86-47 WHITE - CITV CLERK
P�NK - FINANCE GITY OF SAINT PAUL Council
�ARV � DEPARTMENT �/�
BL�.IE - MAYOR � Flle NO• `� �
� �
. C�ou il Resolution
Presented By
✓Referred To �! N�'tJ �= Committee: Date � —��p
Out of Committee By Date
WHEREAS:
1. On August 15, 1978, the Port Authori�ty of the Ci,ty of Sa�.nt Paul adopted
Resoluti.on No. 1380 gi.vi�ng prel�minary approval to the yssuance of revenue bonds i.n the
amount of $6503000 to f�.nance the acquysi.ti.on and installat�.on of a 40—�.nch� 6—color,
offset press for the H. M. Smyth Company, Inc. at thei.r faci,l�.ty at 1085 Snell�ng Avenue
North. Thi.s acti.on was rati.f�ed by the Ci.ty Counci.l on August 22, 1978 by Resolut�,on No.
271665.
On March 20, 1979, the Port Authority of the Ci�ty of Sa�,nt Paul adopted
Resolution No. 1470 giv�ng preli.m�.nary approval to the i.ssuance of revenue bonds �n the
amount of $1,000,.000 to fi,nance the construction of a 32,000 Sq. Ft. additi,on to the H. M.
Smyth fac�l�ty. This actyon was rati.fa:ed by the Ci,ty Counca.l on Apr�l 3, 1979 by
Resoluti.on No. 272745.
On December 17, 1985, the Port Authori.ty of the City of Sai.nt Paul adopted
Resoluti,on No. 2592 givyng prelim3.nary approval to the i.ssuance of a Non 876 Tax Exempt
Mortgage i.n the approxi.mate amount of $4,200,000 for H. M. Smyth to acqui.re three new
print�.ng presses for �nstallation �.n their plant i.n the Fall of 1986. The Company i.s
negotiating a pryvate placement for the mortgage with a St. Paul bank and wi�ll have terms
for that agreement f3.nalized before delivery 3�s made on the fi:rst press. The fi.nanc�.ng
wi.11 be for a term of seven years.
2. Laws of M�nnesota 1976, Chapter 234, provides that any a,ssue of revenue bonds
author�zed by the Port Authori.ty of the C�ty of Sai.nt Paul, shall be issued only wi�th the
consent of the Ca:ty Counci�l of the Cyty of Saint Paul, by resoluti.on adopted �n accordance
wbth law;
3. The Port Authori.ty of the C�.ty of Sa�nt Paul has requested that the Ci:ty Council
g�.ve i.ts requi�si,te consent pursuant to sa3�d law to facil�.tate the issuance of sai,d revenue
bonds by the Port Authority of the City of Sai.nt Paul, sub�ect to f�nal approval of the
details of said �ssue by the Port Author3.ty of the Ci.ty of Sai.nt Paul.
COUNCILMEN
Yeas �o,t!!/�/ Nays Requested De rtment of:
�f6Mhor
Drew [n Favor
.�...p�i2�-r7M�
Nicosia
scnetbe� _�__ Against BY
Tedesco
Wilson
Form A ved by City Attorney
Adopted by Council: Date �G� `�'�
Certified Passed by Council Secretary B �' �
sy
�lpproved by Ylavor: Date Approv by Mayor for Su ssio uncil
By _
WHITE — C�TY CLERK �
PINK � FINANCE G I TY O F SA I NT PA U L Council (y
CTNARV — DEPARTMENT fy' v �
BLUE — MAVOR . FIIe NO. v � �
�'o n il Resolution
Presented By �
Referred To Committee: Date
Out of Committee By Date
RESOLVED, by the Ci.ty Counci.l of the City of Saint Paul� that i.n accordance w�,th Laws
of Mi,nnesota 1976, Chapter 234, the C�.ty Counc�.l hereby consents to the �ssuance of the
aforesaid revenue bonds for the purposes descri.bed i.n the aforesai.d Port Author�ty
Resolut3.on No. 2592 the exact detai,ls of which, includyng, but not limi.ted to, provisions
relating to maturi.ta.es} interest rates, discount3 redemption, and for the issuance of
additional bonds are to be determbned by the Port Authori.ty, pursuant to resolution
adopted by the Port Authority, and the City Councyl hereby author�zes the i,ssuance of any
addi.tional bonds (i.ncluding refundi,ng bonds) by the Port Authority, found by the Port
Author�.ty to be necessary for carryyng out the purposes for which the aforesaid bonds are
i.ssued.
COU[VCILMEN Requested by Department of:
Yeas Nays
Dreh
—��se�- �'ET`/"��an!' In Favor
Nicos:,;
scne��;.� � __ Against BY
Sanne�,
T�Qe�° JAN l E 1986
VMrbpn Form Approved by City Attorney
Ado pted b y C ouncil: Date
Certified Pa-s d y ouncil Se ry BY
By
` . . 4^'":".!n
t�pprove IVlavor: Date �� � " F��� Approved by Mayor for Submission to Council
By _ _ By
PUBRISHED ��,� �� 5 1986
St. Paul Port Authority DfPARTMENT �� �� N� 2234
.
D. �. Dunshee or E. A. Kraut CONTACT
(612 224-5686 PHONE
December 17, 1985 DATE 1 Q��� Q, Qi
ASSIGN NUMBER FOR ROUTING ORDER (Clip All Locations for Signature) :
1 Department Director 3 Director of Management/Mayor
Finance and Management Services Director 4 City Clerk
Budget Director x. M. SMYTH COMPANY, irtc.
2 City Attorney 54,200,000 Non 876 Tax Exem�n,t Mortgagi
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
Rationale) :
The purpose of the bond issue is to finance the acquisition of.three new printing presses
by H. M. Smyth Company, Inc. for installation �n their plant at 1085 Snelling Avenue North
in the Fall of 1986. H. M. Smyth is a ma�or St. Paul printing firm. The Gompany is
negotiating a private placement for the mortgage with a St. Paul bank and will have terms
for that agreement finalized before delivery is ma.de on the first press. The revenue
bond allocation for this project will come from the 1986 State Competitive Pool.
COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED:
The amount of the Non 876 Tax Exempt Mortgage is $4,200,Q00 and would be for a term of
seven years, The Company estimates that as a result of the acquisition of these presses
they will add 25-30 new employees. Tt is estimated the mortgage will sell in June, 1986.
. C�-� �
-z�-�`e� ���
�
FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGEO OR CREDITED: (Mayor's signa-
ture not re-
Total Amount of Transaction: quired if under
$10,000)
Funding Source:
Activity Number:
ATTACHMENTS (List and Number All Attachments) :
Staff Memorandum
Draft City Council Resolution
Port Authority Resolution No. 2592
cc: Richard Thorpe
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
x Yes No Council Resolution Required? Resolution Required? xYes No
Yes �No Insurance Required? Insurance Sufficient? XYes No
Yes X No Insurance Attached:
(SEE REVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84
PORT � �'��� _��
� I� T � ORITY �
OF THE CITY OF 5T. PAUL
Nlemorandum
TO: gp� OF COMMISSIONERS DATE: DEC. 13, 1985
(Meeting December 17 , 1985)
FROM:
Donald G. Dunshee
SUBJECT:
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENTS
$4,200,000 TAX EXEMPT MORTGAGE (NON 876)
H. M. SPZYTH COMPANY, INC.
RESOLUTION N0. 2592
1. TH� COMPANY
H. M. Smyth Company, Inc. , a major St. Paul printing firm, located at
1085 Snelling Avenue North proposes to acquire three new printing
presses for installation in their plant in the Fall of 1986.
The Port Authority Commission on August 15, 1978, approved the issuance
of a $650,000 non 876 equipment loan for H. M. Smyth with that tax
exempt mortgage paid off in November, 1985. On March 20, 1979 the Port
Authority Commission authorized the issuance of $1 ,000,000 in 876
revenue bonds to finance the construction of a 32 ,000 Sq. Ft. addition
to their present plant. That issue was sold on May 15, 1979 on a
thirty year term.
2. THE PROJECT
The Company is negotiating a private placement for the mortgage with a
St. Paul bank and will have terms for that agreement finalized before
delivery is made on the first press. The revenue bond allocation for
this project will come from the 1986 State Competitive Pool.
3. FINANCING AND TERM
The financing will be for a term of seven years and the Company
estimates as a result of the acquisition of these presses, they will
add 25-30 new employees. It is estimated the mortgage will sell in
June, 1986. The Port Authority will receive its customary fiscal and
administrative fees of .42% per million and sinking fund earnings.
Staff recommends approval of the above resolution.
•. �r� ���- �r
. � .
`�` 532-0
• Resolution No. _��`� i�--
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
Wf�:REAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by.
the iegislature is to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally 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
WAEREAS, factors necessitating the active promotion
and developanent 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 developtaent of land use
which will provide an adequate taa base to finance these
increased costs and access to employment opportunities for such
populat-ion; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from the H. M. Smyth Company,
Inc. (hereinafte= referred to as "Company" ) a request that the
Authority issue its revenue bonds (in the form of a single
note) to finance the acquisition and installation of three
printing presses (hereinafter collectively called the
"Project" ) at their present plant in the City of St. Paul, all
as is more fully described in the staff report on file; and
WHEREP,S, the Authority desires to facilitate the
selective develogment of the community, to retain and improve
its tax base and to help it provide the range of services and
employment opportunities required by its population, and said
Project will assist the City i.n achieving that ob�ective. Said
Project will help to increase the assessed valuation of the
City and help maintain a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
City; and
`. �a.r,� ��=,- �1
� . .
'r ' WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREA�, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
financing to �ay the capital cost of the Project is available
only on a lim�.ted basis and at such high costs of borrowing
that the econanic feasibility of operating the Psoject would be
significantly reduced, but the Company has also advised this
Authority that but for revenue bond financing, and its ,
resulting low borrowing cost, the Project would not be
undertaken;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 474.01, Subdivision 7b 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 t.'�at the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds; and
WfiEREAS, 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
Conuaissioners were reviewed, and all persons who appea=ed at
the hearing were given an opportunity to eapress 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
follaws:
1. On the basis of information available to the
Authority it appears, �nd 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 1 or la of Section
474.02. of the Act; that the Project furthers the purposes
stated in Section 474.01 of tYie Act and, but for the willing-
ness of the Authority to furnish such financing, the Company
would not undertake the Project, and that the e.ffect of the
Project, if undertaken, will be to encourage the develop�nent of
econo�aically sound i.ndustry and commerce and assist in the
. 2
- '���-�7
•� reven�ion of the emer ence of bli hted and mar inal 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 servi�es and employment opportunities required by its
population, and will help to prevent the movement of talented
arid educated persons out of the state and to areas within -the
state where their services may not be as effectively used and
will result ia more intensive developtaent and use of land
within the City and will eventually result in an increase in �
the City's taa base; and that it is in the best interests of
the port district and the people of the City of Saint Paul and
in furtherance of the general plan of developraent to assist the
Company in financing tYze Pro�ect.
2. Subject to the mutual agreement of the Authority
and the Company in a revenue agreement as to the essential
elements of the financing and of the Authority, the Company and
the pu=chaser of the revenue bonds as to the details of the
lease or other revenue agreement as defined in the Act, and
other documents 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 (in the form of a single note)
in an amount not to eaceed approaimately $4,200,000 (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 Conunissioners which was presented
to the Commissioners, are incorporated herein by reference and
approved. •
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, 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
Energy and Economic Develop�nent, requesting his approval, and
other officers, employee� and agents of the AUTHORI'T'Y are
hereby authorized to provide the Commissioner with such
preliminary information as he may require.
4. There has heretofore been filed with the
Authority a form of Preliminary Agreement between the Authority
and Company, relating to the proposed financing of the Project.
The form of this agreement has been examined by the
Commissioners. It is the purpose of the agreement to evidence
the commitment of the parties and their intentions with respect
to the proposed Project in order that the Company may proceed
3
-. , �'�-�����
'�� without delay with the commencement of the acquisition and
ins�allation of tYie Project with the assurance that there has
been sufficient "official action" under Section 103(b) 'of the
Internal Revenue Code of 1954, as amended, to allaw 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 Agreement is hereby approved,
and the President and Secretary of the Authority are hereby
authorized and directed to eaecute said Agreement.
5. Upon execution of the Preliminary Agreement by
the Company the staff of the Authority are authorized and
directed to negotiate a revenue agreement between it and the
Company as to the essential elements of the financing and
submit such revenue agreement to the Commissioners of the
Authority for approval at such tiem as the staff deems
appropriate.
6. The revenue bonds (including any interim note or
notes) and interest thereon shall not con�titute an
i.ndebtedness of the Authority or the City of Saint Paul within
the meaning of any constitutional or sta�utory limitation and
shall not constitute or give rise to a pecuniary liability of
the Authority or the City or a charge against their general
credit or taaing powers and neither the full faith and credit
� nor the ta�cing powers� of the Authority or the City is pledged .
for the payment of the bonds (and interim note or notes) or
interest thereon.
7. In order to facilitate c4mpletion 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
additianal 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 Eaecutive Vice P=esident of the Authority is hereby
authorized and directed to forward to the City Council copies
of this resolution any additional available information the
City Council may request.
S. The actions of the Eaecutive Vice-President of
the Authority in causing public notice of the public hearing
and in describing the general nature of the Project and
4
,�
. ��_- ��-y7
.., ,� -
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 Energy and Economic
Developament, 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
conf is�aed.
� ..��
`--� ;' i
Adopted Dece�nber 17, 1985 / , ,:�
i'" �.:; i , .
%. , ,
; ;
Attest "� ," �"�� —
President�'
The Port�Authority of the City
� � ��- of Saint Paul
--.�..��,'� 1 . t,��,�� :
� .t.�,� Secretary
�
5
�,�-�(o- �7
�
E
PORT AUTHORITY OF THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417
25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
December 17, 1985
Mr. James Bellus, Director
Planning and Economi.c Development Department
City of St. Paul
14th Floor, City Hall Annex
St. Paul, Minnesota 551(12
SUBJECT: H. M. Smyth Company, Inc.
$4,200,000 Tax Exempt Mortgage (Non 876)
Dear Jim:
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 a Non 876 Tax Exempt Mortage in the amount of $4,200,000 for H. M. Smyth
Company, Inc. to finance the purchase• of three new printing presses for
installation in their plant located at 1085 Snelling Avenue North in the
Fall of 1986. The revenue bond allocation for this project will come from
the 1986 State Competitive Pool.
In addition to the staff inemorandum, we are attaching a draft copy of the
proposed City Council resolution and a copy of Port Authori.ty Resolution
No. 2592 which authorized the Tax Exempt Mortga�e in the amount of
$500,000
Your expeditious handling of this matter will be appreciated.
Yours truly,
u ene . raut
Executive Vice President
EAK:DGD:sjs
cc. Mayor Latimer �
EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CHARLES M.TOWLE CLIFFORD E.RAMSTED PERRY K.FEDERS
EXECUTNE VICE PRESIDENT ASST.EXEC.VICE PRESIDEM DIRECTOR OF INOUSTRIAL DEVELOPMEM CHIEF ENGINEER DIRECTOR Of HNANCE
C.E.O.
RICHARD A.GIERDAL WILLIAM E.MCGNERN
PROPERIV MANAGER DIRECTOR OF PUBUC REIATIONS
COMMISSIONERS GEORGE W.WINTER WILLIAM WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.LANGEVIN CHRIS NICOSIA JEAN M.WE:
PRESIDENT VICE PRESIDENT SECREfARV TREASURER COMMISSIONER COMMISSIONER COtv1MISSIONE�
C.I.D.Certified Industrial Developer
. ��,��;�-L�7
� F:. �'`�. CITY OF SAINT PAUL
' ""'�� O,T+'FICE OF T73E CITY' COIIi�TCZL
•+i_S�i.�ii
�_
L�1111111LU��+ ����rU January 9 , 1986
F:i�.an�e�. h�aua.�em�nt� �Personnel �o�.mittee.
l . Approval of minutes from meeting held January 2 , 1986 . ���+L�
2 . Resolution amending the 1985 budgeC by transferring $7 , 857
from Contingent Reserve .to Executive Administration-Human
R i g h t s D i r e c t o r S e 1 e c t i o n . (�c�pc� �t�--���u � (,��Q r����,,,�����p
3. Resolution approving the 1986-1987 Memoranda of Agreement G�pP�.,.�
between the City and AFSCME Local 1842 and AFSCME Local 2508 .
NOT ON PREPARED AGENDA
4. Resoluti.on approving the 1985-86 Maintenance Labor Agreement between
- Independent School District No. 625 and United Association Plumbers
Loca 1 34. c���,��� .
5. Resol ut i on ,��9rrs�err��ng to the°'i ssuaneerof a Port iAutl�r i ty Non 8� Tax
�-f�xemp� M,Q;�tc,�ge;.:�,n ;#�,e amount of $4,200,D0� for H.�'�i.' $my�i� Co,""tb
a�c �hree new �t i.ng presse:#�`at thei r f�rci 1 ifiy a"�°10$5 $ne'fi�i i ng
A :Y,°.�,�,�u�,_
6. Resolution consenting to the issuance of a Port Authority Non 876 Tax
Exempt Mortgage i.n the amount of $500,000 for Ignatius Company, Inc. ,
to purchase a paper sheeter to be installed at the H. M. Smyth facility
at 1091 Snetling Avenue North. ������
� UNDER SUSPENSION OF RULES
7. Resolution allowing close-out of Shade Tree Control Fund 375 and Tree
Ma intenance Fund 389. r �- b�-� �C3L�f�U• � E..L�D fP..C.[�lY�t1�1"1C�'�-iDt�
CITY HALL SEVENTH FLOOR SAINT PAUL,MINNFSOTA 5510�
�48