85-1562 WHITE - CITV CLERK
PINK - FINANCE G I TY O F SA I NT PA U L Council '
CA��NARV - DEPARTMENT (/p
BLUE - MAVOR File NO• �r/�{ �
�Co il- Resolution
Presented y
Referred To �) N�'C�l�� Committee: Date � ��� ��-�
Out of Committee By Date
WHEREAS:
1. On October 22, 1985, the Port Authority of the City of Saint Paul adopted
Resolution No. 2540 giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of $7,686,000 to finance the construction of a 111,500 square
foot multi—tenant office/industrial/service building in Energy Park for Partnership
Technologies II, a wholly owned subsidiary of Winfield Developments, Inc. The bonds will
be underwritten by Miller & Schroeder Financial, Inc for a term of 30 years.
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
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. 2540 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� D�ment of:
Yeas ��.,-oy„ Nays
Masar�z �
[n Favor
N�cosia
Scheibel �
Sonne� - __ A gainst BY --
Tede8C0
W�IStua ••
Adopted by Council: Date N�V � ; 1985 Form Approved by City Attorney
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Certified Y s b .il $e ary B
gy,
Approved b Ylavor. e -a-a-���1_�T,� Approve Mayo fo ission to Council
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BY �� �- ,�
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St. Paul Port Authority DEPARTMENT (,�`-��`S �`SlO"�o 22
.
C.M. Towle, E.A. Kraut .� GONTACT
224-5686 PHONE � ��
October 22, 1985 DATE Qj e
ASSIGN NUMBER FOR ROUTING ORDER (Clip All Locations for Signature) :
� Department Director 3 Director of Management/Mayor
Finance and Management Services Director 4 City Clerk
Budget Director PARTNERSHIP �'ECHNOLOGIES II
2 City Attorney , , 0 REVE UE B ND ISSUE
WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/
Rationale) :
The purpose of the revenue bond issue is to finance the construction of a 111 ,500 square
foot multi-tenant office/industrial/service building in Energy Park for Partnership
Technologies II, a wholly owned subsidiary of Winfield Developments, Inc.
COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED:
The amount of the revenue bond issue is $7,220,000 and will be for a term of 20 years with
Winfield Developments, Inc. acting as guarantors of the bond issue.
There will be approximately 350 to 400 new: jobs created as!a result of �thi:s project.
FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa-
ture not re-
Total Amount of Transaction: quired if under
$10,00Q)
Funding Source:
Activity Number:
ATTACHMENTS (List and Number All Attachments) :
1 . Staff Memorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 2540
cc. R. Thorpe
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? �Yes No
Yes X No Insurance Required? Insurance Sufficient? X Yes No
Yes X No Insurance Attached:
(SEE REVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84
f�A O R T . � �i�- ��-�.5��-
' AUTHORITY �
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE Oct. 17, 1985
(Oct. 22, 1985 Regular Meeting)
FROM: C.M. Towle
SUBJECT: p�gTNERSHIP TECHNOLOGIES CORPORATION II
A WHOLLY OWNED SUBSIDIARY OF WINFIELD DEVELOPMENTS, INC.
PUBLIC HEARING — PRELIMINARY & UNDERWRITING AGREEMENTS
$7,220,000 RESOLUTION 876 REVENUE BOND ISSUE
ENERGY PARK
RESOLUTION N0. 2540
PUBLIC HEARING — SALE OF LAND
RESOLUTION N0. 2541
1. THE DEVELOPER AND THE PROJECT
Winfield Developments, Inc. and its subsidiary companies have developed
195,000 square feet of office/warehouse/manufacturing space in
Riverview Industrial Park and approximately 342,000 square feet in New
Brighton and Edina projects. Through their subsidiary company,
Partnership Technologies Corporation, they recently developed a 72,000
square foot building in Energy Park which is unique in that space in
this multi—tenant facility is being offered either for lease or sale.
This building has �ust been completed, and purchasers will be moving in
within the month. Currently 30% of the building is either leased or
sold, and they have excellent prospects to either lease or sell an
additional 30%. Based on the success of this project, they are
requesting financing for an additional 111,500 square feet of multi—
tenant office/industrial/service building. The site is immediately
south of their first pro,ject, east of the Control Data Energy
Technology Center extending eastward to the Powermation site.
This pro�ect will be phased and have two buildings of 65,000 square
feet and 45,500 square feet each. The unique design concept will place
one third of the buildings on the second floor which will be leased as
office space and in con,junction with service or light
industrial/manufacturing operations on the first level. This multi—
level concept fits very well on this site as the south property line is
a railroad embankment of over 20 feet in height. These buildings will
be for lease only as the industrial condominiums of the north project
have proven to be rather expensive in the marketplace, and it is the
developer's view tha� th� conc�ominium space avaitable is ct,ffirient for
the combined projects.
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BOARD OF COMMISSIONERS
October 17, 1985
Page —2—
Based on our experience with multi—tenant facilities, we would expect
this building and the companies therein to employ between 350 and 400
people.
2. FINANCING
The projected financing would be an 876 industrial• revenue issue for a
30—year term with Winfield Developments, Inc. acting as guarantors of
the bond issue.
Proceeds from the bond issue will be as follows:
Construction Cost $5,686,500
Debt Service Reserve 752,500
Capitalized Interest — 9 i�onths 528,000
Bond Issuance Cost 36,500
Bond Discount 216,500
TOTAL BOND ISSUE $7,220,000
The Port Authority would receive earnings on the debt service reserve
after the fifth year with full earnings on the sinking fund as well as
the customary fiscal and administrative fees based on a formula of .42y
per million per year for the first ten years, .54y per million per year
for the second ten years and .66y per million per year for the third
ten years of the lease.
The company will have an option to acquire the building for 10% of the
original bond issue plus outstanding revenue bonds at 10 and 20 years
and lOZ of the bond issue at the end of the term. Additionally, in the
event the pro�ect is sold with the financing assigned, the Port
Authority will receive 25% of the difference between the balance of
outstanding bonds and the sale price.
3. LAND LEASE AND OPTIONS
The Port Authority will lease approximately 295,400 square feet of land
based on a cost of $2.25 per square foot at an 11� interest rate. Land
lease payments will commence one year after the bonds are sold. The
company will have an option to purchase the land for $775,425, $553,875
and $332,325 at intervals of 10, 20 and 30—years respectively.
4. UNDERWRITING
Miller & Schroeder Financial, Inc. has agreed to underwrite the 30—year
bond issue at an interest rate to be set the date the bonds are sold.
We anticipate the bonds would be sold at the regular November
Commission meeting.
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BOARD OF COMMISSIONERS
October 17, 1985
Page °3—
5. RECOt�Il�IENDATIONS
District Council 46 has reviewed and approved the project. Staff has
interviewed officers of the company, reviewed their financial
statements and recommends approval of Resolution Nos. 2540 and 2541.
CMT:ca
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532-0 Resolution No. , �—�/v
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WfiEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act" ) as found and 3etermined by
` the legislature is to promote the welfare of the state by the
active attraction and encouragement and development 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 development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce 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 Partnership
Technologies Corporation (hereinafter referred to as "Company" )
a request that the Authority issue its revenue bonds to finance
the acquisition, installation and construction of an 111 ,500
square foot multi-tenant office/industrial/service facility
(hereinafter collectively called the "P�oject" ) in Energy Park
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 community, 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
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Prv7ect �iZI heip to increase the assessed valuation of the
City and help maintaia a positive relationship between assessed
v�luation and debt and enhance the image and reputation of th�
City; and
W�REAS, the� P=ojeet to be fi'nanced by revenue bonds� .
�ill result ia substanttal employment opportunities ia the-
Frolect;
WHEREAS, the Authorit� has been advised: by repre—
sentatives of the ContQan�r that convention�T, co�nercial
financing to. pay the� capital cost of the� Project is avail.able�
only orr � limited basis: and at sucYr liigh co�ts of borro�ing
that th� econvmic feasibiZity of operating th� Projeet would be�
significantly reduced, but the Company has al.so advised this
P;uthority that but for revenue bond financinq, arid its
resulting Iow� borro�ing cost, the Projeet would not be
undertaken;
WAEREAS, Miller � Schroeder Financial, Lnc. ( the
"Underwriter" ) has made a proposal in an agreement (the
"Underc�riting Agreemeat" ) relating to the purchase of the
revenue bvnds to be issued to �inance the Project;
WI�REA.�, the Authority, pursuant to �Sinnesota
Statutes, Section 474�.01, Subdivisien 7b did publish a notice,
a cvpy of w�rich wGith proof of publication ig orL file i.n. the
office of the Authority, of a publi� hearing orr the proposal of
th� �ompany that the Authority financ� the Project hereinbefore
described by th� issuanc� of its industria� revenu� bonds,- and
WHEREAS, the Authority did conduct a publi� hearinq
pursuant to said notice�, at �rtrich- hearing the recommendations
contained in the Authority' s staff inemorandum to the
Conmiissioners wer� reviewed, and all persons who appeared at
� th� hearing wer� givers an opportunity to express. their views
�ith respect to tlz� proposal. �
WHEREAS, it is the intention of the Port Authority to
issue its revenue bonds to finance the Project on/or before
December 31 , 1985 .
NOW,- THEREFOR�', B� L'� RESOLVED by the• Ccmmissioners
v� th� Port Authority o� th� City of Saint Paul, Minnesota as
£o1lo�ss:
L.. Oa tYs� basis of information available to the
1�uthority it appears, and the P;uthority he=eby finds, that said
Proj.eet constitutes prope=ties, used or useful irz conneetion
��tYr one or mor� revenu� producing enterprises- engaged in. any
busiaes� withirz the� meaaing of Subdivigiors 1(a) of Sectiors
474.02 of the° Aet; that th� Project furthers th� purposes
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stated in Section 474.01 of the Act and, but for the
�illingness of the Authority to furnish such financing, the
Company would not undertake the Project, and that the effect of
the� Project, if undertaken, �il.l be to encourage the develop—
ment of economically sound industry and commerce and assist in
th� preventiorz o� the emergence of blighted and marginaT land,
anc�. w�ill help to prevent chronic unemployment, and will help
the City to retain and improve its tax base- and provide the
range• cf services and employment opportunities required by its
population, and �ill help to prevent the movement of talented.
- and educated persons out of the state and to areas within the
gtate where� their services- may not be as effectiveTy used and
wiTl result in more� intensive deveTopment and use of Tand
�ithi.n the City and �i11 eventually result in art increase in
the �ity'g tax base; and that it i� irz the best interests of
the po=t district and the people of the� City of Saint Pau1 and
izi furtherance of the general plan of development to assist the
Company in financing the Project.
2. Subject to the� mutual agreement of the
Authority, 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 documents 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 th� Authority in an amount
not to exceed approximately $.7,220,000 (other than such
additional zevenue. bonds as are needed to complete the Project)
is authorized to finance th� costs of the� P=oject and the
reca�nendations, of the Authority' s staff, as set forth in the
staff inemoranduiu to the� Commissioners whiclr was presented to
th� �ommissioners, are� incorporated hereia by reference and
approved.
3. rn accordanc� �ith Subdivision 7a of Section
474.01, Minnesota Statute�, the Executive- Vice—President of the
AUTfiORITY ig hereby authorized and directed to submit the
proposal for the above described Project to the- Commissioner of
�nergy and Economi.c Development, requestinq his approval, and
other officer�, employees: and agents of the AUTHORITY are
hereby authorized to provide� the Commissioner with such
preliminazy information a�. h� may requir�.
4.. Ther� has heretofore been filed �ith the
Authority a forn� of FreTiminary Agreement between the Authority
and C�ompany, relating to th� proposed construction and
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financing of the Projeet and a form. of the Underwritinq
Agreement. The forms of the agreements have been examined by
the- Commissioners. It is the purpose of the agreements to
evidenc� th� comni.ttment of the parties and their intentions
w�itYr respect to the proposed Project in order that the Company
may proceed v�ithout delay �ith th� commencement of the
acquisition, installation and construction of the Project with
th� assurance• that there� has been sufficient "official action"
under Section T03 (b) of the Internal Revenu� Code of 1954, as:
amended, to �Tlow� for th� issuance of industrial revenue bonds
(including, if deemed appropriate�, any interim note or notes to
provide temporary fi.nancing thereof) to finance the entire cost
of th� Project upon agreement beinq reached as to the ultimate
details o� the Projeet and its financing. Said Agreements are
hereby approved, and the President and Secretary of the
Authority are� hereby authorized and direeted to execute said
Agreements.
5_ Upon execution of the Preliminary Agreement by
the Company, the staff of the Authority is authorized and
directed to continue negotiations with the Company 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
delivery of the revenue bonds; provided that the President (or
Vice—President if the: President is- absent) and the Secretary
(or Assistant Secretary i� the Secretary is absent) of the
Authority, or if either o� such officers� (and his. alternative)
are absent, the Treasurer o£ th� Authority in lieu of such
absent officers, are hereby authorized in accordance� with the
provisions o� Minnesota Statutes, Section 475.06, Subdivision
1, to accept a final offer of the Underwriter made� by the
Underw�riter to purcY�ase said bonds and to execute an
Underwriting Agreement setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwritsr to
said offer but shall be subjeet to approval and ratification by
the� Port Authority in a formal supplemental bond resolu.tion to
b� adopted prior to the delivery of said revenue bonds.
6.. The� revenue bonds (including any interim� note or
notes) and interest thereon shalL not constitute an
indebtednes� o£ th� Authority or th� City of Saint Paul within
the meaning of� any constitutional or statutory limitation and
shall not constitute� oz giv� rise to a pecuniary liability of
the� Authority or the� City or a charge against their general
credit or taxing powers and nei.ther the full faith and credit
nor the taxinq powers of the Authority or th� City is pledged
for the- payment of the bonds (and interim not� or notes) or
interest thereon.
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?. 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 234, to the issuance of the revenue bonds (including
any interini note or notes) herein contemplated and any
addi.tional bonds which th� Authority may prior to issuance or
from time to time thereafter deem necessaZy to complete the
Project or to refund such revenue bonds; and for such purpose
the� Executive Vice Pres.ident of the� Authority is hereby
authori.zed and direeted to forward to the City Council copies
of this resolution and said Pr�Zinu.nary Agreement and any
additional avaiiable= information. the City Council may request.
8 . The actions- of the Executive Vice-President of
the� Authority iri causing public� notice of the� publi� 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 irr preparing a draft of the proposed
application to the Commissioner of Energy and Economic
Development, State of Minnesota, for approval of the Project,
which has been available for inspection by the public at the
office of the Authority from and after the- publication of
notice- of th� hearing, are in all respects ratified and
confirmed.
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Adopted October 22', 1985 �'
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Attest `/��--, ;� : -
P reside.crt �
The� Port Pfuthority of the City
of Saintf Paul
v i
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��:.�.Z'- e etary
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� PORT AUTHORITY OF TNE CITY OF SAINT PAUL TOLL FREE (800) 328-8417
25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
October 22, 1985
Mr. James Bellus, Director
Planning and Economic Development Department jaE��tv�°�
City of St. Paul � ,�g85
14th Floor, City Hall Annex ���( Z
St. Paul, Minnesota 55102
��I�YOR'S OFFIGE
SUBJECT: PARTNERSHIP TECHNOLOGIES II
$7,220,000 REVENUE BOND ISSUE
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 $7,220,000 in revenue bonds to finance the construction of a 111,500
square foot multi—tenant office/industrial/service building in Energy Park
for Partnership Technologies II, a wholly owned subsidiary of Winfield
Developments, Inc.
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. 2540 which authorized the sale of revenue bonds in the amount of
$7,220,000.
Your expeditious handling of this matter will be appreciated.
�ours truly,
� ' � w�
�y-a.,lJ.
�Eugene A Kraut
EAK:ca Executiv Vice President
cc. Mayor Latimer
EUGENE A KRAUT.CJ.D. n�rvai_p G �UNSNEF,�I D CHARI_ES M:u�wi E ����Gp�p c.�,q�.1�TC� ocnny v.��p��g
EXECUTNE VICE PRESIDENT ASSL EXEG VICE PRESIDENT DIRECTOR OF INDUSTRIAL DEVELOPMENT CHIEF ENGINEER DIRECTOR OF FINANCE
C.E.O.
RICHARD A GIERDAL WILLIAM E.McGNERN
PROPERN MANAGER DIRECTOR OF PUBUC RELATIONS
COMMISSIONERS GEORGE W.WINTER WILLIAM WILSON ARTHUR N.GOODMAN VICTOR P.REIM RAYMOND E.LANGEVIN CHRIS NICOSIA JEAN M.WES
PRESIDENT VICE PRESIDENT SECREfARV TREASURER COMMISSIONER COMMISSIONER COMMISSIONEf
C.I.D. Certified industrial Developer
����°��lv'
�„ �� ... CITY OF SgI�TT Pg.UL
;;�-'�`� ` OFFICE OF THF CITY COI7YCZL
;lii'.`�11�
Committee Peport
F:i�an�e, Mana�en�ent; � Personnel Cammittee.
November 14, I985
1. Approval of minutes from meeting held November 7, I985. �PR�v�
2. An ordinance establishing the title of Administrative Asst. in the Fire Dept. e,��a�r
the heading Professional Administrative Group in Grade I6 in the unclassified
service. (Personnel) �P��
3. Resolution amending Section III, Subsection;E!of the Salary Plan �r Rates of Comnen-
sation regarding Animal Control Officers and Animal�•Control Supervisors �iform
allowance. (Personnel) �PRD�fr�
4. Resolution approving amendments to the Civil Service Rules pertainir,g to Announce-
ments of Positions Available, Application Requirements, Examination Procedures,
Eligible Lists and Filling Vacancies. (Personnel) R�f-Eit,� 6wuc 'ro Ge�N��C. WR�vN H�,,pq�1e
S. Resolution amending Section II B of the Salary PIan and Rates of Compensation �`OR f�-
Resolution by adjusting the pay for House Custodian I. (Personnel) �'�°P��
6. Resolution amending Section I D 3 of the Salary Plan and Rates of Compensation
Resolution by establishing the pay for the title of Risk Analyst. (Personnel)�°t'����
7. Resolution amending the 1985 budget by adding $64,282.00 to the Financing PIan
and Spending Plan for regional parks. (Community Services) �'�PPROVP,1�
8. Resolution amending the 1985 budget by adding $42,9I5 to the Financing and Spending
Plan for Utilities Rate Investigation Administration. (City Coimcil) �°Pi�4v�
9. Resolution amending the 1985 budget by transferring $50,000 from Contingent
Reserve to General Govt. Accounts-Judgment $ Compromise. (City Attorney) ��°ROvf.�p
10. Resolution authorizing an agreement with Wilkins Leasing, Inc. for unmarked
vehicles. (Police Dept.) PrPP20dlA
11. Resolution authorizing an a�reement with Dunbax Motors, Inc . for use of a motor
vehicle in connection with Halloween Dungeon of Horrors. (Police Dept.) �P1��
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I3. Resolution amending CF 267621 to allow for the establishment of designated pay
period at appropriate times to allow for the payment of health benefits to occur
within a 35-day period set by State Statute. (Risk Management) �p 0V� � '��a�18S.
14. Presentation of Ramsey County Taxation on the Assessed Valuation Reduction.
. t.anu ovt.,c -co n-�-gs
C:TY HALL SEVENTH FLOOR SAINT PAUL,141INNESOTA SSI02
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