87-330 WHITE - CI7V CIERK
PINK - FINANCE G I TY OF SA I NT PA1',T L Council �
CANARV - DEPAi7TMENT
BLUE - MAVOR File NO• �-�
City Attny/JTH • •
Counci, Resolution ���""���
.� ��a
Presente y ��.-' r
Referred To Committee: Date � ' 3 ��7
Out of Committee By Date
SOLUTION AUTHORIZING RELEA�E OF CITY' S
DAG MORTGAGE ON THE SAINT PI�UL HOTEL AND
HE AUTHORIZATION OF A REPAYMENT AGREEMENT
ITH THE PORT AUTHORITY OF THE CITY OF
SAINT PAUL
WHEREAS , the Port Authority has requ�sted the City to release
the lien of i s UDAG Mortgage in order to facilitate the refinancing
and lease of he Saint P�.ul Hotel to St . Paul Biltmore Hotel , Inc . ,
and the Port uthority hgs agreed to make �certain payments to the
City; and i
WHEREAS , there has 'been presented an� considered at this
meeting an Ag eement bet'ween the Port Aut ority and the City
setting forth the termslon which the rele se shall be given by
the City and he paymen�Cs made by the Por Authority; Now
therefore, be it
RESOLVE , that the UDAG Loan Agreeme t on the Saint Paul
Hotel shall e cancelled and the lien of he UDAG Mortgage released
upon the agr ement of Pqrt Authority to p y subject to the
availability of funds the sum of $2 ,600 , 000 to the City in install-
ments in acc rdance wit1� the Agreement co sidered at this meeting.
RESOLVE FURTHER that the Agreement is hereby approved and
the proper C ty officers are hereby auth rized to execute the same
on behalf of the City.
RESOLVE FINALLY that the proper Ci�y officers are hereby
authorized t execute a satisfaction evic�encing the cancellation
and release f the lien of the UDAG Mortgage .
COUNCILMEN
Yeas Nays � i Requested b Department of:
Drew � , �
Nicosia �n Favor
Rettma�"
Scheibel
Sonnen �—_ �gainst BY
T.pdeseo-
Wilson �,p
�R � � ��v7 Form Ap�roved b City Attorney
Adopted by Council: Da � �
Certified Vas uuncil S r � BY �
By, �
Appro y Ylavor. Date � 3 �� Approved y May for Submission to Council
BY - — B � U��-2�'V l�-..�_
PUBli3NED :;.-',�� 2 1 1987
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• .P.E.D. P RTM�NT.
(�.�-��3�c� No _ 0'7939
� Bob Simotl ON ACT
228-3210 . HO E ,
2/25/87 AT �� � .
, ��
AS GN NUI�BER FOR RDUTING DER Cli All, l,ocations for' Si n ture :
partm�nt Director 3 irector of ManagementJMayor
� Finance and Management Services D'r ctor � ity, Clerk
� Budget Director
,� City Attorney �-
wHAT WILL BE ACF�IEVED BY T KING ACTI THE ATtACHED MATER ALS? (Purpose/
Rationale) :
Resol uti'on aut6ori;zi,nq t e re�ea.s.� o� tfi� �i;�i;es„ l�pp��, mqr� a�e Qn �t, pau� H.4te1 �
and execution 'of a repay ent agre en _ with Po1^t Aut�:ori`ty.
�OST BENEFIT BUDGETARY PERSONNE MPACTS ANTICIPATED:
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r, .
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FINANCING SOURCE AND BUDG T ACTIVIT N P�ER CHARGED OIC CRED TED: (Mayor's signa-
� ture not re- ,
Total Amount of "Transa tion: quired if under '
$10,000)
Funding Source: -
Activity Number: ,
,
t
ATTACHMENTS List and Nu ber All At a hments : I
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DEPARTMENT REVIEW CI Y ATTORNEY REVIEW �
,.Yes X No Council R olution R q ired? - ' R solution Required? x Yes No r
�Yes No Insurance equired? I surance Sufficient? Y�s No !
Yes No Insurance ttached:
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(SEE •REVE S SIDE FOR INSTRUCTIO S)
Revised 12/84 '
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AGREEMENT
THIS AGRE .. NT, made and entered into as of the � � ' " � � day
of ' � � , 19$7 � between the PORT AUTHOP.ITY OF THE
CITY OF SAINT AUL (the "Authority") and the CITY OF SAINT PAUL
(the "City") ; .
�JITNFSSE : � .
WHEREAS , Saint Paul Hotel Limited Partnership , a Minnesota
Limited Partn rshi� , (the "Partnership") under Lease with the
Authority dat d December 15, 1980 (the "Lease") undertook the
renovation of the Saint Paul �Iotel at an approxinate cost of
$13 . 150,000 a d in connectian therewith borrowed from the City
� the sum of $2 600, 000 under a Loan A�reernent dated rZarch 30, 1981 ,
� ' (the "Loan Ag eement") which loan was funded by the City from
nroceeds of U ited States of America Urban Development Action
Grant (UDAG) . o . B-80-AA-27-0018 and secured by a Combination
Mortgage, Se urity Agreement And Financing Statement (the "Mort�
�ag,e") of ev n date with said Loan Agreement; and
WHEREAS the PartnershiP defaulted under the Lease and Loan
A�reement in December 1985 , and the Authority subsequently termin-
ated the Lea e with the Partnership and reentered possession of the
Saint Faul H tel undertakin� operation of the Hotel pending its
sale or leas to a new purchaser or ten�ant operator; and
�aHEREA. , in order to facilitate tY�e refinancing and lease of
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the Saint P ul Hotel to I
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_2_
the Authority as requested the City to cancel the tTDAG loan and
to release the lien of its mortqage and to look solely to the
Authority for epayment of the City Loan from Authority revenues
which request he City is willing to honor.
NOW" THERE ORE, it is mutually aUreed by the parties as
follows :
1. The C ty agrees to cancellation of the Loan Agreement
and release t e lien of the Mortgage and to provide the Authority
with a satisf ction or other docur�ent evidencing such cancellation
and release a the Authority may reasonably require.
2. The uthority agrees to pay to the City the sum of
Two Mi].lion S x Hundred Thousand (52,600,000) Dollars in annual
. rayments due he � � day of � � � � � � each year as
follows :
1987 $100 ,000
1988 120,000
I989 140,000
199Q 160,000
1991 180 ,000
. � 1992 f200, 00�
1993 i220,000
1994 I 240, 000
1995 i 26�, 000
1996 ' 280, 000
1c�97 700, 400
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-3-
3. The Au hority agrees to include i� its annual budget
the payments vr vided for in Section 2 abo e. In the event the
Authority beli es that its projected inco e will not be sufficient
to cover the S ction 2 vayment requiremeni� or that for other
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reason it does not pronose to include the �Section 2 pa,yment or
a deferred pa ent under Section , it � shall promptly notify
the City Clerk Finance Director and Budget Officer and supply
these City off cers with all in�ormation and budget justifications
as they may r sonably request. The Authority fur�her agrees that
it will not f r�aally adopt an annual budget or levy any tax or
� make any appr priation or expenditure for any year in which it
. does '�not budg t a Section 2 or deferred mayment without the prior
approval of s ch budget, approvriation t�x Ievy and expenditure
by the City C uncil by resolution adonte� by the a.ffirmative
votes of five Council members .
4. In t e event the Authority pays the City in any year
less than th amount set forth in Sectio�ri 2 above, the amount of
the payment hortfall shall become payable in the following year
in addition o the amount scheduled under said Section 2 for pay-
ment in the ollowin� year. No interest shall be due ur.on a
Section ?. na :ent or deferred nayment under thi�s Section.
5. The Authority represents and agrees that the City shall
have equal s anding with the holders of bonds issued under
Authoritv B sic Resolution No . 876 and Special Resolution No .
, . _ , , � � �,�-�'7-.33 0
. � , .
-4-
1270 in the Aut ority's Accumulated Net Revenues Fund as to all pay-
ment deficienci s or deferrals under this Agreement, and that the
City cancellati n of the Loan Agreement and release of the Mort�age
lien and Author ty payments hereunder give in consideration of
such City actio constitute necessary capi al expenditures incidental
to the acquisit on and development of land for revenue producing -
purposes and fu ther constitute an industr�.al development adminis-
trative and gen ral expense payable from it�s Accumulated Net
Revenues Fund. ,
IN WITNESS jJHEREOF, the parties have Caused this Agreement to
be executed by heir duly authorized officers as of the day and
year ��first abov written.
PORT AUTHORITY OF THE CITY OF SAINT PAUL
�y . . .
zts
( SEAL ) 3y. . . . . . . . . . . . .
ts
APPROVED AS TO ORM: CITY OF SAINT PAUL
By . . . . . .
' Assistant City ttorney Its Mayor
sy . . . .
ts Direc or, epartment o
Planning and Economic Development
sy
ts irector, epartment o inance
and Management Services
L"C1Ml°1iTT�;� KEE'URT ` i
FINANCE, MANAGEMENT & PERSO NEL COMMITTEE /,�,,,� �.? _3 3 d
Mabc� 5; 1987 . ��--
Page 2
13. Resolution authoriz ng an agreement with the City of Saint Pau1 Park whereby
the city of Saint P ul's Police Department will perf rm police radio
services. a rov d
14. Resolution authoriz ng agreement between the city an Como Park Conservatory
Horticultural Socie y to install and maintain collec ion boxes at the
Conservatory. roved
15. Resolution approvin Port Authority issuance of $475 000 in revenue bonds
for John M. Prest f r construction of an addition to the Expo Center on
Smith Avenue. a oved
16. Resolution approvin Port Authoritq issuance of $10. million in revenue bonds
for Park Centre Inv stors, Ltd. for the acquisition �nd renovation of two
historic buildings n Lowertown. approved
17. Resolution approvin Port Authority issuance of $910 000 in revenue bonds for
3N Properties for t e construction of a 24,000 squar foot manufacturing
facility in Empire uilder Industrial Park. annr ved
HEARD UNDER SUSPENSION ; '
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