,125 OSi01i95-04/302000
'1015 MorrisseyHospitality 1,288 02l0'I/99-Ot/31/2004
1126GordonDOering,DDS 515 09/O7/97-08/3�/2002
5,558
Status
Lease in Proceu
Lease in Process
Lease in Process
vaqting
vacating
vapting
vaqting
Lease in Process
vacating
vacating
vacating
Lease in Process
Propasai being disassed
vacating
Proposal being discussed
vacating
varating
vacating
vacating
Lease in Process
Lease in Process
Lease in Process
vacatin
rera
In process 9,938
vacating 6,039
Dis ute
Total 75,977
Discussions undenvay with Tenant
Tenant currently operetes ramp
Vacating
Proposal in process
Lease in process
Discussions w/ at for tenant to relocate in bid 12/7/99
reca
In process 2,775
Vacating 2,268
Dis ute 515
Total 5,556
Tenants with No Landlortl Relocation Riaht 6- 72
719AmericanBankrupicyService 1,495 09/01/96-OS/31/99 Vacatin9
1027Ton1Magnuso0 345 09/O7/97-08/31/2002 Agreementunderreviewforterminanon
1031 Nancy Dessert, MD 472 06/01/98 - 05/2�2003 vacanng
1118 Roger 6. Ettel, DDS 1,500 Ol/O7/96 - 72/31/2000 Leasein process
1�20MartinBrown,DDS 673 1�/01/97-10/3�/2002 Leasein rocess
reca
4,485 In process 2,�73 14,886
Vacating 2,312 10,6�9
ToWI Tenants above Floor 5 26,020 Dis ute 515
Total 4,485 26,�20
Tenants: Floors 2- 5(included far info - not involved in MF project)
220 Travel Associates 674 04/01/98 - 03/3�/2001 Renewal, extension, expansion pending
224 City & Cty Employees Credit Ur 1,699 03/31/99 m-t-m Lease in process
240 St. Paul Eye Cllinc 8,856 05/07/97 - 04/302002 Remodel, minor relo pending
280 Star T�bune 2,'IS? 02101f99 - 01f31l2004 Minor modification to skyway discussed. Pending
295 Ben's Custom Design 679 03/09/98 - 02l28/200� Renewal, relo pending
300CityofSt.Paul-LIEP 21,�00 08l01/98-07/31/2003
480 QAI�Ever lncreasing Enterprise� 7,�45 09/30797 m-t-m Vacated
400 Zelle & Larson 20.060 12/01/98 - 11/30/2000 Vacated
ToW I Tenants 2- 5 62,400
Total 2- � 2 88,420
qq -���b'
December 7, 1999
Mr. Keith Karnes
Avex Lowry Limited Partnership
350 St. Peter St.
Suite 215
Saint Paul, MN 55118
Re: Lowry Professional Building
Dear Keith,
350 SL Pe�' � 68E
St PaW, MY STi10Y-7507
Phale: 651227.8646
Fe�C 651.YY7.6523
This letter is for the purpose of showing support for the project that Avex is undertaking in the renovarion
of the Lowry Professional Building. As you lmow, I am currently a tenant in the building, with an existing
lease that runs for three more yeazs. Several months ago, Avex, through your representatives at CB
Richazd Ellis, approached me with Avez' desire to relocate my practice to a lower floor within the Lowry
project. My cutrent lease in the building provides the landlord an opportunity to relocate me within the
building, providing certain conditions aze fulfilled.
We have discussed my relocation several times over the last several months, with several options
considered. During the negotiations, one of the oprions considered was reloca6on to another building that I
would have an ownership interest in. I have determined that based upon my long term occupancy interest,
that direction is better for my practice at this rime. Although Avex has the right under the lease to relocate
me within the building, I appreciate your willingness to discuss alternatives, to work with me, allowing me
to terminate my lease to pursue the ownership opportunity.
I believe that the combined residentiall commercial nature of the building planned will be good for St. Paul
and in particulaz, 6eneficial to my practice next door. The type of renovation to the building that you have
described to me is what I believe we need.
Change is always difficult, and these last months have shown that, with various parties having differing
desires and directions. I look fonvard, though, to a continued good relationship as neighbors in dovmtown
Saint Paul and hope that the approva] for and conshuction of the Lowry Project is accomp]ished quickly
and smoothly. i.et me know if I may be of assistznce. Please sF.ue r.iy commenu with other parties, or the
Ciry Council, if it would be beneficial to your project.
Sinc rely,
�� -
Dr. Scott Lingle
St�tt D. t� D.D.S., P,A.
d rne xeart m st raa�
r
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December 8, 1999 - �
Mr. Keith Karnes via Fa.z 651-222-2466
Avex Lowry L'united Partnerslup
350 St. Peter Street �
5uite 215
5aint Paul, Minnesota 55102 - -
Re: Lowry Professional Building .
Dear Keith, . .
Please accept this letter as evidence of our support for the renovation plans�for the Lowry
Professional Building. My practice is currently located on the eleventh floor of the
Lowry building. We have been discussing a move and plan to move'to' renovated space
on the Skyway level of the building. W e believe that the renovafed commercial space in
the bwilding is a weicome change. �
Please use this letter to indicate our public support of the project. We are ready for the
project to be approved so that construction can begin and disruption of oixr practice from
unlaiown circumstances can be ended. We aze looking forwazd to being on the Skyway
level and growing our practice in that location.
Please let me know if I may be of assistance, and keep me informed of the project status.
Sincerely,
J
Dr. Peter Cannon
1124 LOWRY MEDICAL ARTS BLDG. • ST, PAUL, MN 55102 •(612) 224-2787
12l08J1999 11:33 5514269591
GECK AND ASSaCIATES
Tir.ao�rxY R. G�czc 8c A,ssocx.�r�s
ATTOFNEYS AT LM1W
�IqGH V1K� PROFESS�ON�L 8V1lDiNG
TIMCTHYR.6-C� i310 STHIaH��'�.Y96
MARK c OLcA WNIT� BCAR LAKE, MIAWESOTA SS��C
December 8, 1999
Mr. Michael R. Mazinovich
CB Richard Ellis, Inc.
444 Cedar Street
Suite 800
St. Paul MN 55101
Re: Dr. Roger Ette! 350 St Peter Street
Leasehold Relocation
Aear Ivlr. ivZazinovich:
.
PAGE 02
�� - l l ' l � '
TEI.EPNONE (65+) <2dJ2n?
FTCS�Mi6E (ES�: -2d-9$01
I have conveyed your recent proposal to Ar. Ettel for his examination and consideration.
With regard to youz request for charactezization of our negotiacions, it is our opinion that,
although we do not have a final agreement regarding Dr. �ttel's relocation, the
negotiations between us have been amicabie and have been conducted in good faith. This
wili aiso confirm that you have never represented or snggested to us that you would enlist
any authority for the pwposes of taking the pzenaises by eminent domain.
Very t y 'urs,
"�i p'thy R. Geck
T�G/hg
3
�_ ��-.�;��
r::� -aa
�OFZRISSEY
HOSPITALITY COMPANIES INC.
�� �
December 8, 1999
Saint Paul City Councii
RE: Redevelopment of the lowry Professionai Building
I have had the privilege of working and being associated with the Saint Paul Hotel
and this end of downtown since 1983. During this entire time the Lowry
Professional Building has been in need of renovation and redevelopment as a
historic building with historic tenants. I know in talking to a host of potential
investors who looked at the building that the costs of the renovation coupled with
the sensitivity of dealing with a lot of long term tenants is what pushed most
investors away from seriously considering the deai.
I think we can all assume the Lowry Professional Building as a historic building
should stay in Saint Paul. Because of its nature, size and configuration it only
has a very finite number of potential reuses, of which I believe the AVEX solution
for middle income and up housing in downtown Saint Paul is an outstanding
proposal. Being deeply involved in the renaissance of Saint Paul and I have
listened to the experts and the consultants over the years talking about how we
needed to inject housing back into the downtown. To make a viable living and
thriving downtown this project meets ali of the criteria in every form and facet. 1
will not argue the merits of the transaction, that is for you to decide.
1 will telf you that as the developer of Pazzaluna and as Management Company of
the Saint Paui Hotel, that this type of use of the building in this location by a
credible developer and landlord will be an asset to the neighborhood and to the
community. Those sma{{ businesses currently {ocated in the Lowry are important
as well. However, as the city determined when developing the Lawson block,
development will never be totally accepted by all parties. One must make a
priority to a longer-term goal and vision to ai! the surrounding property owners,
the vision of the city and the needs of the general population. Development of all
or part of the Lowry Professional block needs to occur as soon as possible as it
has continued to deteriorate and is becoming blighted in a very special and
unique side of downtown Saint Paul.
350 ST. PErER STReEr, SuiTe 1 O1 5. ST. PaU�. MN 55 1 02-1 5 1 4
651-227-0815:FAX651-221-0771 oR651-292-1966
E-Mni�AOORESS� mhcnet@worldnet.att.net
_ � t���'
� �.
St. Peter Street is developing nicely as a restaurant district, where housing will
support additional restaurant development. It wiil put peop(e on the street and it
will give a sense of neighborhood and urban life to this area which is much
needed.
My deafings with AVEX as a tenant, in Pazzaluna and my personal corporate
office, have given me the opportunity to witness their business practice and the
way in which they deal with their tenants. f am nothing but pleased with my
dealings with them to date, they are fair, they are firm and they are honest. I
think they understand that Saint Paul is too close knit a community to do
anything other than that and it seems to me that they are totally committed to
the development of a quality project in a historic buiiding which has very limited
new deve(opment uses.
I urge you to give their proposal strong consideration, to listen to any of the
tenants who may be displaced, but to look at the greater good that could occur in
a revitalization of downtown Saint Paul. I am sorry that f am not able to be with
you at this hearing as I am out of town our new Lodge at Giants Ridge. I would be
happy to talk with any of you individually or on the telephone as your feisure.
Thank you for your consideration.
Sincerely,
\./�.X� `
William Morris
President �
350 ST. Pt7ER STREET. SUITE 1015, ST. PAU�. MN 551 02-1 5 1 4
651-221-0815; FAX 651-221-0771 oR 651-292-1966
E-Mni�A�oRESS: mhcnet@worldnet.att.net
DEC 08 1?'
'r.r�
crr� & co�
CREDIT Wi ION
DECembe: 8,1999
Keith Kasncs
Aver Lowry Limi�cd P�narshiP
Svite 2i5
350 3[, Peter S[reet
S� Paul, MN 55102
Re: Lawry P:ofe�sional Building
Dcss Mr. Karnes:
Wc have recendy complcted negotiatiocu of a leasa extension and zemodci of our brdnc�
locaced on ihe Skyway ievai ofthe Lowcy Yrofessional Huild�ng. We toox forward to tht
zrno�atior. of our space and to thc up�*adzs Planned fot the balance of the building.
we wish to tharsi: Mr. Michael Maziaovieh for his tboushtful considesation of ouc-
coneems and demands. As a long-tetm tet�nt of'ft:e Lowry we are pleased to ramai�
there, and wish yo� great success with your plans faz the huiiding.
Sincerety,
� t.�'l��'�,���
S �Shetdon San6om
President
�,���Y
� Gu:/'L25$10U •'Sta1n0lTic¢ ♦ bSaplevtoodOlr+�e ♦ Loe'cYOTicc
ToTi l�rec 1-860-2Ed�2liI11 141 _Ith Stmct l:sst lu6i Lnpc Avenue East 350 5!. Yeux Stmct, 5ui'�e 2'd4
Tl)II G51lZ25$4G1 St Pa�i, b2l�' o51Q1-2480 :lfaplewpoti, M.ti G61f14�8514 9c Pcud, M!i 55102•I311
** TGTRL PF1Gc.02 �»�
•� �� Standard Parking0
M PPCONSrariOaN Parlting Canpany
Lowry Professional Bwlding
350 Si. Peter Street • Suite 623
Saint Paul, Minnesota 55102
(657) 316-7926 • Fax (651) 310-1905
December 8, 1999
Mr. Keith Karnes
Avex Lowry Limited Parinership
350 St. Peter Street
Suite 215
Saint Paul, Minnesota 55102
via Fax 651-222-2466
Re: Lowry Professional Building
Dear Keith,
�a-����'
This letter is to express our support for the upgrading of the Lowry
Professional Building. We believe that the new residential units on the
upper floors and the renovated commercial space in the building are
welcome changes. Standard Parking is a tenant on the sixth floor of the
building. Our lease expires in May of this upcoming year. We look forward
both to working out a lease extension/relocation with you on space in the
Lowry Building and to the opportunity to continue to service the parking
needs of the Lowry Ramp.
Please use this letter to indicate our public support of the project. We hope
the project plans and financing will be approved quickly so that wark can
begin.
Sincerely,
Darwin Melin
Standard Parking
Ambrence in Parking.o
�
�o,���� File # 9q —��Rg'
Resolution #
Green Sheet # � 0� �o O 3
RESOLUTION
CITY OF SAINT PAUL,,MINNESOTA
�
Preseated By ��� �� � � � _ _
Referred To
Committee:Date
RESOLUTION RECITING A PROPOSAL FOR FINANCING
A MULTIFAMILY RENTAL HOUSING DEVELOPMENT PROJECT
AND AUTHORIZING THE HOUSING AND REDEVELOPMENT
AUTHORITY TO EXERCISE THE POWERS GRANTED IN
MINNESOTA STATUTES, SECTIONS 462C.01 TO 462C.08
./[� :I�1:i�/:G�l
3 Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, or housing and redevelopment
4 authorities authorized by ordinance to exercise on behalf of a city, the powers confened by the Act,
5 the power to issue revenue bonds to finance a program far the purposes of planning, administering,
6 making or purchasing loans with respect to one or more multifamily housing developments within
7 the boundaries of the city; and
8 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has
9 received from Avex Lowiy Limited Partnership, (the "Developer"), a proposal that the HRA
10 undertake to finance the rehabilitation of a multifamily rental housing development as hereinafter
11 described, through the issuance of revenue bonds or obligations in one or more series (collectively,
12 the "Bonds") pursuant to the Act for the purpose of loaning the proceeds thereof to the Developer
13 to finance the rehabilitation by the Developer of the Lowry Professional Building to include 112
14 apartments (the "Project") pursuant to the "housing program" described below; and
15 Prior to publication of a notice of public heazing for the public hearing described in (F) below, the
16 City prepazed a"housing program" (the "Program") under the Act and submitted the Program for
17 review to the Metropolitan Council; and
18 The Developer's proposal calls for the HRA to loan the proceeds realized upon the sale ofthe Bonds
19 to the Developer pursuant to a revenue agreement or agreements wherein the Developer will be
20 obligated to make payments at the times and in the amounts sufficient to provide for the prompt
21 payment of principal of, premium, if any, and interest on the Bonds and all costs and expenses of
22 the HRA and the City incident to the issuance and sale of the Bonds; and
1878340v1 (149C4011DOC)
�l`i -1�'1?'
23 T'he City desires to encourage the development and continued operation of housing facilities
24 designed for occupancy by persons of low and moderate income and assist the City in achieving
25 these objectives; and
26 A public hearing on the Program and the proposed fmancing of the Project was held on December
27 8,1999 following duly published notice, at which tune all persons that desired to speak were heard.
28 NOW THEREFORE BE IT RESOLVED by the City Council ofthe City of Saint Paul, as follows:
29 The City hereby approves the Program and gives preliminary approval to the issuance of the Bonds
30 for the financing of the Project and, pursuant to Section 72 of the Saint Pau1 Administrative Code,
31 hereby authorizes and directs the HRA to exercise the powers granted in Minnesota Statutes 462C.01
32 to 462C.08.
33
34
35
36
37
38
39
40
41
42
On the basis of information available to the City Council, it appeazs, and the City Council hereby
finds, thatthe proj ect constitutes amultifamily rental housing development and fixrthers the purposes
of the Act; that the Proj ect is reserved for rental in part by persons of low and moderate income; that
the availability of financing under the Act and the willingness of the HRA to fiunish such financing
will be a substantial inducement to the Developer to operate the Project, and that the effect of the
financing of the Project, if undertaken, will be to assure that adequate housing will continue to be
auailable to residents of the City at a reasonable cost.
The Executive Director of the HRA, is hereby authorized to execute a Memorandum of
Understanding with respect to the financing ofthe Project in substantially the form on file with the
HRA.
43 Leonard, Street and Deinard Professional Association, is hereby retained as Bond Counsel for the
44 issuance of the Bonds. Dougheriy Summit Securities LLC is hereby retained as the investment
45 banker for this transaction. Leonard, Street and Deinard and Dougherty Suinmit Securities LLC are
46 hereby authorized to assist in the preparation and review of necessary docuxnents relating to the
47 issuance of the Bonds, to consult with the City Attorney, Developer and purchasers of the Bonds as
48 to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants
49 and other provisions of the necessary documents and submit such documents to the IIRA for final
50 approval.
51 The Developer has agreed and it is hereby determined that any and a11 costs incurred by the City or
52 the HRA in connection with the financing of the Project, whether or not the proposed financing of
53 the Project is carried to completion and whether or not the issuance of Bonds is approved by the
54 HRA, will be paid by the Developer.
55 Pursuant to Minn. Stat. Ch. 474A, the City allocates an amount of tas exempt bonding authority,
56 from the City's entitlement allocation far calendar year 2000, the amount of $10,175,000 for the
57 purposes of financing the Project. There is hereby reserved from the 2000 entitlement the amount
58 of $10,175,000 for the Bonds. The foregoing allocation of bonding authority assumes that t�
59 exempt t� increment bonds to be issued to finance a portion of the costs of the project will be
60 "private activity bonds" which require an allocation of bonding authority. In the event the tax
61 increment bonds do not require bond authority allocation, the amount allocated for the Project shall
62 be reduced accordingly.
`lR -1 t'1�'
63 Nothing in this resolution shall be construed to require the City or the I-IRA to approve any element
64 of the Project ar the issuance of the Bonds, nor shall this resolution be construed as vesting in the
65 Developer any cause of action against the City or the HRA arising from any failure or refusal by the
66 City or the HR A to approve the issuance of the Bonds.
67 Nothing in this resolution or the documents prepared pursuant hereto shall authorize the expenditure
68 of any municipal funds on the financing of the Project or the payment of the Bonds other than the
69 revenues derived from the Proj ect or otherwise granted to the City or the HRA for this purpose. The
70 Bonds shall not constitute a change, lien or encumbrance, legal or equitable, upon any property ar
71 funds of the City or the HRA except the revenue and proceeds pledged to the payment thereof, nor
72 sha11 the City or the HRA be subject to any direct liability thereon. The holder of the Bonds hall
73 never have the right to compel any exercise of the taacing power of the City or the IIIZA to pay the
74 outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any
75 property of the City or the HRA. The Bonds sha11 recite in substance that the Bonds, including the
76 interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof.
77 The Bonds shall not constitute an indebtedness of the City or the HRA within the meaning of any
constitutional or statutory provision.
1878340v1 (149C40]!.DOC)
�aas�n
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No 101683
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PLANNING COMMISSION
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NITIATING PR08LEM I OPMR NITV (Who, W When, Wheie. Why) � .� � ��
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SOURCE � ACTNT'NUMBER
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EXHIBIT A
[Map of District and Project Area]
NOV 23 1999 14�34 FR L.S.B D 651Geerb44 w S�eeRaoo�ea47u5i r.GO�no
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18t9290�1 (12ZRY.01'.DOC)
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CITY OF SA1NT PAUL, NIINNESOTA
PROGRAM FOR A
IvIf.7LTIFAMILY HOUSING DEVELOPMENT
(LOWRY PROFESSIONAL BUILDING)
Introduction. This housing finance program (the "Program") under Mimiesota Statutes,
Chapter 462C (the "AcP') describes the proposed issuance by the Housing and Redevelopment
Authority of the City of Saint Paul, Mimiesota (the "HRA") of up to $10,175,000 of revenue bonds
(the "Bonds") to finance, in part, the acquisition and construction of a rental housing development
(the "Project") by Avex Lowry Limited Partnership (the "Bonower"). The Bonds wi11 be revenue
obligations, secured by the repayment obligation of the Borrower, mortgages and other security
interests in property owned by the Borrower, and a first lien on tax increments (the "Tax
Increments") to be derived fromthe Lowry Professional Building Housing Tas Increment Financing
District (the "Aistrict"), as described below; provided that the bonds payable from tas increments
may be issued separately or a separate series. The Bonds wili not be a general obligation of the City
of Saint Paul, Minnesota (the "City") or the HRA, nor will any assets or revenues ofthe City or HRA
be pledged to the payment of the Bonds other than as described above.
Issuer. The issuer of the Bonds will be the HRA. Under Chapter 72 of the Saint Paul
Legislative Code, the HRA is authorized to exercise the powers of the Clty under the Act upon
approval by the City of the Program and delegation by the City to the HRA of those powers far the
purposes of the Program.
Tax Increment District and Housing Development Project. In connection with the
Project, the HRA will establish the District. The I3RA has prepared a taac increment financing plan
for the District, pursuant to Minnesota Statutes, Sections 469.174 through 469.179, as amended (the
"TIF Act"). The TIF Act requires that a tax increment district be established within a"proj ect area".
Therefore, the IIRA will also expand the boundaries of the Downtown and Seventh Place
Redevelopment Project to include the geographic area comprising the District as shown on E�ibit
A attached hereto. The boundaries of the District aze set forth on the map attached hereto as E�ibit
A.
Housing Plan and Program. This Program will be undertaken pursuant to the Act and the
Housing Pian of the City required by the Act. The Housing Plan, as amended, was adopted by the
CiTy in March of 1990. This Program will be adopted after review by the Metropolitan Council, and
a public hearing on the Program, held after notice is given, all as required by Section 462C.04 of the
Act.
The Program is consistent with both the Housing Plan (and other housing plans of the Ciry
developed under other laws), and is consistent with development guides applicable within the City
and developed by the Metropolitan Council.
Borrower. The Borrower is Avex Lowry Limited Partnership, a Minnesota limited
1819290v1 (12ZR%O1!.DOC)
aq-�»Y
parinerslup company, whose members are initially Avex Realty Services, Inc., the general partner,
and 3ohn Knapp.
Project. Lowry Professional Building Development Project will be a 112-unit rental housing
project. The Project will be newly constructed, with construction to begin shortly after the Bonds
are issued. The Project is a multifamily housing development witlun the meaning of Secrion
462C.05 of the Act. The Project will be located at 350 St. Peter Street. The amount of Bonds
attributable to the Project is expected to be approximately $10,175,000.
The Project complies or will comply with all applicable building code, zoning and land use
planning requirements.
Need for the Project; Income and Rent Limitations. The development of the Project will
provide needed additional rental housing opportunities within the City.
Under the Act, and under Section 145 of the Internal Revenue Code of 1986, as amended,
which will govern the Bonds, no income limits apply to residents of the Project. However, the TIF
Act imposes certain requirements in connection with the creation ofahousing tax increment district,
and in order to comply with such requirements, at least 20% of the units in the Project will be
occupied by individuals whose income is 50% or less of the azea median gross income, adjusted for
family size. The statutory authority for various sources of subordinated financing also impose
income or rent limits, or both, which may be more restrictive than the TIF Act. The Project will
comply with the most restrictive limitations.
The Borrower, and any subsequent owner of the Project, will not arbitrarily reject an
application from a proposed resident because of race, color, creed, religion or national arigin, sex,
affectional preference, marital status, or status with regazd to public assistance ar disability.
Bonds. The HRA will issue the Bonds, in one or more series, in an aggregate original
principal aniount of up to $10,175,000. Substantially all of the proceeds of the Bonds attributable
to the Project will be applied to pay or reimburse for the costs ofpurchasing consUucting, installing
and equipping the Project. "Substantially a11" means a11 ofthe proceeds of such Bonds, less amounts
deposited in a debt service reserve fund or used to pay the costs of issuance of the Bonds.
It is expected that the Bonds will have a term of uot more than 40 years, and will mature
serially ar be subject to sinking fixnd payxnents. The Bonds will bear interest excludable from gross
income for federal income taa purposes, and, to the same extent, excludable from the gross and
taxable net income of individuals, estates and trusts for Minnesota tax purposes.
The Bonds will be special, limited obligations of the HRA, payable solely from (a) tax
increment aud (b) revenues provided by the Borrower under one or more revenue agreements with
the HRA. The Bonds will be further secured by mortgages and other security interests in the
properry owned by the Borrower. The Bonds will not be a general obligation, moral obligation or
annual appropriation obligation of the City or the HRA, nor will any revenues or assets of the City
181929�V1 (12ZR%41!.DOC)
°1g -\�n�'
or HRA (other revenues paid by the Borrower, Taac Increments and other revenues pledged under
ttae Indenture) be pledged to the payment of the Bonds.
The City or HRA may require the Borrower to provide evidence satisfactory to the City or
HRA of the ability and intention of the Borrower to complete the construction of the Project, and
evidence satisfactory to the City or HRA of compliance with the standazds and requirements for the
makiug of the financing established by the HRA, as set forth herein and in connection therewith, the
City, the HRA or its representatives may inspect the relevant books and record of the Borrower in
order to co�rm such ability, intention and compliance. In addition, the City or HRA may
periodically require certification from the Borrower or such other person deemed necessary
concerning compliance with various aspects of this Program.
The provisions of tlus Program are severable and if any of its provisions, sentences, clauses
or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City
or the HRA or otherwise illegal or inoperative by an court of competent jurisdiction, the decision
of such court shall not affect or impair any of the remaining provisions.
The City sha11 not amend this Program, while the Bonds authorized hereby are outstanding,
to the detriment of the holders of such Bonds.
Adopted:
1819290v1 (12ZRo01!.DOC)
qq-ll�t�'
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USES OF FUNDS
Acquisifion
Development Costs
Total Costs
Lotivey PrafessionaI Bnilding
Funding Proposal
Commercial
1,�00,000
4.SOOA00
�6,000,000
SOURCE5 OF FUNDS
Private Equity 3,000,000
Private Financing 3.00�,OOQ
Revenue Bonds
Tax Increment
Consrtuction Earnings Interest
Low Income Housing Tax Credits
Staz Loan
HRA Grant
MHFA/FHF
Residential
1,500,000
10166,QQ0
$11,666,000
7,340,000
2,435,000
710,000
31,000
500,000
250,000
480 000
Total Sources $6,000,000 $11,666,000
Total
3,000,000
14.666.000
$17,666,000
3,000,000
3,000,000
7,340,000
2,43 5,000
710,000
31,000
500,000
250,600
480,OQ0
$17,666,000
.. � �� - l ���
Lowry Professional Building
Redevelopment Project
Support Documentation
December 8, 1999
Lowry Professional Building �yoe��es9 �/
Relocation Summary � Q � i I�/�
� y t v
Suite Tenant Footage Eupiration
Tenants on Month-to-Month and Short Exoiratians Floors 6-12�
613 John W. Bumham, DDS 600 04/30/99 m-t-m
6'15 David w. Tudc, ODS 493 OS/31(96 m-t-m
646 Lee Dental Studio 960 08/31/98 m-t-m
715 Valiey Creek Enterprises 207 02/01l99 - 0�/3�/Z000
729 Chades W. Salmen, DDS 198 04i30/95 m-t-m
732 Foot Clinics, LTD 546 06lO7/94 m-t-m
733 Dr. Olin 240 17/10/96 m-t-m
746 Wiiliam Gavin, DDS 924 0�/Ot/98 m-t-m
809 John A. Stemper DDS 716 OSl3�l97 m-t-m
814 Gerald McEllistrem, MD 826 t�f31l94 m-t-m
830 SCORE 874 02/01/9S-O7/31/2000
9�4RobertJones,DDS 968 07l31/98m-t-m
925 Broude & BaRhel, DDS 1,372 02/27/98 m-t-m
1002 Wiliem Dieperink, MD 276 1�/30/93 m-t-m
1025 St. Paui Public Schools 1,228 06/30/98 m-t-m
1033 Jerry Jo Brandt 427 05f31/96 m-t-m
1034 Gary Livermore, PHD 300 10/01/95 m-t-m
1040 Pearl Bamer, PHD 354 02/28/99 m-t-m
1042 Dr. William Spring 420 O6/30/98 m-t-m
1048 Michael Printon, ODS 478 09/30/93 m-t-m
t l24 Peter Cannon, DDS 976 07l31/98 m-t-m
1206 Peter Nord, DDS 1,939 5/31/1999 m-t-m
1220 Michael Graff 655 6/30/1999 m-t-m
15,977
Tenants with Landlard Relocation Riaht 6-12
623APCOAlSta�dardParking 362 O6lOtf99-OS/31l2000
632FamilyDentalAssociates 2,268 01/01/93-12/31/2003
825MichaelFreischel,DDS �,125 OSi01i95-04/302000
'1015 MorrisseyHospitality 1,288 02l0'I/99-Ot/31/2004
1126GordonDOering,DDS 515 09/O7/97-08/3�/2002
5,558
Status
Lease in Proceu
Lease in Process
Lease in Process
vaqting
vacating
vapting
vaqting
Lease in Process
vacating
vacating
vacating
Lease in Process
Propasai being disassed
vacating
Proposal being discussed
vacating
varating
vacating
vacating
Lease in Process
Lease in Process
Lease in Process
vacatin
rera
In process 9,938
vacating 6,039
Dis ute
Total 75,977
Discussions undenvay with Tenant
Tenant currently operetes ramp
Vacating
Proposal in process
Lease in process
Discussions w/ at for tenant to relocate in bid 12/7/99
reca
In process 2,775
Vacating 2,268
Dis ute 515
Total 5,556
Tenants with No Landlortl Relocation Riaht 6- 72
719AmericanBankrupicyService 1,495 09/01/96-OS/31/99 Vacatin9
1027Ton1Magnuso0 345 09/O7/97-08/31/2002 Agreementunderreviewforterminanon
1031 Nancy Dessert, MD 472 06/01/98 - 05/2�2003 vacanng
1118 Roger 6. Ettel, DDS 1,500 Ol/O7/96 - 72/31/2000 Leasein process
1�20MartinBrown,DDS 673 1�/01/97-10/3�/2002 Leasein rocess
reca
4,485 In process 2,�73 14,886
Vacating 2,312 10,6�9
ToWI Tenants above Floor 5 26,020 Dis ute 515
Total 4,485 26,�20
Tenants: Floors 2- 5(included far info - not involved in MF project)
220 Travel Associates 674 04/01/98 - 03/3�/2001 Renewal, extension, expansion pending
224 City & Cty Employees Credit Ur 1,699 03/31/99 m-t-m Lease in process
240 St. Paul Eye Cllinc 8,856 05/07/97 - 04/302002 Remodel, minor relo pending
280 Star T�bune 2,'IS? 02101f99 - 01f31l2004 Minor modification to skyway discussed. Pending
295 Ben's Custom Design 679 03/09/98 - 02l28/200� Renewal, relo pending
300CityofSt.Paul-LIEP 21,�00 08l01/98-07/31/2003
480 QAI�Ever lncreasing Enterprise� 7,�45 09/30797 m-t-m Vacated
400 Zelle & Larson 20.060 12/01/98 - 11/30/2000 Vacated
ToW I Tenants 2- 5 62,400
Total 2- � 2 88,420
qq -���b'
December 7, 1999
Mr. Keith Karnes
Avex Lowry Limited Partnership
350 St. Peter St.
Suite 215
Saint Paul, MN 55118
Re: Lowry Professional Building
Dear Keith,
350 SL Pe�' � 68E
St PaW, MY STi10Y-7507
Phale: 651227.8646
Fe�C 651.YY7.6523
This letter is for the purpose of showing support for the project that Avex is undertaking in the renovarion
of the Lowry Professional Building. As you lmow, I am currently a tenant in the building, with an existing
lease that runs for three more yeazs. Several months ago, Avex, through your representatives at CB
Richazd Ellis, approached me with Avez' desire to relocate my practice to a lower floor within the Lowry
project. My cutrent lease in the building provides the landlord an opportunity to relocate me within the
building, providing certain conditions aze fulfilled.
We have discussed my relocation several times over the last several months, with several options
considered. During the negotiations, one of the oprions considered was reloca6on to another building that I
would have an ownership interest in. I have determined that based upon my long term occupancy interest,
that direction is better for my practice at this rime. Although Avex has the right under the lease to relocate
me within the building, I appreciate your willingness to discuss alternatives, to work with me, allowing me
to terminate my lease to pursue the ownership opportunity.
I believe that the combined residentiall commercial nature of the building planned will be good for St. Paul
and in particulaz, 6eneficial to my practice next door. The type of renovation to the building that you have
described to me is what I believe we need.
Change is always difficult, and these last months have shown that, with various parties having differing
desires and directions. I look fonvard, though, to a continued good relationship as neighbors in dovmtown
Saint Paul and hope that the approva] for and conshuction of the Lowry Project is accomp]ished quickly
and smoothly. i.et me know if I may be of assistznce. Please sF.ue r.iy commenu with other parties, or the
Ciry Council, if it would be beneficial to your project.
Sinc rely,
�� -
Dr. Scott Lingle
St�tt D. t� D.D.S., P,A.
d rne xeart m st raa�
r
� ' 4,,.� 4 . �., �,. �' � '�3L
- _ � � '�� r{�'., ���� ,� y t_
�- � - ` >
„ �
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_� _ . __ . . . _ . _�
_ . - . . _ _ _ ' � �.s .` - ' . . :a :
December 8, 1999 - �
Mr. Keith Karnes via Fa.z 651-222-2466
Avex Lowry L'united Partnerslup
350 St. Peter Street �
5uite 215
5aint Paul, Minnesota 55102 - -
Re: Lowry Professional Building .
Dear Keith, . .
Please accept this letter as evidence of our support for the renovation plans�for the Lowry
Professional Building. My practice is currently located on the eleventh floor of the
Lowry building. We have been discussing a move and plan to move'to' renovated space
on the Skyway level of the building. W e believe that the renovafed commercial space in
the bwilding is a weicome change. �
Please use this letter to indicate our public support of the project. We are ready for the
project to be approved so that construction can begin and disruption of oixr practice from
unlaiown circumstances can be ended. We aze looking forwazd to being on the Skyway
level and growing our practice in that location.
Please let me know if I may be of assistance, and keep me informed of the project status.
Sincerely,
J
Dr. Peter Cannon
1124 LOWRY MEDICAL ARTS BLDG. • ST, PAUL, MN 55102 •(612) 224-2787
12l08J1999 11:33 5514269591
GECK AND ASSaCIATES
Tir.ao�rxY R. G�czc 8c A,ssocx.�r�s
ATTOFNEYS AT LM1W
�IqGH V1K� PROFESS�ON�L 8V1lDiNG
TIMCTHYR.6-C� i310 STHIaH��'�.Y96
MARK c OLcA WNIT� BCAR LAKE, MIAWESOTA SS��C
December 8, 1999
Mr. Michael R. Mazinovich
CB Richard Ellis, Inc.
444 Cedar Street
Suite 800
St. Paul MN 55101
Re: Dr. Roger Ette! 350 St Peter Street
Leasehold Relocation
Aear Ivlr. ivZazinovich:
.
PAGE 02
�� - l l ' l � '
TEI.EPNONE (65+) <2dJ2n?
FTCS�Mi6E (ES�: -2d-9$01
I have conveyed your recent proposal to Ar. Ettel for his examination and consideration.
With regard to youz request for charactezization of our negotiacions, it is our opinion that,
although we do not have a final agreement regarding Dr. �ttel's relocation, the
negotiations between us have been amicabie and have been conducted in good faith. This
wili aiso confirm that you have never represented or snggested to us that you would enlist
any authority for the pwposes of taking the pzenaises by eminent domain.
Very t y 'urs,
"�i p'thy R. Geck
T�G/hg
3
�_ ��-.�;��
r::� -aa
�OFZRISSEY
HOSPITALITY COMPANIES INC.
�� �
December 8, 1999
Saint Paul City Councii
RE: Redevelopment of the lowry Professionai Building
I have had the privilege of working and being associated with the Saint Paul Hotel
and this end of downtown since 1983. During this entire time the Lowry
Professional Building has been in need of renovation and redevelopment as a
historic building with historic tenants. I know in talking to a host of potential
investors who looked at the building that the costs of the renovation coupled with
the sensitivity of dealing with a lot of long term tenants is what pushed most
investors away from seriously considering the deai.
I think we can all assume the Lowry Professional Building as a historic building
should stay in Saint Paul. Because of its nature, size and configuration it only
has a very finite number of potential reuses, of which I believe the AVEX solution
for middle income and up housing in downtown Saint Paul is an outstanding
proposal. Being deeply involved in the renaissance of Saint Paul and I have
listened to the experts and the consultants over the years talking about how we
needed to inject housing back into the downtown. To make a viable living and
thriving downtown this project meets ali of the criteria in every form and facet. 1
will not argue the merits of the transaction, that is for you to decide.
1 will telf you that as the developer of Pazzaluna and as Management Company of
the Saint Paui Hotel, that this type of use of the building in this location by a
credible developer and landlord will be an asset to the neighborhood and to the
community. Those sma{{ businesses currently {ocated in the Lowry are important
as well. However, as the city determined when developing the Lawson block,
development will never be totally accepted by all parties. One must make a
priority to a longer-term goal and vision to ai! the surrounding property owners,
the vision of the city and the needs of the general population. Development of all
or part of the Lowry Professional block needs to occur as soon as possible as it
has continued to deteriorate and is becoming blighted in a very special and
unique side of downtown Saint Paul.
350 ST. PErER STReEr, SuiTe 1 O1 5. ST. PaU�. MN 55 1 02-1 5 1 4
651-227-0815:FAX651-221-0771 oR651-292-1966
E-Mni�AOORESS� mhcnet@worldnet.att.net
_ � t���'
� �.
St. Peter Street is developing nicely as a restaurant district, where housing will
support additional restaurant development. It wiil put peop(e on the street and it
will give a sense of neighborhood and urban life to this area which is much
needed.
My deafings with AVEX as a tenant, in Pazzaluna and my personal corporate
office, have given me the opportunity to witness their business practice and the
way in which they deal with their tenants. f am nothing but pleased with my
dealings with them to date, they are fair, they are firm and they are honest. I
think they understand that Saint Paul is too close knit a community to do
anything other than that and it seems to me that they are totally committed to
the development of a quality project in a historic buiiding which has very limited
new deve(opment uses.
I urge you to give their proposal strong consideration, to listen to any of the
tenants who may be displaced, but to look at the greater good that could occur in
a revitalization of downtown Saint Paul. I am sorry that f am not able to be with
you at this hearing as I am out of town our new Lodge at Giants Ridge. I would be
happy to talk with any of you individually or on the telephone as your feisure.
Thank you for your consideration.
Sincerely,
\./�.X� `
William Morris
President �
350 ST. Pt7ER STREET. SUITE 1015, ST. PAU�. MN 551 02-1 5 1 4
651-221-0815; FAX 651-221-0771 oR 651-292-1966
E-Mni�A�oRESS: mhcnet@worldnet.att.net
DEC 08 1?'
'r.r�
crr� & co�
CREDIT Wi ION
DECembe: 8,1999
Keith Kasncs
Aver Lowry Limi�cd P�narshiP
Svite 2i5
350 3[, Peter S[reet
S� Paul, MN 55102
Re: Lawry P:ofe�sional Building
Dcss Mr. Karnes:
Wc have recendy complcted negotiatiocu of a leasa extension and zemodci of our brdnc�
locaced on ihe Skyway ievai ofthe Lowcy Yrofessional Huild�ng. We toox forward to tht
zrno�atior. of our space and to thc up�*adzs Planned fot the balance of the building.
we wish to tharsi: Mr. Michael Maziaovieh for his tboushtful considesation of ouc-
coneems and demands. As a long-tetm tet�nt of'ft:e Lowry we are pleased to ramai�
there, and wish yo� great success with your plans faz the huiiding.
Sincerety,
� t.�'l��'�,���
S �Shetdon San6om
President
�,���Y
� Gu:/'L25$10U •'Sta1n0lTic¢ ♦ bSaplevtoodOlr+�e ♦ Loe'cYOTicc
ToTi l�rec 1-860-2Ed�2liI11 141 _Ith Stmct l:sst lu6i Lnpc Avenue East 350 5!. Yeux Stmct, 5ui'�e 2'd4
Tl)II G51lZ25$4G1 St Pa�i, b2l�' o51Q1-2480 :lfaplewpoti, M.ti G61f14�8514 9c Pcud, M!i 55102•I311
** TGTRL PF1Gc.02 �»�
•� �� Standard Parking0
M PPCONSrariOaN Parlting Canpany
Lowry Professional Bwlding
350 Si. Peter Street • Suite 623
Saint Paul, Minnesota 55102
(657) 316-7926 • Fax (651) 310-1905
December 8, 1999
Mr. Keith Karnes
Avex Lowry Limited Parinership
350 St. Peter Street
Suite 215
Saint Paul, Minnesota 55102
via Fax 651-222-2466
Re: Lowry Professional Building
Dear Keith,
�a-����'
This letter is to express our support for the upgrading of the Lowry
Professional Building. We believe that the new residential units on the
upper floors and the renovated commercial space in the building are
welcome changes. Standard Parking is a tenant on the sixth floor of the
building. Our lease expires in May of this upcoming year. We look forward
both to working out a lease extension/relocation with you on space in the
Lowry Building and to the opportunity to continue to service the parking
needs of the Lowry Ramp.
Please use this letter to indicate our public support of the project. We hope
the project plans and financing will be approved quickly so that wark can
begin.
Sincerely,
Darwin Melin
Standard Parking
Ambrence in Parking.o
�
�o,���� File # 9q —��Rg'
Resolution #
Green Sheet # � 0� �o O 3
RESOLUTION
CITY OF SAINT PAUL,,MINNESOTA
�
Preseated By ��� �� � � � _ _
Referred To
Committee:Date
RESOLUTION RECITING A PROPOSAL FOR FINANCING
A MULTIFAMILY RENTAL HOUSING DEVELOPMENT PROJECT
AND AUTHORIZING THE HOUSING AND REDEVELOPMENT
AUTHORITY TO EXERCISE THE POWERS GRANTED IN
MINNESOTA STATUTES, SECTIONS 462C.01 TO 462C.08
./[� :I�1:i�/:G�l
3 Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, or housing and redevelopment
4 authorities authorized by ordinance to exercise on behalf of a city, the powers confened by the Act,
5 the power to issue revenue bonds to finance a program far the purposes of planning, administering,
6 making or purchasing loans with respect to one or more multifamily housing developments within
7 the boundaries of the city; and
8 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has
9 received from Avex Lowiy Limited Partnership, (the "Developer"), a proposal that the HRA
10 undertake to finance the rehabilitation of a multifamily rental housing development as hereinafter
11 described, through the issuance of revenue bonds or obligations in one or more series (collectively,
12 the "Bonds") pursuant to the Act for the purpose of loaning the proceeds thereof to the Developer
13 to finance the rehabilitation by the Developer of the Lowry Professional Building to include 112
14 apartments (the "Project") pursuant to the "housing program" described below; and
15 Prior to publication of a notice of public heazing for the public hearing described in (F) below, the
16 City prepazed a"housing program" (the "Program") under the Act and submitted the Program for
17 review to the Metropolitan Council; and
18 The Developer's proposal calls for the HRA to loan the proceeds realized upon the sale ofthe Bonds
19 to the Developer pursuant to a revenue agreement or agreements wherein the Developer will be
20 obligated to make payments at the times and in the amounts sufficient to provide for the prompt
21 payment of principal of, premium, if any, and interest on the Bonds and all costs and expenses of
22 the HRA and the City incident to the issuance and sale of the Bonds; and
1878340v1 (149C4011DOC)
�l`i -1�'1?'
23 T'he City desires to encourage the development and continued operation of housing facilities
24 designed for occupancy by persons of low and moderate income and assist the City in achieving
25 these objectives; and
26 A public hearing on the Program and the proposed fmancing of the Project was held on December
27 8,1999 following duly published notice, at which tune all persons that desired to speak were heard.
28 NOW THEREFORE BE IT RESOLVED by the City Council ofthe City of Saint Paul, as follows:
29 The City hereby approves the Program and gives preliminary approval to the issuance of the Bonds
30 for the financing of the Project and, pursuant to Section 72 of the Saint Pau1 Administrative Code,
31 hereby authorizes and directs the HRA to exercise the powers granted in Minnesota Statutes 462C.01
32 to 462C.08.
33
34
35
36
37
38
39
40
41
42
On the basis of information available to the City Council, it appeazs, and the City Council hereby
finds, thatthe proj ect constitutes amultifamily rental housing development and fixrthers the purposes
of the Act; that the Proj ect is reserved for rental in part by persons of low and moderate income; that
the availability of financing under the Act and the willingness of the HRA to fiunish such financing
will be a substantial inducement to the Developer to operate the Project, and that the effect of the
financing of the Project, if undertaken, will be to assure that adequate housing will continue to be
auailable to residents of the City at a reasonable cost.
The Executive Director of the HRA, is hereby authorized to execute a Memorandum of
Understanding with respect to the financing ofthe Project in substantially the form on file with the
HRA.
43 Leonard, Street and Deinard Professional Association, is hereby retained as Bond Counsel for the
44 issuance of the Bonds. Dougheriy Summit Securities LLC is hereby retained as the investment
45 banker for this transaction. Leonard, Street and Deinard and Dougherty Suinmit Securities LLC are
46 hereby authorized to assist in the preparation and review of necessary docuxnents relating to the
47 issuance of the Bonds, to consult with the City Attorney, Developer and purchasers of the Bonds as
48 to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants
49 and other provisions of the necessary documents and submit such documents to the IIRA for final
50 approval.
51 The Developer has agreed and it is hereby determined that any and a11 costs incurred by the City or
52 the HRA in connection with the financing of the Project, whether or not the proposed financing of
53 the Project is carried to completion and whether or not the issuance of Bonds is approved by the
54 HRA, will be paid by the Developer.
55 Pursuant to Minn. Stat. Ch. 474A, the City allocates an amount of tas exempt bonding authority,
56 from the City's entitlement allocation far calendar year 2000, the amount of $10,175,000 for the
57 purposes of financing the Project. There is hereby reserved from the 2000 entitlement the amount
58 of $10,175,000 for the Bonds. The foregoing allocation of bonding authority assumes that t�
59 exempt t� increment bonds to be issued to finance a portion of the costs of the project will be
60 "private activity bonds" which require an allocation of bonding authority. In the event the tax
61 increment bonds do not require bond authority allocation, the amount allocated for the Project shall
62 be reduced accordingly.
`lR -1 t'1�'
63 Nothing in this resolution shall be construed to require the City or the I-IRA to approve any element
64 of the Project ar the issuance of the Bonds, nor shall this resolution be construed as vesting in the
65 Developer any cause of action against the City or the HRA arising from any failure or refusal by the
66 City or the HR A to approve the issuance of the Bonds.
67 Nothing in this resolution or the documents prepared pursuant hereto shall authorize the expenditure
68 of any municipal funds on the financing of the Project or the payment of the Bonds other than the
69 revenues derived from the Proj ect or otherwise granted to the City or the HRA for this purpose. The
70 Bonds shall not constitute a change, lien or encumbrance, legal or equitable, upon any property ar
71 funds of the City or the HRA except the revenue and proceeds pledged to the payment thereof, nor
72 sha11 the City or the HRA be subject to any direct liability thereon. The holder of the Bonds hall
73 never have the right to compel any exercise of the taacing power of the City or the IIIZA to pay the
74 outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any
75 property of the City or the HRA. The Bonds sha11 recite in substance that the Bonds, including the
76 interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof.
77 The Bonds shall not constitute an indebtedness of the City or the HRA within the meaning of any
constitutional or statutory provision.
1878340v1 (149C40]!.DOC)
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EXHIBIT A
[Map of District and Project Area]
NOV 23 1999 14�34 FR L.S.B D 651Geerb44 w S�eeRaoo�ea47u5i r.GO�no
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18t9290�1 (12ZRY.01'.DOC)
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CITY OF SA1NT PAUL, NIINNESOTA
PROGRAM FOR A
IvIf.7LTIFAMILY HOUSING DEVELOPMENT
(LOWRY PROFESSIONAL BUILDING)
Introduction. This housing finance program (the "Program") under Mimiesota Statutes,
Chapter 462C (the "AcP') describes the proposed issuance by the Housing and Redevelopment
Authority of the City of Saint Paul, Mimiesota (the "HRA") of up to $10,175,000 of revenue bonds
(the "Bonds") to finance, in part, the acquisition and construction of a rental housing development
(the "Project") by Avex Lowry Limited Partnership (the "Bonower"). The Bonds wi11 be revenue
obligations, secured by the repayment obligation of the Borrower, mortgages and other security
interests in property owned by the Borrower, and a first lien on tax increments (the "Tax
Increments") to be derived fromthe Lowry Professional Building Housing Tas Increment Financing
District (the "Aistrict"), as described below; provided that the bonds payable from tas increments
may be issued separately or a separate series. The Bonds wili not be a general obligation of the City
of Saint Paul, Minnesota (the "City") or the HRA, nor will any assets or revenues ofthe City or HRA
be pledged to the payment of the Bonds other than as described above.
Issuer. The issuer of the Bonds will be the HRA. Under Chapter 72 of the Saint Paul
Legislative Code, the HRA is authorized to exercise the powers of the Clty under the Act upon
approval by the City of the Program and delegation by the City to the HRA of those powers far the
purposes of the Program.
Tax Increment District and Housing Development Project. In connection with the
Project, the HRA will establish the District. The I3RA has prepared a taac increment financing plan
for the District, pursuant to Minnesota Statutes, Sections 469.174 through 469.179, as amended (the
"TIF Act"). The TIF Act requires that a tax increment district be established within a"proj ect area".
Therefore, the IIRA will also expand the boundaries of the Downtown and Seventh Place
Redevelopment Project to include the geographic area comprising the District as shown on E�ibit
A attached hereto. The boundaries of the District aze set forth on the map attached hereto as E�ibit
A.
Housing Plan and Program. This Program will be undertaken pursuant to the Act and the
Housing Pian of the City required by the Act. The Housing Plan, as amended, was adopted by the
CiTy in March of 1990. This Program will be adopted after review by the Metropolitan Council, and
a public hearing on the Program, held after notice is given, all as required by Section 462C.04 of the
Act.
The Program is consistent with both the Housing Plan (and other housing plans of the Ciry
developed under other laws), and is consistent with development guides applicable within the City
and developed by the Metropolitan Council.
Borrower. The Borrower is Avex Lowry Limited Partnership, a Minnesota limited
1819290v1 (12ZR%O1!.DOC)
aq-�»Y
parinerslup company, whose members are initially Avex Realty Services, Inc., the general partner,
and 3ohn Knapp.
Project. Lowry Professional Building Development Project will be a 112-unit rental housing
project. The Project will be newly constructed, with construction to begin shortly after the Bonds
are issued. The Project is a multifamily housing development witlun the meaning of Secrion
462C.05 of the Act. The Project will be located at 350 St. Peter Street. The amount of Bonds
attributable to the Project is expected to be approximately $10,175,000.
The Project complies or will comply with all applicable building code, zoning and land use
planning requirements.
Need for the Project; Income and Rent Limitations. The development of the Project will
provide needed additional rental housing opportunities within the City.
Under the Act, and under Section 145 of the Internal Revenue Code of 1986, as amended,
which will govern the Bonds, no income limits apply to residents of the Project. However, the TIF
Act imposes certain requirements in connection with the creation ofahousing tax increment district,
and in order to comply with such requirements, at least 20% of the units in the Project will be
occupied by individuals whose income is 50% or less of the azea median gross income, adjusted for
family size. The statutory authority for various sources of subordinated financing also impose
income or rent limits, or both, which may be more restrictive than the TIF Act. The Project will
comply with the most restrictive limitations.
The Borrower, and any subsequent owner of the Project, will not arbitrarily reject an
application from a proposed resident because of race, color, creed, religion or national arigin, sex,
affectional preference, marital status, or status with regazd to public assistance ar disability.
Bonds. The HRA will issue the Bonds, in one or more series, in an aggregate original
principal aniount of up to $10,175,000. Substantially all of the proceeds of the Bonds attributable
to the Project will be applied to pay or reimburse for the costs ofpurchasing consUucting, installing
and equipping the Project. "Substantially a11" means a11 ofthe proceeds of such Bonds, less amounts
deposited in a debt service reserve fund or used to pay the costs of issuance of the Bonds.
It is expected that the Bonds will have a term of uot more than 40 years, and will mature
serially ar be subject to sinking fixnd payxnents. The Bonds will bear interest excludable from gross
income for federal income taa purposes, and, to the same extent, excludable from the gross and
taxable net income of individuals, estates and trusts for Minnesota tax purposes.
The Bonds will be special, limited obligations of the HRA, payable solely from (a) tax
increment aud (b) revenues provided by the Borrower under one or more revenue agreements with
the HRA. The Bonds will be further secured by mortgages and other security interests in the
properry owned by the Borrower. The Bonds will not be a general obligation, moral obligation or
annual appropriation obligation of the City or the HRA, nor will any revenues or assets of the City
181929�V1 (12ZR%41!.DOC)
°1g -\�n�'
or HRA (other revenues paid by the Borrower, Taac Increments and other revenues pledged under
ttae Indenture) be pledged to the payment of the Bonds.
The City or HRA may require the Borrower to provide evidence satisfactory to the City or
HRA of the ability and intention of the Borrower to complete the construction of the Project, and
evidence satisfactory to the City or HRA of compliance with the standazds and requirements for the
makiug of the financing established by the HRA, as set forth herein and in connection therewith, the
City, the HRA or its representatives may inspect the relevant books and record of the Borrower in
order to co�rm such ability, intention and compliance. In addition, the City or HRA may
periodically require certification from the Borrower or such other person deemed necessary
concerning compliance with various aspects of this Program.
The provisions of tlus Program are severable and if any of its provisions, sentences, clauses
or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City
or the HRA or otherwise illegal or inoperative by an court of competent jurisdiction, the decision
of such court shall not affect or impair any of the remaining provisions.
The City sha11 not amend this Program, while the Bonds authorized hereby are outstanding,
to the detriment of the holders of such Bonds.
Adopted:
1819290v1 (12ZRo01!.DOC)
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USES OF FUNDS
Acquisifion
Development Costs
Total Costs
Lotivey PrafessionaI Bnilding
Funding Proposal
Commercial
1,�00,000
4.SOOA00
�6,000,000
SOURCE5 OF FUNDS
Private Equity 3,000,000
Private Financing 3.00�,OOQ
Revenue Bonds
Tax Increment
Consrtuction Earnings Interest
Low Income Housing Tax Credits
Staz Loan
HRA Grant
MHFA/FHF
Residential
1,500,000
10166,QQ0
$11,666,000
7,340,000
2,435,000
710,000
31,000
500,000
250,000
480 000
Total Sources $6,000,000 $11,666,000
Total
3,000,000
14.666.000
$17,666,000
3,000,000
3,000,000
7,340,000
2,43 5,000
710,000
31,000
500,000
250,600
480,OQ0
$17,666,000
.. � �� - l ���
Lowry Professional Building
Redevelopment Project
Support Documentation
December 8, 1999
Lowry Professional Building �yoe��es9 �/
Relocation Summary � Q � i I�/�
� y t v
Suite Tenant Footage Eupiration
Tenants on Month-to-Month and Short Exoiratians Floors 6-12�
613 John W. Bumham, DDS 600 04/30/99 m-t-m
6'15 David w. Tudc, ODS 493 OS/31(96 m-t-m
646 Lee Dental Studio 960 08/31/98 m-t-m
715 Valiey Creek Enterprises 207 02/01l99 - 0�/3�/Z000
729 Chades W. Salmen, DDS 198 04i30/95 m-t-m
732 Foot Clinics, LTD 546 06lO7/94 m-t-m
733 Dr. Olin 240 17/10/96 m-t-m
746 Wiiliam Gavin, DDS 924 0�/Ot/98 m-t-m
809 John A. Stemper DDS 716 OSl3�l97 m-t-m
814 Gerald McEllistrem, MD 826 t�f31l94 m-t-m
830 SCORE 874 02/01/9S-O7/31/2000
9�4RobertJones,DDS 968 07l31/98m-t-m
925 Broude & BaRhel, DDS 1,372 02/27/98 m-t-m
1002 Wiliem Dieperink, MD 276 1�/30/93 m-t-m
1025 St. Paui Public Schools 1,228 06/30/98 m-t-m
1033 Jerry Jo Brandt 427 05f31/96 m-t-m
1034 Gary Livermore, PHD 300 10/01/95 m-t-m
1040 Pearl Bamer, PHD 354 02/28/99 m-t-m
1042 Dr. William Spring 420 O6/30/98 m-t-m
1048 Michael Printon, ODS 478 09/30/93 m-t-m
t l24 Peter Cannon, DDS 976 07l31/98 m-t-m
1206 Peter Nord, DDS 1,939 5/31/1999 m-t-m
1220 Michael Graff 655 6/30/1999 m-t-m
15,977
Tenants with Landlard Relocation Riaht 6-12
623APCOAlSta�dardParking 362 O6lOtf99-OS/31l2000
632FamilyDentalAssociates 2,268 01/01/93-12/31/2003
825MichaelFreischel,DDS �,125 OSi01i95-04/302000
'1015 MorrisseyHospitality 1,288 02l0'I/99-Ot/31/2004
1126GordonDOering,DDS 515 09/O7/97-08/3�/2002
5,558
Status
Lease in Proceu
Lease in Process
Lease in Process
vaqting
vacating
vapting
vaqting
Lease in Process
vacating
vacating
vacating
Lease in Process
Propasai being disassed
vacating
Proposal being discussed
vacating
varating
vacating
vacating
Lease in Process
Lease in Process
Lease in Process
vacatin
rera
In process 9,938
vacating 6,039
Dis ute
Total 75,977
Discussions undenvay with Tenant
Tenant currently operetes ramp
Vacating
Proposal in process
Lease in process
Discussions w/ at for tenant to relocate in bid 12/7/99
reca
In process 2,775
Vacating 2,268
Dis ute 515
Total 5,556
Tenants with No Landlortl Relocation Riaht 6- 72
719AmericanBankrupicyService 1,495 09/01/96-OS/31/99 Vacatin9
1027Ton1Magnuso0 345 09/O7/97-08/31/2002 Agreementunderreviewforterminanon
1031 Nancy Dessert, MD 472 06/01/98 - 05/2�2003 vacanng
1118 Roger 6. Ettel, DDS 1,500 Ol/O7/96 - 72/31/2000 Leasein process
1�20MartinBrown,DDS 673 1�/01/97-10/3�/2002 Leasein rocess
reca
4,485 In process 2,�73 14,886
Vacating 2,312 10,6�9
ToWI Tenants above Floor 5 26,020 Dis ute 515
Total 4,485 26,�20
Tenants: Floors 2- 5(included far info - not involved in MF project)
220 Travel Associates 674 04/01/98 - 03/3�/2001 Renewal, extension, expansion pending
224 City & Cty Employees Credit Ur 1,699 03/31/99 m-t-m Lease in process
240 St. Paul Eye Cllinc 8,856 05/07/97 - 04/302002 Remodel, minor relo pending
280 Star T�bune 2,'IS? 02101f99 - 01f31l2004 Minor modification to skyway discussed. Pending
295 Ben's Custom Design 679 03/09/98 - 02l28/200� Renewal, relo pending
300CityofSt.Paul-LIEP 21,�00 08l01/98-07/31/2003
480 QAI�Ever lncreasing Enterprise� 7,�45 09/30797 m-t-m Vacated
400 Zelle & Larson 20.060 12/01/98 - 11/30/2000 Vacated
ToW I Tenants 2- 5 62,400
Total 2- � 2 88,420
qq -���b'
December 7, 1999
Mr. Keith Karnes
Avex Lowry Limited Partnership
350 St. Peter St.
Suite 215
Saint Paul, MN 55118
Re: Lowry Professional Building
Dear Keith,
350 SL Pe�' � 68E
St PaW, MY STi10Y-7507
Phale: 651227.8646
Fe�C 651.YY7.6523
This letter is for the purpose of showing support for the project that Avex is undertaking in the renovarion
of the Lowry Professional Building. As you lmow, I am currently a tenant in the building, with an existing
lease that runs for three more yeazs. Several months ago, Avex, through your representatives at CB
Richazd Ellis, approached me with Avez' desire to relocate my practice to a lower floor within the Lowry
project. My cutrent lease in the building provides the landlord an opportunity to relocate me within the
building, providing certain conditions aze fulfilled.
We have discussed my relocation several times over the last several months, with several options
considered. During the negotiations, one of the oprions considered was reloca6on to another building that I
would have an ownership interest in. I have determined that based upon my long term occupancy interest,
that direction is better for my practice at this rime. Although Avex has the right under the lease to relocate
me within the building, I appreciate your willingness to discuss alternatives, to work with me, allowing me
to terminate my lease to pursue the ownership opportunity.
I believe that the combined residentiall commercial nature of the building planned will be good for St. Paul
and in particulaz, 6eneficial to my practice next door. The type of renovation to the building that you have
described to me is what I believe we need.
Change is always difficult, and these last months have shown that, with various parties having differing
desires and directions. I look fonvard, though, to a continued good relationship as neighbors in dovmtown
Saint Paul and hope that the approva] for and conshuction of the Lowry Project is accomp]ished quickly
and smoothly. i.et me know if I may be of assistznce. Please sF.ue r.iy commenu with other parties, or the
Ciry Council, if it would be beneficial to your project.
Sinc rely,
�� -
Dr. Scott Lingle
St�tt D. t� D.D.S., P,A.
d rne xeart m st raa�
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_ . - . . _ _ _ ' � �.s .` - ' . . :a :
December 8, 1999 - �
Mr. Keith Karnes via Fa.z 651-222-2466
Avex Lowry L'united Partnerslup
350 St. Peter Street �
5uite 215
5aint Paul, Minnesota 55102 - -
Re: Lowry Professional Building .
Dear Keith, . .
Please accept this letter as evidence of our support for the renovation plans�for the Lowry
Professional Building. My practice is currently located on the eleventh floor of the
Lowry building. We have been discussing a move and plan to move'to' renovated space
on the Skyway level of the building. W e believe that the renovafed commercial space in
the bwilding is a weicome change. �
Please use this letter to indicate our public support of the project. We are ready for the
project to be approved so that construction can begin and disruption of oixr practice from
unlaiown circumstances can be ended. We aze looking forwazd to being on the Skyway
level and growing our practice in that location.
Please let me know if I may be of assistance, and keep me informed of the project status.
Sincerely,
J
Dr. Peter Cannon
1124 LOWRY MEDICAL ARTS BLDG. • ST, PAUL, MN 55102 •(612) 224-2787
12l08J1999 11:33 5514269591
GECK AND ASSaCIATES
Tir.ao�rxY R. G�czc 8c A,ssocx.�r�s
ATTOFNEYS AT LM1W
�IqGH V1K� PROFESS�ON�L 8V1lDiNG
TIMCTHYR.6-C� i310 STHIaH��'�.Y96
MARK c OLcA WNIT� BCAR LAKE, MIAWESOTA SS��C
December 8, 1999
Mr. Michael R. Mazinovich
CB Richard Ellis, Inc.
444 Cedar Street
Suite 800
St. Paul MN 55101
Re: Dr. Roger Ette! 350 St Peter Street
Leasehold Relocation
Aear Ivlr. ivZazinovich:
.
PAGE 02
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TEI.EPNONE (65+) <2dJ2n?
FTCS�Mi6E (ES�: -2d-9$01
I have conveyed your recent proposal to Ar. Ettel for his examination and consideration.
With regard to youz request for charactezization of our negotiacions, it is our opinion that,
although we do not have a final agreement regarding Dr. �ttel's relocation, the
negotiations between us have been amicabie and have been conducted in good faith. This
wili aiso confirm that you have never represented or snggested to us that you would enlist
any authority for the pwposes of taking the pzenaises by eminent domain.
Very t y 'urs,
"�i p'thy R. Geck
T�G/hg
3
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�OFZRISSEY
HOSPITALITY COMPANIES INC.
�� �
December 8, 1999
Saint Paul City Councii
RE: Redevelopment of the lowry Professionai Building
I have had the privilege of working and being associated with the Saint Paul Hotel
and this end of downtown since 1983. During this entire time the Lowry
Professional Building has been in need of renovation and redevelopment as a
historic building with historic tenants. I know in talking to a host of potential
investors who looked at the building that the costs of the renovation coupled with
the sensitivity of dealing with a lot of long term tenants is what pushed most
investors away from seriously considering the deai.
I think we can all assume the Lowry Professional Building as a historic building
should stay in Saint Paul. Because of its nature, size and configuration it only
has a very finite number of potential reuses, of which I believe the AVEX solution
for middle income and up housing in downtown Saint Paul is an outstanding
proposal. Being deeply involved in the renaissance of Saint Paul and I have
listened to the experts and the consultants over the years talking about how we
needed to inject housing back into the downtown. To make a viable living and
thriving downtown this project meets ali of the criteria in every form and facet. 1
will not argue the merits of the transaction, that is for you to decide.
1 will telf you that as the developer of Pazzaluna and as Management Company of
the Saint Paui Hotel, that this type of use of the building in this location by a
credible developer and landlord will be an asset to the neighborhood and to the
community. Those sma{{ businesses currently {ocated in the Lowry are important
as well. However, as the city determined when developing the Lawson block,
development will never be totally accepted by all parties. One must make a
priority to a longer-term goal and vision to ai! the surrounding property owners,
the vision of the city and the needs of the general population. Development of all
or part of the Lowry Professional block needs to occur as soon as possible as it
has continued to deteriorate and is becoming blighted in a very special and
unique side of downtown Saint Paul.
350 ST. PErER STReEr, SuiTe 1 O1 5. ST. PaU�. MN 55 1 02-1 5 1 4
651-227-0815:FAX651-221-0771 oR651-292-1966
E-Mni�AOORESS� mhcnet@worldnet.att.net
_ � t���'
� �.
St. Peter Street is developing nicely as a restaurant district, where housing will
support additional restaurant development. It wiil put peop(e on the street and it
will give a sense of neighborhood and urban life to this area which is much
needed.
My deafings with AVEX as a tenant, in Pazzaluna and my personal corporate
office, have given me the opportunity to witness their business practice and the
way in which they deal with their tenants. f am nothing but pleased with my
dealings with them to date, they are fair, they are firm and they are honest. I
think they understand that Saint Paul is too close knit a community to do
anything other than that and it seems to me that they are totally committed to
the development of a quality project in a historic buiiding which has very limited
new deve(opment uses.
I urge you to give their proposal strong consideration, to listen to any of the
tenants who may be displaced, but to look at the greater good that could occur in
a revitalization of downtown Saint Paul. I am sorry that f am not able to be with
you at this hearing as I am out of town our new Lodge at Giants Ridge. I would be
happy to talk with any of you individually or on the telephone as your feisure.
Thank you for your consideration.
Sincerely,
\./�.X� `
William Morris
President �
350 ST. Pt7ER STREET. SUITE 1015, ST. PAU�. MN 551 02-1 5 1 4
651-221-0815; FAX 651-221-0771 oR 651-292-1966
E-Mni�A�oRESS: mhcnet@worldnet.att.net
DEC 08 1?'
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crr� & co�
CREDIT Wi ION
DECembe: 8,1999
Keith Kasncs
Aver Lowry Limi�cd P�narshiP
Svite 2i5
350 3[, Peter S[reet
S� Paul, MN 55102
Re: Lawry P:ofe�sional Building
Dcss Mr. Karnes:
Wc have recendy complcted negotiatiocu of a leasa extension and zemodci of our brdnc�
locaced on ihe Skyway ievai ofthe Lowcy Yrofessional Huild�ng. We toox forward to tht
zrno�atior. of our space and to thc up�*adzs Planned fot the balance of the building.
we wish to tharsi: Mr. Michael Maziaovieh for his tboushtful considesation of ouc-
coneems and demands. As a long-tetm tet�nt of'ft:e Lowry we are pleased to ramai�
there, and wish yo� great success with your plans faz the huiiding.
Sincerety,
� t.�'l��'�,���
S �Shetdon San6om
President
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•� �� Standard Parking0
M PPCONSrariOaN Parlting Canpany
Lowry Professional Bwlding
350 Si. Peter Street • Suite 623
Saint Paul, Minnesota 55102
(657) 316-7926 • Fax (651) 310-1905
December 8, 1999
Mr. Keith Karnes
Avex Lowry Limited Parinership
350 St. Peter Street
Suite 215
Saint Paul, Minnesota 55102
via Fax 651-222-2466
Re: Lowry Professional Building
Dear Keith,
�a-����'
This letter is to express our support for the upgrading of the Lowry
Professional Building. We believe that the new residential units on the
upper floors and the renovated commercial space in the building are
welcome changes. Standard Parking is a tenant on the sixth floor of the
building. Our lease expires in May of this upcoming year. We look forward
both to working out a lease extension/relocation with you on space in the
Lowry Building and to the opportunity to continue to service the parking
needs of the Lowry Ramp.
Please use this letter to indicate our public support of the project. We hope
the project plans and financing will be approved quickly so that wark can
begin.
Sincerely,
Darwin Melin
Standard Parking
Ambrence in Parking.o