Loading...
86-1542 ` WHITE - CI7v CLERK �' PINK - FINANCE G I TY OF SA I NT PAIT L Council CANARV - DEPApTMENT � F11C NO• � BLUE - MAVOR � � ' ou il Resolution � �; Presente y � � �J '� Referred To ' � Committee: Date a J� Out of Committee By Date VV�REAS: 1. On October 2 , 1986 the Port Authority of the City of Saint Paul pted Resolution No. 2729 iving reliminary approval to the issuance of revenue bonds in the initial principal t of 925,000 to finance the oonstruction of an 18,0 0 square foot headquarters office, searc and service facility for Bay West, Inc. in ire Builder Industrial Park. Mi er & hroeder Financial will underwrite the revenue nd issue for a tenn of 30 years. 2. Laws bf Mi sota 1 76, Chapter 234, provides that any issue of re enue bonds authprized by ;the Po Aut ity of the City of Saint Paul, shall be issuei only with the oonsent of the City uncil f the City of Saint Paul, by resolution adopt in accordance with law; 3. The P�ort Au hority f the City of Saint Paul has requested that t City Council give its requi�site nsent suant to said law to facilitate the iss�nce f said revenue bonds by the Fprt Au hority f the City of Saint Paul, subject to final app oval of tt�e details of saiid iss by th Port Authority of the City of Saint Paul. RESOLVED,� by th City cil of the City of Saint Paul, that in accor ance with Laws of Minnesota ],976, C pter 34, the City Council hereby oonsents to the iss ce of the aforesaid reveinue bo ds for the purposes described in the aforesaid Port Au h�rity Resolution No.i 2729 the e ct details of which, including, but not limited to, provisions relating to maturiti s, int rest rates, discount, rede�nption, and for the i suance of additional bonds are to be etermined by the Port Authority, pursuant to re lution adopted by thg Port uthori y, and the City Council hereby authorizes the i suance of any additional bor�ds (in luding refunding bonds) by the Fort Authority, found b the Port Authority to }�e nece sary f r carrying out the purposes for which tY�e afore aid bonds are issued. ' � � COUNCILMEN Requested by Department of: Yeas Drew Nays � N"°S'a In Favor 1� Rettman �� Sonnen , __ Ageinst BY Tedesco Wilson ' O� � t� Q •° �(76 Form Appro by City Attorney Adopted by Council: I Date � �� Certified Yass d by Co�uncil Sec etary BY A B�r Approv by Mavor: Dat OV i r 1986 Appr ed by Mayor for Su mi ion to ouncil _ _ sy P�L s���� �`nUV ( �J 1986 � '- , DEPARTMENT, � ���/✓� NO O6O5s � C.M.� Towle E.A. xraut � CONTACT • 224-5686 ' PHONE �t. 2�. �986 �� oATE ee� e . , ASSIGN NUNBER FOR R0 ING 0 D�R C 'i All Locations for Si ature : 1 Department Direc or 3 Director of Managemen Mayor ` Finance and Mana ement ervice �, Director � 4 City Clerk Budget Director xE: S�a5,000 AEVENUE BO ISSUE 2 City Attorney � sAY w�sT zNC. HAT WILL BE ACH.IEVE BY TA ING AC ION ON THE ATTACNED MAT�RIALS? (Purpose/ Rationale) : The purpose of t e bond issue s to finance the construction of an 18,000 squa e foot headquarters off ce, fe ear�h �d service facility for Bay West, Inc. in Empir Bui�de"r Industrial Park. OST BENEFIT BUDGET RY AND PERSON L IMPACTS ANTICIPATfD: The amount of th reven e bond ti.ssue is $925,000 and will be'for a term of 30 ears. There will be ap roxima ely 15 }�ew jobs created as a result of this project. ; � F'INANCING SOURCE AND BUDGET ACTIVI NUf�ER CHARGED OR CREDITED: (Mayor's signa- ture not re- Tota1 Amount:of"T ansact on: N �, quired if under " �10,00Q) . Funding Source: _ . Activity Number: . ATTACHMENTS List an Numbe All A achments : 1. Staff Memora dum 2. Draft City C uncil esolut pn 3. P�rt Authari y Reso ution p. 2729 - : cc. J. Shoholm , . . , . ' DEPARTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resol tion R quired? ' Resolution Required? X es No Yes x No Insura ce Req ired? ! Insurance Sufficient? ` es No Yes x No Insura ce Att ched: . : . : . . (S E •REVE , E SIDE FOR INSTRUCTIONS) Revised 12/84 � _ .,,. ' . ' .. HOW TO USE TH$'GRE�i SI�ST � ` � �.� , , • The:GREEN SHEET has several PURPOSES: ' � � � � " ' 1. to assist in ,.routing documents and in secur.ing required siqnatures � 2. to brief the reviewers of docwdents on the impacts of approval � 3. to help`ensure that necessary su�pozt�.ng materials are. prepared, and, if . . required, attached. Providing complete inforsaa'tion under the liste� he$dings enables reviewers to make decisions on the dxuments and eliminates follow-up contacts that may delay execution. The COST/BENEFIT,. BUDGETARY AND PERSONNEL IMPACTS heading provides space to explain � the cost/benefit aspects of the decision: Gosts and benefits related both to City budget (General Fund and/or Special Funds) and to broader financial impacts (cost to users, homeowners or other groups affected bp the action) . T3�e personnel i.mpact is a description of change or shift of Full-Time Equivalent (FTE): positions. � If a CONTRACT amount is less than $'10,000, the Mayor's signature is not required, if the department director signs. A contract must always be first signed by the outside agency before routing through City offices. � � Below is the preferred ROUTING for the five most frequent types of documents: . CONTRACTS (assw�es authorized budget euists) � � 1. Outside Agency 4. Mayor 2. Initiating Departiaent 5. Finatice Director 3. City Attorney 6. Finance Accountinq ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others) 1. Activity Manager 1. Initiatinq Department 2. Department Accountant 2. City Attorney 3. Department Director 3. Director of Manaqement/Mayor : 4. Budget Director 4. City Clerk ' 5. City Clerk � 6. Chief Accountant, F&MS COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL I2ESOLUTION (all �others) 1. Department Director 1. Initiating Departs�ent 2. Budget Director 2. City Attorney 3. City Atto�ney 3. Director of Management/Mayor 4. Director of Manaqen�nt/Mayor 4. City Clerk 5. Chair, Finance, Mngmt. & Personnel Cam. 5. City Council 6. City Clerk 7. City Council 8. Chief Accountant, �'&MS SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the Green Sheet is well done, no letter of tranamittal need be included (unless siqninq � - , such a letter is one of the requested actfons) . Note: If an agreement requires eviderice of insurance/co-insurance, a Certificate of Insurance should be one of the attachments at time of routing. Note: Actions which require City Council Resolutions includes 1. Contractual r.elationship aith another gover�nental unit. - � 2.. Collect�ve barqaininq �ontracts. • � �3. Purchase, sale or lease of'land. 4. Iasuance of bonds by City. " � 5. Eminent domain. 6. Assumption of liability by City, or qrantinq by City of indemnific�tion. : 7. Agreements with State or Feder�l Government under which they are providing � funding. 8. Budqet amendments. . . . , /�� , • (�`- �_/.S�/°`i PORT AUTHIORIN O THE CI OF SAINT PAUL TOLL FREE( 00)328-8417 1900 AMHOIST TO R • 345 ST. PETER STREET • ST. PAUL, MN. 55102 • PHONE( 12)224-5686 Octaber 21, 1986 Mr. Jaanes Bel us, Di ector C�� � S' Planning and conami Developnent Department � City of St. ul � o, �..�_ 14th Floor, C'ty Hal Annex St. Paul, Mi esota 55102 SUBJECI': BAY WEST, NC. $92 ,000 BOND ISSUE Dear Jim: W�e su�mit her with f r your review and referral to the office of Mayor, City Cc�uncil d Cit Attorney's office details pertaining to the i suance of $925,000 i reven bonds to finance the construction of an 18,0 0 square foot h dqua ers office, research and service facility for y West, Inc. in Empire Builder Industrial Park. The Port Aut rity s aff has oonducted a thorough evaluation of the firms and/or indivi uals t t are involved in this project or in which t principals ha e an i terest. This investigation has included detai ed credit analys s, Dun and Bradstreet reports, direct cannunication w'th representativ s of f nancial institutions with whan the participant have done �siness and da a base checks to determine if any principal(s) have been in any w y invo ved in legal proceedings as a result of securi ies fraud, extort on, zzlement or financial misrepresentation. In addition t the s aff ine�orandum, we are attaching a draft oopy f the proposed City Counci resolution and a vopy of Port Autlbrity Resol ion No. 2729 whi h aut rized the sale of bonds in the amount of $925, 0. Your expediti us han ling of this matter will be appreciated. ' Yours truly, �ugene A. Kraut EAK:ca Executive Vice President cc. May�or Lat er EUGENE A KRAUT,C.1.0. DONALD G. UNSHEE.C.I. . CHARLES M.TOWLE CLIFfORD E.RAMSTED.P.E. PERRV K.FEDERS C.P.A EXECUTNE VICE PRESIDENT ASST.EXEC. CE PRESIDENT DIRECTOR Of INDUSTRIAL DEVELOPMENT CHIEF ENGINEER DiRECTOR OF FINANCE ASST.TREASURER RICHAR A GIERDAL WILLIAM E.McGNERN PROPER MANf�ER DIRECTOR OF PUBLIC RELATIONS COMMISSIONERS GEORGE W.WINTER LLIAM WIlSO ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.LANGEVIN CHRI NICOSIA JEAN M.WEST PRESIDENT CE PRESIDENT SECREfARV TREASURER COMMISSIONER COM ISSIONER COMMISSIONER CJ.f�. Cr3rtifiaci Inciustrinl fk�valnnar � � P �� R T �-�s�� � � � AUTHORITY OF THE CITY OF ST. PA L Memorandum TO: B(Y�Rp OF ISSI ERS DATE: p�t. 16, 1986 (Oct. 21, 1986 ular Meeting) FROM: C.M. Tawle SUBJECT: BAY WEST, I C. PUBLIC NG - P LIMINARY & UNDERWRITING AGREEMENTS $925,000 - 76 IN TRIAL REVENUE BOND ISSUE F1�IRE BUI R IN STRIAL PARK RESO�UTION . 272 PUBLIC SALE HEARIN - SALE OF LAND RESOLUTION . 273 1. '�'HF: C ANY Bay Wes , Inc. is an enviror�mental services provider with cur ent headqua ers o Grotto Street adjacent to Pierce Butler Road. Their primary area o service is in consulting and training, hazar us waste, groun ter, t nk testing and spill response. The ny is the largest independent envirorBnental contract r in Minnes a and s projects under way with 3M Canpany, Anderso Windaws, IBM and Inger 11-Rand. They have undertaken consulting cont acts and perfo d work for Honeywell, Control Data, the Soo Line Rail oad and have an ongoin contract with the State of Minnesota for emer ency servic . They cu rently e�nploy 24 people and anticipate adding over 15 employees within everal years. The can�any was organized in 1974 and s shown excell t reve ue growth with revenues increasing frnm $1,500 000 in 1982 t a proj cted $2,450,000 in 1986. 2. THE P ECT Bay Wes , Inc. is requesting financing for the construction o an 18,000 quare oot headquarters office, research and service acility in Fmpi e Buil er Industrial Park on a site inmediately east f the recent reha 'litated Burlington Northern Shops and adjacent to �ackso Street They initially will occupy approximately 14, 00 square �eet o this f cility and anticipate f illing the entire build ng in three f ive ars. ' . � , � ��- �s�� BOARD OF � SSION October 16, 1 86 Page -2- 3. FINANCING The propo ed fin ncing will be an 876 industrial revenue bond i ue for a 30-year term w th the proceeds frcan the bond issue used as fo laws: Construct on $840,000 Debt Servi ce Res rve - 0 - Capitaliz d Inte est During Construction 37,000 Bond Iss nce Co ts 20,000 Bond Dis unt 28,000 TO►TAL $925,000 The debt rvice reserve is estimated to be $85,000 which the i ustry will fina ce th gh a letter of credit. The Port uthori y will receive earnings on the sinking funds a well as ac�nini trativ fees based on a rate of 1$ per anni.en of the f ce a�unt of the bo d issue through the term of the issue. 4. TE�tMS OF E The Port uthori y will lease approximately 70,000 square feet f land to the ny a a rate of $2 per square foot at 10$ interest ith the actual la d rent based on $.2267 per square foot per year subje t to fimal su ey wit options to purchase outlined below: ' Land Building 10 Ye rs $167,492.48 $92,500.00 20 Ye rs $119,637.48 $92,500.00 30 Ye rs $ 71,782.49 $92,500.00 5. UNIDERWRIT NG Miller & chroed r Financial has agreed to undenarite a 30-year tax exempt or taxabl bond issue at an interest rate to be set at t e t une the bonds are so d. It will be necessary to apply to the State of Minnesota for 1 allocation, and the industry will provide th required $ depo it. If the allocation is received, w�e antici te the bot�ds wil be so d at the regular November Board meeting. 6. RE)COi�'II�7 TIONS The Distr'ct Co cil unanunously supports this project, and sta f has in�ervi offi rs of the cx�npany, revie�wed their financial statement and r oatmends approval of Resolution Nos. 2729 and 730. C��lI':ca . �_�s�a � � 541I Resolution No. �� RESOLUTION OF TH PORT AUTHORITY OF THE CITY OF SAINT PAUL W EREAS the purpose of Chapter 474, Minnesota Statutes, k own a the Minnesota Municipal Industrial Dev lop- ment Act (h reina ter called "Act" ) as found and determine by the legisla ure i to promote the welf are of the state by the active attr ction and encouragement and development of ec nomi- cally sound indus ry and commerce to prevent so far as po sible the emergen e of lighted and marginal lands and areas of chronic une ploym nt and to aid in the development of exi ting areas of bl ght, arginal land and per�istent unemploymen ; and W EREAS factors necessitating the active promo ion and develop ent o economically sound induatry and commer e are the iricreas ng co centration of population in the metropo itan areas and t e rap oly rising increase in the amount and c st of governmenta servi ces required to meet the needs of the increased p pulat on and the need for development of land use which will rovid an adequate tax base to finance these increased c sts a d access to employment opportunities fo such population; and W EREAS The Port Authority of the City of Sain Paul (the "Autho ity" ) has received from the Bay West, Inc. (hereinafte refe red to as "Company" ) a request that the Autho�ity i sue i s tax exempt or taxable revenue bonds t finance the acqui ition, installation and construction of facilitiea or th construction of an 18,000 square foot headq�arter offi e, research and service facility ( herei after collectivel call d the "Project") in Empire Builder Indu trial Park in the City f St. Paul, all as is more fully descri ed in the sttaff r port n file; and W EREAS the Authority desires to facilitate th selecttive d velop ent of the community, to retain and imp ove its tax bas and o help it provide the range of services and employment. pport nities required by its population, and aid � � . �is�� , Project will a sist he City in achieving that objective. S id Project will h lp to increase the assessed valuation of the City and help ainta n a positive relationship between asses ed valuation and ebt a d enhance the image and reputation of t e City; and WHER AS, t e Project to be financed by revenue bon s will result in subst ntial employment opportunities in the Project; WHER AS, t e Authority has been advised by repre- sentatives of he Co pany that conventional, commercial financing to p y the capital cost of the Project is availabl only on a limi ed ba is and at such high costs of borrowing that the econo ic fe sibility of operating the Project would be significantly educe , but the Company has also advised this Authority that but f r revenue bond financing, and its resulting low orrow ng cost, the Project would not be undertaken; WHER AS, M ller & Schroeder Financial, Inc. ( the "Underwriter" ) has m de a proposal in an agreement (the "Underwriting greem nt" ) relating to the purchase of the revenue bonds . o be ssued to finance the Project; ��HER AS, t e Authority, pursuant to Minnesota Statutes, Sect on 47 .01 , Subdivision 7b did publish a notic , a copy of whic with proof of publication is on file in the office of the uthor ty, of a public hearing on the proposal of the Company th t the Authority finance the Project hereinbef re described by t e iss ance of its industrial revenue bonds; a d WHER AS, t e Authority did conduct a public hearin pursuant to sa d not' ce, at which hearing the recommendation contained in t e Aut ority's staff inemorandum to the Commissioners ere r viewed, and all persons who appeared at the hearing we e giv n an opportunity to express their views with respect t the roposal. NOW, THERE ORE, BE IT RESOLVED by the Commissioner of the Port Au horit of the City of Saint Paul, Minnesota a follows: 1. On th basis of information available to the Authority it a pears, and the Authority hereby finds, that s id Project consti utes roperties , used or useful in connection with one or mo e rev nue Producing enterprises engaged in an business withi the eaning of Subdivision 1 (a) of Section 2 " � � �-�s�� 474.02 of t e Act that the Project furthers the purpoaes stated in S ction 474.01 of the Act and, but for the willingnesa of th Authority to furnish such financing, t e Company Wou d not undertake the Project, and that the eff ct of the Project if u dertaken, will be to encouraqe the deve op- ment df eco omica ly sound industry and commerce and assi t in the prevent on of the emergence of blighted and marginal land, and will he p to revent chronic unemployment, and will h lp the City to retai and improve its tax base and provide t e range of se vices and employment opportunities required b its population� and w 11 help to prevent the movement of tale ted and educate pers ns out of the state and to areas within the state where their services may not be as effectively used and will result in mo e intensive development and use of land within the ity a d will eventually result in an increase in the City's ax ba e; and that it is in the best interests of the port di trict and the people of the City of Saint Pau and in furthera ce of the general plan of development to asai t the Compariy in inanc ng the Project. 2 Su ject to the mutual agreement of the Authority, he Co pany and the purcha�ser of the revenue b nds as to the d tails of the lease or other revenue agreement as defined in he Ac , and other documents necessary to evid nce and eEfect he fi ancing of the Project and the iasuance f the revenue bon s, th Project is hereby approved and authori ed and the iss ance f either tax exempt or taxable revenue nds of the Auth rity n an amount not to exceed approximately $925 ,000 (o her t an such additional revenue bonds as are needed to c mplet the Project) is authorized to finance he costs of th Proj ct and the recommendations of the Autho ity's staff,i as s t for h in the staff inemorandum to the Commissione s whi h was presented to the Commissioners, a e incorporate here n by zeference and approved. 3 In accordance with Subdivi�ion 7a of Secti n 474.01, Min esota Statutes, the Executive Vice-President f the AUTHORITY i here y authorized and directed to submit the proposal fo the bove described Pzoject to the Commissio er of Energy and conom c Development, requesting his approval, and other off ic ra, e ployees and agents of the AUTHORITY are hereby auth rized to provide the Commissioner with such preliminary infor ation as he may require. 4 Th re has heretofore been filed with the Authority a form f Preliminary Agreement between the Aut ority and Company rela ing to the proposed construction and financing o the roject and a form of the Underwriting � 3 ` . � , (��-�s�a- , Agreement. T e for s of the agreements have been examined y the Commissio ers. It is the purpose of the agreements to evidence, the ommit ent of the parties and their intentions with reapect o the proposed Project in order that the Comp ny may proceed w' thout delay with the commencement of the acquisit�ion, nstal ation and construction of the Project with the assu'rance that here has been sufficient "official actio " under Section 103(b) of the Internal Revenue Code of 1954, a amended, to a low f r the issuance of industrial revenue bon s (including, i deem d appropriate, any interim note or notes to provide tempo ary financing thereof) to finance the entire c st of the Projec upon agreement being reached as to the ultimate details of th Project and its financing. Said Agreements a e hereby approv d, an the President and Secretary of the Authority are hereb authorized and directed to execute said Agreements. 5. Upon xecution of the Preliminary Agreement b the Company, he st ff of the Authority is authorized and directed to c tinue negotiations with the Company so as to resolve the r aini issues necessary to the preparation of the lease and ther ocuments necessary to the adoption by t e Authority of its fin 1 bond resolution and the issuance and delivery of th reve ue bonds; provided that the President ( r Vice-Pre�ident if th President is absent) and the Secretary (or Assi$tant ecret ry if the Secretary is absent) of the Authority, or if eit er of such officers (and his alternativ ) are abser�t, th Trea urer of the Authority in lieu of such absent officer , are hereby authorized in accordance with th provisions of innes ta Statutes, Section 475.06, Subdivisio 1, to accept a final offer of the Underwriter made by the Underwriter to purch se said bonds and to execute an Underwriting A reeme t setting forth such offer on behalf of the Authority. Such acceptance shall bind the Underwriter t said offer but shall be subject to approval and ratification by the Port Autho ity i a formal supplemental bond resolution o be adopted pri r to he delivery of said revenue bonds. 6. The r venue bonds (including any interim note or notes) and int rest hereon shall not constitute an indebtedness o the uthority or the City of Saint Paul with n the meaning of any c nstitutional or statutory limitation an shall not cons itute or give rise to a pecuniary liability o the Authqrity r the City or a charge against their general credit o� taxi g pow rs and neither the full faith and credi nor the �axing power of the Authority or the City is pledge for the @aymen of t e bonds (and interim note or notes) or interest there n. 4 � � . ��-/s��-- . � 7 . In or er to facilitate completion of the reve ue bond financin herei contemplated, the City Council is here y , requested to c nsent, pursuant to Laws of Minnesota, 1976, Chapter 234, the 'ssuance of the revenue bonds (includinq any interim no e or otes) herein contemplated and any addition�l bo s Whi h the Authority may prior to issuance o from time to t'me th reafter deem necessary to complete the Project or to refund such revenue bonds; and for such purpos the Executive ice P esident of the Authority is hereby authorizl�d an directed to forward to the City Council copie of this resolution a d said Preliminary Agreement and any additional av ilable information the City Council may reques . 8. The a tions of the Executive Vice-President o the Authority in cau ing public notice of the public hearing and in descri ing th general nature of the Project and � estimating th prin ipal amount of bonds to be issued to finance khe P ject nd in preparing a draft of the proposed application t the mmissioner of Enerqy and Economic Development, S ate o Minnesota, for approval of the Project wh�ch has been avail ble for inspection by the public at the office of the uthor' ty from and after the publication of notice of the ea�in , are in all respects ratified and confirmed. Adopted October 21 , 986 - / Attest ,, ;.� - -�- t -- - r-� The Port Authority of the City �, of Sai Paul S �}�uil-. Sec e ry 5 � ' C �� C[e+.�-� . d� -�s�� . n! CIT OF SAINT PAUL i'siii�i i:iil ' O � OF TH� CITY COUNCIL ammittee ReFort �:i� � ce ana me�t & Personnel Committee. xov�r�x 6, i9s� 1. Approval of minutes rom mee ing held October 30, 1986. approved 2. Resolution establish'ng the ate of pay for Parking Enforcement Officer in Grade 17, Section I 1 of e Salary Plan and Rates of Compensation Resolution. a rov d 3. Resolution amending he 198 budget by adding $10,200 to the Financing Plan and to the 5pending lan fo Special Projects - Police - Employees Assistan e Program. a roved 4. Resolution amending he 198 budget by adding �115,000 to the Financing Pla and to the Spendi,ng , lan fo Sperry/Union Brass Dislocated Worker Project. - approved � � 5. Resolution consentin to th approval of Port Authority Revenue Bonds in the amount of �'$925,0 0 to f nance construction and headquarters office for Bay West Inc. , in Em ire Bu lder Industrial Park. approved 6. Administrative Order : D-8145: Authorizati n of p yment to Mercury Ma.rine for training parts and tools r lative to Watergate Marina. discussed D-8148: Additions o $7,73 .40 to the contract for Como Golf Clubhouse site improv ments golf course reconstruction. laid over 11/13 � I i I � � CTTY HALL S FLOOR SAINT PAUL, MIN ESOTA 55102 �m re