85-821 WHITE - CITV CLERK .
PINK - FINANCE G I TY OF SA I NT PAU L Council �
CANARV - DEPARTMENT ryy�''`
BLUE - MAVOR File NO. ✓ � /
. , Co cil Resolution
Presented By
�ferred To �I PIP1'l��LL Committee: Date � �'"�� I
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Out of Committee By Date C
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1. On May 21, 1985 the Port Authority of the City of Saint Paul adopted Resolution i
No. 2459 giving preliminary approval to the issuance of industrial development revenue
bonds in the initial principal amount of $2,000,000 to finance the purchase of the former
Northwestern Bell Telephone Company building at 223 Plato Boulevard, St. Paul, Minnesota ,
(Riverview Industrial Park), for Dennis J. Tursso Sublease to Tursso Companies, Inc. The ,
Company is a full service commercial printer who presently employs 55 people and projects !
hiring 30 additional employees within the next 5 years. Miller & Schroeder has agreed to
underwrite the bond issue. ;
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds '
authorized by the Port Authority of the City of Saint Paul, shall be issued only with the
consent of the City Council of the City of Saint Paul, by resolution adopted in accordance �
with law;
3. The Port Authority of the City of Saint Paul has requested that the City Council i
give its requisite consent pursuant to said law to facilitate the issuance of said revenue �
bonds by the Port Authority of the City of Saint Paul, subject to final approval of the I
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details of said issue by the Port Authority of the City of Saint Paul. ,
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RESOLVED, by the City Council of the City of Saint Paul, that in accordance with Laws �
of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the �
aforesaid revenue bonds for the purposes described in the aforesaid Port Authority
Resolution No. 2459 the exact details of which, including, but not limited to, provisions
relating to maturities, interest rates, discount, redemption, and for the issuance of I
additional bonds are to be determined by the Port Authority, pursuant to resolution
adopted by the Port Authority, and the City Council hereby authorizes the issuance of any ,
additional bonds (including refunding bonds) by the Port Authority, found by the Port
Authority to be necessary for carrying out the purposes for which the aforesaid bonds are
issued.
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COUNCILMEN
Yeas Nays Requested by Department of:
Drew �
Masan: In FBVO[
N�cos � '
�--- _ __ Against By
se�_ I
7edescc � �
�" JUN 1 8 1985 Form Appro ed by City Attorney
Adopted by Council: Date �--� j
Certified Ya s d y Council S tary �. B � `'�
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By ; , �
6lpproved by : or: e �— t � � �`��� � � S�P v by Mayor for Sub ncil ;
By .��
���ry��s�� JUC: � 4: �985
St. Paul Port Author ity DEPARjM�NT �g✓���'al No 2 2 2
' �ugene �: �rau�ee or � CONTACT �
(612) 224-5686 PHONE
' May 21, 1985 DATE 1 e�� ,. �,i
ASSIGN NUMBER FOR ROUTING ORDER (Clip All Locations for Siqnature) :
, Department Director 3 Director of Management/Mayor
Finance and Management Services Director � City Clerk
Budget Director
2 City Attorney
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
The purpose of the bond issue is to permit Dennis J. Turssa Sublease��oaTu�sso Companies, Inc.
to purchase �he former Northwestern Be11 Telephone Company building in Riverview Industrial Park
The building at 223 East P1ato Boulevaxd was vacated last year. Tursso Companies is a full
service commercial printer that has been in business i.n St. Paul for more than 90 years.
Tursso currently employs 55 people and they project hiring 30 additional employees within the
next five years. The Res. 876 Revenue Bond Issue would be in the amount of approximately
$2,000,000. The issue would be underwritten by Miller & Schroeder Municipals, Inc. and would
run for a term of 30 years.
�OST/BENEFIT, BUDGETARY ANO PERSONNEL IMPACTS ANTICIPATED:
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: R�,�
ATTACHMENTS (List and Number All Attachments) : �j C���C� '
qy2 v
Staff Memorandum c�
Draft City Council Resolution �'4Y0�,, �985
Port Authority Resolution No. 2459 J �FF�CF
DEPARTMENT REVIEW CITY ATTORNEY REIIIEW
X Yes No Council Resolution Required? Resolution Required? X Yes No
�Yes x No Insurance Required? Insurance Sufficient? �Yes No
Yes X No Insurance Attached:
(SEE REVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84
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AUTHORITY �
OF THE CITY OF ST. PAUL '
Memoraedum '
TO: gOARD OF COI�IlrtISSIONERS �AT� May 17, i985
(Meeting May 21, 1985) .
'I�
FROM: Donald G. Dunshee
SUBJECT: pUBLIC HEARING — PRELIMINARY AND UNDERWRITING AGREEMENT
$2,000,000 RES. 876 REVENUE BOND ISSUE
DENNIS J. TURSSO SUBLEASE TO TURSSO COMPANIES, INC. ;
RIVERVIEW INDUSTRIAL PARK '
RESOLUTION N0. 2459
PUBLIC SALE HEARING — SALE OF LAND — DENNIS J. TURSSO
SUBLEASE TO TURSSO COMPANIES, INC. ,
RESOLUTION N0. 2460
1. The Company I
Tursso Companies, Inc. (Dawson Patterson) is a full service commercial
printer that has been in business in St. Paul for more than 90 years.
They have operated in the Finch Building since it was built around the
turn of the century. Mr. Dennis Tursso, President of the Company
purchased it in 1970. The reason Tursso Companies, Inc. is moving from
the Finch Building is that the owner of the building has sold the
facility and the new owner will be converting it for residential use.
Tursso Companies, Inc. was selected as one of the Small Business of the
Year recipients from the St. Paul Area Chamber of Commerce in 1984.
They specialize in flexographic (labels) and offset printing. Some of l
their major customers are 3—M, Hormel, Murphy Motor Freight and Dart
Transit.
2. The Project ',
Dennis Tursso proposes to purchase the former Northwestern Bell
Telephone Company building in Riverv,iew Industrial Park from
Lyman/Reget, Inc. They leased a 130,000 Sq. Ft. site and constructed i
with private financing a 51,000 Sq. Ft. office and service center which
had been leased to the Telephone Company since 1969. The Telephone
Company vacated the building last year and the owners have been �
attempting to sell or lease the facility since then.
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BOARD OF COMMISSIONERS �
MEETING MAY 21, 1985
DENNIS J. TURSSO
PAGE 2 '
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The original land lease with Lyman/Reget was based on a land. value of ,
$1.75 for the corner portion of the site and $1.40 for the northerly
90,000 Sq. Ft. along State Street. The term of the original lease
commenced October 24, 1969 and terminates October 23, 1999 with '
purchase options at the end of the lOth, 20th and 30th years. The ,
final purchase option was based on a one—half land cost at the end of
the lease. The current annual land rent is $12,759.78 payable monthly
in advance in the amount of $1,063.31. Under the terms of the bond
issue that monthly land rent would continue for 30 years with the
purchase option at the end of the lease being $98,100.40, the same as '
under the current land lease.
At the present time the Company employs 55 people and projects they
will be hiring 30 additional employees within the next five years.
3. Financing I
The proposed financing would be done as an 876 industrial development ;
f 3 ar t rm. Pro e ds from the bond issue
revenue bond issue or a 0 ye e c e
would be as follows: '
Acquisition $1,100,000
Remodeling 505,000
Bond Issue Expense 30,000 '
Capitalized Interest During
Construction (6 Months) 98,000
Debt Service Reserve 207,000 !
Discount 60,000 !
$2,000,000
The Port Authority would receive earnings on the debt service reserve
and sinking fund as well as the customary fiscal and administrative �
fees based on a formula of .42X per million per year for the first ten i
years, .54Y per million per year for the second ten years and .66y per !4
million per year for the third ten years of the lease.
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4. Underwriting II
Miller & Schroeder Municipals, Inc. had agreed to underwrite the 30 I
year bond issue at an interest rate to be set the date the bonds are
sold. We anticipate the bonds will sell at the regular June, 1985,
Co�ission meeting.
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BOARD OF COMMISSIONERS I
MEETING MAY 21, 1985 ;
DENNIS J. TURSSO '
PAGE 3
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5. Terms of the Lease i
The term of the lease would be for 30 years with Dennis J. Tursso
having an option to purchase the building for lOX of the original bond �
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issue cost at the end of the term. Dennis J. Tursso would be
personally guaranteeing the bond issue with a sublease to Tursso !
Companies, Inc. running coterminus with the bond issue. ��
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6. Recommendation
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William Muske is now in the process of preparing an appraisal on the
building. Once the appraisal is completed placing a market value on
the structure after the proposed improvements, the bond issue amount
will be revised so we will not be selling more bonds than the amount of
the appraisal.
Staff has interviewed officers of Tursso Companies, Inc. , reviewed
their financial statements and recommends approval of the above
resolutions.
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554S
Resolution No. �S�S9 '
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RESOLUTION OF I
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, 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 legi�lature is to promote the welfare of the state by the �
active attraction and encouragement and developanent 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 develo�nent of existing �
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion I'�
and development of economically sound industry and commerce are 4
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of ,
gavernmental services required to meet the needs of the �
increased population and the need for develop�nent of land use '
which will provide an adequate tax base to finance these '
increased costs and access to employment opportunities for such ',
population; and i
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authorit ") has received from Dennis Tursso (the
Y �
"Tenant" ) , an individual, a request that the Authority issue
its revenue bonds to finance the acquisition and renovation of I
the former Northwestern Bell Telephone Building in Riverview i
� Industrial Park, to be subleased to Tursso Companies (herein- �
after collectively called the "Project") as is more fully �I
described in the staff report on file; and !
WHEREAS, Miller & Schroeder Municipals, Inc. (the �I
Underwriter") has made a proposal in an agreement (the
"Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finance the Project; and
WHEREAS, the Authority did conduct a public hearing
on January 17, 1985 pursuant to a notice published pursuant to
Minnesota Statutes, Section 474.01, Subdivision 7b, at which
hearing the recommendations contained in the Authority' s staff
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' memorandum 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 Project and the
proposed issuance of Bonds; and �
WHEREAS, follawing the public hearing the Port �
Authority did adopt its Resolution No. 2417 (the "Prior
Resolution" ) giving preliminary approval to the Project and the
issuance of the Bonds; and
WHEREAS, Port Authority staff represented to the
Commissioners, at the public hearing, that additional details ;
regarding the Project, the< Bonds and a preliminary agreement
relating to the Project and proposed Bonds would be provided to
the Conanission; and
WHEREAS, the Authority has published a notice calling ,
for a public hearing on May 21, 1985, setting forth some of the
terms of the Project that have been revised since the adoption
of the Prior Resolution. '
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows:
1. Except to the extent that they are modified in
this resolution, the findings and conclusions set forth in the
Prior Resolution are hereby ratified and affirmed.
2. Subject to the mutual agreement of the
Authority, the Tenant and the purchaser 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 issuance of revenue bonds of the Authority '
in an amount not to exceed approximately $2,000,000 (other than
' such additional revenue bonds as are needed to complete the i
Project) is authorized to finance the costs of the Project and I
the recommendations of the Authority' s staff, as set forth in �
the staff inemorandum to the Commissioners which was presented
to the Conmiissioners, are incorporated herein by reference and ;
approve�. �
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 3escribed 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 Com�nissioner with such
preliminary information as he may require.
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� 4. There has heretofore been filed with the
Authority a form of Preliminary Agree�nent between the Authority
and Tenant, relating to the proposed construction and financing
of the Project and a form of the Underwriting Agreement. The '
form of said Agreements have been examined by the i
Commissioners, and said Agreements are hereby approved, and the
President and Secretary of the Authority are hereby authorized
and directed to execute said Agreements. !
5. Upon execution of the Preli.minary Agreement by
the Tenant, the staff of the Authority are authorized and 'i
directed to continue negotiations with the Tenant so as to ,
resolve the remaining issues necessary to the preparation of !
the lease and other documents necessary to the adoption by the
Authority of its final bond resolution and the issuance and i
delivery of the revenue bonds; provided that the President (or ,
Vice-President if the President is absent) and the Secretary I
(or Assistant Secretary if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative) �
are absent, the Treasurer of the Authority in lieu of such �
absent officers, are hereby authorized in accordance with the i
provisions of Minnesota Statutes, Section 475.06, Sub-
division 1, to accept a final offer of the Underwriters made by '
the Underwriters to purchase said bonds and to execute an
underwriting agreement setting forth such offer on behalf of ,
the Authority. Such acceptance shall bind the Underwriters to
said offer but shall be subject to approval and ratification by �I
the Port Authority in a' formal supplemental bond resolution to ',
be adopted prior to the delivery of said revenue bonds. '�
Adopted May 21, 1985. _ '
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Attest / , ',
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President
The Port Authority of the City '
� ' of Saint Paul ,
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''� �Qcretary ��
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PORT AUTHORITY OF THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417 I
25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686 �
May 21, 1985 '
Mr. James Bellus, Director C���
`Planning and Economic Development Department
City of St. Paul ' �' I
14th Floor, City Hall Annex � �� �
St. Paul, Minnesota 55102
SUBJECT: Dennis J. Tursso Sublease to Tursso Companies, Inc.
$2,000,000 Industrial Develapment Revenue Bond Issue i
Dear Jim:
We submit herewith for your review and referral to the office of the Mayor, i
City Council and City Attorney's office details pertaining to the issuance ,
of a $2,000,000 Res. 876 revenue bond issue to Dennis J. Tursso Sublease to �'I
Tursso Companies, Inc. for the purchase and remodeling of the former
Northwestem Bell Telephone Company building at 233 Plato Boulevard in
Riverview Industrial Park. The Company is a full service commercial
printer. ',
The Port Authority staff has conducted a thorough evaluation of the firms !,
and/or individuals that are involved in this project or in which the I
principals have an interest. This investigation has included detailed �!
credit analysis, Dun and Bradstreet reports, direct communication with I
representatives of financial institutions with whom the participants have
done business and data base checks to determine if any principal(s) have
been in any way involved in legal proceedings as a result of securities i
fraud, extortion, embezzlement or financial misrepresentation.
In addition to the staff inemorandum, we are attaching a draft copy of the
proposed City Council resolution and a copy of Port Authority Resolution ',
No. 2459 which authorized the sale of revenue bonds in the amount of '
$2,000,000.
Your expeditious handling of this matter will be appreciated. j
�!.
�ours truly,
,� I
�-�V �'
E gene A. Kraut
Executive Vice President I
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EAK:DGD:sjs I'
:UGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CHARLES M.TOWLE CLIFFORD E.RAMSTED PERRY K.FEDERS
EXECUTNE VICE PRESIDENi ASSL EXEC.VICE PRESIDENT DIRECTOR OF INDUSTRIAL DEVELOPMENi CHIEF ENGINEER DIRECTOR OF FINANCE
c.e.o. cc. Mayor Latime 'i
�lICHARD A GIERDAL WILLIAM E.McGNERN
PROPERN MANAGER DIRECTOR OF PUBLIC REL4TIONS I
'.OMMISSIONERS GEORGE W.WINTER W1LLIAM WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.LANGEVIN CHRIS NICOSIA JEAN M.WEST �
PRESIDENT NCE PRESIDENT SECREfARV TREASURER COMMISSIONER COMMISSIONER COMMISSIONER
C.I,D. Certified Industrial Develoner
�,.:;;;=�`�l``����, �TTY 'O� .SAYNT���.4.U'�. � �.�- ��� I,
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:f;_r �.��;'—�. ��� OFI�ICI+� OIt' 2'FIIC CIT�r COII1C:EL � . •
�.�1� t.,..,a.:'= �1 f[��'1 � ..
F�t\s.,:__ :_i�%;� . . :
'-�r � -' �..�>� D Q t e : JUNE 13, i 9 8 5
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. G0 �1/! I�/� Ii TEE � E PO � T i
TO = Scttnr P��t I Ci�f Co� ��ii . � � _ ',I
��' � �'�� � C a��f�i�� Q� FINANCE, MANAGEMENT & PERSONNEL
� ' C�A I R JAMES SCHEIBEL' � .
! . Approval of minutes from mee*ings he!d June 6 and June 7, 1985.
2. Qrdinance amending the Civil Service Rules pertaining to six uneiassifie�+
pasitions in the Oepartment ot Planning and Econamic Oevelopment anQ
s�r i k i ng i n i ts ent i rety Sect i on 34.C. (Personne 1 ) � �������
. � �A-iT� ��er GC,���;1 , �
3. Reso 1 ut i on amend i ng the 1985 budgeT and actd i ng $47,455 to the F i nanc i ng��(.rr� �jC�,
Plan and to the Spending Plan for Public Health Nutrition/Public Health. /}.;�
(Community Services) �j � ��� t�
�7/"�,��/��� �uwl� �
4_ Resolution adopting an amenc�ment to the St. Paul Capital Allocation '
Po1icy 1986-1987. (PED; C�� �'L��''
��-�'2'� . _
5. Resoiution consenting to tt�e issuance of Port Au.thority Revenue B�nds in I�
the amount ot $1, 175,000 to finance new pollution controi eq ipme�t ror
ETA Systems, Incorporated in Energy Park. (Port Authority) �L,�� - ,
p�
6. Resolution consenting to- the issuance of Port Authority In�ustrial Revenue . I!
Boncis in tfie amount of $900,QQ0 to finance remocieling to the former Car- • I
dazo Warehouse a� Fifth � Broadway for MarketHouse Limited Par�nership �
(Port Author i ty) � y�� ,-� 6 ve� ! (.,V��� . II
/7 !�
7. F.esolution consenting to the issuance of Port Authority Revenue Bonds in I�
the amount of �470,000 to finance construction ot= a building in Riverview
Industr' 1 Park for Han�C. and Sue F. Liu. (Port Authority) I
� : /�?�Z���-- �
8. �esn1 t n Ctl��ent�ng to the issuance of Port Authority Revenue Bonds in �
the amount of �Z,Ofl�,04}0 to finance the purchase of the former Nor�h- �
wester 9e1 Teiepnone Company Building at 223 Piato Boulevard. (P.A.)
9. Pu►�1�t��� �,�i U�.G-�-
� r�n� on �ti�en Part�cipation budgets
[���c�e�
NOT ON P�:EPARE D AGENDA:
Resolution transferring $77,976 to the p roject to reconstruct
Hamline Avenue from Hoyt to Larpenteur� �����G�---
.
Resol tion tran�s��, rring $126 ,000 to the illmore Avenue P roject.
� -�'I�T�v�.�--
R so���o transferrin 132 000 to the White Bear Ave. Pavin Pro 'ect,
e t � . �t��� , g ]
C.i Y F:ALL �� StVENTF�I FLOOfi
S.tINT PAUL.�1I��ESOT.•�SSIO?
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