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88-2030 WHITE - CITV CIERK PINK - FINAN�E COUIICil BAUERY =MAVORTMENT GITY OF SAINT PAUL File NO. ��D T� Council Resolution -�� Presented By Referred To Committee: Date Out of Committee By Date WHEREAS , the Council of the City of Saint Paul has been advised by the Port Authority of the City of Saint Paul ( "Port Authority" ) that the Port Authority has approved the issuance of $1 , 300,000.00 in revenue bonds to reimburse the Port Authority for the costs of acquiring the St. John' s Hospital site ; and WHEREAS, Nor-West Bank has agreed to purchase said revenue bonds ; and WHEREAS , the bonds will be paid off as soon as the Port Authority sells the site to the State of Minnesota for the Metropolitan State University; and WHEREAS, in the interim, revenues from the Port Authority' s Accumulated Revenue Fund will pay the debt service on the bonds; and WHEREAS , Laws of Minnesota 1976 , Chapter 234, as amended, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul shall be issued only with the consent of the City Council of the City of Saint Paul by Resolution adopted in accordance with law; and WHEREAS , the Port Authority has requested the City Council �CO give its requisite consent pursuant to said law and to facili- tate the issuance of said revenue bonds by the Port Authority subject to final approval of the details of said issue by the Port Authority; now, therefore, be it RESOLVED, by the Council of the City of Saint Paul , that in accordance with Laws of Minnesota 1976 , Chapter 234, as amended, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described herein, the exact details COUNCIL MEMBERS Requested by Depart e t of: Yeas Nays Dimond Lon� [n Favor Goswitz Rettman B Scheibel A_gai n s t Y - Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date -'"� � Certified Passed by Council Secretary s�-=�---��-- � �;,;._.---.�__._.___.,� �`� . gy : Approved by 1�lavor: Date App by Mayor for Su n uncil By — WN E - CITY CLERK 1 PII�Y( - FINANCE COUI1C11 ^+ G'AiJAR DEPARTMENT GITY OF SAINT PAUL � �O�/ � BLUE t MAVOR File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date . of which, including but not limited to, provisions relating to maturities, interest rates , discount, redemption, and for the issuance of additional bonds as are to be determined by the Port Authority, pursuant to Resolution adopted by the Port Authority; and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority found by the Port Ruthority to be necessary to carry out the purposes for which the aforesaid bonds are issued. COUNCIL MEMBERS Requested by Depart ent of: Yeas Nays Dimond Long In Favor Goswitz � � A ainst BY Scheibel — g Sonnen �Ison DEC 2 �.�9� Form Approved by City Attorney Adopted by Council: Date Certified Passe nci r By t By tapprov d Ylav • _ ��, L 7 �UO Appr e by Mayor for Submiss ncil By � _ p��,�� D E C 311988 St. Pau I Port Author i t DEPARTMENT L�" °?�� NU 2242 P. K. Feders . A. raut CONTACT (612)224-5686 PHONE � December 5, 1988 DATE �e� �. � ASSIGN NUMBER FOR ROUTING ORDER (Clip Al1 Locations for Signature) : 44 �� Department Director � Director of Management/Mayor Finance and Management Services Director 5 City Clerk Budget Director 4 Council Research 2 City Attorney RE: $1,300,000 Loan -Fo Reimburse the Port Authority for Costs of Acqui :ring the St. WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Jolin's Hospi-kal Si-te Rationale) : The purpose of the financing is to reimburse the Port Authority for the cosi- of acquiring the St. John's Hospital Site for use by Metro State Unviersity. The site is anticipated to be sold to the State University in early 1989. The Note equals the Port Authority's cost and the sales price of the property to the State. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: The Port Aui-hority will issue a $1 ,300,000 No-te 1-o be purchased by Norwest Bank. The Taxable Note will be for a term of six months and bear interesl- at the Bank's reference rai-e. By reimbursing itself, the Port Authority wili be able to replenish its Accumulated Net Revenues Fund. Sale of the site to the State was expected to have occurred prior to year end 1988 and 1-he repayment was included in the Port Authority's prepared budget for the fiscal year beginning January l , 1989. The Note will be issued in order that the Authority's Accumulated Net Revenues Fund wili be properly reflected as of year end 1988. FINANCING SOURCE AND BUDGET ACTIVITY NUNBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction: N/A quired if under $10,000) Funding Source: Activity Number: ATTACHMENTS (List and Number All Attachments) : I . Staff Memorandum 2. Draft Ci-ty Counci I Resolution _ � . . �. ,''.; Cr:t�Ct' 3. Port Authority Resolution No. 3070 � �,"J � iJ �vVV cc: J. Shoholm DEPARTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resolution Required? Resolution Required? X Yes No Yes �No Insurance Required? Insurance Sufficient? �Yes No Yes X No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 . Members: ��'�oT43d Bifl Wilson, chair � ` GITY OF SAINT PAUL Tom Dimond ,�esi°i811n ' OFFICE OF TAE CITY COIINCIL Kiki Sonnen Date: December 14, 1988 RfCEiVED WILLIAM L. WILSON/ �j`�mm�t+ee Rep�rt MARK VOERDING Councilman � Legislative Aide DEC 15 1988 � To: Saint Paul City Councii � �� cir�r c�tkK � From : Housing and Economic Development Committee Bill Wilson, Chair 1. Approval of Minutes - APPROVED _ 2. Resolution supporting an MTC transit free-zone in the core of the City (C.F. 88-1768) COMMITTEE RECOMMENDED APPROVAL 3. Request by M. E. Evenson for an appearance before Council concerning a Board of Appeals and Review decision on 703 Wells Street COMMITTEE RECOMMENDED FOUR WEEK LAYOVER 4. Economic Development Strategy Update NO COMMITTEE ACTION REQUIRED 5. To Authorize a $3,100,000 loan to finance acquisition, relocation, demolition and related development costs in the University Avenue/Twin City Testing redevelopment area COMMITT 6. Authorize a $1,300,000 laan to reimburse the Port Authority for the acquisition of the St. John's Hoapital site for Metro State University COb!�4ITTEE RECO1rIl�IENDED APPROVAL UNDER SUSPENSION: Resolution amending the 1988 budget by adding $661,705 to the Financing and Spending Plans for PED-Self Sufficiency for Homeless Individuals Grant , (C.F. 88-1900) COMMITTEE RECOMMENDED APPROVAL CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 � 612/298-4646 9a�46 �� //�O '��` � � � �. � , � ��a ' FAX(612) 223-5198 PORT AUTHORITY OF THE CIN OF SAINT PAUL TOLL FREE(800) 328-8417 1900 LANDMARK TOWERS • 345 ST. PETER STREEf • ST. PAUL, MN 55102 • PHONE(612) 224-5686 December 5, 1988 Mr. Ken Johnson, Director Planning and Economic Development Department C i ty of St. Pau 1 13th Floor - City Hall Annex St. Paul , Minnesota 55102 Re: $1,300,000 LOAN TO REIMBURSE THE PORT AUTHORITY FOR OOSTS OF ACQUIRING THE ST. JOHN�S HOSPITAL SITE Dear Ken: We submit herewith for your review and referral to the office of the Mayor, City Council and City Attorney�s oftice details pertaining to the issuance of a $1,300,000 Note to reimburse the Port Authority for the cost of acquiring the St. John�s Hospital site. As you are aware the Port Authority purchased the site during 1988 for use by Metro State University. Ciosing on the sale of the site to the state was an- ticipated to occur prior to year end and our 1989 budget was prepared based on that assumption. It now appears that the sale will occur in 1989. The proposed short term Note is being issued to replenish the Port Authority�s Ac- cumulated Net Revenues Fund in order that the fund balance may agree with those represented in our budget. In addition to the staff inemorandum we are attaching a draft copy of the proposed City Council Resolution and a copy of the Port Authority Resolution No. 3070 which authorizes issuance of the Note. Your expeditious handling of this matter will be apprecia'ted. -. Yours truly, . � ,,. � `�� .�;t.., Euge e A. Kraut Exec ive Vice President EAK:PKF:sJs cc: Mayor Latimer EUGENE A.KRAUT.C.LD.� PERRV K.FEDERS.C PA. JOHN A.CAMPOBASSO.C,I,D' JAMES F FAUE.CJD.' JAMES E TERRELL CJD' � EXECUTIVE VICE PRESIDENi,C.EO ASST EXEC VICE PRESIDENi,C FO D�RECTOR![��USTRIA�GEVEiGPh,^:�r,T GiRECi01<7EAL c'S'A'E OPE2i+iiONS CiRECTOP EC�YJ�'v'�iC _,:r,c.. LAWRENCE H LANGER,P E. RICHARD A,GIERDAL PATRICK E DEAN,CP A R06ERT A r,�l?iEi.CP A, Kr1P��ERON L CARLSON,C.PA N,9�LiAM e NICGIVE2^+ CHIEFENGWEER PROPERiV MANAGER RNANCE DRE:;'C% ?SS'F VAJC.E D��2EC?Oid .>CCCI.'v'ING UiANAGER �,IRcC'� �J6��.:.��;__a ;=�+r COMMISSIONERS: GEORGE W WINTER WILLIAM R PETERSON �iC'�'J4RD��! GUTHMANN JEAN M VJEST vIC`OR P R�IM 1AV1ES SCHEBEL ROBeRT C '_Oiv� PRESiDENt ViCE PRESID6vr _�C��E'ARV ASST SECR"eTA:+v '�7=.>SU^.E��'2 nSS'?REASURE� ��'�!�^,�uS,GhE�+ �C!.D.CER7IF�FD��,inUSTR!AL DF•iF'�^A�R . P O R T ��_a�,�o AUTHORITY OF THE CITY OF 5T. PAUL . Memorandum TO: BOARD OF COMMISSIONERS DATE: NOV. 30, 1988 (MEETIN6 DECEMBER 5, 1988) � ��1,��/ FROM: PERRY K. FEDERS I'� � SUBJECT: $1,300,000 LOAN TO REIN�URSE TNE PORT AUTHORITY FOR COSTS OF ACQUIRING THE ST. JOHN'S HOSPITAL SITE RESOLUTION N0. 3070 At the February 16, 1988 Regular Commission Meeting approval was given for the acquisition of the St. John�s Hospital site for use by Metropolitan State University. The purchase was contingent on the University obtaining Legisla- tive approval to acquire the property from the Port Authority. Approval was received during the 1988 session and the Port Authority subsequently purchased the property from HealthEast in July of this year. Ciosing on the sale to the State was anticipated to occur by year end. It ap- pears that we may now close in 1989 and, therefore, staff is requesting ap- proval to enter into a six month loan agreement with Norwest Banks to reim- burse the Port Authority for the $1 ,300,000 acquisition price which was paid out of the Accumulated Net Revenues Fund. Since this purchase was approved subsequent to the preparation of our 1988 budget and we anticipated repayment prior to year end when preparing our 1989 budget, this loan wouid make our balance in the Accumulated Net Revenues Fund agree with that projected in our budget. Our budget, as well as our interim and year end financial statements, are used by financial institutions as a basis for determining whether addi- tional funds for proJect financing can be provided. Due to the size of this acquisition, staff feels it is appropriate that we borrow the funds to properly present the balance of our Accumulated Net Revenues Fund. The six month Note would bear interest at the Bank's prime rate and would be secured by the Port Authority�s Resolution 1270. Staff recommends approval of the above Resolution. sjs r � _ /� �/�� { Resolution No. � �?�� RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, on February 16, 1988 the Port Authority of the City of Saint Paul (the "Port Authority" ) adopted Resolution No. 2923 authorizing the Port Authority to acquire the 9. 2 acre St. John' s Hospital site (the "Property" ) from HealthEast at a price $1,300,000, for purposes of providing a new campus facility to Metropolitan State University (the "University" ) ; and WHEREAS, the approval of this acquisition was contingent on the University obtaining legislative approval of its acquisition of the Property from the Port Authority; and WHEREAS, the Port Authority consummated the purchase of this Property in July, 1988, after legislative approval of the acquisition was obtained, by paying HealthEast $1,300,000 in cash from its Accumulated Net Revenues Fund; and WHEREAS, staff has been advised that the sale of the Property to the University is likely to be delayed beyond December 31, 1988; and WHEREAS, the Port Authority has received the attached commitment (the "Commitment") from Norwest Bank Minnesota, N.A. ( "Norwest" ) , to purchase a Port Authority note (the "Note" ) in the amount of $1,300,000, secured by Special Resolution No. 1270, and otherwise on the terms and conditions set forth in the Commitment; and WHEREAS, staff recommends that the Port Authority issue the Note on the terms outlined in the Commitment to provide funds to reimburse the Accumulated Net Revenues Fund before December 31, 1988 for money spent on acquisition of the Property, all as more fully described in the staff inemorandum on file. NOW, THEREFORE, BE IT RESOLVED by the Port Authority of the City of Saint Paul that: 1. The use of funds from the Accumulated Net Revenues Fund to acquire the Property is hereby ratified; 2. The Port Authority should issue its Note and enter into a loan agreement with Norwest on the terms and conditions generally set forth in the Commitment; (i1"00 ��`3� 3. Staff of the Port Authority is hereby authorized and directed to continue negotiations with Norwest, counsel to Norwest and counsel to the Port Authority to finalize the documentation to be entered into in connection with the issuance of the Note; and 4 . In order to facilitate completion of the financing contemplated herein, the City Council of the City of St. Paul is hereby requested to consent, pursuant to laws of Minnesota, 1976, Chapter 234, to the issuance of the Note, and any additional bonds or notes which the Port Authority may prior to issuance or from time to time thereafter deem necessary to complete the Project or to refund the Note, and for such purpose the Executive Vice President of the Port Authority is hereby authorized and directed to forward to the City Council copies of this resolution and any additional available information the City Council may request. Adopted: December 5, 1988 PORT AUTHORIT THE CITY OF SAIN� � U ; B ` � "�� y � ts ;%Lc�-�t�--t- EST: �11 , .s �,�.�.�� cretary .� ��a�d ,%-��, . '� �� ,.,,� �- , . - �� - __ �_,:,. ..,,-:-.-- -- �� , •• `�'j'�Onvest Bank hi:nr+esora 'J a 7'�+� �� /<JaiN{es enter NOAWfABANK$ �� - `:; ; �� ,- , � Sixth a�h1arquene i �� --,.� Min�i'� olis. Mrnnesota S;a79•r�'n� ��.?� 6J2,1B -;?.34 r;." � :�� /,;�� Nwember 23, 1988 •%t:; Mr. Peny Feders Chief Financial Officer Port Authority of the City of St. Paul 1900 Amhoist Tawer 345 St. Peter Street St. Paul, IrIIJ 55102 RE: St. Jahns Hospital/Metro State University Dear Peny: In response to your request for fir�aricinq, I wwld like to present the follawing proposal for your consideration: Borrower: St. Paul Port Authority (PA) Securi : 1270 Pledge. Maturi : Up to six months. Can be d�ne on demand basis, or maturity can be set to a date within six m�r►ths of closir�g. Amount: $1,300,000. Draw Schedule: One time. Inan Fee.s: None car�er�satira Balances• None Interest Rate: Prime, Floating. Or oryce fully drawn, PA may corivert to a fix�ed rate equal to our cost of fur�ds plus 1.45� for a t�me period of 30 or 60 days. Inter�est Paym�.nt: Monthly thro�ugh a direc.�t charge to a P�rt Authority DOA acvount at Norwest. s ��d Page 2 Prepavment: If floatinq rate �tion is used, prepayment without penalty is allvwed. If fixed rate option is u.sed, prepaymei�t prior to maturity of lock�ed-in fixed rate will incur a prepayment Penaltl'• Miscellarieo�us: PA will pay b�nk's legal fees. pther TeYms: Any other tertns ar�d canditions, mutually agree�ble to the PA and Noraest. ppsry, we are very interested in doir�g this financing. Please call me if you have ariy c�anents or questions. Sinoerely, / � _r� � . � / w„ ' .__.�.../ i r:;,tJ�--�-/ Iennie M. Ka�(an Vioe President Ll�/j s C��-a�� FAX(612)223-5198 PORT AUTHORITY OF THE CIN OF SAINT PAUL TOLL FREE(800) 328-8417 1900 LANDMARK TOWERS • 345 ST. PEfER STREEf • ST. PAUL, MN 55102 • PHONE(612)224-5686 December 5, 1988 Mr. Ken Johnson, Director RE � FIVED Planning and Economic Development Department c r ty of st. Pau I D E C g �ggg 13th Floor - Gity Hal I Annex DEPT. dF PLAI�I��`�� & st. Pau I , M i nnesota 55102 ECONOMIC DEV�ELOPMENT Re: $1,300,000 LOAN TO REIMBURSE THE PORT AUTHORITf FOR OOSTS OF ACQUIRING THE ST. JOHN�S HOSPITAL SITE Dear Ken: We submit herewith for your review and referral to tMe office of the Mayor, City Council and City Attorney�s office details pertaining to the issuance of a $1,300,OOO �Note to reimburse the Port Authority for the cost of acquiring the St. John�s Hospitai site. As you are aware the Port Authority purchased the site during 1988 for use by Metro State University. Glosing on the sale of the site to the s#ate was an- ticipated to occur prior to year end and our 1989 budget was prepared based on that assumption. It now appears that the sale will occur in 1989. The proposed short term Note is being issued to replenish the Port Authority�s Ac- cumulated Net Revenwes Fund in order that the fund balance may agree with those represented in our budget. In addition to the sf aff inemorandum we are attaching a draf# copy of the proposed City Council Resolution and a copy of the Port Authortty Resolution No. 3070 which authorizes issuance of the Note. Your expeditious handling of this matter will be appreciated. Yours truly, �� ' Euge e� A. Kraut � Exec ive Vice President EAK:PKF:sJs cc: Mayor Latlmer EUGENE A.KRAUT,C.I.D.� PERRY K.FEDERS,C.P.A. JOHN A.CAMPOBASSO,C.I.D.' JAMES F.FAUE,C.LD.� JAMES E,TERRELL,C.I.D.� EXECUTIVE VICE PRESIDENT,C.E.O. ASSL EXEC.VICE PRESIDENT,C.F.O. DIRECTOR INDUSTRIAL DEVELCPMENT DIRECTOR REAL ESiATE OPERATIONS DIRECTOR ECONOMIC DEVELOPMENT LAWRENCE H,LANGER,P.E. RICHARD A.GIERDAL PATRICK E.DEAN,C.P.A. ROBERT A,MITTET,C.P.A, KAMERON L CARLSON,C.P.A. WILLIAM E.McGIVERN CHIEF ENGWEER PROPERN MANAGER FINANCE DIRECTOR ASSL FINANCE DIRECTOR ACCOUNTING MANAGER DIRECTOR PUBLIC RELATIONS COMMISSIONERS: GEORGE W.WWTER WILLIAM R.PETERSON HOWARD M.GUTHMANN JEAN M.WEST VICTOR P.REIM JAMES SCHEIBEL ROBERT C.LONG PRESIDENT VICE PRESIDENT SECRETARV ASST.SECRETARV TREASURER ASST.TREASURER COMMISSIONER �GI.D,CERTIFIED IPJDUSTRIAL DEVFI OPER Si-. Paul Port Authorit DEPAftTMENT N� 2242 P. K. Feders E. A. Krau CONTACT (612)224-5686 PHONE � A� December 5, 1988 DATE e��r Q, Qi ASSIGN NUMBER FOR ROUTING ORDER (Clip All Locations for Signature) : �� Department Director � Director of Management/Mayor Finance and Management Services Director 5 City Clerk Budget Director 4 Council Research 2 City Attorney RE: $1 ,300,000 Loan to Reimburse the Port Authority for Costs of Acquiring the St. WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ John's Hospital Site Rationale) : The purpose of the financing is to reimburse the Port Authority for -the cost of acquiring the St. John's Hospital Site for use by Metro S1-ate Unviersity. The site is anticipated to be sold to the Stai-e University in early 1989. The Note equals the Port Authority's cost and the sales price of the property to the State. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: The Port Authority will issue a $1,300,000 Note 1-o be purchased by Norwest Bank. The Taxable Note will be for a term of six months and bear interest at the Bank's reference rai-e. By reimbursing itself, the Port Authority will be able to replenish its Accumulai-ed Net Revenues Fund. Sale of the site to the S1-ate was expected to have occurred prior to year end 1988 and the repayment was included in the Port Au�hority's prepared budget for the fiscal year beginning January I , 1989. The Note will be issued in order that the Authority's Accumulated Net Revenues Fund will be properly reflected as of year end. 1988. FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction; N/A quired if under $10,000) Funding Source: Activity Number: ATTACHMENTS (List and Number All Attachments) : I . Staff Memorandum 2. Draft City Council Resolution 3. Port Authority Resolution No. 3070 cc: J . Shoholm DEPARTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resolution Required? Resolution Required? X Yes No Yes �No Insurance Required? Insurance Sufficient? �Yes No Yes X No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 MITE — G�TV CLERK INK — FINANCE G I TY O F SA I NT PA U L Council f� �O�d sN4qv — DEPARTMENT i LUE — MAVOR File NO. aO � Council Resolution Presented By � Referred To Committee: Date Out of Committee By Date WHEREAS , the Council of the City of Saint Paul has been advised by the Port Authority of the City of Saint Paul ( "Port Authority" ) that the Port Authority has approved the issuance of $1 , 300 , 000.00 in revenue bonds to reimburse the Port Authority for the costs of acquiring the St. John' s Hospital site ; and WHEREAS , Nor-West Bank has agreed to purchase said revenue bonds ; and WHEREAS , the bonds will be paid off as soon as the Port Authority sells the site to the State of Minnesota for the Metropolitan State University; and WHEREAS , in the interim, revenues from the Por�t Authority' s Accumulated Revenue Fund will pay the debt service on the bonds ; and WHEREAS , Laws of Minnesota 1976 , Chapter 234, as amended, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul shall be issued only with the consent of the City Council of the City of Saint Paul by Resolution adopted in accordance with law; and WHEREAS , the Port Authority has requested the City Council to give its requisite consent pursuant to said law and to facili- tate the issuance of said revenue bonds by the Port Authority subject to final approval of the details of said issue by the Port Authority; now, therefore, be it RESOLVED, by the Council of the City of Saint Paul , that in accordance with Laws of Minnesota 1976 , Chapter 234, as amended, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described herein, the exact details COUNCIL MEMBERS Yeas Nays Requested by Department of: Dimond ��g In Favor Goswitz Rettman B scne;�i A gai ns t Y Sonnen Wilson Focm Approved by City Attorney Adopted by Council: Date ' ` �-- �,_. •---•—� Certified Yassed by Council Secretary B�- •��'� � � By' - Approved by Ylavor: Date Approved by Mayor Eor Submission to Council By BY T— ^.NK� - FINANCE°" G I TY OF SA INT PA UL Council /� >NARV - DEPARTMENT ��-�/�'�O •LUE - MAYOR Flle NO. V �� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date of which, including but not limited to, provisions relating to maturities , interest rates , discount, redemption, and for the issuance of additional bonds as are to be determined by the Port Authority, pursuant to Resolution adopted by the Port Authority; and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority found by the Port Authority to be necessary to carry out the purposes for which the aforesaid bonds are issued. COUNCIL MEMBERS Requested by Department oE: Yeas Nays Dimund ��g [n Favor Goswitz Rettman B Scheibei A ga i n s t y Sonnen Wilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary By sy� Approved by 1+lavor: Date Approved by Mayor for Submission to Council By BY P O R T ��aa�3 a AUTHORITY OF THE CITY OF ST. PAUL Memorandum TO: BOARD OF COMMISSIONERS DATE: NOV. 30, 1988 (MEETING DECEMBER 5, 1988) � ��G�� FROM: PERRY K. FEDERS ` � SUBJECT: $1,300,000 LOAN TO REINBURSE TNE PORT AUTHORIlY FOR OOSTS OF ACQUIRING THE ST. JOHN�S HOSPITAL SITE RESOLUTION N0. 3070 At the February 16, 1988 Regular Commission Meeting approval was given for the acqulsition of the St. John�s Hospital site for use by Metropolitan State University. The purchase was contingent on the University obtaining Legisla- tive approval to acquire the property from the Port Authority. Approval was received during the 1988 session and the Port Authority subsequentiy purchased the property from HealthEast in July of this year. Closing on the sale to the State was anticipated to occur by year end. It ap- pears that we may now close in 1989 and, therefore, staff is requesting ap- proval to enter into a six month loan agreement with Norwest Banks to reim- burse the Port Authority for the $1 ,300,000 acquisition price which was paid out of the Accumulated Net Revenues Fund. Since this purchase was approved subsequent to the preparation of our 1988 budget and we anticipated repayment prior to year end when preparing our 1989 budget, this loan would make our balance in the Accumulated Net Revenues Fund agree with that projected in our budget. Our budget, as weil as our interim and year end financiai statements, are used by financial institutions as a basis for determining whether addi- tional funds for proJect financing can be provided. Due to the size of this acquisition, staff feels it is appropriate that we borrow the funds to properly present the balance of our Accumulated Net Revenues Fund. The six month Note would bear interest at the Bank's prime rate and would be secured by the Port Authority�s Resolution 1270. Staff recommends approval of the above Resolution. sJs ��d�'��3� Resolution No. �s �? i C; RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, on February 16, 1988 the Port Authority of the City of Saint Paul (the "Port Authority" ) adopted Resolution No. 2923 authorizing the Port Authority to acquire the 9. 2 acre St. John' s Hospital site (the "Property" ) from HealthEast at a price $1,300,000, for purposes of providing a new campus facility to Metropolitan State University (the "University" ) ; and WHEREAS, the approval of this acquisition was contingent on the University obtaining legislative approval of its acquisition of the Property from the Port Authority; and WHEREAS, the Port Authority consummated the purchase of this Property in July, 1988, after legislative approval of the acquisition was obtained, by paying HealthEast $1,300,000 in cash from its Accumulated Net Revenues Fund; and WHEREAS, staff has been advised that the sale of the Property to the University is likely to be delayed beyond December 31, 1988; and WHEREAS, the Port Authority has received the attached commitment ( the "Commitment") from Norwest Bank Minnesota, N.A. ( "Norwest" ) , to purchase a Port Authority note (the "Note" ) in the amount of $1, 300,000, secured by Special Resolution No. 1270, and otherwise on the terms and conditions set forth in the Commitment; and WHEREP,S, staff recommends that the Port Authority issue the Note on the terms outlined in the Commitment to provide funds to reimburse the Accumulated Net Revenues Fund before December 31, 1988 for money spent on acquisition of the Property, all as more fully described in the staff inemorandum on file. NOW, THEREFORE, BE IT RESOLVED by the Port Authority of the City of Saint Paul that: 1. The use of funds from the Accumulated Net Revenues Fund to acquire the Property is hereby ratified; 2. The Port Authority should issue its Note and enter into a loan agreement with Norwest on the terms and conditions generally set forth in the Commitment; 1 � ��aa3� 3. Staff of the Port Authority is hereby authorized and directed to continue negotiations with Norwest, counsel to Norwest and counsel to the Port Authority to finalize the documentation to be entered into in connection with the issuance of the Note; and 4. In order to facilitate completion of the financing contemplated herein, the City Council of the City of St. Paul is hereby requested to consent, pursuant to laws of Minnesota, 1976, Chapter 234, to the issuance of the Note, and any additional bonds or notes which the Port Authority may prior to issuance or from time to time thereafter deem necessary to complete the Project or to refund the Note, and for such purpose the Executive Vice President of the Port Authority is hereby authorized and directed to forward to the City Council copies of this resolution and any additional available information the City Council may request. Adopted: December 5, 1988 PORT AUTHORIT� TIiE CITY OF SAIN �AU \ � By � � � � ,� t S %i'GG'-c.�L'�-vC`_ EST: � � � (�-,��=�r cretary f , ��° . , . ,'/-',`,'' �;�:� , �. - �-, -.. . ..._ �- ._ `•,�.��_� __ �� , ;�� `�'�Q1wESt Bank hl nn�svra ^!a ��! r i�o�ru�es ente� �'�� NOAWl3T BANKS �:,- ;� � Sixrh a�tilarquetre � �� Miri�'� olis. M�nnesota 5�479•^U01 '�_'� 6J2,T9 -;?.34 ��. � •<; �.;�� Ncyvember 23, 1988 •;'.;; Nlr. Peny Feders Chief Fir�ancial Officer Port Authority of the City of St. Paul 1900 Amhoi.st Tvwer 345 St. Peter Street St. Paul, 1�IIJ 55102 RE: St. Johns Hospital/M�etro State University Dear Pet�y: � In response to your request for finaricinq, I wruld like to present the following praposal for your consideration: Bornywer: St. Paul Port Author��Y (PA) Securi : 1270 Pledge. Maturi : Up to six nanths. Can be done on desnand basis, or maturity can be set to a date within six months of closir�g. Amcxutt• $1,300,000. Draw Schedule: One time. Lpan Fees: Nor� Ccx�ensatina Bala�nces• None Interest Rate: Prime, Floating. Or orice fully drawn, PA may convert to a fixed rate equal to our cost of funds plus 1.45� for a time period of 30 or 60 days. Interest Paymerzt: Monthly t2�c� a direet charge to a Port Authority DOA acoount at NoYwest. ` � . (��-ao� Page 2 prepayment; If floating rate option is u_sed, prepayment without penalty is allawed. If fixed rate option is used, prepayme-nt prior to maturity of locked-in fixed rate will incur a prepayment Pes�a1tY• Misc�llaneaLS: PA will pay bank's legal fees. Other Te�: Ariy other ternu ar�d cor�ditions, mutually agreeable to the PA ar�d Norwest. p�erYy, we are vexy interested in doing this financing. Please call me if you have any oca�unents or questions. Sincerely, � � �/ � . � �;,;,.�-�-i -.�� Tpnnie M. Ka�an Vice President INgt/j s