86-48 WHITE - CITV CLERK
PINK - FINANCE G I TY OF SA I NT PAU L Council �
CANARV - DEPARTMENT File NO. �� ��
BLUE - MAVOR
. C cil Resolution
. �
Presented By �
/ Referred To �_2Ja�l�(J L� Commi ttee: Date j"-�`g�
l
Out of Committee By Date
WHEREAS:
1. On December 17, 1985, the Port Authori.ty of the Ci.ty of Sa�.nt Paul adopted
Resolution No. 2593 gyv�.ng preli.m�nary approval to the i.ssuance of a Non 876 Tax Exempt
Mortgage i.n the approximate amount of $500,000 for Ignati.us Company, Inc. , whi,ch is owned
by W. J. Hi.ckey, Jr. and other fam�,ly members, to purchase a paper sheeter. This paper
sheeter would be i.nstalled next Spring in thei.r present plant whi.ch 3,s a part of H. M.
Smyth at 1091 Snelling Avenue North. The f�nanci.ng would be for a term of seven years and
i.t i.s estimated the mortgage will sell �n June, 1986.
2. Laws of Mi.nnesota 1976, Chapter 234, provi�des that any �ssue of revenue bonds
authorized by the Port Authori.ty of the City of Saint Paul, shall be i.ssued only with the
consent of the Ci.ty Council of the Cyty of Sa�.nt Paul, by resolution adopted in accordance
with law;
3. The Port Authori.ty of the Ci,ty of Sai,nt Paul has requested that the City Counc�l
give i.ts requi,si.te consent pursuant to said law to facilitate the �ssuance of said revenue
bonds by the Port Author�.ty of the C�ty of Sa�.nt Paul, sub�ect to fi.nal approval of the
details of said i.ssue by the Port Author�ty of the Ci.ty of Sa3.nt Paul.
RESOLVED, by the Ci,ty Counc�.l of the City of Sai.nt Paul� that �.n accordance w3.th Laws
of Minnesota 1976, Chapter 234, the City Counci.l hereby consents to the issuance of the
aforesaid revenue bonds for the purposes descri�bed i.n the aforesa3.d Port Authori,ty
Resolution No. 2593 the exact details of which, including, but not li,mi.ted to, provis3.ons
relating to maturi,ti�es, i.nterest rates, di,scount� redemptyon, and for the i.ssuance of
addi.tional bonds are to be determined by the Port Authority, pursuant to resolut�on
adopted by the Port Authori,ty, and the Cyty Counci�l hereby author�.zes the i.ssuance of any
addi�tional bonds (�.ncludi.ng refunding bonds) by the Port Authori�ty, found by the Port
Authority to be necessary for carryi�ng out the purposes for which the aforesa�d bonds are
issued.
COUNC[LMEN Requested by Department of:
Yeas G eW Nays
�� ����'`��'� �_ In Favor �
Nicosin �
sche�ae� __ Against BY
Sonnen
Tedesco
W��son ,JA� 1 � 1g86 Form Approve by City Attorney
Adopted by Council: Date � r� � '"""
Certified Yas y ouncil Se tar BY �'�
By' C
� ;- : , -.�:-,
t#pproved avor: Date ` � '``') Appro by Mayor for Submi ' n t Council
By _ B
F��'� �`�' � � "' `� " � 86
ti��.•E��� ��,,�, ,; �
�
St. Paul Port Authority DEPARTMENT ��� ��
, N° 2202
D. G. Dunshee or E. A. Kraut CONTACT
(612)224-5686 PHONE
December 17, 1985 DATE 1 e�� �i Qi
ASSIGN NUNBER FOR ROUTING ORDER (Clip All Locations for Signature) :
� Department Director 3 Director of Management/Mayor
Finance and Management Services Director � City Clerk
Budget Director IGNATIUS COMPANY, INC.
2 City Attorney $500,000 Non 876 Tax F�cemnt �rtgage
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
The ur ose of the Tax Exem t Mort a e is to finance the Ratlonal 1
P P P S g purchase of•an a�ditional paper
sheeter for installation i.n Ignatius Company, Ine_. 's present plant at 1091 Snelling Avenue
North. Ignatius Company, Inc. is owned by W. J. Hickey, Jr. and other family members and
their plant is a part of the H. M. Smyth Company, Inc. complex. The Company would be
installing the sheeter next Spring and 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 $500,000 and would be for a term of seven
years. The Company estima.tes as a result of the acquisition of this sheeter, they will
add eight new employees. It is estimated the mortgage will sell in June, 1986.
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FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED 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. 2593
cc: Richard Thorpe
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
�Yes 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 INSTRUCTIONS)
Revised 12/84
PORT �
, �,�� -��
,AUTHORITY
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE: DEC. •13, 1985
(Meeting December 17 , 19
FROM: Donald G. DunsheP
SUB.lECT:
PUBLIC HEARING — PRELIMINARY AND UNDERWRITING AGREEMENTS
$500,000 TAX EXEMPT MORTGAGE — (NON 876)
IGNATIUS COMPANY, INC. — OFF—SITE
RESOLUTION N0. 2593
1. THE COMPANY
Ignatius Company, Inc. is owned by W. J. Hickey, Jr. and other family
members and is located at 1091 Snelling Avenue North.
1. THE PROJECT
They propose to purchase an additional paper sheeter for installation
� in their present plant which is part of the H. M. Smyth complex. The
Company would be installing the sheeter next Spring and the revenue
bond allocation for this project will come from the 1986 State
Ccmpetitive Pool.
3. FINANCING ANll TERM
The financing will be for a term of seven years and the Company
estimates as a result of the purchase of the sheeter they will add 8
new emplc�yees. 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.
sjs
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` � 532-0
Resolution No. ��%'�
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the ylinnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature 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
WHEREAS, factors necessitating the active promotion
and develogment 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 development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and � �
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from the Ignatius Company, Inc.
(hereinafter 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 an
additional paper sheeter (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
WHEREAS, the Authority desires to facilitate the
selective development 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 .in achieving that objective. Said
Pro�ect 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
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`' WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
financing to pay the capital cost of the Project is available
only on a limited basis and at such high costs of borrowing
that the economic feasibility of operating the Project w�ould 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;
WE�REAS, 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 that the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds ; and
WHEREAS, 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
Commissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express 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
follows:
1. On the basis of information available to the
Authority it appears, and 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 1a of Section
474.02 of the Act; that the Project furthers the purposes
stated in Section 474.01 of the Act and, but for the willing-
ness of the Authority to furnish such financing, the Company
would not undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the development of
economically sound industry and commerce and assist in the
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� . prevention of the emergence of blighted and marginal 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 services and employment opportunities required by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
state whe=e their services may not be as effectively used and
will result in more intensive development and use of land
within the City and will eventually result in an increase in
the City' s tas base; and that it is in the best interests of
the port district and the peopie of the City of Saint Paul and
in furtherance of the qeneral plan of development to assist the
Company in financing the Project.
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 Cornpany and
the purchaser of the revenue bonds as to the detai.ls of the
lease or �ther revenue agre�ment 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 exceed approximately $500,000 (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 Commissioners wYtich 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 Development, requesting his approval, and
other officers, employees and agents of the AUTHORITY 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 Preli.minary 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
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� '. ' without delay with the commencement of the acquisition and
installation of the 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 allow 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 execute said Agreement.
5. Following the 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 constitute an
indebtedness of the Authority or the City of Saint Paul within
the meaning of any constitutional or statutory 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 taxing powers and neither the full faith and credit
nor the taxing 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 completion 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
additional bonds whicTn the Authority may prior to issuance or
from time to time �hereafter deem necessary to complete the
Project or to refund such revenue bonds; and for such purpose
the �xecutive Vice President of the Authority is hereby
autharized and directed to forward to the City Council copies
of this resolution any additional available information the
City Council may request.
8. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in describing the general nature of the Project and
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' 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
Develogment, State caf Minnesota, for approval of the Project,
which has been available far inspection by the public at the
offi.ce of the Authority from and after the publication of
notice of the hearing, are in all respects ratified and
confirmed.
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' Adopted December 17, 1985�- �,
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Attest �� � L, u��_
Presid n
��-- Tlie---� Authority of the City
of Sai t Paul
, i
��� .
_ ,� � ,' �� ' ;
� - -t- Secretary °�
�_y- �
5 .
, � � �� ���- ��
, ,��, CITY OF SAINT PAUL
- ; �-�
'•�"''°'�'�'' OFFICE OF TFIF CITY COUNCIL
:�,: :;..•re
'� �
�V��+�+��+ ����1� January 9 ,, 1986
F:i�an��, Mana�ement, & Personnel Cam.�.itte�.
1 . Approval of minutes from meeting held January 2 , 1986 . ��►�L'�
2 . Resolution amending th<� 1985 budget by transferring $7 , 857
from Contingent Reserve .to Executive Administration-Human
Rights Director Selection . �,�,� ��-{�, �.�� i w�� r��r�.�+��
3. Resolution approving the 1986- 1987 Memoranda of AgreementC�.'���
between the City and AFSCr1E Local 1842 and AFSCME Local 2508 .
NOT ON PREPARED AGENDA
4. Resoluti.on approving the T985-86 Maintenance Labor Agreement between
Independent School District No. 625 and United As'sociation Plum6ers -
Loca 1 34. c1����;� �
5. Resolution consenting to the issuance of a Port Authority Non 876 Tax
Exempt Mortgage i.n the amount of $4,200,000 for H. M. Smyth Co. to
acquire three new printing presses at their facility at 1085 Snelling
Avenue. ��srp�
6. "_' f�s�alau�;�nh 'qpnsenting to the issuance of ,� Port Au,thorit�fNon 87,b Tax
E�empt Mortga,�e i.n the amt�'unt of �500,000 for I gn�at i us Cc�pany, I nc. ,
to purchase a;>�aper sheetm+r:-��►: be instal led.�at the H. M. Smyth fac� 1 i ty
at �T#��''Snel"1�ng Avenue North.` ' ������
UNDER SUSPENSION OF RULES
7. Resolution allowing close-out of Shade Tree Control Fund 375 and Tree
Maintenance Fund 38g. (� ���-� C��,��• � �O f��������
CITY HALL SEVENTH FLOOR SAINT PAUL, MINNFSOTA SS10�
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