85-941 WHITE - CITV CLERK
PINK - FINANCE GITY � OF SAINT PALTL Council 8�. �`
CANARV - DEPARTMENT
BLUE - MAYOR File NO. V
�
ounci Resolution
Present d By '
` �, � �— .�--
Referred To �'��° /��1lG�I�.T7� Committee: Date J — ��`�J
Out of Committee By Date
WHEREAS:
1. On April 23, 1985 the Port Authority of the City of Saint Paul adopted Resolution
No. 2451 giving preliminary approval to the issuance of a tax exempt mortgage note in the
initial principal amount of $700,000 to finance the acquisition and rehabilitation of the
old Van Waters and Rogers building at 2313 Wycliff in St. Paul by Update Company. Update
Company will lease the facility to Sherwin Williams Company for a regional distribution
center, district office and a decorating center.
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds
suthorized 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
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, sub�ect to final approval of the �
details of said issue by the Port Authority of the City of Saint Paul.
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. 2451 the exact details of which, including, but not limited to, provisions
relating to maturities, interest rates, discount, redemption, and for the issuance of
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.
COUNCILMEN Requested by Department of:
Yeas Nays �
Fletcher
Drew In Favor
IrFa�Ywt
Nfcosia
scnetbe� __ Against BY
Tedesco
Wilson
Adopted by Council: Date JUL I � I�J Form Approved by City Attorne
Certified P s e ouncil e BY
/ �^"� �' �S�
gy,
Approved b 'Navor: Date � — �� '�'� `,�L � by Mayor for Sub s i to Council
Pu��B J U L 2 7 1985
EPARTI4EN� ,,� � �,�; '��/
C.M. Towle, E.A. 4Craut �ONTACT ' _
224-5686 PHONE �� �� � �
April 23; 1985 DATE
{Ro � anation Sheet)
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Assign i�umber for Routing Order (Clip A1 for hlayoral Signature) :r, ��
ECEIVED
Department Di rector
�. Ci ty Attorn�y ��
MAY 2 19�
�'�3 Di rector of Management/May�r ���' CITY ATTORNEY
4 Finance and Management Services Director UPDATE COMPANY
5 City Clerk $700,000 TAX EXEMPT MORTGAGE NOTE
Budget Director
�'_�t�t�!V C.L7
�1 AY � i985
LJha� 4Ji 11 be �chi eved�_'i aki ng Acti on on the ������i��Ff�teri al s? (Purpose/Rati onal e�
The purpose of the tax exempt mortgage note i-s to finance the acquisition and rehabilitation
of the old Van Waters and Rogers building at 2313 Wycliff in St. Paul by Update Company
who will lease the facility to Sherwin Williams Company for a regional distribution center,
district office and a decorating center.
Financial , B;�dc�etary and Personnel Impacts P,nticipated:
The amount of the tax exempt mortgage note is $700,000 and will be for a term of 20 years.
This is a non-876 project; therefore, the credit of the Port Authority is not involved.
There will be approximately 20 new jobs created as a result of this project.
Funding Source and Fund Activity Number Charged or Credited:
Attacf�rr�nts (L�st and Number a17 Attachments) :
1 . Staff inemorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 2451
cc. R. Thorpe
i��K�i i��.r��c� ' 3r.s. ..�; _
pEPAR-i��E�r'T REVI�:•J CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? X Yes No
Yes _� f;o Insurance RPquired? Insurance Sufficient? X Yes ho
Yes � Pio Insurance Attached?
Revision of Qctober, 1982
��pP RPVPY'SP �i c1P fnr Instructi ons)
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CITY OF S�INT P.A�UL ,
-,„�.; OFFICE OF THE CITY COIINCIL
MNStaou�w
��1=��1�1[lL��, .
��'� � Date : Ju1y 8, 1985
C � MM (TTEE REPORT
� TO = SQ�nt PQU ! Cifiy Counci[
F R � M � C o m m ii��e s Q h C i ty Deve 1 opment and Tr�nsportat i ort
CHAIR wi 1 1 iam �. Wi lson
1 . Resolution �uthorizing an agreernent between th� City
and the Riverfront Redevelopment Corp. whicn will
authorize PED to provide accounting, auditing and
other financial administration services to the
Redevelopment Corp, (Committee recommends approval )
2. Resolution authorizing issuance of P�rt A�uthorit�►
tax exempt mortgaqe note in the amount of $700, OOO� to
finance the acquisition and rehabilitation of the
old Van Waters anc� Rogers buiT`ding at 2313 Wycliff -
in St. Paul by Update Co. (Commft�tee recommends
approval - Jim Hart witl review for possible
amendment before Council meeting) �
3�. Setby/Dale UDAV (Committee recommenc�s approval )
4. Lease� agreement with Jebco Properties for space
on th� nintn floor of the Commerce Builcfing.
(Committee recommends approval with an amendment
directing the Mayor to appoint someone to cio a long
range space study and report back to the committee
. in three months. )
C��I-I- SEVENTH FLOOR SAINT PAUL,MINNESOTA SSI02
.�.��
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" P � R T . � . � � �`��'�r
AUTHORITY
OF THE CITY OF ST. PAUL
Memorandu�n
TO: BOARD OF COMMISSIONERS �A�� April 18, 1985
(April 23, 1985� Regular Meeting)
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FROM: C.M. T � �
SUBJECT: UPDATE COMPANY
PUBLIC HEARING - PRELIMINARY AGREEMENT '
$700,000 TAX EXEMPT MORTGAGE NOTE
PRIVATE PLACEMENT (NON-876)
OFF-SITE
RESOLUTION N0. 2451
The Update Company wishes to acquire and rehabilitate the old Van Waters
and Rogers building at 2313 Wycliff and lease it to Sherman Williams
Company for a regional distribution center, district office and a
decorating center.
The First Security State Bank has agreed to fund this tax exempt mortgage
note and Port Authority credit is not involved.
The Update Company is owned by Charles and Caroline McCann and has
redeveloped over 200,000 square feet of industrial and commercial buildings
primarily in the Midway area.
The neighborhood District Council has approved this project. The Port
Authority will be receiving sinking fund earnings� and its customary fiscal
and administrative fees. Staff recommends approval of Resolution No. 2451.
CMT:ca
Attach.
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Resolution No. a.?S�S�
RESOLUTION OF
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 detenained by
the legislature is to p=omote the welfare of the state by the
active attraction and encouragement and develognent of econo�ni-
cally sound industry and commerce to prevent so far as possible
the emerqence 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 prmnotion
and development of economically sound industry and comiaerce 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 Update Company
(hereinafter referred to as "Company" ) a request that the
Authority issue its revenue bonds (which may be in the form of
a single note) to finance the acquisition and renovation of the
Van Waters and Rogers� Building at 2313 Wycliff (hereinafter
collectively called the "Project") 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 co�nmunity, 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
Project will help to increase the assessed valuation of the
City and help maintain a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
City; and
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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, cammercisl
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 econaaic feasibility of operating the Pro�ect would be
significantly reduced, but the Company has also advised this
Authority that but for revenue bond financing, and its
reaulting low borrowi.ng cost, the Project would not be
undertaken;
1 WAEREAS, Miller � Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreetaent (the
"Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finance the Project;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 474.01, Subdivision 7b did publish a notice,
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal of
the Company 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 eapress their views
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
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 la 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 willingness 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 taa 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 where their services may not be as effectively uaed 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 taa base; and that it is in the best interests of
the port district and the people of the City of Saint Paul and
in further�nce of the general plan of developaent to assist the
Con�any in financing the Project.
� 2. Subject to the mutual agreement of the
AutY�ority, the Company 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 doctunents 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 (which may
be in the fona of a single note) in an amount not to exceed
approzimately $700,000 (other than such additional revenue
bonda as are needed to c�aplete the Project) is authorized to
finance the costs of the Project and the reconanendations of the
Authority' s staff, as set forth in the staff inemorandum to the
C7oa�uaissioners which was presented to the Commissioners, are
incorporated herein by reference and approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Eaecutive Vice-President of the
AUTHORITY is hereby authorized and directed to sulxait the
proposal for the above deacribed Project to the Coneaissioner of
Enerqy and Econo�aic Developnent, 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 Preliminary Agreement between the Authority
and Company, relating to the proposed construction and
financing of the Project and a form of the t7nderwritin�
Agreement. The form of said Agreements have been eaamined by
the Commissioners. It is the purpose of said Agreelaents to
evidence the commitment of the parties and their intentions
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� with respect to the proposed Project in order that the Company
may proceed without delay with the cdmmencement of the
acquisition, installation and construction 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 iesuance 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 Agreesnents 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 Preliminary Agreetnent by
, the Company, the staff of the Authority are authorized and
directed to continue negotiations with the Company so as to
resolve the remaining issues necessary to the preparation of
the revenue agreement and other doctunents necessary to the
adoption by the Authority of its final bond resolution and the
iasuance and delivery of the revenue bonds; provided that the
President (or Vice-President if the President is absent) and
the Secretary (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 provisions of Minnesota Statutes, Section
475.06, Subdivision 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 auch
offer on behalf of the Authority. Such acceptance shall bind
the Underwriters to said offer but shall be subject to approval
and ratification by the Port Authority in a formal supplemental
bond resolution to be adopted prior to the delivery of said
revenue bonds.
6. The revenue bonds (including any interim note or
notes) and interest thereon ahall 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 =ise to a pecuniary liability of
the Authority or the City or a charge against their general
credit or taxinq 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.
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, 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 23�4, to the issuance of the revenue bonds (including
any interim note or notes) herein contemplated and any �
additional bonds which the Authority may prior to issuance or
from time to time thereafter deem necessary to c�nplete the
• Project or to refund such revenue bonds; and for such purpose
the Eaecutive Vice President of the Authority is hereby
authorized and directed to forward to the City Council copies
of this resolution and said Preliminary Agreement and 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
' estimating the principal amount of bonds to be issued to
finance the Project and in preparing a draft of the proposed
application to the ConQaissioner of Energy and Econaaic
Develo�aent, State of Minnesota, for approval of the Project,
which has been available for inspection by the public at the
office of the Authority fraa and after the publication of
notice of the hearing, are in all respects ratified and
confirmed.
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Adopted April 23, 1985 ---
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Attest � ` � �-- --�__
Presiden
Th uthority of the City
Sain Paul
G�Q�' Secre '
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PORT AUTHORITY OF THE CITY OF SAINT PAUL TOLL FREE(800) 328-8417
25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
April 23, 1985
Mr. James Bellus, Director RECEIVED
Planning and Economic Development Department
City of St. Paul
14th Floor, City Hall Annex ��AY � 1'ap5
St. Paul, Minnesota 55102
CITY ATnrOf��dEY
SUBJECT: UPDATE COMPANY (SHERWIN WILLIAMS PROJECT)
$700,000 TAX EXEMPT MORTGAGE NOTE
Dear Jim:
We submit herewith for your review and referral to the office of the Mayor,
City Council and City Attorney's office details pertaining to the issuance
of a $700,000 tax exempt mortgage note to finance the acquisition and
rehabilitation of the old Van Waters and Rogers building at 2313 Wycliff in
St. Paul by Update Company. Update Company will lease the facility to
Sherwin Williams Company for a regional distribution center, district
office and a decorating center.
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
principals have an interest. This investigation has included detailed
credit analysis, Dun and Bradstreet reports, direct communication with
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
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. 2451 which authorized the sale of the tax exempt mortgage note in the
amount of $700,000.
Your expeditious handling of this matter will be appreciated.
Yo,urs truly,
,Eugene A. Kraut
EAK:ca Executive Vice President
cc. Mayor Latimer
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:UGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CHARLES M.TOWLE CLIFFORD E.RAMSTED PERRY K.FEDERS
EXECUTNE V10E PRESIDENT ASST.EXEC.VICE PRESIDENT DIRECTOR OF INDUSTRIAL DEVELOPMENT CHIEF ENGINEER DIRECTOR OF FINANCE
C.E.O.
RICHARD A GIERDAL WILLIAM E.McGNERN
PROPERTV MANAGER DIRECTOR OF PUBLIC REL4TIONS
�OMMISSIONERS GEORGE W.WINTER WILLIAM WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.IANGEVIN CHRIS NICOSIA JEAN M.WEST
PRESIDENT VICE PRESIDENT SECRETARV TREASURER COMMISSIONER COMMIS$IONER COMMISSIONER
�.I.D. Certified Industrial Developer