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87-1773 WMITE - ITV CLERK PINK - INANCE COUI�CIl CSrTJARV - EPARTMENT G I TY OF S I NT PAiT L �7— BLUE - AVOR File NO. � ���� ouncil esolution .; �� �� � Presente By Referred To Committee: Date Out of Committee By Date W EREAS: 1 . On December 8, 1987, the Port Au hority of the City of Saint Paul adopted R solution No. 2905, giving preliminary a proval to the issuance of taxable revenue bonds i the initial principal amount of approx mately $6,160,000 to finance the construction by tro Recoyery Systems, a generai partner hip to be formed, of a centralized facility to c Ilect, treat, recover, recycle, store a�d transfer industrial process wastes generated p imarity from metal finishing and printe circuit companies; the partnership is comprised o Metropolitan Recovery Corporation and �ancy Recovery, Inc., a subsidiary of Lancy I ternatlonal , Inc. Miller and Schroeder, Financial has agreed to underwrite the taxable r venue bond issue for a term of 20 years� 2. The proJect to be financed will �e located on a 4.5 acre site at 2430 Rose Place i the City of Roseville, Minnesota, and he bonds are to be issued by the Port Authority o behalf of the City of Roseville pursua�nt to a Joint Powers Agreement. 3. Laws of Minnesota 1976, Chapter �34, provides that any issue of revenue bonds a thorized by the Port Authority of the aity of Saint Paul , shall be issued only with the nsent of the City Council of the City q�f Saint Paul, by resolution adopted in accordance with law; 4. The Port Authority of the City df Saint Paul has requested that the City Council ive its requisite consent pursuant to s id law to facilitate the lssuance of said revenue nds by the Port Authority of the City �f Saint Paul , subJect to fina� approval of the tails of said issue by the Port Authority of the City of Saint Paul . C UNCILMEN Requested by De rtment of: Yeas Nays � Drew Nicosia [n Favor Rettman Scheibel Sonnen __ Agei(lst BY Tedesco Wilson Form Appr ed by City Attorney Adopte by Council: Date T� Certifie Passed by Council Secretary By"���� �" � By � Approv by Mavor: Date _ Approv by Mayor for Submi 'on t Council Bv - - — BY I WHITE - C TV CLERK � PINK - FNA�ICE GITY OF S INT PAUL Council , �7� CA�NARV =D PARTMENT File NO. � BLUE - M vp°R Council esolution Presented By j eferred To Committee: Date ut of Committee By Date . RESOLVED, by the City Council of the ity of Saint Paul, that in accordance with Laws of innesota 1976, Chapter 234, the City uncil hereby consents to the issuance of the af resaid revenue bonds for the purposes d�scribed in the aforesaid Port Authority Re olution No. 2905 the exact details of w ich, including, but not limited to, provisions relating to maturities, interest rates, di count, redemption, and for the issuance of ad itional bonds are to be determined by t e Port Authority, pursuant to resolution ad pted by the Port Authority, and the Cit Council hereby authorizes the issuance of any ad itional bonds ( including refunding bond ) by the Port Authority, found by the Port Au hority to be necessary tor carrying out the purposes for which the aforesaid bonds are 1s ued. I I -{ 2 - C UNC[LMEN I Requested by Departme t of: Yeas Nays I Nicosia .� [n Favor Scheibel Sonnen � �__ Against I BY T°�(dLc/Or�— i Wilson Adopte by Council: Date DCC 2 � �� i Form Approved by City Attorney Certifie P s d by Council Sec tary BY - By, .� Approv lVlavor. Date • 2 � �t� I Appro y Mayor for Sub ' i to Council By — —I By Pt�I.ISHED !�N - � 1988 � I . ��7� 773N° 0607 St. Paul ort Authorit DEPARTMENT _ J.A. Cam bassso• E.A. Krauty CONTACT 224-5686 PHONE December 8, 1987 � OATE ��� ,, e SIGN NU ER FOR ROUTING ORDER Cli All Location for Si nature : � Depart nt Director 3 Director of Management/Mayor Finan and Management Services Director � 4 City Clerk Budge Uirector RE: METRQ RECQVERY .SYS�,EMS, _,? City torney � $6,160,000 TAXABLE REVENUE WHAT WILL E ACHIEVED BY TAKING ACTION ON THE ATT CHED MATERIALS? (Purpose/ . Rational e) : The pur se of the taxable revenue bond issue is to finance the constructi.on by Metro . Recover Systems of a centralized facality to c llect, treat, recover, recycte, store and transfe industrial process wastes generated pri arily from metal finishing and printed circuit ompanies. Metro Recovery Systems, a g neral partnership to be formed, is comprised of Metr o3�itan Recovery Corporation and Lancy ecovery, Inc. The pro ect will be located on a 4.5 acre site t 2430 Rose Place in Roseville, MN, and the bonds are to e issued by the Por� Authority on behal of the City of Roseville pursuant to a Joant . COST BENE IT BUDGETARY AND PERSONNEL IMPACTS ANT CIPATED: Powers Agreement. The amo nt of the taxable revenue bond issue is $6,160;000 and will be for a term of 20 years. Metro �R covery Systems anticipates hiring 15 em loyees for the operation, and they have agreed to ente into a First Source Agreement with the City's Job Creation and Training Office to � hire St Paul r�sidents wherever possible. ` 4�, ' �z 1� Dl �R— � FINANCIN SOURCE AND BUDGET ACTIVITY NUhIBER CHAR ED OR CREDITED: (Mayor's signa- ture not re- Total Amount of'Transaction: quired if under � �10,000) Fundi g Source: Activ ty Number: • ATTACHME TS List and Number All Attachments : 1. St ff Memorandum � 2. Dr ft City Council Resolution � , 3. Po t Authohity Resolution No. 2905 cc. J. Shoholm . . ' � DEPARTM T REVIEW CITY ATTORNEY REVIEW XYes No Council Resolution Required? ' Resolution Required? X Yes No Yes X No Insurance Required? - Insurance Sufficient? X Yes No Yes No Insurance Attached: . . (SEE •REVERSE SIDE FOR NSTRUCTIONS) � Revised 12/84 . '�► _-�;. � �`7/773 , � � ------� _ i , �; -�""� � :- ` � , �, i i �, . � � � 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 . December 8, 1987 Mr. Ken Johnson, Director I Planning and Economic Development D�partment City of St. Paul 13th Floor - City Hall Annex j St. Paul , Minnesota 55102 SUBJECT: METRO RECOVERY SYSTEMS . $6,160,000 TAXABLE REVENU� BOND ISSUE , Dear Ken: I We submit herewith for your review �and referral to the office of the Mayor, City Council and City Attorr�ey's office details pertaining to the issuance of $6, 160,000 in revenue ttaxabie revenue bonds to finance the construction by Metro Recovery Sysi�ems, a general partnership to be formed, of a centra I i zed fac i I i ty -�o co I I ect, treat, recover, recyc I e, store and transfer industrial proc�ss wastes generated primarily from metal finishing and printed circuit companies. The partnership is com- prised of Metropolitan Recovery Cor�poration and Lancy Recovery, Inc. The proJect to be financed will be� located on a 4.5 acre site at 2430 Rose Place in the City of Rosevill$, Minnesota, and the bonds are to be issued by the Port Authority on behalf of the City of Roseviile pursuant to a Joint Powers Agreement. � The Port Authority staff has condujcted a thorough evaluation of the firms and/or individuals that are �involved in this project or in which the princlpals have an interest. �This investigation has included detailed credit analysis, Dun and �radstreet reports, direct communlca- tion with representatives of finar�cial institutions with whom the par- ticipants have done business and data base checks to determine if any principal (s) have been in any waylinvolved in legal proceedings as a result of securities fraud, extor�ion, embezzlement or financial mis- representation. j I I EUGENE A.K UT,C.I.D. PERRY K.FEDERS,C.PA CHARL�M.TOWLE LAWRENCE H.LANGER,P.E. PATRICK E.DEAN,C.PA. IXECUTNE V10E ESIDENT,C.E.O. ASST.EXEC.VICE PRESIDENT,C.f.O. DIRECTOR OF IND SiRIAL DEVELOPMENT CHIEF ENGINEER DIRECTOR OF FINANCE RICHARD A GIERDAL WILLIAM E.McGIVERN PROPERT`I MANAGER DtRECTOR OF PUBLIC RELATIONS COMMISSI ERS: GEORGE W.WINTER WILLIAM R.PEfERSON ARTHUR N.GOODMF�N JEAN M.WEST VICTOR P.REIM JAMES SCHEIBEL JOHN DREW PRESIDENT VICE Pt2ESIDEM SECREfARV ASST.SECRETARY TREPSURER ASST.TREASURER COMMiSSIONER �i n �FRnFiFn ir�ni ismiai ���_oPER � ; �=�7-i��3 � . Mr. Ken Johnson I December 8, 1987 Page -2- i I : In addition to the staff inemorandum�, we are attaching a draft copy of the proposed City Council resoluti n and a copy of Port Authority Resolution No. 2905 which authoriz d the sale of taxable revenue bonds in the amount of $6,160,000. Your expeditious handling of this rclatter will be appreciated. �� o rs truly, `� � . �. '��,,.� , Eugene A. Kraut Executive Vice Presldent EAK:ca cc. Mayor Latimer . i . � � � ��=�`1-/7 7� • , 544Y Resolution No. � J�` `� . RESOL�JTION OF THE PORT AUTHORITY OFI' THE CITY OF SAINT PAUL WHEREAS, one of thelpurposes of Minnesota Statutes, Chapter 469 (hereinafter call d "Act" ) as found and determined by the legislature is to prom te the welfare of the state by the active promotion, attract on, encouragement and development of economically s und industry and commerce to prevent so far as possible th� emergence of blighted and marginal lands and areas of c�ronic unemployment and to aid in the development of existing a�eas of blight, marginal land and persistent unemployment; and . WHEREAS, factors nelessitating the active promotion and development of economical y sound industry and commerce are the increasing concentrat on of population in the metropolitan areas and the ra idly rising increase in the amount and cost of government 1 services required to meet the needs of the increased popula ion and the need for development of land use which will provid an adequate tax base to finance these increased costs and acc ss to employment opportunities for such population; and WHEREAS, the Port A�athority of the City of Saint Paul (the "Authority" ) has re�eived from Metropolitan Recovery Corporation and Lancy Recover�, Inc. (collectively the "Companies" ) on behalf of Met�ro Recovery Systems, a Minnesota general partnership to be for�ned (hereinafter referred to as "Partnership" ) a request thatlthe Authority issue its taxable revenue bonds (which may be in the form of a single note) on behalf of the City of Rosevillle, to finance the acquisition, installation and constructio ! of a centralized facility to collect, treat, recover , rec�cle, store and transfer industrial process waste gen�rated primarily from metal finishing and printed circuit� companies (hereinafter collectively called the "Projlect" ) at 2430 Rose Place in the City of Roseville, all as islmore fully described in the staff report on file; and j . ` `�7-1773 WHEREAS, the Projec� will be used primarily by companies in the Saint Paul/M' nneapolis area , and the Authority has determined that significant benefits will inure to the residents of the City �f Saint Paul from the financing and construction of the Projec�t; and WHEREAS, the Projec� to be financed by revenue bonds will result in substantial em loyment opportunities in the Project; � WHERERS, the Author ty has been advised by repre- sentatives of the Companies t at conventional, commercial financing to pay the capital ost of the Project is available only on a limited basis and a such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but the Companies have also advised this Authority that but for r venue bond financing, and its resulting low borrowing cost, the Project would not be undertaken; WHEREAS, Miller & S hroeder Financial , Inc. (the "Underwriter" ) has made a pro osal in an agreement (the "Underwriting Agreement" ) rel ting to the purchase of the revenue bonds to be issued to finance the Project; WHEREAS, the Author�ty, pursuant to Minnesota Statutes, Section 469. 154 , Su division 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 Companies that the Autt�ority finance the Project hereinbefore described by thelissuance of its industrial revenue bonds; and WHEREAS, the Author ty did conduct a public hearing pursuant to said notice, at w�iich hearing the recommendations contained in the Authority' s taff inemorandum to the Commissioners were reviewed, nd all persons who appeared at the hearing were given an opp rtunity to express their views with respect to the proposal . NOW, THEREFORE, BE �T RESOLVED by the Commissioners of the Port Authority of the �ity of Saint Paul , Minnesota as follows: l. On the basis o� information available to the Authority it appears, and the Authority hereby finds, that said Project constitutes prop�rties, used or useful in 2 I ��7-i?73 � . c nnection with onenessmwithinVthe meananglof Subdivisson 2 of e gaged in any busi S ction 469 . 153 of the Act; that t e Project furthebuttfor the p rposes stated in Section 469 . 153 of the Act and, the w' llingness of taenottundertake th nProjecth andathatgthe P rtnership woul ffect of the ProjeCmicallunsoundk ndustry andtcomme�ceaandt e velopment of econo Y ssist in the prevention of t�o er ventcchronbclunemployment, � arginal land, and will help P nd will help the City to retain a d impment otsortunbtsesand rovide the range °ulationCeandnwi lphelp to prevent the equired by its pop ovement of tale�hedstateewhereeth ersserv�ces�mayhnottbeeasn o areas within ffectively used; ahe teotletofsth CityboftSaintrPaul andtin ort district and t p p lan of�development to assist the urtherance of the general p artnership in financing the Proj�ct. 2. Subject to the mutlal agreeeent�f�thehrevenue the Partnershi and th purchas uthority, p • onds as to the details of the le se or other revenue greement as defined in the Act, nd other documents necessary o evidence and effect the financ ' ng of the Project and roved ' ssuance of the revenue bonds, th Project is hereby app nd authorized and thmaisbeaineth formbof aesenglebnote)�in he Authority (which y n amount not to exceed approxima ely $6 , 160 ,000 (other than uch additional reveeaeto�fanance�thencosts of thepProjecteand Project) is authoriz the recommendations ��ottheACommi sionersawhichswastpresented the staff inemorandum to the Commissioners, are incorpo ated herein by reference an approved. 3 , In accordance with Subdivision 3 of Section 469 . 154 , Minnesota Statutes, the �xecutive Vice-President of the AUTHORITY is herebydescr�bede'Projectltocthe Commissionere proposal for the above I p roval, and Economic Developmenit, requesting his a p of Energy em lo ees anc� agents of the AUTHORITY are and other officers , p Y hereby authorized to provide the Commissioner with such preliminary information as he may� require. 4 , There have hereto ore been filed with the Authority (a) a form of Prelimin ry tortheen�oboseden the Authority and Partnership, relat�ng P P 3I I ���7-�77� , � � construction and financing of the Project, (b) a form of a Joint Powers Agreement betwee the Authority and the City of Roseville, relating to the pr posal that the Authority issue the taxable revenue bonds des ribed herein on behalf of the City of Roseville and (c) a f rm of the Underwriting Agreement. The forms of the greements have been examined by the Commissioners. It is the purpose of the agreements to , evidence the commitment of th parties and their intentions with respect to the proposed roject and its financing. Said Agreements are hereby approve , and the President and Secretary of the Authority ar hereby authorized and directed to execute said Agreements. 5. Upon execution of the Preliminary Agreement by the Partnership, the staff of 'the Authority is authorized and directed to continue negotiations with the Partnership so as to resolve the remaining issu s necessary to the preparation of the lease and other docume ts necessary to the adoption by the Authority of its final bo d resolution and the issuance and delivery of the taxable r venue 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 acce t a final offer of the Underwriter made by the Underwriter to purchase said bonds and to execute an Underwriting Agr ement setting forth such offer on behalf of the Authority. S ch acceptance shall bind the Underwriter to said offer but hall be subject to approval and ratification by the Authority �n a formal supplemental bond resolution to be adopted prior, to the delivery of said revenue bonds. 6 . The revenue bon s ( including any interim note or notes) and interest thereon shall not constitute an indebtedness of the Authority r the City of Saint Paul within the meaning of any constitutio al or statutory limitation and shall not constitute or give r ' se to a pecuniary liability of the Authority or the City or a charge against their general credit or taxing powers and ne ' ther the full faith and credit nor the taxing powers of the A thority or the City is pledged for the payment of the bonds (�nd interim note or notes) or interest thereon. 7. In order to fac ' litate completion of the revenue bond financing herein ontemplated, the City Council 4 II ' �� �� � ��i�7 � , , is hereby requested to consen , pursuant to Laws of Minnesota, 1976, Chapter 234 , to the iss�ance of the revenue bonds ( including any interim note o� notes) herein contemplated and any additional bonds which th Authority may prior to issuance or from time to time thereaft r deem necessary to complete the Project or to refund such rev nue bonds; and for such purpose the Executive Vice President f the Authority is hereby authorized and directed to fo ward to the City Council copies of this resolution and said Pneliminary Agreement and any additional available informati�on the City Council may request. 8 . The actions of the Executive Vice-President of the Authority in causing publ�c notice of the public hearing and in describing the general nature of the Project and estimating the principal amou t of bonds to be issued to finance the Project and in pr paring a draft of the proposed application to the Commission r of Energy and Economic Development, State of Minneso a, for approval of the Project, which has been available for ' nspection by the public at the office of the Authority from nd after the publication of notice of the hearing, are in all respects ratified and conf i rmed. Adopted December 8 , 1987 �� � � , � � / / �` \ C C",�/ � Attest �= -��^-� Presi � The Port thority of the City ' of Saint aul � f � �i���>.� � ��� t. � cretary 5 � �� P R T �iC�'I-/773 � AUTHORITY OF HE CITY OF ST. PAUL Mem randum TO: BOARD OF COMMISSIONERS DATE Dec. 8, 1987 (Dec. 8, 1987 Regular Meeting> � FRO : J.A. Campobasso'- SU : METRO RECOVERY SYSTEMS , JOINT POWERS AGREEMENT PUBLIC HEARING - PRELIMINARY $ UND�RWRITING AGREEMENTS $6, 160,000 TAXABLE REVENUE BONDS RESOLUTION N0. 2905 PUBLIC HEARING - SALE OF LAND RESOLUTION N0. 2906 1. BACKGROUND The proJect was developed beca�se of increased governmental regulations requiring electroplating waste ater pretreatment prior to sewage discharge and increasingly strict regula or control over management of hazardous in- dustrial by-products disposal . The 1977 amendments to the Clean Water Act required that the metal finishing and electroplating industry be the first of many that must reduce indus rial chemical wastewater discharges to sewage systems by pretreating astewater discharge by April of 1984. Since that time, numerous stat and local governmental agencies including the Minnesota Department of En rgy and Economic Development, the Minnesota Waste Management Board and the Metropolitan Waste Control Commission (MWCC) have assisted and encou aged the development of this proJect. A Technical Feasibility Assess nt for the proJect was conducted by the Center for Hazardous Materials Research, University of Pittsburgh Applied Research Center dated April , 19 7. The study concludes that although the technology applications of thi process are unique, the individual com- ponents of the processes have history of successful use in a similar ap- plication. A Financial Feasibility study w s completed by�fouche Ross � Company on August 10, 1987. The study was conducted to determine the validity of the company's assumption regarding heir financial forecast for which Touche Ross concluded that "the underl ing assumptions provide a reasonable basis for MRS torecastrr, r I � . �G'�7-/��� r � BOARD OF COMMISSIONERS December 8, 1987 Page -2- 2. THE PARTNERSHIP Metro Recovery Systems (MRS) wi�ll be a Minnesota general partnership con- • sisting of Metropolitan Recover Corporation (h1RC), a Minnesota corpora- tion formed by 21 metal plating and printed circuit firms and Lancy Recovery, Inc. (LRI ), a subsidi�ry of Lancy International , Inc. Lancy In- ternationai, inc. is a wholly o ned subsidiary of Aluminum Corporation of America (Alcoa). Alcoa has no iinvolvement in, or obligation, commitment or liability with respect to, t e project or the bonds. MRC will have a 40.9� interest in the partnersh p while Lancy Recovery will have the other 59. 1�. Since 1ts founding in I 45, Lancy International , Inc. has been a pioneer in the development of w stewater treatment systems and resource management technology. The com any has installed and commissioned over 2,500 industrial wastewater tre tments systems for metal finishing, electronic manufacturing, chemi al processing, electric utilities and food processing industries. Lancy's capabilities include engineering, equip- ment design, analytical laborat ry service, environmental consulting and turnkey construction/installati n. In March of 1983, MRC was organ zed by Twin Cities printed circuit and me- tal plating firms to manage ind strial process waste by providing an industry-owned centralized wast treatment and materials recovery facility. MRC�s mission is to eek innovative methods to reduce process waste, recover industrial chemi als, conserve water, and reduce hazardous waste destined for land disposa . The partnership (MRS) will be f�rmed with the intent to develop, construct and operate a hazardous waste c Ilection, processing, treatment, recovery, storage and transfer facility w th an emphasis on maximum recovery of inet- als, metal solutions, and proce sed chemicals to reduce the amount ot any residual unrecovered material t at must be disposed of as a hazardous waste. 3. THE PROJECT MRS will complete the construction of a 51,200 square foot facility in- cluding 4,700 square feet of la oratory and office space on 4.5 acres of land at 2430 Rose Place in Rose ille. The site is in one of the Minnesota Waste Management Board's prefer ed areas for the development of hazardous waste facilities. An envlronme�tal assessment worksheet was approved by the Minnesota Pollution Control �,Agency on the site in November, 1984, and a rezoning approval and special use permit from the City of Roseville was obtained in March, 1985. Lancy Internationai will construct the project for a flxed price contract of $ ,532,000 with a completion date set for July, 1988. � ��7/77� I BOARD OF COMMISSIONERS December 8, 1987 Page -3- The facility will serve all Mi nesota industrial generators but will be primarily designed to treat, r cover and manage inorganic wastes from printed circuit fabrication an metal plating firms which are concentrated in the Twin Cities Metro area. � Twenty-two small to medlum size printed circuit and metal plating shop in this area are currently under contract with MRS to utilize the servic�s provided by the facility. These com- panies include several Saint P ul companies as well as numerous East Metro companies. , Innovative ion exchange techno�ogy and segregation of wastes will be in- corporated in the facility des gn and in customer waste preparation to al- low for maximum economic recov ey and reuse of industrial chemicals. This design methodology will reduce the overall costs of industrial waste management by removing industr al metals such as copper, nickel, chromium, zinc, lead and tin for resale -�o primary smelters and by using scale economies of centralized treat ent and recovery to reduce the operating and capital costs to customer irms and meeting pollution control and water treatment regulator requ rements. The full service product range wlll include: waste transport, storage and ' testing, inorganic materials t eatment including neutralization, destruc- tton of cyanides, reduction of�hexavalent chromium, recovery of salable industrial metals, precipitati n and dewatering of inetal hydroxide sludges, and separation of oil water emulsions, and shipment of residuals to appropriate out-of-state fi al treatment or disposal facilities. These activities will be conducted u der a 20-year Operating Agreement with Lancy Recovery, Inc. The facility will be a state-o -the-art design which will provide essen- tial business support services to manufacturing businesses which produce electronic equipment and relat d consumer products and are a major employer sector in Minnesota. �The metal finishing and printed circuit board fabricating industries r present approximately 10,000 jobs in the Twin Cities area. This facili will serve to maintain that employment base and also wiil enhance the�prospects of growth in this sector. MRS anticipates hiring 15 empl�yees for the operation. They have agreed to enter into a First Source A reement with the City's Job Creation and Training Office to hire St. Pa i resldents wherever possible. This is in conformance with the recommend tions of the Citizen's Commission on Bond- ing and Financing Practices da ed January 22, 1986, which stated that, "the geographic boundaries of he Port Authority should be extended to al- low the Port Authority to unde take proJects in adJoining suburban com- munities provided that such pr jects are structured in such a fashion that maximiies��Job opportunities fo� economically disadvantaged City residents . I ;' . �'�=�y-�7�'� . BOARD OF CaMMISSIONERS December 8, 1987 Page -4- 4. JOINT POWERS The proJect received approval rom the Minnesota Agricultural and Economic Development Board in June of I 87; however, attempts to market the taxabie bond issue were unsuccessful . There are a number of reasons for the marketing problems including a lack of credit enhancement, instability in the market and the complicated nature of the project. The company has approached the City of Roseville requesting assistance in securing financing to complete the project. The City of Roseville in turn has requested the assistance o the Port Authority of the City of Saint Paul . The City of Roseville r ceived Port Authority powers from the legislature in 1985; therefore a Joint Powers Agreement between the en- tities is possible. Roseville at its City Council meeting of November 23, 1987, took action to approve e tering into a Joint Powers Agreement with the Port Authority of the City of Saint Paul in an effort to secure the financing for this proJect. 5. FINANCING • The proposed financing would b an 876 taxable industrial development revenue bond with a 20-year te m. Below is a breakdown of bond proceeds: Construction - $5,581,533 Capitalized Interest During Construction - 7 Months 395,267 Expenses (Estimated) - 60,000 Underwr i t i ng - 21 3,,�00 TOTAL $6, 160,000 The Port Authority will receiv earnings on the sinking fund. The fiscal and administrative fee is bas on a rate of I� of the face value ot the bonds until occupancy, then 2 for the life of the proJect or 15� of net cash tlow, whichever is great r. The share in the cash flow is capped at a maximum of 4$ of the face v lue of the bond ($246,400). The reserve fund of $787,850 will be funded by MRS through an agreement with the Minnesota Agricultur I and Economic Development Board. The Board has funds allocated for this urpose and an executed agreement will be in place prior to sale of bonds. The company is also required under its per- mit process to create a closu e fund over a five-year period totaling $300,000. . .. � ���i��� BOARD OF COMMISSIONERS I December 8, 1987 I Page -5- I The total project cost is $10,536,000 which includes an equity contribu- tion of $3,796,000 (36�) by the partnership. MRC's participation of $1 ,551 ,000 included funds provided by the Metropolitan Waste Control Com- mission through a Stipulation greement with member companies totaling ap- proximately $1 .2 million. � The MWCC presently holds a mortgag�e on the en- tire 8. 1 acre site valued at $I34,000. At closing, the mortgag e will be satisfied and title transferre� to the Port Authority. Lancy Recovery, Inc. has an equity participatipn of $2,245,000. Lancy Recovery will provide an additional credit e hancement in the form of a �500,000 pledged CD to secure a $300,000 workin� Ilne of credit and $500,000 of leased equipment. I � Lancy Recovery, Inc. 's managem�nt fee is subordinate to the operating costs, debt service and the Por�t Authority�s fiscal and administrative fees. I 6. TERMS OF THE LEASE I The term of the lease would belfor twenty years with options to purchase at any time provided sufficieni{ funds are deposited with the Port Authority to defease the bonds �to the appropriate call date as well as the Port Authority administrative fees for at least the first ten years of the project and 10� of the original�ibond issue. 7. UNDERWRITING Miller $ Schroeder Financial ha agreed to underwrite the 20-year bond issue at a rate of interest to e set at the time the bonds are sold. We anticipate bonds w111 be sold a our regular December Board meeting. 8. RECOMMENDATIONS I Staff has interviewed the partn�rs in the proJect, reviewed the feasibility studies, discussed �he proJect with the State of Minnesota, the Waste Management Board, the �Metropolitan Waste Control Commission and the City of Roseville and recomrt�ends approval of Resolution Nos. 2905 and 2906. I JAC:ca I . Attach. .