88-1823 WHITE - C1TV CLERK COU11C1I ��/}• G
PINK - FINANCE GITY OF SAINT PAUL
CANARV - DEPARTMENT J{ �' �/�� �
BLUE - MAVOR File NO. V �� ��
� Council Resolution .��
Presented By
,���� ,�� :.
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1. On October 25, 1988, the Port Authority of the City of Saint Paul adopted Resolu-
tion No. 3046, giving preliminary approval to the issuance of tax exempt revenue bonds in
the initial principal amount of approximately $1,400,000 to finance the purchase and
renovation of a 64,800 square foot facility for Emergency Fund Service. Miller and
Schroeder Flnancial has agreed to underwrite the tax exempt revenue bond issue for a term
of 30 years.
2. The proJect to be financed will be located on a 4. 1 acre site at 1140 Gervais
Avenue in the City of Maplewood, Minnesota, and the bonds are to be issued by the Port
Authority on behalf of the City of Maplewood pursuant to a Joint Powers Agreement.
3. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds
authorized by the Port Authority of the City of Saint Paul, shall be issued only wtth the
consent of the City Council of the City of Saint Paul, by resolution adopted in accordance
with law;
4. The Port Authority of the City of Saint Paul has requested that the City Council
give its requisite consent pursuant to said law to facilitate the issuance of said revenue
bonds by the Port Authority of the City of Saint Paul, subJect to final approval of the
detaiis of said issue by the Port Authority of the City of Saint Paul .
RESOLVED, by the City Council of the City of Saint Paul, that in accordance with Laws
of Mlnnesota 1976, Chapter 234, the City Council hereby consents to the lssuance of the
aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolu-
tion No. 3046 the exact details of which, including, but not limited to, provisions relat-
ing to maturities, interest rates, discount, redemption, and for the issuance of addi-
tional bonds are to be determined by the Port Authority, pursuant to resolution adopted by
the Port Authority, and the City Council hereby authorizes the fssuance of any additionai
bonds ( including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays �
Dimond
Lo�a � [n Favor
Goswitz
Aelt�¢
s�ne;ne� �__ Against BY
Sonne��
�Ison
NQV �
�i + Form Approved by City Attorney
Adopted by Council: Date
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Certified Yass d il Secr y BY �`�'
B�
t� rove Ulavor. Date � �� �tti.Q� Appr ve by Mayor for Submi ion
PP �. �—
By
p�� ,,��'d 2 6 1g88
St., Paul Port Authorit.v DEPAR�MENT � �g� ��a'� N° _ 06 � '79
�
E.A. K�aut, J.A. Campobass,oi, CONtACT
224-5686 PHONE
_
Oct. 25, 1988 DATE � � __ Q Q
�
ASSIGN NUMBER FDR ROU'�iNG ORDER (Clip All Locations for Si�nature)c
1 Departrt�ent Dtirector � Director of Management/Mayor
Finance and Management Services Director � 4 City Clerk
BUdg@t D71"@Ct01" _�; FMERGFNCY FIINfI SFRVTf'EY, jJ��
2 City Attorney T 40 0 A D
I UE
I�HAT_ WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
Rationale) :
The purpose of the tax exempt revenue bond issue is to finance �he purchase and renovation
a 64,800 sq.ft. facility for finergency Fund Service; Inc.
The project to be fina�ced will be located on a 4.1 acre site at 1140 Gervais Avenue in the .
City of Maplewood, Minnesota, and the bonds are to be issued by the Port Authority on behalf
of the City of Maplewood pursuant to a Joint Powers Agreement.
COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED:
The amount of the tax exempt revenue bond issue is $1 ,400,000 and will be for a term of 30 y ars.
Emergency Fund Service, Inc. has 44 full time equivalent �mployees and has agre�d to work wi h
the City's Job Creation and Training Office in filling staff openings through the City's Fir t, �
-Source Agreement. �
FTNANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa-
ture not re-
Total Amount of 'Transaction: N�A quired if under
� a10,000)
Fundiqg Source:
Activity Number: . �
ATTACHMENTS (List and Number All Attachments) :
1 . Staff Memorandum � �O�E�C�I Res��t'Ch Cet1t@r
2. Draft City Council Resolution
3. Port Authori ty Resol uti on No. 3046 IdOV 0'7 '19$8
cc. J. Shoholm
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DEPARTMENT REVIEW CITY ATTORNEY REYIEW
X Yes No Council Resolution Required? ' Resolution Required?- X Yes � No '
Yes X No Insurance Required? Insurance Sufficient? X Yes Mo
Yes �No Insurance Attached: "
(SEE �REVERSE SIDE FOR INSTRUCTIONS) .
Revised 12/84
. ' �� ��.i/��V
Members:
Bill Wilson, chair
�������"n CITY OF SAINT PAUL Tom Dimond
���� �� OFFICE OF THE CITY COIINCIL KII(I SOM211
r�
Date: November 9, 1988
WILLIAM L. WILSON MARK VOERDING
Coun�llman C o m m i tt e e R e p o rt Legialative Aide
To: Saint Paui City Councii
From : Housing and Economic Development Committee
Bili Wilson, Chair
l. Approval of Minutes - APPROVED
2. Presentation - "Year of the Cities"
NO CONIl�IITTEE ACTION REQUIRED
3. Economic Development Strategy Update
NG CONIl�IITTEE ACTION REQUIRED
4. Appeal of Michael D. Williams on the denial of a request for House Number and/or
waiver for Lot 45, Block 12, Burlington Heights, Division 1
CONIl�7ITTEE RECONIl�IIIVDED DENIAL OF TEIE APPEAL AND WAIVER REQUEST (3-0) _
5. Enterprise Zone Application for St. Paul Stamp Works, Inc.
COMMITTEE RECONIMENDED APPROVAL (3-0) �
6. Revenue Bonds for St. Paul Stamp Works, Inc.
COMMITTEE RECONIlKIIVDED APPROVAL (3-0)
. Resoiution - Fmergency Fund Service, Inc. , $1,400,000 Revenue Bond Issue
CCMN}ITTEE RECONIMENDED DISAPPROVAL (2-1)
RECEIVED'
N�� �p 1'�88
G��� CLERI�,
CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-4646
8�46
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FAX (612) 223-5198
PORT AUTHORIN OF THE CIN OF SAINT PAUL TOLL FREE (800) 328-8417
1900 AMHOIST TOWER • 345 ST. PETER STREET • ST. PAUL, MN. 55102 • PHONE (612) 224-5686
October 25, 1988
Mr. Ken Johnson, Director
Planning and Economic Development Department
City of St. Paul
13th Floor - City Hall Annex
St. Paul, Minnesota 55102
SUBJECT: EMERGENCY FUND SERVICE, INC.
$1,400,000 TAX EXEMPT REVENUE BOND ISSUE
Dear Ken:
We submit herewith for your review and referral to the office of the
Mayor, City Council and City Attorney's office details pertaining to the
issuance of �1,400,000 in tax exempt revenue bonds to finance the pur-
chase and renovation of a 64,800 square foot tacility for Emergency Fund
Service, Inc.
The proJect to be financed will be located on a 4. 1 acre site at 1140
Gervais Avenue in the City of Maplewood, Minnesota, and the bonds are to
be issued by the Port Authority on behalf of the City of Maplewood pur-
suant to a Joint Powers Ag�eement.
The Port Authority staff has conducted a thorough evaluation of the
firms and/or individuals that are involved in this proJect or in which
the principals have an interest. This investigation has included
detailed credit analysis, direct communicatlon with representatives of
financial institutions with whom the participants have done business and
data base checks to determine if any principal (s) have been in any way
involved in legal proceedings as a result of securittes fraud, extor-
tion, embezzlement or financial misrepresentatton.
EUGENE A.KRAUT,C.I.D. PERRY K.fEDERS,C.PA. CHARLES M.TOWLE LAWRENCE H.LANGER,P.E. PATRICK E.DEAN,C.PA.
EXECUTIVE VICE PRESIOENT,C.E.O. ASST.EXEC.VICE PRESIDENT,C.f.O. DIRECTOR INDUSTRIAL DEVELOPMENT CHIEF ENGINEER FINANCE DIRECTOR
JAMES F.FAUE,C.I.D. RICHARD A.GIERDAL WILLIAM E,McGNERN
DIRECTOR REAL ESTATE OPERATIONS PROPERN MANAGER DIRECTOR PUBLIC RELATIONS
COMMISSIONERS: GEORGE W.WINTER WILLIAM R.PETERSON ARTHUR N.GOODMAN JEAN M.WEST VICTOR P.REIM JAMES SCHEIBEL ROBERTC.LONG
PRESIDENT VICE PRESIDENT SECRETARV ASST.SECREfARV TREASURER PSST.TREASURER COMMISSIONER
C.I.D.CERTIFIED INDUSTRIAL DEVELOPER
' / ��
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Mr. Ken Johnson
October 25, 1988
Page -2-
In addition to the staff inemorandum, we are attaching a draft copy of
the proposed City Councit resolution and a copy of Port Authority
Resolution No. 3046 which authorized the sale of tax exempt revenue
bonds in the amount of $1,400,000.
Your expeditious handling of this matter will be appreciated.
Yours truly,
(\Y�I
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Eugene A. Kraut
Executive Vice President
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cc. Mayor Latimer
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FAX (612) 223-5198
PORT AUTHORIN OF THE CIN OF SAINT PAUL TOLL FREE (800) 328-8417
1900 AMHOIST TOWER • 345 ST. PETER STREET • ST. PAUL, MN. 55102 • PHONE (612) 224-5686
October 28, 1988
Mr. Ken Johnson, Director
Planning & Economic Development
25 West 4th Street
13th Floor
St. Paul, Minnesota 55102
SUBJECT: EMERGENCY FUND SERVICE, INC.
Dear Ken:
The Emergency Fund Service project was approved at our October 25 Board
meeting and is located in the East Metro area and specffically in
Maplewood. The Port Authority worked closely with the company in an at-
tempt to find them a facility in St. Paul, however, was unable to do so.
The company found a building in Maplewood that fit their needs aimost
perfectiy and proceeded to ask the City of Maplewood for assistance in
the financing. Maplewood in turn created an Economic Development
Authority and requested the Port Authority assist them in the financing
of this project. A Joint Powers Agreement was entered into between the
Port Authority and the City of Maplewood specificaliy for this project.
The company has entered into a First Source Agreement with the City's
Job Creation and Training Office.
The project is service oriented in nature and is the type of project
that was outlined as eligible under the East Metro Development
Guidelines, a copy of which is attached. The Port Authority is charging
its fiscal and administrative fees of .06� of the tax exempt bond. This
project is in compliance with the interim guidelines and conditions of
East Metro development that w�re approved by both the Port Authority and
the City Council earlier this year.
If you have any questions, piease don't hesitate to contact me.
Sincerely,
,���` • 1_ . „`t,'� L•�i,--.
;�.
.� .
/John A. Campobasso
Director
Industrial Development
JAC:ca
Attach.
EuGEUE A.KRAUr.C.i.D �E�RV K FEDERS.C.?A. CHARLES M.TOWIE IAWRENCE H.LANGER,P.E. PAiRICK E CE��� :,'.-
c�EC'�'P.'E V10E P4ESIDEP7T.C E.�, �SSi 6tiEC`.:CE P4ESiQENi.C.F.O. Di�ECTOR INDGSTRL4L pEVELC��ENT CHIEF ENGINEER =!�:.�vC�_�cC'=
�AhIES F FAUE.C.I.O. RICHARD A.GIERCAI WRIIAM E.McGNERN
�;REC':�RFAL Ei:A1E CrE7A'IONS ��C`DERN P.!ANAG�4 D�RECTOR PUBUC REL4TIONS
CO���rriSSior�E:^<S 3EO�GE,^i.:�J�h'ER NILLIAh1 R ?E?ERSON ART!-IU7 N GOODh1AN .E�'v^.�.�vESr �nCTOR P REIM .1�1�.�ES SChE�?EL �C°c"� .�`•=
?�Ei�CE�t viCE=GESiDENT ScC7E�fri aaS'_E�7E'aRV '7EASl;RER �.SST'2FASt.�ER =. • -
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570P
Resolution No. � (U�/�
RESOLUTION OF
THE nORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, one of the purposes of Minnesota Statutes ,
Chapter 469 (hereinafter called "Act" ) , as found and
determined by the legislature is to promote the welfare of the
state by the active, promotion, attraction, encouragement and
development of economically sound industry and commerce to
prevent so far as possible the emergence of blighted and
marginal lands and areas of chronic unemployment and to aid in
the development of existing areas of blight, marginal land and
persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce
are the increasing concentration of population in the
metropolitan areas and the rapidly rising increase in the
amount and cost of governmental services required to meet the
needs of the increased population and the need for development
of land use which will provide an adequate tax base to finance
these increased costs and access to employment opportunities
for such population; and
WHEREAS, the Port Authority of the City of Saint
Paul (the "Authority" ) has received from the Emergency Fund
Service, Inc . , a Minnesota nonprofit corporation (hereinafter
referred to as "Company" ) a request that the Authority issue
its revenue bonds (which may be in the form of a single note)
to finance the acquisition, installation and construction of
an office and warehouse facility for use in the collection and
distribution of food (hereinafter collectively called the
"Project" ) at 1140 Gervais Avenue in the City of Maplewood,
Minnesota, all as is more fully described in the staff report
on file; and
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WHEREAS, the Project will be used primarily to
assist individuals. in the Saint Paul/Minneapolis area, and the
Authority has determined that significant benefits will inure
to the residents of the City of Saint Paul from the financing
and construction of the Project; and
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
financing to pay the capital cost of the Project is available
only on a limited basis and at such high costs of borrowing
that the economic feasibility of operating the Project would
be significantly reduced;
WHEREAS, Miller & Schroeder Financial, Inc . (the
"Underwriter" ) has made a proposal in an agreement (the
"Underwriting Agreement" ) relating to the purchase of the
revenue bonds to be issued to finance the Project;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 469 . 154, Subdivision 4 did publish a notice,
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal
of the Company that the Authority finance the Project
hereinbefore described by the issuance of its industrial
revenue bonds; and
WHEREAS, the Authority did conduct a public hearing
pursuant to said notice, at which hearing the recommendations
contained in the Authority' s staff inemorandum to the
Commissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
with respect to the proposal .
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows :
1 . On the basis of information available to the
Authority it appears, and the Authority hereby finds, that
said Project constitutes properties, used or useful in
connection with one or more revenue producing enterprises
engaged in any business within the meaning of Subdivision 2 of
Section 469 . 153 of the Act; that the Project furthers the
purposes stated in Section 469 . 153 of the Act and, and that
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the effect of the Project, if undertaken, will be to encourage
the development of . economically sound industry and commerce
and assist in the prevention of the emergence of blighted and
marginal land, and will help to prevent chronic unemployment,
and will help the City to retain and improve its tax base and
provide the range of services and employment opportunities
required by its population, and will help to prevent the
movement of talented and educated persons out of the state and
to areas within the state where their services may not be as
effectively used and will result in more intensive development
and use of land within the City; and that it is in the best
interests of t.he port district and the people of the City of _
Saint Paul and in furtherance of the general plan of
development to assist the Company in financing the Project.
2 . Subject to the mutual agreement of the
Authority, the Company and the purchaser of the revenue bonds
as to the details of the lease or other revenue agreement as
defined in the Act, and other doct�ments necessary to evidence
and effect the financing of the Project and the issuance of
the revenue bonds, the Project is hereby approved and
authorized and the issuance of revenue bonds of the Authority
(which may be in the form of a single note) in an amount not
to exceed approximately $1,400,000 (other than such. additional
revenue bonds as are needed to complete the Project) is
authorized to finance the costs of the Project and the
recommendations of the Authority' s staff, as set forth in the
staff inemorandum to the Commissioners which was presented to
the Commissioners, are incorporated herein by reference and
approved.
3 . In accordance with Minnesota Statutes , Section
469 . 154 , subd. 3 , the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner
of Trade and Economic Development� requesting his approval,
and other officers, employees and agents of the AUTHORITY are
her�by authorized to provide the Commissioner with such
preliminary information as he may require.
4 . There has heretofore been filed with the
Authority (a) a form of Preliminary Agreement between the
Authority and Company, relating to the proposed construction
and financing of the Project, (b) a form of a Joint Powers
Agreement between the Authority and the City of Maplewood and
(c) a form of the Underwriting Agreement (collectively, the
"Agreements" ) . The forms of the Agreements have been examined
by the Commissioners . It is the purpose of the Agreements to
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evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Company
may proceed without delay with the commencement of the
acquisition, installation and construction of the Project with
the assurance that there has been sufficient "official action"
within the meaning of the Internal Revenue Code of 1986 , as
amended, to allow for the issuance of industrial revenue bonds
( including, if deemed appropriate, any interim note or notes
to provide temporary financing thereof) to finance the entire
cost of the Project upon agreement being reached as to the
ultimate details of the Project and its financing. Said
Agreements are hereby approved, and the President and
Secretary of the Authority are hereby authorized and directed
to execute said Agreements .
5 . Upon execution of the Preliminary Agreement by
the Company, the staff of the Authority is authorized and
directed to continue negotiations with the Company so as to
resolve the remaining issues necessary to the preparation of
the lease and other documents necessary to the adoption by the
Authority of its final bond resolution and the issuance and
delivery of the revenue bonds; provided that the President (or
Vice-President if the President is absent) and the Secretary
(or Assistant Secretary if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative)
are absent, the Treasurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with the
provisions of Minnesota Statutes, Section 475 . 06 , Subdivision
1, to accept a final offer of the Underwriter made by the
Underwriter to purchase said bonds and to execute an
Underwriting Agreement setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwriter to
said offer but shall be subject to approval and ratification
by the Authority in a formal supplemental bond resolution to
be adopted prior to the delivery of said revenue bonds .
6 . The revenue bonds ( including any interim note
or notes ) and interest thereon shall not constitute an
indebtedness of the Authority or the City of Saint Paul within
the meaning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary liability of
the Authority or the City or a charge against their qeneral
credit or taxinq powers and neither the full faith and credit
nor the taxinq powers of the Authority or the City is pledged
for the payment of the bonds (and interim note or notes) or
interest thereon.
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7 . In order to facilitate completion of the
revenue bond financing herein contemplated, the City Council
is hereby requested to consent, pursuant to Laws of Minnesota,
1976 , Chapter 234 , to the issuance of the revenue bonds
( including any interim note or notes) herein contemplated and
any additional bonds which the Authority may prior to issuance
or from time to time thereafter deem necessary to complete the
Project or to refund such revenue bonds; and for such purpose
the Executive Vice President of the Authority is hereby
authorized and directed to forward to the City Council copies
of this resolution and said Preliminary Agreement and any
additional available information the City Council may request.
8 . The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in describing the general nature of the Project and
estimating the principal amount of bonds to be issued to
finance the Project and in preparing a draft of the proposed
application to the Commissioner of Trade and Economic
Development, State of Minnesota, for approval of the Project,
which has been available for inspection by the public at the
office of the Authority from and after the publication of
notice of the hearing, are in all respects ratified and
confirmed.
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Adopted: October 25, 1988 --
� C -___,
Attest �
esid
The or Authority of the City
of Sai Paul
,� -�,��",��.r_..�►,-y--
Secretary
5
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� PORT � ,
AUTHORITY �
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE Oct. 21, 1988
(Oct. 25, 1988, Regular Meeting)
FROM: J.A. Campobasso
;
SUBJECT: EMERGENCY FUND SERVICE, INC.
PUBLIC HEARING - JOINT POWERS AGREEMENT
PRELIMINARY AND UNDERWRITING AGREEMENTS
$1,400,000 TAX EXEMPT REVENUE BOND ISSUE
MAPLEWOOD
RESOLUTION N0. 3046
PUBLIC HEARING - CREATION OF INDUSTRfAL DEVELOPMENT DISTRICT
RESOLUTION N0. 3047
PUBLIC HEARING - SALE OF LAND
RESOlUTION N0. 3048 -
1. THE COMPANY
Emergency Fund Service, Inc. (EFS) is a 501 (c)3 non-profit corporation
which was founded in 1974 to provide emergency food to the hungry. EFS
programs serve St. Paul , Ramsey County, the metropolitan area and the
states of Minnesota, North Dakota and Western Wisconsin. They operate ten
programs in two categortes: those which serve people in need and those
which serve other agencles.
The programs targeted to individuals include the Food Shelf program which
provides peopie with a few days supply of food when they cannot afford to
buy it. Other programs include St. Paul Senlors, Brown Bag, Holiday
Bureau, distribution of the federal Surplus Commodities program and rental
assistance.
Services to agencies include the Minnesota Food Bank Network which was es-
tablished to centralize solicitation of food and serves seven food banks
and rural distribution sites. Other agencies served inciude the Damage
Reclamation Salvage, St. Paul Food Bank and 12 Baskets.
EFS ls presently renting 72,000 square feet at 150 Eva Street in Riverview
Industrial Park. Their lease terminates at the end of January, 1989. The
organization has 44 full time equtvalent employees and has agreed to work
with the City's Job Creation and Training Office in filling staff openings
through the City's First Source Agreement.
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BOARD OF COMMISSIONERS 'b
October 21, 1988
Page -2-
2. ?HE PROJECT
EFS is proposing to purchase a 64,800 square foot facility on 4. 1 acres of
land at 1140 Gervais Avenue in Maplewood. The building consists of 10,492
square feet of office and 54,388 square feet of warehouse. An appraisal
is being conducted by Muske Company; and upon initial review, they felt
the purchase price of $1,050,000 was below market. A complete appraisal
will be submitted for review prior to the sale of bonds.
EFS will also proceed with improvements to the facility of $170,000. The
improvements include $75,000 tor two refrigeration units. The building
has received a clean bill of health in an environmental review conducted
by Bay West Inc.
A total financing package of $1 .4 million can be supported by the or-
ganization based on their current revenue stream. In addition, EFS has
determined that they could save anywhere from $100,000 to $20Q,000 per
year in operating cost5 with the relocation.
3. JOINT POWERS AGREEMENT
The company has approached the City of Maplewood requesting assistance in
securing financing to acquire the facility. The City of Maplewood in turn
established an Economic Development Authority on October 10, 1988, and has
requested the assistance of the Port Authority of the City of Salnt Paul
in this proJect. The City of Maplewood also took action on October 10 to
approve entering into a Joint Powers Agreement with the Port Authority in
an effort to secure the financing for this project.
4. FINANCING
The proposed financing would be done as an 876 industrial development
revenue bond issue for a 30-year term. Proceeds from the bond issue wouid
be as follows:
Acquisition/Renovation $1,218,338
Debt Service Reserve 133,829
Construction Period Interest - 2 Months 19,833
Bond Discount 28�Q00
TOTAL $1,400,000
EFS will pay bond issuance and discount costs beyond those incorporated in
the bond issue totaling $39,760. The Port Authority would receive earn-
ings on the debt service reserve and sinking funds as well as the cus-
tomary fiscal and administrative fees based on .06% of the original bond
issue annuaily.
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BOARD OF COMMISSIONERS �
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October 21, 19888
Page -3 -
In addition to the bond issue, the company has submitted a request for
funds to the United Way Capital improvement Fund. Preliminary indications
are that EFS will receive between $400,000 and $600,000 from this source.
An announcement of the exact amount is expected on October 25. It is an-
ticipated that funds from the United Way would be distributed anytime from
mid-1989 through i992. Based on this situation, the bond issue will allow
for an early call provision so United Way funds committed to EFS can be
used to pay off a portion of the bond issue.
5. TERMS OF THE LEASE
The term of the lease would be for 30 years with options to purchase in
years 10, 20 and 30 for the remaining outstanding principal balance of the
bonds plus 10� of the original bond issue.
6. UNDERWRITING
Miller b Schroeder Financial , Inc. has agreed to underwrite the 30-year
bond issue at a rate of interest to be set at the time the bonds are sold.
Bond sale is scheduled for the November Board meeting.
7. RECOMMENDATIONS
Staff has interviewed the offlcers of the company, reviewed their finan-
cial statements and recommends approval of Resolution Nos. 3046 , 3047
and 3048 which approve the Preliminary, Underwriting and Joint Powers
Agreements, creation of industrial development district and sale of land
respectively.
JAC:ca
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�HITE - CITY CLE�+K �
PiNK - F1N�N�E t TY OF SA I NT PA U i Council - �t _ �/�
�iNGRV - OE�ARTMENT �
��UE - M�rOR File N0.
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;{�� _� �%�� �����: - : , .,�oun,cil �Zesolution , � �
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Presented By - •, - /:.'' '• ' '
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Referred"To �-i—��' Committee: Date
Out of Committee By Date
�tHEREAS, the Port Author3ty of the City of Saint Paul on
April 29, 1988, by Resolution yo. 2956 adopted the East Metro
Devel.opcaent Guidelines for the activities of the Port Authority
outside of the City of Saint Paul; arid
i�HEREAS. said gezide3ines ars attached hereto as Exhibtt
A; and
WHEREAS, the Cauncil has revf er�ed said gu.icielines and desf res
to adopt said guidelines as the guidei3nes for the �approval by
the Counci2 of the City of . Saint Pa� for activities in the East
i�letro riEVelopment Area; na,r. therefore, he it
RESOE.VED, that the Counci2 hereby adopts the East �tetro
Development Ge�idelines attached hereto as �xhibit A.
COUNCIL MEMBERS Requested b e ,�t �F.oE:
Yeas Nays
Dimond �/ ,�. %
Long ' [n Favor !
CiASM1�Z � �/ '� �
Rettman ' � ��'J—
Scheibel �= _ Against By
Son�en
�Vi(son
��) -' ? ��QiS Form Approved by City Attorney
Adopted by Council: Date
Cer!ified Yassed by Counc.il Secretary /r� �� ( ~
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1. .,�..�� A roved b Ma or for Submission to Council
Approved by �tavor. Date _-- ����- � � ��'�-`'� PP Y Y , .�.�-'
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EXHIBIT "A"
INTERIM GUIDELINES AND CONDITIONS OF EAST METRO DEVELOPMENT
RESOLUTION N0. 2956
PURPOSE
The obJective of these Interim Guidelines and the program is to create more
jobs for St. Paul citizens by assisting development in East Metro, which in
turn will create more jobs for St. Paut business interests. Given this East
Metro thrust is to at the same time preserve the Port Authority of the City of
St. Paui in its current form rather than seek legislative expansion. This
would in effect be imposing our activities on various communities whom we are
asking to help create employment for St. Paul citizens, rather than ac-
complishing it on a Joint powers basis where no one's authority is usurped,
and the community decisions are first made by their elected officials.
I . No change in method of Commission appointments.
2. ProJect processing should be based on specific community initiative, i.e.,
creation of Economic Development Authority or Port Authority where none is
currently in place.
Action by East Metro Community City Council should precede action by Port
Authority.
3. No legislative changes should be made related to this effort, giving
St. Paul elected officials final approval of all projects and project
financing.
4. AIl Joint Powers Agreements should be specific project related unless
project is an industrial park where financing obJectives and development
are subject to tax increment time constraints.
5. AIl proJects should be subJect to St. Paul 's Economic Development Strategy
Plan (when revised) excluding any land coverage or facility type
restraint.
6. A11 proJects shall be subject to First Source Agreements if public in-
volvement exceeds $I million as set forth in the Citizens Commission on
Bonding and Financing Practices Report. Where no program exists for
training or placement in a specific community, a separate agreement will
be required between the company and the City of St. Paul ( i.e., Roseville
example).
7. Individual or stand-alone projects shall be industrial or service in na-
ture and evaluated on the basis of Jobs, relationships to other entities
in St. Paul and East Metro, and the potential Job growth.
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8. The Port Authority during the interim period, will not participate in
tinancing retail facilities, hotel rooms, or housing projects.
9. The Authority will endeavor to satisfy the company's needs in St. Paul
before electing to approach a community on a location in East Metro.
10. The Authority may contract with a joint power community to create an in-
dustrial park provided tax increment financing is approved. It may par-
ticipate as a contracted development manager with no financial commitments
or may lend its credit if all profits from land and tinancing inure to the
Authority after tax increment is attained.
II . AIl profects financed shail be subject to the Authority's fiscal and ad-
ministrattve fees, i.e., .06� on tax exempt bonds and 1� on taxable bonds,
plus any revenues derived from investment or rent proceeds.
12. Standards of the Authority relative to equity required and financial
feasibility shall be met.
13. Fiscal and administrative fees not subJect to existing credit restrictions
will be allocated on a formula by which costs are tirst deducted for
operational expenses and then spiit 50/50 for general obligation bond debt
retirement.
14. The set aside policy adopted by Port Authority Resotution No. 1818 on
May 26, 1981, would be applicable.