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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 � i • .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: . • � , r, . � � I 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 � . � i . f . '. 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: i , . � 1 (SEE •REVE S SIDE FOR INSTRUCTIO S) Revised 12/84 ' i � i , . , c ��- �—i—��� r . . . , . 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 i . . . . . . . . . . . , . the Saint P ul Hotel to I , , ` r � p , . . . • ' �� 4 7_ :�.36 _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 � � . . , . � �� � ���-.�..3a -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 - 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 ; ' ._ . .._ ._.. .,._ ,.,....,_..,,,...,�,_R..�,,...,..,._..,.._�..<....�,..T ...._..,_ .�„_ti�. ,.��.,,:_.,�...,�....,.,,. ..�.��.,,�.,,- ....,. _ .