Loading...
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 -�. �. 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 ' , � 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 , ` ,-�-_ . _... , � . . �,,---�'*� �,, ✓',-c�G�.� �.�C�-�ri»vt�,..J . (;�� ,...�.�..:.+� ,r°-f��. � r� � ��,�_ �4' 1 d� 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 ' / �� � � 4 � 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 i �-f-��_L��. Eugene A. Kraut Executive Vice President EAK:ca cc. Mayor Latimer ��`_� . ,r--, ��,3 l -.-.-.� - ---;. � g - r 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 =. • - � � �� � � � ��� ��a. 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 � �a 3 . � � �� �� 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 2 t . �� 3 1 . �g 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 3 . . /��3 . �, � 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. 4 1 . � � g�3 . � � �� 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. � � Adopted: October 25, 1988 -- � C -___, Attest � esid The or Authority of the City of Sai Paul ,� -�,��",��.r_..�►,-y-- Secretary 5 ' � � g�3 � 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. . � ��3 � � 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. , D� � BOARD OF COMMISSIONERS � � / 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 . . � �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. I ' ;{�� _� �%�� �����: - : , .,�oun,cil �Zesolution , � � . J ,� :�%r--% -�y.f': ti. � �� (,.=, . , -,l _. Presented By - •, - /:.'' '• ' ' - �- _-. 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� �� ( ~ g�i = _ !- —- -- �f �� .: � , . . ' ,:j i y i _ , _ 1 i 1. .,�..�� A roved b Ma or for Submission to Council Approved by �tavor. Date _-- ����- � � ��'�-`'� PP Y Y , .�.�-' 1., . �," �.�,,, ._,_--- Bv -- - BY l � � /� V � V � � 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. . . / � . � I � 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.