86-1662 WHITE - CITY CIERK
PINK - FINANCE G TY O F SA I NT PA U L Council �_����
CANARV - DEPARTMENT
Bl_UE - MAVOR File � NO.
. . C ncil Resolution
Presented By •
Referred To Committee: Date
Out of Committee By Date
4�REA.S:
1. � DeceRnber , 1986 the Port Authority of the City of Saint Paul pted
Resolution No. 2757 g'ving p eliminary approval to the issuance of revenue nds in the
initial prineipal a�no t of 3,950,00o to finance the acquisition and rehab' itation of
the nine-story, 47,79 squar foot St. Paul Building located at Fifth and W sha for
Lancer-St. Paul Build'ng Pa nership. The partnership is actnprised of Lan W. Peterson
and Curtis E. Burc dt. M'ller and Schroeder Financial has agreed to un rwrite the
revenue bond i�sue fo a te of 30 years.
2. The Port Aut rity f the City of Saint Paul will suYmit an applic tion for an
industrial revenue d all tion fran the State of Minnesota Canpetitive 1 as an
entitlenent al�ocati was t secured for this camnercial project.
2. Laws of Mi sota 1 76, Chapter 234, provides that any issue of re enue bonds
authorized by �he Po Autho ity of the City of Saint Paul, shall be issued only with the
oonsent of the City uncil f the City of Saint Paul, by resolution adopt in acoordanoe
with law;
3. The Port Au rity f the City of Saint Paul has requested that th City Council
give its requisite sent suant to said law to facilitate the issuance f said revenue
bonds by the Port Au rity f the City of Saint Paul, subject to final app val of the
details of said iss by th Fort Authority of the City of Saint Paul.
RESOLVED, by t City uncil of the City of Saint Paul, that in accor nce with Laws
of Minnesota 1976, C pter 2 4, the City Council hereby consents to the iss ce of the
aforesaid revenue bo s for he purposes described in the aforesaid Port Au hority
Resolution No. 2757 he exa details of which, including, but not limited o, provisions
relating to malturiti , int est rates, discount, reclanption, and for the i suance of
additional bon�3s are to be tennined by the Fort Authority, pursuant ta r� lution
adopted by the Port uthorit , and the City Council hereby authorizes the i su�ance of any
additional boncls (in luding efunding bonds) by the Port Authority, found the P�rt
Authority to be nece sary f carrying out the purposes for which the afore aid bonds are
issued.
COUNCILMEIV Requested De ent of:
Yeas DfeW Nays �—J
Nicosia /�•
Rettman IR FBVO[
Scheibei �
Sonnen _ Agal[1St BY
Tedesco
Wilson
Adopted by Council: Date �CC' � 8 �6 Form Ap�ed by C�y Attorney
Certified Pas e ounc.'1 Secr BY��J�`J w\ ` / �
g},
Appr d by Mavor: p Ey 2 E � 6 Appro b Mayor for S '��on to Cou cil
By —
PUB {SHEO J �P�� 1 0 ]9 8 7
� lG�.�
st. Paul Port Autho it • � DEPARTMENT _ � � _ 06059
c.1K. Towle E.1�. xr ut �! CONTACT '
224=5686 PHONE .
Dec. 8,. 1986 DATE Qi�� ,,.
�
SIGN NUh�ER FOR RO ING QR R C1 � All . Locations for Si nature : .
1 Departmerrt Direct `r 3 Director ofi Management yor
� Finance and Manag ent S rvices Director - 4 City Clerk
Budget Director _ pARZ�xER xzP
2: Gity Attorney � , 3 s5o 00o x�v�riuE oNn .zssuE
HAT WILL BE ACHIEVED BY TAiC NG ACT ' N ON THE ATTACHEO MATERIAlS? (Purpose/
Rationale) :
The purpose of. the evenu bond ' sue is to finance the acquisition and rehabili ation of
the nine-story, 47,793 s re fo St. Paul Buildirig located at Fifth and Wabash for the
Lancer�St. Paul Building rtner ip. The partnership is comprised of Lance W. eterson
and Curtis E. Burc ardt. ' R���(�
D�G 5�
COST BENEFIT BUDGET Y AND ERSONN L IMPACTS ANTICIPATED: MA'fOR'S��
The amount of the r venue ond i ue is $�3,.950','000 and will be for a term of 30 ears.
There will be appr imate �1Q0 w jobs created as a result of this project.
.
The Port Authority ill s mit a lapplication. for an industrial revenue bond all cation
from the State of inneso Comp itive Pool as an entitlement allocation was no secured
for this 'commercial proje t.
i
FINANCING SOURCE AND UDGET CTIVIT NUNBER CHARGED OR CREDITED: (Mayor's signa-
ture not re-
Total Amount of"Tr nsacti n: quired if under
A � �10,000)
Funding Source: _
Activity Number: •
ATTACHMENTS List and Number All At achments :
1. Staff Memorand
2. Draft City Cou il Re olutio
3. Port Authority esolu ion No. 2757 �
cc. J. Shoholm
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w ' . . . . . . . . .
QEPARTMENT REVIEW CITY ATTORNEY REVIEW
x Yes No Council Resolu ion Re �uired? ' Resolution Required? � s No
Yes X No Insuran e Requ red? Insur�nce Sufficient? x s No
Yes X No Insuran e Atta hed: �
(S �REVE E SIDE FOR INSTRUCTIONS) �
Revised 12/84 �
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Resolution No. �Z ,�
RESOLUTION OE
TH PORT AUTHORITY OE THE CITY OF SAINT PAUL
W EREAS, the purpose of Chapter 474, Minnesota
Statutes, k own a the Minnesota Municipal Industrial Deve op-
ment Act (h reina ter called "Act" ) as found and determine by
the legisla ure is to promote the welfare of the state by he
active attr ction nd encouragement and development of eco omi-
cally saund indust y and commerce to prevent so far as pos ible
the emergen e of lighted and marginal lands and areas of
chronic une ployme t and to aid in the development of exis ing
areas of bl'ght, rginal land and persistent unemployment and
W EREAS, factors necessitating the active promot on
and develop ent of economically sound industry and commerc are
the increas'ng con entration of population in the metropol tan
areas and t rapi ly rising increase in the amount and co t of
governmental servi es required to meet the needs of the
increased p pulati n and the need for development of land se
which will ovide an adequate tax base to finance these
increased c sts an access to employment opportunities f or such
population; nd
WH REAS, The Port Authority of the City of Saint Paul
(the "Autho ity") as received from the Lancer-St. Paul
Building Par nersh'p (hereinafter referred to as ""Company" a
request tha the A thority issue its revenue bonds (which ay
be _ in the fo m of single note) to finance the acquisitio and
rehabilitati n of he St. Paul Building at the southeast c rner
of Fifth and Wabas a Streets in the City of St. Paul
(hereinafte calle the "Project" ) � all as is more fully
described in the s aff report on file; and
WH REA3, the Authority desires to facilitate the
selective de elopm nt of the community, to retain and impr ve
its tax bas and t help it provide the range of services nd
employment o portu ities required by its population, and s id
Project will assis the City in achieving that objective. Said
' Project will help o increase the assessed valuation of th
City and hel main ain a positive relationship between ass ssed
valuation an debt and enhance the image and reputation of the
City; and
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WH REAS, the Project to be Einanced by revenue bo ds
will result ' n substantial employment opportunities in the
Project;
WH REAS, the Authority has been advised by repre-
sentatives o the mpany that conventional, co►nmercial
financing to pay t capital cost of the Project is availab e
only on a li ited sis and at such high costs of borrowing
that the eco omic f asibility of operating the Project woul be
significantl reduc d, but the Company has also advised thi
Authority tri t but for revenue bond financing, and its
resulting lo borro ing cost, the Project would not be
undert�ken;
WH R�AS, iller & Schroeder Financial, Inc. ( the
"Underwriter ) has ade a proposal in an agreement ( the
"Under ritin Agree ent" ) relating to the purchase of the
revenue� bond to be issued to finance the Project;
WH REAS, the Authority, pursuant to Minnesota
Statute , Se " tion 4 4.01, Subdivision 7b did publish a noti e,
a copy •f wh'ch wit proof of publication is on file in the
office f th Autho ity, of a public hearing on the proposa of
the Company hat th Authority finance the Project hereinbe ore
describ d by the is uance of its industrial revenue bonds; nd
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WH REAS, he Authority did conduct a public heari g
pursuant to aid no ice, at which hearing the reconrtnendatio s
contain;ed in the Au hority's staff inemorandum to the
Commissioner were eviewed, and all persons who appeared a
the hearing ere gi en an opportunity to express their view
with respect to the proposal.
NO , THE FORE, BE IT RESOLVED by the Conunissione s .
of the �ort uthori y of the City of Saint Paul, Minnesota s
follows: ,
1. On t e basis of information available to the
Authori�y it appear , and the Authority hereby finds, that aid
Project cons itutes properties, used or useful in connectio
with one or re re enue producing enterprises engaged in a y
busines wit in the meaning of Subdivision la of Section 47 .02
of the �ct; hat th Project furthers the purposes stated i
Section 474. 1 of t e Act and, but for the willingness of t e
Authority to furnis such financing, the Company would not
undertake th Proj t, and that the effect of the Project, f
underta en, ill be to encourage the development of
� economically sound industry and commerce and assist in the
. ��-/G��
prevent'ion of the e ergence of blighted and marginal land, a d
will help to reven chronic unemployment, and will help the
City to retain and 'mprove its tax base and provide the rang
of services a d emp oyment opportunities required by its
population, a d wil help to prevent the movement of talente
and edu ated erson out of the state and to areas within th
state w ere t eir s rvices may not be as effectively used an
will re�ult i more intensive development and use of land
within the Ci y and will eventually result in an increase in
the Cit 's ta base and that it is in the best interests of
the por dist ict a d the people of the City of Saint Paul a d
in furt eranc of t e general plan of development to assist he
Company in fi ancin the Project.
' 2 . Subj ct to the mutual agreement of the
Authority, th Comp ny and the purchaser of the revenue bond
as to the det ils o the lease or other revenue agreement as
defined � in th Act, and other documents necessary to evidenc
and eff ct th fina cing of the Project and the issuance of t e
revenue bonds the roject is hereby approved and authorized
and the issua ce of revenue bonds of the Authority (which may
be in t e fo of a single note) in an amount not to exceed
approximately $3,95 ,UUO (other than such additional revenue
bonds as are eeded to complete the Project) is authorized to
finance �the c sts o the Project and the recommendations of t e
Authori y' s s aff, set forth in the staff inemorandum to th
Commiss 'oners which as presented to the Coitmiissioners, are
incorpo ated erein y reference and approved.
3 . In ac ordance with Subdivision 7a of Section
474.01 , Minne ota St tutes, the Executive Vice-President of t e
AUTHORITY is ereby uthorized and directed to submit the
proposal for he abo e described Project to the Commissioner f
Energy a d Ec nomic evelopment, requesting his approval, and
other of icers, empl yees and agents of the AUTHORITY are
hereby authorized to provide the Commissioner with such
preliminary in ormat on as he may require.
4 . There has heretofore been filed with the
Authorit a fo m of reliminary Agreement between the Authori y
and Comp ny, r latin to the proposed construction and
financin of t e Pro ect and a form of the Underwriting
Agreement. Th form of the agreements have been examined by
the Commission rs. t is the purpose of the agreements to
evidence, the c mmitm nt of the parties and their intentions
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with r�spect to th proposed Project in order that the Comp ny
may proceed ithou delay with the commencement oE the
acquisition, insta lation and construction of the Project w th
the assuranc that there has been sufficient "ofEicial acti n"
under ectio 103( ) of the Internal Revenue Code of 1954, s
amende , to llow or the issuance of industrial revenue bo ds
( inclu iny, f dee ed appropriate, any interim note or note to
provid temp rary inancing thereof) to finance the entire ost �
of the Proje t upo agreement being reached as to the ultim te
details oF t e Pro ect and its financing. Said Agreements re
hereby ,appro ed, a d the President and Secretary of the
Author'ty ar here y authorized and directed to execute sai
Agreem nts.
' S. Upo execution of the Preliminary Agreement y
the Company, the s aff of the Authority is authorized and
directed to ontin e neqotiations with the Company so as to
resolve the emain'ng issues necessary to the preparation o
the le se an othe documents necessary to the adoption by he
Author' ty of its f 'nal bond resolution and the issuance and
delive y of he re enue bonds; provided that the President or
Vice-P eside t if he President is absent) and the Secretar
(or Assistan Secr tary if the Secretary is absent) of the
Authority, o if e' ther of such officers (and his alternati e)
are abslent, he Tr asurer of the Authority in lieu of such
absent offic rs, a e hereby authorized in accordance with t e
provis 'ons o Minn sota Statutes, Section 475.06, Subdivisi n
1, to ccept a fin 1 offer of the Underwriter made by the
Underwriter o pur hase said bonds and to execute an
Underwriting Agree snt setting forth such offer on behalf o
the Authorit . Su h acceptance shall bind the Underwriter o
said of�,fer b t sha 1 be subject to approval and ratificatio by
the Po t Aut ority in a fonr►al supplemental bond resolution to
be ado ted p ior t the delivery of said revenue bonds.
6. The revenue bonds ( including any interim not or
notes) and i teres thereon shall not constitute an
indebtedness of th Authority or the City of Saint Paul wit in
the me ning f any onstitutional or statutory limitation a d
shall ot co stitu or give rise to a pecuniary liability f
the Au norit or t City or a charqe against their qeneral
credit ,or ta ing p ers and neither the full faith and cred t
nor the taxi g pow rs of the Authority or the City is pledg d
tor the paym nt of the bonds (and interim note or notes) or
interest the eon.
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7. In rder to facilitate c�xnpletion of the rev nue
bond financi g her in contemplated, the City Council is her by
requested to conse t, pursuant to Laws of Minnesota, 1976,
Chapter 234, to th issuance of the revenue bonds ( includin
any interim ote o notes) herein contemplated and any
additional b nds w ich the Authority may prior to issuance r
from time to time hereaPter deer� necessary to complete the
Pro�ect or t refu d such revenue bonds; and for such purpo e
the Executiv Vice President of the Authority is hereby
authorized a d dir cted to forward to the City Council copi s
of thi� reso ution and said Preliminary Agreement and any
additional a ailab e information the City Council may reque t .
8. The actions of the Executive Vice-President f
the Authorit in c using public notice of the public hearin
and in descr bing he general nature of the Project and
estimating t e pri cipal amount of bonds to be issued to
finance the rojec and in preparing a draft of the �ropose
application o the Conunissioner of Energy and Economic
Development, State of Minnesota, for approval of the Projec ,
which l�as be n ava lable for inspection by the public at th
office of th Auth rity fram and after the publication of
notice of th hear ng, are in all respects ratified and
confirmed.
Adopted Dec ber 8 1986
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Attest �
��ee. i ent - .
� The Port Authority of the City
of Saint Paul
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`' 9ecretary
t
P O R T - � Cr � -i���
AUTHO�RI Y
OF THE CITY OF S�. PAUL
�
Memorandum
TO: g�D F COPM�I SSIONE DATE: �c. 5, 1986
(Dec 8, 19 6 Spec al Meeting)
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FROM: C.M. Tcc��wwl
SUBJECT: ��R T. PA L BUIL ING PARTNERSHIP
PUBLIC HEARIN - PRE IMINARY AND UNDERWRITING AGREEMEI�Tr "
$3,950,000 87 BOND ISSUE
RESOLUTI�l NO 2757
PUBLIC HE�ARI - S OF LAND
RESOLUTION NO 2758
1. PRQTE
La cer-St Paul uilding Partnership has requested financing fo the
ac isiti n and habilitation of the St. Paul building located n the
so thwest corner of Fifth and Wabasha. This nine-story buildin
co tains 7,793 quare feet of gross rentable area, and the dev opers
ar� plann ng to rect a penthouse addition to the roof of,1,250 quare
fe�t whic will ive a total gross rentable area of 49,043 squa feet.
The St. P ul Bui ding is on the National Register of Historic P1 ces
and will conn cted to the skyway syste�n through the Lowry Bui ding
and be re bilit ted into office space with sane ccx��ercial on
first and second floors and a restaurant in the base,ment and a rtion
of the f i st f 1 r.
Lancer an Assoc ates will occupy the penthouse and one full fl r with
a strong nteres or letters of intent fran other tenants with e
projected lease chedule as follows:
Te ant Square Feet
Re tauran (bas nt & partial lst floor) 8,379
Bo ine Je lers partial lst floor) 2,000
Ba llon C ny 1 floor) 4,650
wo d Arch tects 1 floor) 4,650
Do las R alty ( /2 floor) 2,325
Mi dle Ea t Air ansport (1/2 floor) 2,325
Lamcer & socia es (1 floor and penthouse) 5,877
Gross Ren able ea Leased 30,206
Total Gro s Rent ble Area of Building 49,043
Leased s ce of uilding 62$
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BQA�2D OF C�OrM�II IONERS
Dece�nber 5, 19 6
Page -2-
The develo rs cur ently own and operate a restaurant in Faribaul ,
Minnesota, ich e new facility will be patterned after, and wi 1
oontain St. Paul rabilia and will be an up-scale, full servic
lunch and inner o ration.
The restau nt wil be financed as a separate entity with expendi ures
for this f ility ut of bond funds limited to mechanical and
electrical ystesns to the exterior of the space with all leasehol
unprovemen finan ed fran other sources.
2. Tf� DEVELAP R/P HIP
Lancer and socia es is operated by Lance W. Peterson and has
extensive velo nt and rehabilitation experience as a develope and
oontractor nd cur ently has projects under way such as the Rocha -
Louise Buil ing on West 7th Street, and the Newman Building Apa nts
and the C. Grigg -Foster Building, all in St. Paul. They were
involved in the Cr ekside Court Townhcme canplex, Terri Place
Apartments nd oth rs, all in St. Paul in the suburban areas. Th firm
was the rec'pient f an award for their special oontributions for
preserving he his oric resources of the State of Minnesota by t
Preservatio Allia ce of Minnesota.
Mr. Curtis . Burc ardt will be a partner in the project and se es as
President o Portf lio Development, Inc. et al and has extensive eal
estate hold'ngs in the metropolitan area. Both Messrs. Peterson nd
Burckhardt ill se e as guarantors for the Cash Flow Maintenance
Agreement f r the roject.
3. FINANCING
The propos finan ing will be a Resolution 876 industrial reven bond
issue for a 30-yea ternn in the amount of $3,950,000 million. Pr s
of the bond issue ill be used as follows:
Acquisition and Re bilitation $3,382,675
Debt Servi Rese e 340,200
Capitalized Intere t 148,125
Issuance an Discb t 79,000
�� $3,950,000
Total proj t oost is estimated at $5,217,000 and a source and
application of fun s is as follavs:
.- �-�GG�
BOARD OF ICOr'A4IS IONERS
December 5, 198
Page -3-
SOUR ES OF
Fort uthor ty Bon Issue $3,950,000
Cash Equity 500,000
Inve ted E ity 267,000
Rest�urant ity 500,000
��+ $5,217,000
USES OF
Building Ac isiti n $1,600,000
Rehabilitat on 2,478,675
Debt Servi Rese 340,200
Restaurant aseho ds 500,000
Issu nce an Disco t 150,000
Capi alized Intere t 148,125
'�' $5,217,000
The rtner hip wi 1 provide $500,000 in new cash equity to the pr ject
and ill le ve $26 ,000 which has already been invested in the pro ect.
Of t se f ds, $1 0,000, which has been invested in exterior clea ing,
dc�nolition nd arc itectural fees, will be reimbursed out of bond unds
afte the b ilding is canpletely renovated and they have met the t nns
of t Cash Flow M intenance Agreement if the funds are available.
Messrs. Pet rson a Burckhardt will execute a Cash Flow Maintenan e
Agreetnent w ich wil provide for their personal guarantees of any ebt
service sho falls ntil such time as there are leases in place an the
space is oc upied d the leases have seasoned for six months. Le ses
will be for at lea three years and rentals generated will offset all
Port Author'ty lea expenses and operating costs. Any restaurant
lease will excl ed fran this calculation.
The Port Au hority ill receive full earnings on the reserve which will
be capitali ed in e bond issue; and if warranted, this could be
subst'ituted ith a etter of credit for the term of the bond issue
provil�ded th funds eleased fran the debt service reserve are inve ted
in t proj t. T Port Authority will receive its usual fiscal nd
administrat ve fee of .42$, .54$ and .66$ of the face amount of t e
bond issue hrough he lOth year, 20th year and the 30th year
respe tivel and i a letter of credit is substituted for the rese e,
the fiscal nd ac�ni istrative fee will change to 1� of the bond is ue.
The rtner hip wi have the option to acquire the building for 1 $ of
the o igina bond i sue plus outstanding revenue bonds at 10 and 2
years'land 1 $ of t bond issue at the end of the term.
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BQARD OF OON�II SIONERS
December 5, 19 6
Page -4-
The Muske ny as appraised the completed project at $4,965,0 0
with tax e empt fi ancing in place. The appraisal indicates that the
business o fice va ancy rate in Downtown St. Paul is at a modest evel
of about 8.9$ and hat professional marketing efforts should resu t in
a relative quick lease-up of renovated office and retail space t
projected t, net net rents averaging $10.77 per square foot.
4. IJNDERWRITI
Miller and chroe r Financial has agreed to underwrite the reven
bond issue for a t rm of 30 years at an interest rate to be set t
date the ds are sold which sale should occur at either our r lar
December ting o before.
5. RECONIIKEIVOAT ONS
The Downt Distr ct Council has reviewed and approved the proje t and
staff has i tervi d officers of Lancer and Associates, reviewed their
financial s ate�nen s and recaYmends approval of Resolution Nos. 2 57
and 2758.
CMr:ca
Attach.
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PORT AUTHORIN OF T E CIN O SAINT PAUL TOLL FREE(8 )328-8417
� � 1900 AMHOIST TOWE • 5 ST. PETER STREET • ST. PAUL, MN. 55102 • PHONE(61 )224-5686
Decesnber 8, 1986
Mr. Jaane� Bellu , Dire tor
Planning and E nanic velognent Department ���� `1
City of St. Pa ,� �� � �
14th Floor, Cit Hall ex ��
St. Paul, Minne ta 5 102
SUBJECT: -ST. P UL BUILDING PARrNEERSHIP
$3,95 ,000 UE BOI�iD ISSUE
Dear Jim:
We sutmit herew th for your review and referral to tt�e office of the yor,
City Council City ttorney's office details pertaining to the iss ce
of $3,950,000 i reven bonds to finance the acquisition and
rehabilitation f the ine-story, 47,793 square foot St. Paul Buildi
located at Fif and sha for the Lancer-St. Paul euilding Partner ip.
The partnership is ised of Lance W. Peterson and Curtis E. Burc rdt.
The Port Author ty wil sukmit an application for an industrial reven
bond allocation frcm e State of Minnesota Canpetitive Fool as an
entitlement all tion was not secured for this car�nercial project.
The Fort Author ty sta f has vonducted a thorough evaluation of the f'Yms
and/or individ ls tha are involved in this project or in which the
principals have an int rest. This investigation has included detail
credit analysis Dun d Bradstreet reports, direct c�atmunication wit
representatives of fi cial institutions with whan the participants ve
done business a d data base checks to determine if any principal(s) e
been in ainy way invol in legal proc�dings as a result of securiti
fraud, extortio , esnbe zlsnent or financial misrepresentation.
In addition to he sta f inenorandian, woe are attaching a draft copy of e
proposed City cil esolution and a copy of Port Authority Resolut' n
No. 2757 which uthori the sale of revenue bonds in the aacqunt of
$3,950,000.
Your expeditiou handi ng of this matter will be appreciated.
urs tnil.y,
EP,R:ca �gene A. Kraut
EUGENE A KRAUi,C. �' �j vVNACD . HEE,C.I.D. CHARLES M.TOWLEEX@CUt 1VP���I�E PR��E?��Et1t pERRY K.FEDERS C.P.A
EXECUTIVE VICE PRESIDEM PRESIDENT DIRECTOR OF INDU5fRIAL DEVELOPMENf CHIEF ENGINEER DIRECTOR OF FINANCE
ASST.TREPSURER
RICHARD GIERDAL WILLIAM E.McGNERN
PROPERN ER DIRECTOR OF PUBLIC RELAiIUNS
COMMISSIONERS GEORGE W.WIMER WI WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAVMOND E.LANGEVIN CHRIS NI OSIA JEAN M.WEST
PRESIDEM VI PRESIDENT SECRETARV TRF.ASURER COMMISSIONER COMMI ONER COMMISSIONER
C.I.D.Certified Industrial Developer
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PORT AUTH RITY OF E CIN F SAINT PAUL TOLL FREE(8 )328-8417
1900 AMHO ST TOWE • ST. PETER STREET • ST. PAUL, MN, 55102 • PHONE(61 )224-5686
December 8, 1986
Mr. Jame� Bell , Dire tor
Planning' and E nanic velopment Department
City of St. Pa
14th Floor, Cit Hall ex
St. Paul, Minne ta 5 102
SUBJE(.T: ST. P UL BUILDII� PAI�IERSHIP
$3,95 ,000 UE �ID ISSUE
Dear Jim�
fnie sutmi herew'th for y�ur review and referral to the office of the y�or,
City Co cil an City ttorney's office details pertaining to the iss ce
of $3,95 ,000 i reven bonds to finance the acquisition and
rehabili ation f the ine-story, 47,793 square foot St. Paul Buildi
located t Fif and sha for the Lance�St. Paul Building Partner hip.
Tt�e pa ershi is rised of Lance W. Peterson and Curtis E. Burc rdt.
The Port Author'ty wil sul�nit an application for an industrial reven
bond all tion fran e State of Minnesota Canpetitive Fool as an
entitl nt all ation was not secured for this carmercial project.
The Port'i,Author'ty sta f has aonducted a thorough evaluation of the f'rnns
and/or individ ls tha are involved in this project or in which the
principals have an int rest. This investigation has included detail
credit analysis Dun d Bradstreet reports, direct oa�munication wit
representatives of fi cial institutions with whan the participants ve
done business data base checks to detennine if any principal(s) ve
been in �r►y way invol in legal prooeedings as a result of securiti s
fraud, extortio , embe zlement or financial misrepresentation.
In addit on to he sta f inemrand�n, w�e are attaching a draft c�opy of the
proposed City cil esolution and a oopy of Port Authority Resolut' n
No. 2757 which uthori the sale of revenue bonds in the a¢�aunt of
$3,950,0 0.
Your e itio handi ng of this matter will be appreciated.
ur truly,
EAR:ca �gene A. Kraut
EUGENE A.KRAUT,C.I.D.�' �j�NR�D • EE,C.I.D. CHARLES M.TOWLEEX@CIlt1VP���EPR�'��llt
PERRY K.FEDERS C.P.A
EXECUTIVE VICE PRESIDEM ASSL EXEC. E PRESIDENT DIRECTOR OF INDHSfRIAL pEVELOPMEM CHIEF ENGINEER DIRECTOR Of FINANCE
ASST.iREPSURER
RICHARD GIERDAL WILLIAM E.McGNERN
PROPERiY ER DIRECTOR OF PUBLIC RELAiIONS
COMMISSIONERS GEORGE W.WINTER WI WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.LANGEVIN CHRIS N OSIA JEAN M.WEST
PRESIDENT VI PRESIDENT SECREfARV TREASURER COMMISSIONER COMMI IONER COMMISSIONER
C.I.D.Certified Industrial Developer
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CI Y OF SAINT PAUL
`�i'a�il � O Ca' OF THE CITY C
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Cammi�te� Re�ort
F:� ance l�an eme�t & Persannel Committee.
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DECEMBER 11, 1986
1. Approval of min es fro meeting held November 26, 1986. a roved
2. Resolution conse ting t the issuance of Port Authority Revenue Bonds
in the amount of $25,00 ,000 to finance the purchase of two office bui ings
from Space Cent Inc. approved
3. Resolution appr ing th issuance of Port Authority Revenue Bonds in t
amount of; $628, 00 to f'nance the construction of an office, manufactu ing
and wareh use f cility or S & S Partnership in Riverview Industrial P k.
a rove
4. Resolutio amen ing the 1986 budget by adding $46,623 to the Financing Plan
' . • and to th Spen ing Pla .fo•r General Government Accounts = Housing Inf rmation •
Office. a r ved � �
S. Resolutio amen ing the 1986 budget by adding $28,630 to the Financing Plan
� and to th Spen ing Pla for General Fund - Finance and Management Se ices -
Housing I forma ion Off ce. approved
6. Resolutio amen ing the 1986 budget by adding $4,000 to the Financing lan
and to the Spen ing P1 for City Attorney - Outside Services. a r ved
7. Resolution amen ing th 1986 budget by adding $20,000 to the Financing Plan
� and to the Spen ing P1 for Parks and Recreation - Private Donations.
approved
8. Resolution amen ing th 1986 budget by adding $42,938 to the Financing Plan
and to the Spen ing P1 - Police Accreditation. approved
9. Resolutiqn amen ing th 1986 budget by adding $42,938 to the Financing Plan
and to t e Spen ing P1 for Special Projects - Police Accreditation. approved
10. Resoluti n amen ing th 1986 budget by adding $118,910 to the Financin Plan
and to t e Spen ing P1 n for Public Works - Engineering. a roved
11. Resoluti n appr ving t e 1986-1989 Maintenance Labor Agreement between
'Independ nt Sch ol Dis rict 625 and Plasterers Local No. 20. a rov
I
12. Resolutic}n amen ing th 1986 budget by transferring $28,000 from Conti gent
Reserve Co Co� nity S rvices - Public Health for the Lead Study Progr m.
approved
C� ��- FLOOR SAINT'PAUL, ESOTA SSI02
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COMMITTEE'REPOkT
FINANCE, MANAGEMENT & PERSO EL CO TTEE
December 11, 1986
Page 2
13. Resolutioa autho izing n agreement between the city of Saint Paul, Div sion
of Public Health and th Ramsey Courity Public Health Department whereby the
County will prov de pub ic health nursing and interpreter services to a sist
the city in cond cting ts Lead Screening Program. avnroved
14. Resolution appro ing th 1986 Memorandum of Agreement between Independe t
School District o. 625 and Tri-Council General Drivers Local No. 120.
a roved
15. Resolution accep ing th donation of $11,227.39 and depositing same in rust
Fund for operati n of t e Como Zoo for the maintenance and operation of
Como Zoo.
HEARD UNDER SUSPENSIO OF RU ES
l��t� #s�a�e� of 3�ort A$t�earity �evea�� Boads in t
a�t of���,950 OAO to �finance the acquisit�cm and rehabilit�tio� o�€ e .
Saistt F�il Daild s�g fa� Ithe Lancer-Saint Fau� Huildi�g Partaership. p ed out w o
re ndation '
17. Resolution appro ing th issuance of Port Authority Refunding Bonds to efund
the $5.8 million HRA Co ercia�l Development Revenue Bonds, Series, 1982, for
the Hill Plaza & Associ tes prctject. passed out without recommendation
18. Resolution appro ing th issuance of Port Authority Revenue Bonds in th
amount of $975,0 0 to r place a direct Port Authority loan to District
Heating Developm nt Com any to extend District Heating lines to serve
business in Empi e Buil er Industrial Park (Economics Labs) . a ro ed
f-
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DEC ER, 1986
Yeas NayS
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