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85-1585 WHITE - CITV CLERK ' PINK - FINANCE GITY OF SAINT PAUL Council CANARV - DEPARTMENT BLUE - MAVOR File NO. � + � �� C ncil esolution . , Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1. On November 19, 1985 the Port Authority of the City of Saint Paul adopted Resoluton No. 2570 giving preliminary approval to the issuance of revenue bonds in the initial principal amount of $2,750,000 to finance the acquisition and office conversion of floors 19 and 20 and related parking facilities and relocation of the Port Authority off ices in the Amhoist Tower. The bonds will be purchased by the First National Bank of St. Paul. 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, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 2570 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 Yeas � Nays Requested Department of: Drew � [n Favor"� Masanz Nicosia Scheibel � __ Against BY TedesCo -IAFiFsv�f' DEC 3 - 1985 Form Approved by City Attorney Adopted by Council: Date r� Certified Passed by Council Secretary BY� � $y� __ �V' C�L+-� y , � - t#pp by Mavor: Dat �EC 6 — ti7UJ Approved by Ma o or Sub 'ssion to Council , // , `�i �'��'�/ By By ��.�'��r. �E C 141985 " ' - � . ��- is 8,s- � � . Resolution IVo. � � � RESOLUTION OF THE PORT RUTHORITY OF THE CITY OF SAINT PAUL WHEREAS , the Port Authority financed the construction of eighteen floors of the Amhoist Tower and the adjacent parking ramp; and WHEREAS , �the proposed residential units on floors above eighteen have had slow sales with over two years of marketing; and WHEREAS , the First National Bank of Minneapolis is in the process of foreclosing on its mortgage on the residential units and taking title to the mortgaged property; and WHEREAS , the occupancy level of the thirteen floors of the Amhoist Tower owned by the Port Authority exceeds 95%; and WHEREAS , staff has negotiated an arrangement with the First National Bank of Minneapolis for the purchase by the Authority of Floors 19 and 20 of the Amhoist Tower ; and WHEREAS , the Authority would lease out Floor 20 and move its offices to Floor 19 ; and WHEREAS , in addition to the office space , the Authority would also acquire thirty-one parking spaces in the Amhoist/ St. Paul Hotel Parking Ramp ; and WHEREAS , the proposed purchase price is $2 , 300 , 000 . 00 ; and WHEREAS , it is contemplated that at some future date th� Authority would sell the area to be purchased from the First National Bank to Green Tree contemporaneous with Green Tree exer- cising its option to purchase the Port Authority owned thirteen floors of the Amhoist Tower; and WHEREAS , the purchase of Floors 19 and 20 and thirty-one parking spaces from the First National Bank of Minneapolis is contingent upon approval by all owners and mortgagees within the Amhoist/Park Towers/Ramp Condominium; and WHEREAS , said acquisition appears to be in the best interests of the port district and the taxpayers thereof; NOW, THEREFORE , BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL: . '� . � � �S-i..5-�� 1 . That acquiring Floors 19 and 20 of the Amhoist Tower , together with thirty-one parking stalls in the Amhoist/St. Paul Hotel Ramp is in the best interests of the port district and the taxpayers thereof; and 2 . That said authorization is contingent upon the approval by all unit owners and their mortgagees in the Amhoist/Park Towers Ramp Condominium of converting the 19th and 20th floors of the Amhoist Tower from residential to commercial uses ; and 3 . That the proper Authority officers are hereby author- ized and directed to execute the necessary documer�tatiori con- summating said transaction in form as approved by counsel . Adopted: ��'�::e-�";�l� c„ i �� , 1985. . J �� ; ) � _ � -President Port Authority of the City of Saint Paul Attest: �..�P $ ��.�,=c Secret ry �� `Port �uthority DEPARTMENT �.. /��-� " �`Z �� 362? . ► E. A. �Kraut CONTACT 224-5686 PHONE �� 11-20-85 DATE e ASSIGN NUh�ER FOR ROUTING ORDER (Clip All Locations for Signature) : 1 Department Director 3 Director of Management/Mayor Finance and Management Services Director 4 City Clerk Budget Director �2,750 REVENUE BOND ISSUE - ACQUISITION 2 City Attorney AWD CONIIERSION FLOORS 19 & 20 AND RELATED —RA RT WHAT WILL BE ACHIEVED BY TAICING ACTION ON THE ATTACHED MATERIALS? (Purpose/AUTHORITY - •AMHOIST Rationale) : TOWER The purpose of the bond issue is to finance the acquisition and conversion of floors 19 and 20 and related parking facilities and relocation of the Port Authority offices in the Amhoist Tower. The current occupancy in the 13 floors owned -by the Port Authority exceeds 95%, and we have sufficient letters of intent to occupy all of 19 and 20, which would include the Port Authority occupying approximately 11,000 sq. ft. on the 19th floor. The bonds would be issued against a free letter of credit at 58% of prime. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction; $2,750,000 quired if under $10,000) Funding Source: Activity Number: i ATTACHMENTS (List and Number All Attachments) : 1 . Staff inemorandum 2. Draft City Council Resolution � 3. Port Authority Resolution No. 2570 DEPARTMENT REVIEW CITY ATTORNEY REVIEW 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 HOW TO USE THE GREEN SHEET - L � The GREEN SHEET has several PURPOSES: ' 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 frequent types of documents: CONTRACTS (assumes authorized budget exists) l. Outside Agency 4. Mayor 2. Initiating 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 RESOLUTZON (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 signinq 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 fundfng. � 8. Budget amendments. � � 'P�� R�T �--- �:�� AUTHORITY OF THE CITY OF ST. PAUL Memorandum TO: Board of Commissioners DATE: Nov. 15, 1985 Meeting Nov. 19, 1985 �. , FROM: E. A �.I�r,�� ' �-�__ SUBJECT: ACQUISITION AND OFFICE CONVERSION OF FLOORS 19 AND 20 AND RELATED PARKIh'G FACILITIES ANU RELOCATLON OF PORT AUTHORITY OFFICES - AMHOIST TOWER RESOLUTZON N0. 2570 Staff has been negotiating with the First National Bank of Minneapolis relative to acquisition of floors 19 and 20 plus 31 parking spaces in the Amhoist Tower. The current occupancy in the 13 floors owned by the Port Authority exceeds 95�, and we have suff icient letters of intent to occupy all of 19 and 20, . which would include Port Authority relocation to floor 19 in approximately 11,000 square feet of space. The purchase price is $2,300,000 for a net rentable area of 23,400 square feet plus 31 parking stalls which is equivalent to $85.04 per square foot. Leasehold improvements are estimated at $450,000. This would result in an effective cost of acquisition of $104.27 per square foot. Based upon current rents and assumptions through 1995, the value of the Amhoist building today averages $155 per square foot. The negotiated purchase price is appropriate from a real estate point of view and will ultimately be of ma�or importance to an overall sale of the property in the future. It is expected at some future date that all of the space would be sold to either Green Tree under its Option to Purchase or to another buyer. We have attached a pro forma on the Port Authority's ownership in the building, including floors 19 and 20, which indicates that at a level of rent similar to that now being paid by us to the City of St. Paul, the pro�ect will generate a net cash flow of $7, 161,517 by 1995 based upon current commitments and renewals and assuming market rate renewals on those leases where automatic renewal is not provided. Included in the arrangement with First National Bank would be the sale of $2,750,000 in revenue bonds at a percentage of prime estimated to be 58% to be issued against a free letter of credit. Prior to the end of the year we will also be refinancing the currently outstanding $16 million to reduce the interest costs and adopt a principal amortization schedule, also to be sold against a letter of credit. Also, approval. mu�� bP obtained from the Condominium Association participants for conversion. Staff recommends approval. EAK:�mo . �V�--/v:�`.� M t� . �_ �t !3 �¢� � � � � � � ° ~ � � !�� : ( �� iB = "r f "t � � � w o � � M �+ `�v � � � � �'� � � V W g=' •o•� � e w . . �� a= � g'�.._ � � � (7 M � O �p .�. � ..r. S � � �+ 6 '� y O a ,^� � � � � S w � f, o �=° � � � " � � � € NW � I � � ' Q . 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N m w�i � � � " � � � � � � �c " s� '° = � : � � $� � � � a � � � � � i � � � � �S � 1 � � � � � � e � �� F � N � =� � � � i � I , i , � � � � � � � � ia � � � � � o a � t n � Q i N . I � Np � � � �M w e (y ^' � � � ��. � � � � � ^ � � P � n ' . . O V � !► If! g: ! G�+ � � � + d ^ =� � }� � `"� _ � � N a r ` i � � ; , i , � � � i � � ' "' � °' � ' � ` y ¢ s "1 r� � � ! o � � � � � a�� I � N � = � i = �� } i ! � � ! � �� i � � � � � a � � I ^ � � � � � � � � = � � , � E � � ! , � � _ � � I � � s � , a � � �I � � � � � � ' �= � � a � � - � ' `' � � ~ 1Ni � � � � � � { � �# � � � � � o � � �� y � � _ � ° � � � � �� ' � , � � � � �' Ig � � � � � � � g , �, � o s = ° � � � � ° I � � � I � N � i I , I � o' Q � � F ,� � s � � � d ri � � � N �� M � � . � � � _ , ,�a � y� e °; a �y °' = g y� ga � ^y. �� y� �ry i17 � G � ¢ �W g�� W � . � �� i R � F� �� ; O O � � � � w 6 � G � W ` r � �� AUTHORITY � �,s--,�--�s- OF THE ClTY O� ST. PAUL . Il�emorandum TO: LOARD oF C01�IYMISSIONERS DATE: (Sppcial Meeting November 12, 1985 P1ov. 12, 1985 l FROM: E• �� ut. . SUBJECT: �F.S. N0. 256?, McCOLL BUILDING - REFUNDING BONDS - $5, 100,000 RES. N0. 2568, McC�LL BUILDING - COMPLETION BOND� - $800,000 In restructuring the financing of Galtier Plaza, Chemical Bank has requested that the partners also provide sufficient f unds for the completion of the McColl Building pro�ect. The original $5, 100,000 *aas privately plar.ed with Ctiemical Bank. When refunded these bonds would also be acquired by Chemical Bank as would r_he additional $800,UU0 in completion bonds. Since the Port Authority nor the City do not have any bond allocation remaining, this project will be subject to submission to the state pool on November 26th. It would only be refunded and additional bonds issued if the additional $800,000 were available from the allocation pool. Staff recommends approval of Resolution Nos. 2567 and 2568. EAK:jed a � � POitT � �s-is�� AUTHt' RITY OF THE CITY OF ST. PAU� Memorandum TO: BOARD OF COMrtISSIO[�ERS DATE: Nov. 15, 1985 (November 19, 1985 Regular Meeting) � FROM: C.M. Towle SUBJECT: LOWERTOWN FIVE PARTNERSHIP PUBLIC HEARING — PRELIMINARY AND UNDERWRITING AGREEMENTS $2,500,000 RESOLUTION 876 REVENUE BOND ISSUE OFF—SITE RESOLUTION N0. 2571 1. THE PROJECT The Lowertown Five Partnership is requesting financing for the acquisition and rehabilitation to office space of a building at 413 Wacouta Street in the Lowertown District. The 40,000 square foot, six— story brick commercial building was constructed in the 1880's and was designed by Cass Gilbert. The buildin.g is immediately north of the Park Square Court and Woods Chocolate buildings and will be skyway connected through the Woods and Railroader buildings. The building will be named the Banker's Life Building, and this insurance agency will occupy almost 50% of the office space. 2. THE DEVELOPERS The Lowertown Five Partnership consists of four partners: Stephen B. Wellington, Jr. , John E. Mannillo, Richard A.Larson and Norbert T. Koch, Jr. Messrs. Wellington and Mannillo are in the real estate development and property management business, and Messrs. Koch and Larson are principals of the Banker's Life agency. This will be a non— recourse limited partnership with debt service and operating expenses guaranteed by the four partners through a Cash Flow Maintenance Agreernent which will remain in effect for two years after gross income is 105% of operatin� and lease expenses. 3. FINANCING The pro,jected financing will be an 876 industrial revenue bond for a 30—year term in the amount of $2,500,000 with the proceeds of the bond issue as follows: � � �s�s�-s� BOARD OF COMMISSIONERS November 15, 1985 Page —2— Acquisition and Rehabilitation $2,240,000 Construction Period Interest — 8 Months 160,000 Bond Issuance Cost 25,000 Bond Discount 75,000 TOTAL $2,500,000 The developers will provide a letter of credit to cover the debt service reserve in an amount estimated to be $260,000, and $400,000 in syndication proceeds will be deposited with the Por*_ Authority for disbursement in accordance with the following sources and use of funds: SOURCE OF FUNDS Port Authority Bond Issue $2,500 000 � . Syndication Proceeds 400,000 Reserve Letter of Credit 260,000 TOTAL $3,160,000 USE OF FUNDS Rehabilitation Expense $1,870 000 � Building Acquisition 550,000 Letter of Credit Reserve 260,000 Capitalized Interest 160,000 Bond Zssue Cost 25,000 Bond Disount 75,000 Developer's Fee 100,000 HRA Fee 25,000 Contingency & Carry 95,000 TOTAL $3,160,000 Of the developer's fee of $100,000, $25,000 will be disbursed at closing with the balance of $75,000 retained as additional security until such time as the Cash Flow Maintenance Agreement is released. The complete project has been appraised by Appraisal Research Associates (MAI) for $3,400,000. For the first five years, the Port Authority will receive its usual .42% fiscal and administrative fees; and from the fifth year to the conclusion of the financing, the Port Authority will receive an annual fee equal to 1% of the bond issue. The Port Authority will also receive it usual sinking fund earnings, and the partnership will have an option to acquire the building for l0Y of the original bond issue pius outsta►�ding revenue bonds at 10 and 20 years and 101 ot the bond issue at the end of the term. � � �,��s-is�,� BOARD OF COrTMISSIONERS November 15, 1985 Page -3- 4. UNDERWRITING Miller & Schroeder Financial Inc. has agreed to underwrite the 30-year bond issue at an interest rate to be set at the time the bonds are sold which we anticipate to be at a Special Meeting in late November or early December. 5. RECOMMENDATIONS The City Housing and Redevelopment Authority (HRA) has conducted a public hearing on this project and Port Authority staff has interviewed the developers of the pro,ject, reviewed their financial statements and pro�ections and recommends approval of Resolution No. 2571. CMT:ca �,1��s�11 �� i�----1� , , , '1�"'� ' �. , � I ' � ` � � �—� �� '' �� 1 I 1\�■1-- ,,I,`''� i I ', ': �� r=11r�, I _ i \ 7— •1� 1 I — , � �' ' � ��_�= �r---- -'--�-1 �' ��i:.��,� � ! �:..I�i�. � ,_._� ._.__ � �-�'��L� �!-/� �I�T(� �r�� -- _�_ 1 i � I i / I � I � 1 1�1� `I� i,�� ,�I �� e �� i%' � � . 'I ,I,, _ j� , � . , ,�, � �—��\��i I�I ,,�j -�/� / I � �� 1►/1/�� ,� �i - �%'i� �'��,�,�!. J , � . �� ;.,/%� ,;�, _.,,,�; - ...,...-�;.: � ,� ��,� �, ', �' �� '�� ' ::.,,;'�� i;: A �� ,11��.=� ' �� ,r��', .•-,�, ; ��a,, l �- ` "' 1 , , 1 I--i�� ----�_. ..�., , '�M� --- —�� ', �►..a��s- .s��- �r■,��.- — - .L� � .-.:;,;, , , �... _� , _� •�-�� .`_ __,►, �� ,��=, ,��' ��/ �- ;, t_ � , �jJC� �� -- - � �""_. =� _��- c��I�_��\� \\ �� ,� �� i -�=- ��/is��!►��`�!�\,\ �� 1�_ ��_�, .�.r� , :-� ,1�: � - ':��.,��\`'��_,\,- \ �� s�� ssma� r,�� ::� i� • - - . ` � ' �'1�\,AZ'►�\ , \.�.�� t�, ��I'��, ---J � .l , � .�,_��._,��_,, , �aun� ' i i►� ri�rn�� i� :, ;� �.,��,._, , , -� ;, �;r _ �-'::._�.�_._�' 1''•� ' �'� �� . _._.�,,_�.,_,. _ —_ _ --— Il � ��_�.�--,--- -- — -.--�- - — _ _ --_- - �— -�...�.,,��.,�.�... � �.� . l�-� � ��1�`� S �� [�� , �� `--- � --- ' -�- _ - � •��' �� _ ��/� � �� , —� -- ----- -i��1,� --- --- ----�____. ��}�1--�,�1��1�L_--��I / ��`-,.-`^-v---�aT-C�"T-J---�-��! � ��• ��•��._T w_��.,�. r .W�� •�r'�'�� \ � ��\_��► ��`---��1�'��j ��G��L �-�;��-_��ir�� . ��_�\�� ;� � �Il�� i � �i _ �.:1� � � �I �.�i �r � �� _� �� ' h � '� �YS-�5�_ NOT ON PREPARED AGNEDA: Resolution appr ving $30,250,000 for Energy Park Refunding. (Port Authority) �=,',�roz'-� �e5 lution.approv ng $2, 750,000 for Amhoist Acquisition Bonds. (Port Authority) , �?r��-e� e�t / /, �L�proving $800,000 for McColl Completion Bonds. (Port Authority) i�� '/ Reso ution approving $2,500,000 for Lowertown V. (Port Authorit ) . i��YDL��G� Y % f '• ' • � �Y� /(/� . CITY OF S3I�7T PAUL ,�. ;� � , ;;;� OF'S'ICE OF THT CITY COU�TCIL . � Conlnlit�e� Re art ' F F':�.ance. �ana��ment�. � Persannel �ommifi�fi,�e. — � � — V 1. Anproval oi :ninutes lroar meetin� held `lovemoer ld, I985. ,/rP�� ` �,.�_tJ ,/ 2. Resolut:on amending C.t�. 3570?: to ailow :or Lhe esLZOl�shwent of desi3nated nay � pe^od aL abnronrzaLe cime� to a:;ou :or the pavmer.L oP heslt:s bene=i:s to occ::: wL hin a 35-uay pe:iu:i ��c by.Sc :cat�}te. (Ris� '•igr�L. Laid over '-n� i?/l�'�"� � ��- i.-!�'��D �ve�Z I t�e:ek �nd,r��llvr��n(��rnt�Yt.-�v�l Ct-�i� �-��- � 3.) Presentatzon r Ramsey uunty 'fa.• c�on on tth Assessed Val ation pauc__an. , � LJ (Laid over =:om 11/1•1/35) � . - �r�s�.�,-�ic,�-c�v(, ScG�.�r�,l�e�-k�r- f r�-��re- ��u rt�,�. . �4. Reso2uLion(s) aoproving the ilA3I1CILP� and spending plan for the cLy Hu�an Serv'cc� IniLiative Program. (Cammunicy Services)% /4� �j/e� --�1\ ��,Z/�� , �'�� / CJ = 5. Letter of AFSCtE Counc;1. No. I4 asxing for a review ox the grade oi �he ti�2e � Aninal ConL=o1 Ofr:.cer. (Refer_ed to Financo Il/7/85)�� V,�� / � �z/�Z/�� . � �� Resolution aushari.zinq the e.menditure ax' $20,00 allowing the city to join �rit:t � ot r sec�o area �alities in proLest:.Zg the ;lS? elect:ic raLe inc�ase. • � � e�ife?6n "r�cesiing $20,000 to allaw the city to oarticipate wiL.'� oL.'�er ci::es � in lec�:c rate case. � • ' � �::. � ��,�'��'�� _. - $: e 1 zon v�.ag 1 85-,.986 aqreement betxeen the Gity and the InLe:-taLional � ' � Assn. of. :4ac:inists an �lerosoace �Yar.ce� AF�.-Q . (P onnel) ' ' ��1� � �� a f��s�� 9. s uzion an rovtng I985-I98 bfaintenance Lab 4greement betxeen the Inde?endent . •. I �o��t�c� �6�and Ele-cTLr ca.l `�o�e-s, ocal 0. (Personnei) . ; . t J�� Resolutzon aut�orixing�—'iss�ce o�$1;740�;OQ0 PorL Authorir� Revenc•r 9onds i to fiaance the const:ucLion of an affice and distr_oution center ior 4RB Assnciates : ; ia Ri.verview IndusLx2a1 area Wes=. (Porc AuLhariry) /),�n /�� „%/ . • ' ''� ' /'I /`"/ 1, ��_ ' ! ' rll: Resolution authorir�g the issuance of $2,665,000 Por: Authorsty Revenue Bonds to . 1 finance the acouisiLion ar bui.ldings oa the s.e. mrner of Western and Oaycon 1 Avenues :or Cathedral Hi1L Associ,ates. (Port author:y) ��O,!�—!/`s ' ' �� 13. Resolution authorizing proner eity officials to nc� ee to owrten of Burglar ��1�ems p� t��L��C�n�� the i.egislaLive Cofle. . , � 13 s 1 t on auL orizing issuance�E S� , ,000 Port authoriry Revenue boncs to finance the acauisiL'on and remodelin oi C�itol Fioliday Inn :or :FBS ,Lssociates. (Port AuLhoritY) ��r�I/� 14. Resolution auchori=ing an a�re�menL with the fMt, DenL. of Health to nrovide a Rersgee Healcli Progr:m in Itamsey Co. for Octoaer 1, 1985, thmug' SepL. 30, 1987. (Community Services)f_r( t� � V�/� '�^ .�.��'� �� 15. Resolution amending che hudget cont:roi system esLablished for snecal :z:nds to provide a fle:cible budget concrol opcion for proprietary funds bazed on projee:ed aud scLUal fiscsl per=orman�•�t��Pt�� S �� 16. Resolution auchori�'an�g an agre ni th VYhitacker Buic.k and :�� Porscii-�udi, Inc.. for the lease of unmariced Police vehicles. (Police UepL.) � LA'i7� �V�12-- �� /-?j,5"�S - • NOT ON PREPARED AGENDA: Resolution establishing the bud�et for the � Certificate of Occuvancy program that has b en trans£erred • to the De t. o • �'re � Safet Services. , � . - � ��'�U ._______---�--� � C:IY HALL SEVF.��1TH FLOOR gAL`JT PAUL,1rIL'�fNESOTA 55102 �..• �- �,�� , ' �'"-_ /5�.5 � , � , r�� < ,�j�'!�_' ;�-�c c�-C.�.,c-1��' r�'�� .3%% -'�c'� .�'9� f/o /�� 7 �' /.S �� 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 November 26, 1985 Mr. James Scheibel Chairman Finance Committee City of St. Paul City Hall and Court House St. Paul, Minnesota 55102 Dear Mr. �cheibel : Because of the restraints placed on us by the issuance of the various bond issues which must sell and close by the first of the year, and �ue to the fact that we are restricted by the nature of the Galtier Plaza ref inancing, we are requesting that the Finance Committee consider action on the following addj.tional issues at today's meeting: 1. Energy Park Refunding - $30,250,000 This is the final long term tax increment bcnd issue which must be closed this year in order to avoid the risks inherent in the current tax bill approved by the House Ways and Means Committee. While normally refun�lings do not require reapproval, this one does. It is in keeping with the budget adopted by the City Council. 2. Amhoist Acquisition Bonds - $2,750,000 This is the acquisitiun of floors 19 and 20 by the Port Authority to facilitate the work out of the problem with the top six floors and is space that is already committed to occupancy. Again, this issue must be separated from certain other issues in order to get it accomplished within the time frame left. 3. McColl Completion Bonds - $800,000 This is again a part of the Galtier financing structure which Chemical Bank will purchase. Chemical Bank already owns the existing $5.1 million on this building and as a part of the total restructuring has requested this additional amount. EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE.C.I.D. CHARLES M.TOWLE CLIfFORD E.RAMSTED PERRY K.FEDERS EXECUTIVE VICE PRESIDENT ASSL EXEC.VICE PRESIDENT DIRECTOR OF INDUSTRIAL DEVELOPMENi CHIEF ENGINEER DIRECTOR OF GINANCE C.E.O. RICHARD A.GIERDAL WILLIAM E.McGIVERN 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 `ACE PRESIDENT SECRFfARV TREASURER COMMISSIONER COMMISSIONER COMMISSIONE'� C.I.D. Certified Industrial Developer �-_ ��-- ��-�� _ Mr. James Scheibel November 26, 1985 Page -2- �+. Lowertown V - $2,500,000 This is an 876 issue similar to others on t�he agenda today which cannot be sold at a time when the major Galtier issues are being sold, now assumed to be December 10, December 17, and December 24. If the above projects go through the normal course, it appears that the earliest date for Council approval would be the 19th. They must all close before the f irst of the year and, therefore, be underwritten earlier. A great deal of risk would be involved that could not only jeopardize the issues currently on your agenda for today, but the Galtier restructuring issues. We would, therefore, respectfully request that the Committee make an exception to the rules and act on these today so that they can be incorporated in next week's Council agenda for approval. These issues have been processed through the Planning and Economic Development Department with recommendations for approval. �. Yours truly, 1 l ^ � ^ ��. Eugene A. Kraut Executive Vice President EAK:j mo cc: Councilnersons P O R T �,� �s-�5�� AUTHORITY OF THE CITY OF.ST. PAUL Memorandum TO: BOARD OF COMMISSIONERS DAT� (Special Meeting November 12, 1985) Nov. 12, 1985 ^� � FROM: F• ,' T� ut ,� � � SUBJECT: BES. N0. 256G - ISSUANCE OF $30,250,00� ENERGY PARK TAX INCREMENT BOND The Port Authority currently has outstanding a $25,000,000 letter of credit issue to First National Bank of 24inn.eapolis. When this issue �oas last refunded, City Council resolution required that when the bonds were issued on a permanent tax increment basis that City Council approval be required. Use of the proceeds is as follows: Refunding $25,000,000 Recapture and other expenditures 1,500,000 Reserve 3,500,000 Expenses of issuance 98,750 Underwriter's discount 151,250 Staff recommends approval of Resolution No. 2569, referring this issue to the City Council f or approval. The actual tax increment budget approved earlier this year by the City Council authorized a tax increment budget including interest of $34,972,158. The actual tax increment portion of this issue when the $3,500,000 reserve fund is deducted is $26,750,000. EAK:j ed