89-1914 WNITE - C�TV CLERN COUIICII � /
PINK '- FINANCE /
CANA1tv - DEPARTMENT C I TY O SA I NT PAU L File NO• ��i / �/
BI.UE - MAYOR
, � � unc 'l Resolution j� �,
� �
Presented By
Re o Committee: Date
Out of Committee By Date •
WHERE:�S, City staff has had dis ussions with the United States Postal
Service (USPS) re�arding the potentia acquisition of the former train waiting
concourse connected to the St. Paul U ion Depot (Union Depot Concourse) and
regarding the construction of a skywar bridge across Kellogg Boulevard
connecting the downtown Post Office w th the Block L/Minnesota Telecenter
co►nplex, w}iich discussions have resul ed in a proposal which links
construction of the skyway bridge wit an option to purchase the Uni�n Depot
Concour•se from USPS; and
WHEREAS, under the proposal, US S and the Housing and Redevelopmeiit
Authority of the Cit� of Saint Paul ( RA) would share equally in the estimated
$570,000 cost of constructing the sky ay briclge, the HRA would receive a three
year option to purchase the tinion Dep t Concourse for $421,200, and HRA would
be allowed to credit its estimated $2 5,000 contribution to ttie skyway bridge
against the purchase price, leaving balance of $136,20Q necessary to
consummate a purchase of the Depot Co course; and
WHEREAS, financing for HRA's s re of the skyway bridge cost would be
provided from the 1989 HRA Developmen Fund Budget by amending the $500,000
line item for acc�uisition of the Depo Concourse ta apply $285,000 of this
amount toward skyway bridge construct'on, and financing for the estimated
�425,000 required for e�:tending the i ternal atrium/concourse within Block L
south to Kelloge Boulevarci is include as a project activity in the financin�
plan for the pending Downtown Tax In ement District bond issue; and
WHEREAS, the benefits of the p posal are two-fold, includi►ig that tl�e
skyway connectic.>n of a major downtow employment and service center will be an
asset to the downtown community gene lly�, and that HR,�'s receipt of an optiotl
COUNCIL MEMBERS
Yeas Nays Requested by Department of:
Dimond
�og in Fav r
Goswitz
Rettman B
s�ne�bei _ Agains Y
Sonnen
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
Bl'
Approved by �Navor: Date _ Approved by Mayor for Submission to Council
By BY
WHITE ,- cirv CLERK COU[ICII n
PINK - FINANCE G I TY O F SA I NT PA U L
CANARV - DEPARTMENT y� � �� ��
B.LUE - MAVOR File NO• ��
Counci Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
to purchase the Depot Concourse lays t e foundation for redevelopment of this
historic building, restructuring of th Union Depot Place Project, and future
e�tension of the skywa,y system to the nion Depot; and
WHEREAS, the Board of the Downto n Community Development Cotmcil (DCDC)
reviewed tlie praposal. and recommended pproval at its meeting on September 20,
1989, and the Saint Paul Heritage Pres r��ation Commission approved the design
of the skyway bridge at its meeting on August 10, 1989;
ti0W THEREFORE BE IT RESOLVED by he Council of the City of Saint Paul
tt�at staff of the Department of Planni g and Economic Development is
authorizecl to finalize the terms of a kyway Agreement with the L'nited 5tates
Postal Service for constructiori and op r•ation of a skyway bridge connecting
the Block L/Minnesc�ta Telecenter compl x and the downtown Post Office, subject
to the necessary budget amendment atid inancing approvals by the HRa aiid Cit}-
Council.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
Lo� [n Fav r
Goswitz
Rettman i,� B
s�be;�e� _ Agains Y
Sonnen
Wilson
0��+ , 2 � Form Approved by City Attorney
Adopted by Council: Date ��
Certified Passe y uttcil Se tar By
By
A►pprove y 14av r: ate _,Z' �� �c Approved by Mayor for Submission to Council
�; � . �C � 9 By
��,� D E C � 198�.
� � 4 , � �q_i 9i�
DEPARTMENTIOFFICE/OOUNCIL DATE IMTIA,
P.E.p. l0/�10/ 9 GREEN SH�E�F.TE No. 4��,���
OONTACT PERSON 6 PH�IE Q DEPARTMENT DIRECTOR.�, �CITY OOUNqL
Steve Thompson 228-3212 �� �CITY ATTORNEY W 1 t Bo ��aERK
MUST BE ON COUNqL AOENDA BY(DAl'� ROUTMIO ' �BUDfiET DIRECTOR �FIN.d M(iT.SERVICE8 DI
�MAYOR(OR A881ST � '� �d
TOTAL N OF SIONATURE PAGIES N A (CLIP ALL CATIONS FOR SIGNATURE�
ACTION REOUES'TED:
Council Resolution authorizes staff to con lude terms of a Sky�vay Agreement with
U.S. Postal Service for a skyway bridge fr� m the Block L/Minnesota Telecenter complex
to the downtown Post Office.
AECOMMENDJITIONS:Approve(A)a Reject(RI COUNCI MITTEE/RESEARCH REPORT O
_PLANNINO CAMMISSION _qVIL SERVICE COMMI3SION �Y� P
_pB OOMMITTEE _
—3TAFF _ COMMEN't8: O V T•121�
_DISTRICT COURT _
SUPPORTS WHICH COUNCIL OBJECTIVE9
Economic Development
INITIATIN(i PROBLEM,ISSUE,OPPORTUNITY(Who.What,When,Where,Wh�:
Agreement has been reached with U.S. Postal Service which links construction of skywa,y
bridc�e to downtown Post Office with an opt� n to purchase Union Depot Cancourse. Costs
of skywa,� would be split between Post Offic and HRA, with HRA`s contribution also beinn
credited against the Concourse option price �
RECCIV�D
OCT161�9
"°""�"°ES'F��°�°: Ct�'Y CLERK
1. Skyway connection of a major ddwntown ' mployment and service center (Post Office�
benefits downtown corr�nunity generally.
2. Option to purchase Union Depot Concour e lays foundation for future redevelogment of
historic building, restructuring of Union D pot Place Project, and future skyway connection
to Union Depot.
DISADVANTACiES IF APPROVED: �ECE�
None
0 C� 1�� ��8�
��YG�'� Q�f4CE
DISADVANTAOES IF NOT APPROVED:
Opportunity would be missed to link the skyw bridge and Depot Concourse option
transactions in a manner economically advant' eous to the City ,
Gouncit Research Center
OCT 131�
TOTAL AMOUNT OF TRANSACTION i N�A COST/REVENUE BUDGETED(CIRCIE ON� YES NO
FUNDING 80URCE ACTIVITY NUMBER
F INFO�IMATI •(EXPLAII�
�esolution�oes not obligate funds. Required, financing will be considered in subsequent
resolutions of the City Council and HRA Board.
�
� .� t
.
NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE G EN SHEET INSTRUCTIONAL
MANUAL AVAILABLE IN THE PURCHASING OFFICE HONE NO. 298-4225).
ROUTINQ ORDER:
8elow are preferred routings for the flve most frequent types of uments:
CONTRACTS (assumes suthorized COUNCI RESOLUTION (Amend, Bdgts./
� budget exists) Accept.Orants)
1. Outside Agency 1. Dep ment Director
2. Initiating Department 2. Bud t Director
3. City Attomey 3. City ttorney
4. Mayor 4. Ma r/AssistaM
5. Finance&Mgmt Svcs. Director 5. City Council
6. Finance Axounting 6. Chi AccouMant, Fin&Mgmt Svcs.
ADMINISTRATIVE ORDER (Budget COUNCI RESOLUTION (all others)
Revision) and ORDINANCE
1. Activity Menager 1. Initi ting Department Director
2. Depertment Accountant 2. Ci Attorney
3. DepartmeM Director. 3. Ma Nlisaistant
4. Bud�et Director , 4. Ci Council
5. City Clerk "
6. Chief Accountant, Fln&Mgmt Svca.
ADMINISTRATIVE ORDERS (all�hers) I
1. Initiating Department
2. City Attomey �
3. MayodAssistant �
4. Gry Clerk
TOTAL NUMBER OF SItiNATURE PAE3ES
Indicate the#of pages on which signatures are requfred and reli
each of these pages.
�
ACTION REGtUESTED
Deacribe what the projecUrequeat aeeks to accomplish in eith chronologi-
cal order or order of impoRance,whichever is most appropriat for the
issue. Do not write complete sentences. Begin each item in r Iist with
a verb.
RECOMMENDATIONS
Complete if the issue in question has been presented before y body, public
or private.
SUPPORTS WHICkI COUNCIL OBJECTIVE?
Indicate which Council objecUve(s)your projecUrequest sup by liating
the key word(s)(HOUSING, RECREATION, NEIGHBORHOO , ECONOMIC DEVELOPMENT,
BUD(3ET, SEWER SEPARATION).(SEE OOMPLETE LIST IN INSTRUCTIONAL MANUAL.)
COUNGL COMMITTEEIRESEARCH REPORT-OPTIONAL REGIUESTED BY COUNGL
INITIATINO PROBLEM, ISSUE, OPPORTUNITY
Explain the situation or canditiona that created a need for yo�r project
or request. �
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget prxedure uired by law/ •
charter or whether there are speciflc wa in which the Cky Saint Paul
end its citizens will beneflt from this pro�ecUaction.
.DISADVANT �3!IF APPROVED �
What n�effects'o�idajor changes to existing or past xesses might
this projecUrequest produce if it is pasaed(e.g.,traffic dela , nase,
tax increases or assessments)?To Whom9 When?For how ng?
DISADVANTA S IF NOT APPROVED
What will th�negative conaequences if the promised act n is not
app ? Inability to deliver service? Continued high trai8c noise,
ac ent rate?Loss of revenue?
j' FINANCIAL IMPACT
Although you must taibr the information you provide here t the issue you
are addressing, in general you must answer two questions: ow much is it
gang to cost7 Who is going to pay?
I
� .. Members: ��v � 9��
.:,�.....,� _
``�._._., Biil Wilson, chair
' ' . Tom Dimond
- ' �r������� - CITY OF SAINT PAUL
E�„ „�A;� :. Kiki Sonnen .
OFFICE OF HE CITY COIINCIL
�" D e: November 22, 19 9
WILLIAM L. WILSON Commi tee Report MARK VOERDING
Councilman Legistative Aide
To: Saint Paul City Councii
From : Housing and Econo ic Development Committee _
Bill Wilson, Chair
l. Approval of Minutes
COMMITTEE RECOMMENDED APPROVA of the OCTOBER 25, 1989, minutes.
2. Appeal of David and Josephine Berg to a decision of the Heritage
Preservation Commission which denied the issuance of a permit to
demolish the structure locate at 270 West 7th Street
COMMITTEE RECOMMENDED A LAYOV TO DECEMBER 27.
_ — -
. 3. � Re 1 on authorizing PED to finalize terms of Skyway Agreement with
the U.S. Postal Service to co truction and operation of skyway bridge
connecting the Block L/Minnes� a Telecenter complex and downtown
Post Office (C.F. 89-1914) �
OMMITTEE RECOMMENDED APPROVA , WITH AMENDMENT.
4. Resolution approving Citiwide ommercial Area Rehabilitation Program
Guidelines (C.F. 89-1930)
COMMITTEE RECOMMENDED APPROVAL WITH AMENDMENT.
5. Resolution approving Neighborh od Commercial Rehabilitation Loan Program
Guidelines for the HRA (C.F. 9-1931)
COMMITTEE RECOMMENDED AYPROVAL WITH AMENDMENT.
6. Ordinance establishing the Nei hborhood Commercial Rehabilitation Loan
Program and authorizing the to act as agent and administer the
Program (C.F. 89-1940)
COMMITTEE RECOMMENDED APPROVAL WITH AMENDMENT.
7. Resolution establishing the Do town Development Study Commission
(C.F. 89-1997)
COMMITTEE RECOMMENDED A LAYOVE TO DECEMBER 13.
CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4646
$ 46
.+� ,, . .
R4`C�T.,. ' �
CITY OF SAINT PAUL
° a DEPARTMENT OF PL NING AND ECONOMIC DEVELOPMENT
M iiii 11�i A
e ,
+ 25 WEST FOURTH STREET,SAI T PAUL,MINNESOTA,55102•TELEPHONE:612-292-1577
...•
GEORGE LATIMER
MAYOR
Council President Sc eibel :
The Council Consent A enda for Tuesday,
October 24 includes, s Item 7„ a Resolution
concerning a skyway b idge connecting the
downtown Post Office. The Agenda indicates
that this Resolution i "For Action", PED
feels that this matter may benefit from
Council discussion at he Committee level
prior to adoption.
With your concurrence, ED suggests that
Item 7, on the Council onsent Agenda be
referred to the Housing nd Economic Development
Committee.
Steve Thompson
PED Project Manager
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❑approval please call me
❑for your information please see me
❑ necessary action prepare reply
❑ note and file recommendation
� note and return ❑sign
-..--
from date
.. ' - ��
WMITE - C�TV CIERK f
PINK - FINANCE GITY OF S INT PALTL COURCII (� "///y'��� ,} /�
CANARV - DEPARTMENT r �,> 9 �9���
.� 8LU£ - MAVOR File NO. L� � �
Council esolution
Presented By
Referred To Committee: Date
Out of Committee By Date
to purchase the Depot Concourse lays the oundation for redevelopment of this
historic building, restructuring of the U ion Depot Place Project, and future
extension of the skyway syste� to the Uni n Depot; and
WHEREAS, the Board of the Downtown ommunity Development Council (DCDC)
reviewed the proposal and recommended ap oval at its �eeting on Septesber 20,
1989, and the Saint Paul Heritage Preser ation Commission approved the design
of the skyway bridge at its meeting on A gust 10, 1989;
NOW THEREFORE BE IT RESOLVED by th Council of the City of Saint Paul
that staff of the Department of Planning and Econo�ic Development is
authorized to finalize the terms of a Sk ay Agreement with the United States
Postal Service for construction and oper tion of a skyway bridge connecting
the Block L/Minnesota Telecenter complex and the downtown Post Office, subject
to the necessary budget amendment and fi ancing approvals by the HRA and City
Council.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
Lo� In Favor
Goswitz � , � � _
Rettman B
�het�� Against Y
Sonnen
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary /� f�
By
Approved by 1�lavor. Date _ Approv y Mayor for Submis outlCil
gy B
� � � � � :� � ��.��,�
. :��
CIT OF SAINT PAUL
INTERDEPAR MENTAL MEMORANDUM
DATE: September 29, 1989
TO: Council President Ja es Scheibel
Members of the City ouncil
FROM: Kenneth R. Johnson, irector/���+1
Department of Planni g and Economic Development
RE: Resolution Authorizi g Staff to Proceed with an
Agreement with the U S. Postal Service for Construction
of a Skyway Bridge f om Block L to the Downtown Post
Office.
Since March, 1987, staff has h d discussions with the United
States Postal Service (USPS) r garding the potential acquisition
of the former train waiting co course connected to the St. Paul
Union Depot, commonly referred to as the Union Depot Concourse.
As part of these discussions, taff has also discussed with the
Postal Service the constructio of a skyway bridge across Kellogg
Boulevard connecting the downt n Post Office with the Block L/
Minnesota Telecenter complex. he outcome of these discussions
is a proposal which links the 's construction of a skyway
bridge to the downtown Post Of ice with an option to purchase the
historic Union Depot Concourse rom USPS.
Under the proposal, the Post Of ice and HRA would share equally
in the cost of constructing a s yway bridge from Block L to the
Post Office. The estimated cos of the bridge is $570, 000, of
which USPS and HRA would be res onsible for $285, 000 each. As
part of the agreement, HRA woul also receive a three-year option
to purchase the Union Depot Con ourse for $421, 200.
Additionally, HRA is allowed to credit its contribution to the
skyway bridge, the estimated $2 5, 000, against this purchase
price. This would leave a bala ce of $136, 200 necessary to
consummate a purchase of the De ot Concourse.
Financing for HRA's share of th skyway bridge cost would be
provided from the 1989 HRA Deve opment Fund Budget. This budget
includes $500, 000 for acquisiti n of the Union Depot Concourse.
The acquisition line item would be amended to apply $285, 000 of
this amount toward skyway bridg construction. The project also
requires that the internal atri m/concourse within Block L be
extended south to the Kellogg B ulevard elevation. The estimated
$425, 000 required for this exte sion is included as a project
activity in the financing plan or the pending Downtown Tax
Increment District bond issue.
. . . . �-����
September 29, 1989
Page Two
The benefits of the proposal are wo-fold. First, the skyway
connection of a major downtown e loyment and service center will
be an asset to the downtown comm nity generally. Second, HRA's
receipt of an option to purchase the Depot Concourse lays the
foundation for future redevelopm nt of this historic building,
restructuring of the Union Depot Place Project, and future
extension of the skyway system t the Union Depot.
The Board of the Downtown Commun ty Development Council (DCDC)
reviewed the proposal and recomm nded approval at its meeting on
September 20, 1989. The St. Pa Heritage Preservation
Commission approved the design f the skyway briclge at its
meeting on August 10, 1989.
The attached City Council Resol tion authorizes staff of the
Department of Planning and Econ mic Development to finalize the
terms of a Skyway Agreement wit the United States Postal Service
for construction and operation f a skyway bridge connecting the
Block L/Minnesota Telecenter co plex and the downtown Post
Office, subject to the necessar budget amendment and financing
approvals by the Board of the using and Redevelopment Authority
(HRA) and City Council.
I would request that this Reso ution be placed on the Agenda of
the City Council.
KJ:ST:cm
dianec/st-blsky
cc: Bill Belden
Steve Thompson
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.
THE UNION DEPOT CONCOURSE BACKGROUND AND STATUS
OCTOBE , 1989
The Union Depot Concourse is the former tra n waiting area connected to the Head
House of the downtown St. Paul Union Depo . Supported by steel columns, the
Concourse is located in air rights over Kello g Boulevard and the train platform to the
south. The structure is approximately 80 fee wide on the south, 130 feet wide on the
north, and 428 feet long. The structure inclu es a second story on the north
containing approximately 15,660 square fee with the main level containing
approximately 39,200 square feet, for a total building area of approximately 54,860
square feet. The main floor consists mostly f a large 80 foot clear span space with
approximately 37 foot ceiling height which s rved as the passenger waiting room for
the trains below.
The waiting room has terrazzo tile floor, bri walls with arched windows, and a
decorative arch plaster ceiling. The inside alls are finished with a terra-cotta cornice
frieze portraying the progress of transporta ion. Constructed in 1917, the Concourse
was placed on the National Register of Hist ric Places in 1974. As the rail passenger
and mail transfer center of the upper midw st, the Union Depot and Depot Concourse
once accommodated as many as 149 pass nger trains and over 1,300 tons of mail
each day.
The last train departed from the St. Paul U ion Depot in May, 1971. Abandoned by the
railroads, the Depot Concourse and the tr in platform south of Kellogg were acquired
by the United States Postal Service in 197 to augment operations of the adjacent Post
Office. Since then, the main level of the D pot Concourse has been used for storage
by the Post Office. The second level, acc ssed through the second floor of the Union
Depot Head House, was leased in 1985 f Continental Cablevision's production
studios as part of Continental's lease in U ion Depot Place. The main level has been
vacant for the last several years.
Since the resurgence of interest in downt wn St. Paul's historic Lowertown district in
the late 1970's, reclamation of the Union epot and Depot Concourse has figured
prominently in the plans of the City and t non-profit Lowertown Redevelopment
Corporation. Substantial renovation of t Depot Head House as an office/restaurant
complex was accomplished by a private artnership in 1983. The subsequent faiture
of two restaurant tenants and a lease dis ute with the principal office tenant,
Continental Cablevision, resulted in the artnership's default on revenue bond
mortgage obligations in June, 1987. Ac rding to partnership disclosure documents,
the lease dispute with Continental includ d the partnership's failure to acquire title to
the Depot Concourse, as allegedly requi ed under the lease. The Union Depot is
currently in the process of foreclosure b First Trust Co., as trustee for the revenue
bonds.
In March, 1987, City staff contacted the .S. Postal Service regarding the acquisition of
the Union Depot Concourse. These dis ussions were initiated in response to a
proposal that a series of exhibitions of inerican contemporary art from the
internationally recognized Panza collec on be installed in the Concourse. This
proposal was advanced by a locally ba ed non-profit corporation organized for
purposes of the exhibition.
This original private initiative has broad ned in scope and evolved under the guidance
of a task force consisting of representa ives of the business, professional, and cultural
communities. This task force, chaired y Mr. Bill Sands, Chairman of Western State
,
•� , � �� -/9��'
- .
Bank, and Ms. Molly Culligan, Chairman of th Board of Minnesota Museum of Art, is
currently organizing a feasibility study to dete ine an organizational structure, a
marketing and programming approach, and a economically viable plan for returning
the Depot Concourse, and the Union Depot, t active public use. The preliminary
conclusion of the task force is that the Conco rse should be maintained for large scale
rotational exhibitions or other temporary use by cultural and community organizations
or business.
An architectural feasibility study of a restorati n of the Concourse was commissioned
by the private support group in 1988. Accor ing to the consultant, the architectural
firm of Meyer, Scherer & Rockcastle, Ltd., re ovation of the Depot Concourse could be
accomplished for approximately $2 million. stimated operating costs range from
$20,000 per month for an international scale ultural exhibition, to $6,000 per month
during interim periods of vacancy.
In August, 1989, City staff reached agreeme t with the U.S. Postal Service on a
proposal that links the construction of a sk ay connection to the downtown Post
Office with an option for the City to acquire e Depot Concourse. The economic affect
of the agreement is that the City and the Po t Office would share the cost of the
skyway bridge, estimated at $285,000 each and the City could consummate a
purchase of the Concourse for $136,200. ecessary access and utility easements
from the Union Depot would be granted in xchange for granting an option to
purchase the second level portion of the C ncourse occupied by Continental
Cablevision.
Additional governmental support for resto tion of the Union Depot Concourse was
given by the Minnesota State Legislature i the 1988 and 1989 legislative sessions. In
1988, the legislature granted Ramsey Cou ty special capital bonding authority of$2
million to provide funds for the renovation f the Concourse. In 1989, the legislature
authorized a $500,000, five-year, interest f ee loan to the City to support the renovation
and reuse of the Concourse.
To capitalize on the opportunities presen d by this private sector and governmental
support, two additional tasks must be ac omplished. First, site control of the
Concourse must be secured from the U. . Postal Service. This may be achieved by
the City's ratification of the agreement lin ing the Post Office skyway bridge project
with the option to purchase the Concour e. Second, a feasible plan for marketing and
management of the Concourse must be eveloped. The Concourse Task Force is
now proceeding with this effort.
The accomplishment of these tasks lays he foundation for future redevelopment of the
Depot Concourse, restructuring of the U ion Depot Place Project, and extension of the
downtown skyway system to both Unio Depot and the main Post Office. Ranking
high among these benefits is the recla tion of a unique historic space having deep
personal significance for many long tim residents of the City of Saint Paul and the
upper midwest region.
Steve Thompson
Project Manager
Department of Planning and Economic Development
13/dalt/udcom