85-969 WHITE - C�TV CLERK
PINK `- FINANCE COURCII
CANARi�- DEPARTMENT G I TY OF SA I NT PAU L File NO• �� �� �
BLUE - MAVOR
�
� � ounc ' Reso� ' n
� '
,
Presented By
', �_
� Referred To Committee: Date
Out of Committee By Date
RESOLUTION CONSENTING TO THE ISSUANCE
OF ADDITIONAL DISTRICT HEATING
REVENUE BONDS BY THE HOUSING AND
REDEVELOPMENT AUTHORITY OF THE CITY
OF SAINT PAUL, MINNESOTA
WHEREAS:
(A) The Housing and Redevelopment Authority of the City of Saint Paul ,
Minnesota (the "HRA") has issued its $30,500,000 Floating Rate Monthly Demand
District Heating Revenue Bonds, Series A (the "Series A Bonds") to finance, in part,
the initial development and construction of the St. Paul District Heating Development
Company ("DHDC") ; and
(6) The Series A Bonds were issued pursuant to an indenture of Trust dated
as of Decem6er 1 , 1982 (the "Indenture") between the HRA and First Trust Company
of Saint Paul (the "Trustee") , which Indenture provides for the issuance of Additional
Bonds thereunder on the terms and conditions set fvrth in the Indenture; and
(C) Simultaneously with the issuance of the Series A Bonds, the City of
Saint Paul entered into a City Loan Agreement dated as of December 1 , 1982 (the
"City Loan Agreement") with DHDC providing for a loan by the City to DHDC (the "City
Loan") , the funds for which were derived from an Urban Development Action Grant
("UDAG") , from tax increments and from Community Development Block Grant funds; and
(D) In connection with the City Loan, DHDC executed and delivered to the
City a City Mortgage, Fixture Financing Statement and Security Agreement dated as
of December 1 , 1982 (the "City Mortgage") securing the City Loan; and
(E) DHDC has requested the HRA to issue Additional Bonds pursuant to the
Identure, in two separate series, to: provide funds for improvements to the District
Heating System, which 6onds will be in the approximate principal amount of $11 ,000,000
(the "Series B Bonds") ; and to advance refund the Series A Bonds, which Bonds will be
�� ��
COUNCILMEN Requested by Department of:
Yeas Fletcher Nays �
Drew [n Favor
Masanz
Nicosia ^
scne�be� __ Against BY '`�"
Tedesco
W ilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Sectetary BY—��l� '�
By '
�lpproved by l4lavor: Date App ve y Mayor for Submi s'on Co -
By _ B
. . . �- �s=9��
-2-
(F) Under the terms and conditions of the agreements and the Indenture
pursuant to which the Series A Bonds were issued, and pursuant to the terms and
conditions of the City Loan Agreement and City Mortgage, the City must, as a
precondition to the issuance of Additional Bonds by the HRA, consent to the
issua,nce thereof, and must further conser�t to su6ordination of the City's security
i,nterests; unde,r th_e Ci;ty Mortgage_to the security interests securing the Additional
Bonds and the credit enhancement .associated therewith; and
(G) Under the terms and conditions of the UDAG, the Federal Department of
Housing and Urban Development ("HUD") must approve any additional debt to which
the City Mortgage is subordinated;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul ,
Minnesota, as follows:
1 . The City hereby finds and determines that the issuance of Additional
Bonds by the HRA to finance improvements to the District Heating System, and to
advance refund the outstanding Series A Bonds, will further the development of
the District Heating System and further assure its economic viability.
2. The City hereby consents to the issuance by the HRA of Additional
Bonds, in two separate series, for the purposes stated in this Resolution; which
Bonds shall be in principal amounts not exceeding that necessary to fulfill the purposes
stated above and, in any event, not exceeding an aggregate principal amount of
$45,OQO,OQO.
3, The City hereby agrees, subject to HUD approval prior to sale of the
lands, to subordinate the security interests in its favor provided for under the
City Mortgage to the security interests in favor of the holders of the Series B
Bonds and the Series C Bonds and the security interests in favor of the providers
of credit enhancement associated therewith; provided that the subordination of the
security interests i:n favor of the City under the City Mortgage approved hereby
shall not extend to a principal amount of Additional Bonds during such pe'riod, if
any, that the proceeds of such Additional Bonds are held in an invested escrow
pending application thereof to the refunding of a prior series of Bonds.
WMITE - CITV CLERK
PINK = FINANCE G I TY OF SA I NT PA U L COUIICII
CANAF2�' - DEPARTMENT File NO. �� /��
BL.UE - MAVOR
�
" Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
-3-
4. The Mayor, Director of the Department of Finance and Management Services,
Director of the Department of Planning and Economic Development and the City Clerk
are hereby authorized and directed to provide to the HRA, the Trustee and bond
counsel such certified copies of proceedings, subordination agreements, consent
certificates and other items as may be necessary to implement the terms and conditions
of this Resolution upon review and approval thereof by the City Attorney.
5. This Resolution shall take effect immediately.
COUNCILMEN Requested by Department of:
Yeas �scNHEyN � �
Drew [n Favor
Masanz
Nicosla ,
scnetbe� _.�___ Against BY
Tedesco
Wilson
JUL 1 8 1985 Form Approved by City Attorne
Adopted by Council: Date �
Certified Y- •s ounci ,e ar BY '
By t
t�pproved by lVlavor. a ` � i1�� App by Mayor for Sub i to ounc'
By
���L,s�� J U� 2 �r 1985
, � P.E,D. _ , ; DEPARTMENT ��J �9� 9 N� 1919
Mary Frances Skala CONTACT
292_7494 ext_ 286 PHONE
July 12, 1985 DATE 1 Q/�� e e
ASSIGN NUMBER FOR ROUTING ORDER (Clip All Locations for Signature) :
� Department Director 4 Director of Management/Mayor
Finance and Management Services Director 5 City Clerk
Budget Director 3 Councilman Scheibel
2 City Attorney
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
Rationale) :
City consent, as second mortgage holder, to an additional
$9.5 million of senior debt for District Heating Development /
Company (DHDC) . � �
1�
�
�
COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED:
The City loans to DHDC will be subordinated to an additional 9.5 million of
senior debt.
FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa-
ture not re-
Total Amount of Transaction: Nq quired if under �
$10,000)
Funding Source: /��
���,.
Activity Number: ✓�j� ������
1
ATTACHMENTS (List and Number Al l Attachments) : r��9y��s `Si��s
�r��CF
#1 City Consent Resolution
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
Yes No Council Resolution Required? Resolution Required? Yes No
Yes No Insurance Required? Insurance Sufficient? Yes No
Yes No Insurance Attached:
(SEE REVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84
t
HOW TO USE THE GREEN SHEET � , i ��w ,
The GREEN SHEET has several PURPOSE5:
1, to assist in routing documents and in securing required signatures
2. to brief the reviewers of documents on the impacts of approval
3. to help ensure that necessary supporting materials are prepared, and, if
� required, attached.
Providing complete information under the listed headings enables reviewers to make
decisions on the documents 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. Costs 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 by the action) . The personnel impact
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 frec�uent types of documents:
CONTRACTS (assumes authorized budget exists)
1. Outside Agency 4. Mayor
2. Initiatinq Department 5. Finance Director
3. City Attorney 6. Finance Accounting
ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others)
1. Activity Manager 1. Initiating Department
2. Department Accountant 2. City Attorney
3. Department Director 3. Director of Management/Mayor
4. Budget Director 4. City Clerk
5. City Clerk
6. Chief Accountant, F&MS
COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others)
1. Department Director 1. Initiating Department
2. Budget Director 2. City Attorney
3. City Attorney 3. Director of Management/Mayor
4. Director of Management/Mayor 4. City Clerk
5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council
6. City Clerk
7. City Council
8. Chief Accountant, F&MS
SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the
Green Sheet is well done, no letter of transmittal need be included (unless signing
such a letter is one of the requested actions) .
Note: If an agreement requires evidence 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 include:
1. Contractual relationship with another governmental unit.
2. Collective bargaining contracts.
3. Purchase, sale or lease of land.
4. Issuance of bonds by City.
5. Eminent domain.
6. Assumption of liability by City, or granting by City of indemnification.
7. Agreements with State or Federal Government under which they are providing
funding.
8. Budget amendments.
. '• �w%:�'`'1'i �r� �\ . . � . . _..--_, .-...-..-,-�,-_. - .._ �� . . _ , "-". .
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�:-_-�r��.-,-a:'�;� .,� orrrcr+, o�r TFr�: Cz2�Y COII��C�r.
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�.. � ,> . July 11, 19 85
�;°,�,;.:;-:�= � •
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..... COi1�! (� f�TEE , RE PO � T
i 4 = SQlnt P�� I Cifiy Coun�it
�R � �'�� � �'����� ��� O h FINANCE, MANAGEMENT & PERSONNEL
� C N A t P. COUNCILMAN SCHEIBEL
�° 1 . Approval of minutes from meetings held June 27 and July 1 , 1985�. �.��
""� 2. Committee-of-the-WholP - This item only
• � Enoch Dumas, former journalist from South Africa, will provide b�ckground
� information on the situation in South Africa. This is for information �
only. A hearing will �be scheduled later on the divestiture of city
funds. �
3. '�Staf�f report. regard�ng HRA resolution to be introduced- for preliminary
-� approval on July 17 author�izing $9:5 million in additional finance for
district heating. (PED) - ��+��y,,��
4. �A�C'�'st�'�r- amend i�ng the 1985 Cap i ta 1 I mprovement Budget to i nc 1 ude the
- Wo,r.;�a--���'Cente�r Pro j ect and amendi ng the Downtown and Seventh P l ace
"��l�f'�nt D i str i ct F i nanc i ng� P 1 an - $.���1f30. (PED? /���
. 5. '�� amending the 1985 Gapitat Improvement Budget to provide fund-
# for �f�ergy Park Tax Increment District 11 Financial Plan -
,.$I��`�� (PE D) ��� �
. „�..,
. 6. `"Ft��i9��iend i ng the 1985 Budget and add i ng $21 ,664 to the Fi nanc i ng
I�rt��ac�Ei�,to he Spend i ng P 1 an for Spec ia 1 Pro j ects-Genera 1 Government
(Lamq�rt's�nding celebration and Lea.gue of Minnesota Cities confer-
ence) . Ef'EA):.,,�?�� �
T:"''^����„; ding the Community Btock Grant Year IX Program by trans-•
fei�rirtg '� - .32 to CDBG Year XI Program. (PEO) ���,
(Continued on Back)
CITY HALL SEVENT�i FLOOR
SAINT PAUL. Aii�\'ESOTA 55102
'F�^r u
. . . ��-�� � ,�;�
July 11 , 19$5
Page 2
8. �!�'���.'!'E�r,��,end i ng the 1985 Budget and add i ng $37,290 to the F i nanc i ng
P;lan a�d��� the 5pending Plan for Truth in Sale of Housing.
(CouY�n�i-�erv i ces) �¢�o�
9. A�i°��ending the 1985 Budget and adding $8,500 to the Financing
��an and to t�e Spending Plan for Emergency Medical Services (Paramedic/
EM� Serv i ce) . -- (F i re Department) ��/�.
10. Re�`lt��n-�anyend i ng the_Sa 1 ary P 1 an and Rates of Compensat i on Reso 1 ut i on
regarding the Perso�tr�ctor-c��,fication. (Personnel ) /���
�!t'�oA�iolution revising the class specification for the title of Building
Maintenance Supervisor-Parks and Recreation in the Civil Service Rules.
{Personne l ) �t,?�a�
12. . �'f�"�t�4` chang i ng the grade for the t i t i e of Te 1 ecommun i cator i n the
C i v i 1 Serv i ce Ru 1 es. (Personne 1 )/O�;?SS�d�iYi - /G�/ /"P�G'��P�d���
13. ��� �hanging the grade and the class specification for the title
ofa!� ager i n the C i v i l Serv i ce Ru l es. (Personne l ) �/�%
14. ����1 i sh i ng the sa 1 ary range for Grade 16E i n ��`��llAY��I
'�s�,ie it in the Salary Plan and Rates of Compensation Resolution.
��!�so�ne,�d ��SS�d o� - �'/d r��o�����c_���
15. "R�l�'1�► emending� the Salary Plan and Rates of Compensation Resolution
c���+ �tet i on�.�M'`"b'f�tnr. (Personne 1 ) /��a�+
i��nance amending the Civil Service Rules pertaining to six unclassi-
fied positions in the Department of Planning and Economic Development
and striking in its entirety Section 34.0 (Personnel ) /���
� �r�c-° ,� �.�-���.�� ��� 3�-�
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� � C�- �'�=��=� �
� � -� ,. � �-�� District �
,, � . � � �� � - � ��';!�"� Heating
'` - �� � � � �� Develo ment
-.( :�' . ' • <r`"'. �
r Compa�ny
a private,non-profit company
76 West Kellogg Boulevard
St. Paul,MN 55102-1161
(612)297-8955
July 3, 1985
Councilman Jim Scheibel
Chair, Finance Committee
7th floor City Hail
St. Paul , MN 55102
Dear Councilman Scheibel :
With this letter, you will be receiving documents from PED in
connection with two new tax-exempt financings planned in the near
future by DHDC. In addition to the usual HRA authorizations, the
issues wiil require City consent under DHDC�s exlsting financing
structure. I am informed that the matter will be heard before the
Finance Committee on July 11 .
These issues are very important to the future of DHDC, and I hope they
will receive your support and that of the other Finance Committee
members. The first one is a 59.5 million issue to f und a new multi-
fuel boiler at DHDC's Third Street Plant, and to provide permanent
financing for the extension of the hot water system to the Mount Afry
housing area, which is now under construction. The components of the
bond issue are:
15 MW Fluidized Bed Boiler $5,500,000
Other Plant improvements 600,000
Mt. Airy System Extension 1 ,400,000
Debt Service Reserve 950,000
Issuance Costs 190,000
Capitalized Interest 860.000
�
Total $9,500,000
The new fluidized-bed boiler and other improvements will generate
, substantiai savings by aliowing substitution of less expensive soiid
fuels, such as wood chips, refuse-derived fuel (ROF) or low grade coal
for expensive natural gas. By replacing the natural gas now burned in
the summer when customer demand is low, DHDC can reduce its reliance on
gas to 2.8 percent of annual fuel requirements from the current 13.2
percent. This will create an annual cost saving of $1 .3 mlilion for
the benefit of ail DHDC custome�s, including the City.
Other plant efficiency improvements and the lower debt service costs on
the Mount Airy financing will generate significant additional savings.
Councilman Scheibel
July 3, 1985
Page 2
The direct benefits of these savings as well as their positive impacts
on the company�s financial security wiil be good for DHDC, its
customers, and its creditors. For DHDC, it will mean substantial cost
savings and efftciency gains. For its custaners, it wiil mean rate
reductions. For its cred(tors, it wiii mean enhanced security for
their investment.
In addition to this issue, which is moving full speed toward a planned
mid-August closing, DHDC is working to structure an advanced refunding
of its basic bond issue in the near future as well . This issue would
be approximately $32 million in size and may take the form of a
"crossover" refinancing, where both fixed and floating rate bonds are
outstanding at the same t1me, with the second set backed by U.S.
government securities.
This type of refinancing would ailow DHDC to reap the advantages of the
current low floating bond interest rates while locking an attractive
fixed rate conversion option for the long term. We believe that market
conditions are now favorable and that it is our responsibility to our
customers to act now before proposed tederal legislation severely
restrtcts tax exempt financing as eari as next year. By reducing both T
short and long term financing costs, tt�fs issue wiil provide further
savings and securtty advantages for DHDC, its customers, and its
creditors.
The DHDC management team, together with our financial advtsors, stand
ready to respond to any questions you or other Council members may have
regarding these financtngs. We look forward to continuation of the
City�s strong support for the development of hot water district heating
in St. Paul .
erely,
Rudy Bry n I f son
Director of Finance and Administration
RB:mb
enclosure
/ r .
'` . •. . . - � �j��J -/W /
(D P.AF':')
(St. Paul City Council Resolution) ,
RESOLUTIOT? CONSEr1,I?�� m0 THE ISSt'ANCE "
OF ADUITIOI�AL DISTRICT HFATING
' REVENiiE BOt1DS BY THE HOUS ING AND
. F,EDEVELOPr�'IENm AliTHORITY OF THE CZTY
OF SAINT PAt�L, :dIi�RVESOTA
WHER�AS:
(A) The Fiousing and Redevelopment Authority of the
City of Saint Paul, Minnesota (the "HRA") has issued its
$30 ,500,000 Floating Rate Monthly Demand District Heating
Revenue Bonds, Series A (the "Series A Bonds") to finance,
in part, the initial development and construction of the St.
Paul District•Heating Development Cor�pany ( "DHDC") ; and
(B) The Series A Bonds were issued pursuant to an
Indenture of Trust dated as of December 1, 1982 (the "Indenture")
between the HRA and First Trust Conpany of Saint Paul (the
"Trustee") , which Indenture provides for the issuance of
Additional Bonds thereunder on the terms and conditions set
forth in the Indenture; and
(C) Simultaneously with the issuance of the Series A
Bonds, the City of St. Paul entered into a City Loan Agreement
dated as of December 1, 1982 (the "City Loan Agreement" ) with
DHDC providing for a loan by the City to DHDC (the "City Loan") ,
the funds for which were derived froM an Urban Development
Action Grant frora tax increments and from Community Development
Block �rant funds; and
(D) In connection with the City Loan, DHDC executed
and delivered to the City a City isortgage, Fixture Financing �
Statement and Security Agreement dated as of December 1, 1982
(the "City P•Zortgage") securing the City Loan; and
(E) DHDC has requested the HRA to issue Additional
Bonds pursuant to the Indenture, in two separate series, to:
provide funds for improvements to the District Heating System,
which bonds will be in the approximate principal amount of -
$11,000, 000 (the "Series B Bonds") ; and to advance refund the
Series A Bonds, which bonds will be in the a�proximate principal
amount of $34 ,000,000 (the "Series C Bonds") ; and
, C�:�-�� ��;��
� M
(F) Under. the terms and conditions of the agreements
and the Indenture pursuant to which the Series A Bonds were
issued, and pursuant to the terms and conditions of the City
Loan Agreement and City 24ortgage, the City must, as a precondition
to the issuance of Additional Bonds by the HRA, consent to
the issuance thereof, and must further consent to subordination
of the City' s security interests under the City Mortgage to the
security interests securing the Additional Bonds and the credit
enhancement associated therewith;
NOW THEREFOR�, BE IT RESOLVED by the City Council of the
City of St. Paul, P•2innesota, as follows:
l. The City hereby finds and deterr.lines that the issuance
of Additional Bonds by the HRA to finance improvements to the
District Heatinc� System, and to advance refund the outstanding
Series A Bonds, will further the development of the District
Heating System and further assure its economic viability.
2. The City hereby consents to the issuance by the HRA
of Additional Bonds, in two separate series, for the purposes
stated in this Resolution; which Bonds shall be in principal
amounts not exceeding that necessary to fulfill the purposes
stated above and, in any event, not exceediny an aggregate
principal amount of $45,000,000 .
3 . The City hereby agrees to subordinate the security
interests in its favor provided for under the City Aiortgage
to the security interests in favor of the holders of thz Series
B Bonds and the Series C Bonds and the security interests in
f avor of the providers of credit enhancement associated therewith;
provided that the subordination of the security interests in
favor of the City under the City t�io�rtgage approved hereby shall
not extend to a principal amount of Additional Bonds during such
period, if any, that the proceeds of such Additional Bonds are
held in an invested escrow pending application thereof to the
refunding of a prior series of Bonds.
4. The riayor, Director of the Department of Finance and
Management Services, Director of the Department of Planning and
Economic Development and the City Clerk are hereby authorized and
directed to provide to the HRA, the Trustee and bond counsel
such certified copies of proceedings, subordination agreements,
consent certificates and other items as may be necessary to
implement the terms and conditions of this Resolution upon
review and approval thereof by the City Attorney.
5. This Resolution shall take effect immediately.
��-��-�_ ����
s6as � � �,,�
� ;��`�
RESOLUTION NO. 85-/17-
RESOLUTION RECITING A PROPOSAL FOR A
" DISTRICT HEATING FACILITIES DEVELOPMENT PROJECT
GIVIIQG PRELIMINARY APPROVAL TO THE PROJECT
� � PURSUANT TO THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
(District Heating Improvement Project)
WHEREAS,
(a) The Housing and Redevelopment Authority of
the City of Saint Paul, Minnesota (the "HRA" ) has received from
District Heating Development Company, a Minnesota non-profit
corporation (the "Company") a proposal that the HRA assist in
financing a Project consisting of the modification of the
boilers at the Company' s 3rd Street Plant, the extention of the :
district heating system to the Mt. Airy Project and certain
other related district heating system improvement work through
the issuance of a Revenue Bond or Bonds or a Revenue Note or
Notes, in a single issue or in series, such Bonds or Notes
being hereinafter referred to in this resolution as the "Series
B Bonds" pursuant to Chapter 474, Minnesota Statutes, known as
the Minnesota Municipal Industrial Development Act (the "Act") ,
and in conformance with the HRA guidelines pertinent thereto;
(b) The Company has further proposed that the
HRA, to the extent permitted by law, issue Revenue Bonds to
refund or advance refund the HRA' s $30,500,000 Floating Rate
Monthly Demand District Heating Revenue Bonds, Series A (the
"Series A Bonds" ) through the� issuance of a Revenue Bond or
Bonds on a Revenue Note or Notes, in a single issue or in
series, such Bonds or Notes being hereinafter referred to as
the "Series C Bonds" pursuant to the Act and in conformance
with the HRA guidelines pertinent thereto;
(c) The HRA desires to: facilitate the selec-
tive development of the City of Saint Paul (the "City" ) ; retain
, and improve the tax base; help to provide the range of services
and employment opportunities required by the population;
promote the conservation of energy by the development of an
energy efficient district heating system; and to lower and
stabilize the cost of thermal energy to persons and businesses
within the City; and the Project and the Series B Bonds and
Series C Bonds will assist the HRA in achieving those
objectives; �
(d) The HR.A has been advised by representatives
of Company that conventional, commercial financing to pay the
capital cost of the Project is available only on a limited �
basis and at such high costs of borrowing that the economic �
feasibility of operating the Project would be significantly
reduced, and Company has also advised this Board that the
Project would not have been undertaken but for the availability
of municipal financing, and its resulting low borrowing cost;
(e) The HRA has been further� advised by
representatives of the Company that the Series C Bonds are
needed to assure the long-term economic viability of the
Company and its ability to provide cost-efficient thermal
energy through its District Heating S�stera (the "System") ;
� ( f) The HRA will, pursuant to Minnesota
Statutes, Section 474.01 , Subdivision 7b publish a notice, a
copy of which with proof of publication will be on file in the
office of the Department of Planning and Economic Development,
12th Floor, 25 West Fourth Street, Saint Paul, Minnesota, of
the public hearing on the proposal of the Company that the HRA
finance the Project and issue the Series B Bonds and the Series
C Bonds and the HRA will conduct a pu�lic hearing pursuant to
� said notice on July 17 , 1985 , at 9 :15 o' clock a.m. , at which
hearing all persons who appear at the hearing (or who submit
written comments) will be given an opportunity to express their
views with respect to the proposal;
NOW, THEREFORE, BE IT RESOLVED by the Board of
� Commissioners of the Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota, as follows:
1 . The Board of Commissioners hereby gives preliminary .
approval, subject to holding the public hearing and considering
all views presented at such hearing, to the proposal of the
Company that the HRA undertake the Project pursuant to the Act,
consisting of the acquisition, construction and equipping of
facilities within the City pursuant to Company' s specifications
suitable for use in connection with the System and to a revenue
agreement between the HRA and Company upon such terms and
conditions with provisions for revision from time to time as
necessary, so as to produce income and revenues sufficient to
_ 2 .
. ����=��9
. pay, when due, the principal of and interest on the Series B
Bonds in the total principal amount of approximately
$11,00O,OOQ to be issued pursuant to the Act to finance the
acquisition, construction and eguipping of the Project; and
said agreement shall provide for the entire interest of Company
therein to be mortgaged to First Trust Company of Saint Paul,
as trustee for the Series A Bonds and Series B Bonds; and,
subject to holding the public hearing, the HRA hereby
undertakes preliminarily to issue the Series B Bonds in
accordance with such terms and conditions; �
2. On the basis of information available to this Board it
appears, and the Board hereby finds, that the Project
constitutes properties, real and personal, used or useful in
connection with a district heating system within the meaning of
Subdivision 1 of Section 474.02 of the Act; that the Project
furthers the purposes stated in Section 474.01, Minnesota
Statutes; that the Project would not be undertaken but for the
availability of industrial bond financing; that the
availability of the financing under the Act and willingness of
the HRA to furnish such financing will be a substantial
inducement to Company to undertake the Project, and that the
effect of the Project, if undertaken, will be to assist the
Company in the improvement of the System and to aid employment
in the cammunity by creating the full-time equivalent of
approximately one employment opportunity, and by these means to ,
encourage the development of economically sound commerce to
assist in the prevention of the emergence of blighted and
marginal land, to help prevent chronic unemployment, to help
the City retain and improve its tax base and provide the range
of services and employment opportunities required by its
population, to help prevent the movement of talented and
educated persons out of the State, to promote more intensive
development and land use of land within the City and otherwise
furthering these and other purposes set forth in Minnesota
Statutes, Section 474.01; �
3 . The Project is hereby given preliminary approval by
the HRA subject to holding the public hearing and to the
approval of the Project by the Minnesota Energy and Economic
� Development Authority (the "Authority") , and subject to final
approval by this Board, the Company, and the purchaser of the
Revenue Bonds as to the ultimate details of the financing of
the Project;
3 �
.� .
4. The Board of Commissioners hereby gives preliminary
approval, subject to holding the public hearing and considering
all views preserited at such hearing, and_ subject to the enact-
ment of authorizing legislation, to the proposal of .the Company
that the HRA issue the Se�ies C Bonds to refund or advance
refund the Series A Bonds upon such terms and conditions as the
Company, the HRA and the purchaser of the Series C Bonds shall
deem appropria�.e and pursuant to Section 474.03 , subd. 12 of .
� the Act and pursuant to a revenue agreement between the HRA and .
the Company with provisions for revisions from time to time as
may be necessary, so as to produce income and revenues
sufficient to pay, when due, the principal of and interest on
the Series C Bonds in the total principal amount of
approximately $34,000,000 to be issued pursuant to the Act; and
such agreement shall provide for 'the interest of the Company to
be mortgaged to the trustee for the Series C Bonds; and subject
to holding the public heazing and the enactment of authorizing
legislation the HRA hereby undertakes preliminarily to issue
the Series C Bonds in accordance with such terms and
conditions; '
5 . In accordance with Subdivision 7a of Section 474.01
Minnesota Statutes, the Chairman of the HRA is hereby
authorized and directed to submit the proposal for the Project
to the Authority requesting its approval, and other officers,
employees and agents of the HRA are hereby authorized to
provide the Authority with such preliminary information as it
may require and the appropriate officers of the HRA are
. authorized and directed to enter into a preliminary agreement
with Company;
6 . It is hereby found and detez�nined that the Company is
a non-profit corporation qualified under Section 501 (c) (3) of
the Internal Revenue Code of 1954, as amended (the "Code" ) .
Further, the Board has been advised by Bond Counsel that
neither tlze Series B Bonds nor the Series C Bonds will be
"industrial development bonds" within the meanign of Section
103(b) of the Code. Sections 474.17 through 474.25, as
amended, therefore do not apply to either the Series B Bonds or �
the Series C Bonds, and no allocation of the bonding authority
of the City thereunder is made for said bonds.
7 . Company has agreed and it is hereby determined that
any and all costs incurred by the HRA in connection with the
financing of the Project and the Series B Bonds and the
Series C Bonds whether or not the Project is carried to �
4
� � � � � � ��� �'�= 9'�,9
completion and whether or not it is approved by the Authority,
and whether or not the Series B Bonds and/or the Series C Bonds
are issued, will be paid by Company;
8. Briggs and Morgan, Professional Association, acting as
bond counsel, is authorized to assist in the preparation and
review of necessary documents relating to the Project and the
Series B Bonds and the Series C Bonds, to consult with the City
Attorney, the Company and the purchaser of said Bonds as to the
maturities, interest rates and other terms and provisions of
said Bonds and as to the covenants and other provisions of the
necessary documents and to submit such documents to the Board
for final approval;
9 . Nothing in this resolution or in the documents pre-
pared pursuant hereto shall authorize the expenditure of any
municipal funds on the Project other than the revenues derived
from the Project or otherwise granted to the HRA for this
purpose. The. Bonds shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property or funds of
the HR.A or the City except the revenue and proceeds pledged to
the payment thereof, nor shall the HRA or the City be subject
to any liability thereon. The holder of the Bonds shall never
have the right to compel any exercise of the taxing power of
the HRA or the City to pay the outstanding principal on the
Bonds or the interest thereon, or to enforce payment thereof '
against any property of the HRA or the City. The Bonds shall
recite in substance that the Bonds, including interest thereon,
is payable solely frvm the revenue and proceeds pledged to the
payment thereof. The Bonds shall not constitute a debt of the
HRA or the City within the meaning of any constitutional or
statutory limitation;
10. In anticipation of the approval by the Authority, the
issuance of the Series B Bonds to finance all or a portion of
the Project, and in order that completion of the Project will
not be unduly delayed when approved, the Company is hereby
authorized to make such expenditures and advances toward
payment of that portion of the costs of the Project to be
financed from the proceeds of the Series B Bonds as Company con-
siders necessary, including the use of interim, short-term
financing, subject to reimbursement from the proceeds of the
Series B Bonds if and when delivered but otherwise without
liability on the part of the HRA or the City;
5
�-' 11 . The actions of the HRA staff in causing public notice
of the public hearing and in describing the general nature of
the Project and estimating the principal amount of the Series B
Bonds and the Series C Bonds to be issued to finance the
Project and to refund the Series A Bonds and in preparing a
draft of the proposed application to the Authority, for
approval of the Project, which has been available for
inspection by the public in the office of the Department of
Planning and Economic Development, 12th Floor, 25 West Fourth �
Street, Saint Paul, Minnesota, from and after the publication
of notice of the hearing, are in all respects ratified and
confirmed. �
Adopted by the Board of Commi,ssioners of the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota,
this 17th da� of June, 1985.
' Chairman
Attest:
Secretary
6
WHITE - CITV CLERK
PINK� - FINANCE GITY OF SAINT PAUL Council /�
CANARV - DEPARTMENT File NO. � _ / / O
BLUE - MA;OR
♦
` Co c 'l Resolution
�
Presented By ` � ~
Referred To Committee: Date
Out of Committee By Date
RESOLUTION RECITING A PftOPOSAL FOR A FINANCING PftOGftAM
FOR A MULTI-FAMILY RENTAL HOUSING DEVELOPMENT, GNING
PRELIMINARY APPROVAL TO THE PftOJECT AND THE PROGftAM
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL, MINNESOTA AND
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
TO ENTER INTO A JOINT POWERS AGREEMENT AND
TO ISSUE HOUSING REVENUE BONDS AND AUTHORIZING THE
SUBMISSION OF FINANCING PROGRAM FOR APPROVAL TO THE
MINNESOTA HOUSING FINANCE AGENCY AND AUTHORIZING THE
PftEPARATION OF NECESSAftY DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE SAID PR.OJECT AND PROGRAM
(E1�IERGY PARK RENTAL HOUSING PROJECT)
WHEREAS,
(a) Minnesota Statutes, Chapter 462C (the "Act") confers upon cities, or housing
and redevelopment authorities or port authorities authorized by ordinance to exercise
on behalf of a city the powers conferred by the Act, the power to issue revenue bonds
to finance a program for the purposes of planning, administering, making or purchasing
loans with respect to one or more multi-family housing developments within the boundaries
of the city;
(b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HRA") and the Port Authority of the City of Saint Paul (the "PASP") (collectively,
the "Authorities") have been designated, by ordinance, to exercise, on behalf of the
City of Saint Paul, Minnesota (the "City") the powers conferred by Minnesota Statutes,
Section 462C.01 to 462C.08;
COUNCILMEN Request�.�+ De rtment of:
Yeas � Nays ,/;�
o`e'" In Favor
Masanz
Nicosia
Scheibel __ Against BY
Tedesco
Wilson
Sonnen Form Approved by City Attorney
Adopted by Council: Date �
Certified Passed by Council Secretary BY
By
E�pproved by IVlavor: Date Appr y Mayor for Submis t ouncil
By
� , � � � . � . . �.�.�= 9��
� . ,
(c) The City has received from AHW Corporation (the "Developer") a proposal
that the City undertake a program to finance a Project hereinafter described, through
the issuance of revenue bonds or obligations (in one or more series) (the "Bonds")
pursuant to the Act;
(d) The City desires to: facilitate the development of rental housing within
the community; encourage the development of affordable housing opportunities for
residents of the City; encourage the development of housing facilities, a portion of
which is designed for occupancy by persons of low or moderate income; and encourage
the development of blighted or underutilized land and structures within the boundaries
of the City; and the Project will assist the City in achieving these objectives.
(e) The Developer is currently engaged in the business of real estate development.
The Project to be financed by the Bonds is the acquisition, construction and equipping
of a multi-family rental housing development of approximately 415 rental units, together
with functionally related and subordinate facilities located on Energy Park Drive,
east of Bandana Square, in the Energy Park "Area of Chronic Economic Distress"
in the City of Saint Paul, and consists of the acquisition of land and the construction
or renovation of buildings thereon which will result in the provision of additional rental
housing opportunities to persons within the community;
(f� The City has been advised by representatives of the Developer that conventional,
commercial financing to pay the capital costs of the Project is available only on a
limited basis and at such high costs of borrowing that the economic feasibility of
operating the Project would be significantly reduced, but the Developer has also advised
the City that with the aid of municipal financing, and resulting low borrowing costs,
the Project is economically more feasible;
(g) A public hearing on the Project and the financing program therefor was held
on July 23, 1985, after notice was published, all as required by Minnesota Statutes,
Section 462C.05, subd. 5, at which public hearing all those appearing at said hearing
who desired to speak were heard and written comments were accepted;
(h) No public official of the City has either a direct or indirect financial interest
in the Project, nor will any public official either directly or indirectly benefit financially
from the Project;
(i) The Developer has submitted to the Authorities a form of Memorandum of
Understanding executed by the Developer, expressing certain understandings by and
between the Authorities and the Developer pertaining to the Project, and the financing
therefor;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
Minnesota, as follows:
1. The City hereby gives preliminary approval to the proposal of the Developer
that the City undertake the Project, described above, and the program of financing
therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisition,
construction and equipping of multi-family rental housing facilities within the City
pursuant to the Developer's specifications and to a revenue agreement between the
Authorities and the Developer on such terms and conditions with provisions for revision
from time to time as necessary, so as to produce income and revenues sufficient to
pay, when due, the principal and interest on the Bonds in a total principal amount
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, C'� �!5= 970
� , not.to exceed $27,000,000 to be issued pursuant to the Act to finance the acquisition,
• construction and equipping of the Project; and said agreement may also provide for
the entire interest of the Developer therein to be mortgaged to the purchasers of
the Bonds, or a trustee for the holder(s) of the Bonds (which may be PASP); and the
City, acting by and through the Authorities, hereby undertakes preliminarily to issue
its bonds in accordance with such terms and conditions;
2. On the basis of information available to the City, it appears, and the City
hereby finds, that the Project constitutes a multi-family housing development within
the meaning of subdivision 5 of Seetion 462C.02 of the Act; that the Project will be
located within the Energy Park Area of Chronic Economic Distress; the availability
of the financing under the Act and the willingness of the City to furnish such financing
will be a substantial inducement to the Developer to undertake the Project, and that
the effect of the Project, if undertaken, will be to encourage the provision of additional
multi-family rental housing opportunities to residents of the City, to assist in the
redevelopment of blighted and marginal land, and to promote more intensive development
and use of land within the City;
3. The Project, and the program to finance the Project by the issuance of revenue
bonds, is hereby given preliminary approval by the City, subject to the approval of the
financing program by the Minnesota Housing Finance Agency ("MHFA"), and subject
to final approval by the Authorities, the Developer and the purchasers of the Bonds
as to ultimate details of the financing of the project;
4. Pursuant to Chapter 72, Saint Paul, Minnesota, Administrative Code, the
City hereby authorizes and directs the Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota and the Port Authority of the City of Saint Paul, acting
pursuant to this Resolution, to jointly issue the housing revenue bonds to finance the
Project and to take all actions necessary or desirable in connection therewith, and
no further approval or authorization of the City shall be required; and the Authorities
are further hereby authorized to enter into a joint powers agreement for the purposes
of the Project, the Program and the Bonds;
5. In accordance with subdivision 5 of Section 462C.05, Minnesota Statutes,
the Director of the Department of Planning and Economic Development is hereby
authorized and directed to submit the program for financing the Project to MHFA,
requesting its approval, and other officers, employees and agents of the City and
the Authorities are hereby authorized to provide MHFA with preliminary information
as it may require;
6. The Developer has agreed and it is hereby determined that any and all costs
incurred by the City or the Authorities in connection with the financing of the Project,
whether or not the Project is carried to completion and whether or not approved by
MHFA, will be paid by the Developer;
7. Briggs and Morgan, Professional Association, acting as bond counsel, and
such investment bankers as may be selected by the Authorities are authorized to assist
in the preparation and review of necessary documents relating to the Project and
the financing program therefor, to consult with the City Attorney, Developer and
purchasers of the Bonds (or trustee for the purchasers of the Bonds) as to the maturities,
interest rates and other terms and provisions of the Bonds and as to the covenants
and other provisions of the necessary documents and submit such documents to the
Authorities for final approval;
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