The URL can be used to link to this page

84-1319 WHITE - CITV CLERK PINK - FINANCE GITY OF SAINT PALTL Council CANARV - DEPARTMENT . F11E NO. �� /� BLUE - MAVOR � Co ncil R olution , � Presented y � � . �- Referred To�� /V��-� Committee. Date � /� � Out of Committee By Date WHEREAS: 1. On August 21, 1984, the Port Authority of the City of Saint Paul adopted Resolution No. 2318 giving preliminary approval to the issuance of a tax exempt mortgag� in the initial principal amount of $1,140,000 to finance the purchase of an office and truck terminal in Riverview Industrial Park and the construction of a 17,500 square foot addition to the building for M.G. Astleford Company. 2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul, shall be issued only with the consent of the City Council of the City of Saint Paul, by resolution adopted in accordance with law; 3. The Port Authority of the City of Saint Paul has requested that the City Council give its requisite consent pursuant to said law to facilitate the issuance of said revenue bonds by the Port Authority of the City of Saint Paul, sub�ect to final approval of the details of said issue by the Port Authority of the City of Saint Paul. RESOLVED, by the City Council of the City of Saint Paul, that in accordance with Laws � of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority � Resolution No. 2318 the exact details of which, including, but not limited to, provisions relating to maturities, interest rates, discount, redemption, and for the issuance of additional bonds are to be determined by the Port Authority, pursuant to resolution adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority, found by the Port Authority to be necessary for carrying out the purposes for which the aforesaid bonds are issued. COUNCILMEN Requested by Department of: Yeas Na s �� y�'� �1 �'� °feN' In Favor Masanz sche be� �+ __ Against BY �� 't��"��' Tedesco ' � Adopted by Council: Date SEP 2 7 1��4 Form Approved by City Attorney �` Certified Y . Council r BY `-��—�"" �` � ��T-� Bs� �� y tappro d 1�lavor: Date Approved by Mayor for ' sion to Council � . � By B PU$L�SHED OCT f 198� � � "T � ` � � , � � �� '� � ��'� �. »� � �s � � � � � � � f � �� : , >N��,�`� ��. � > r r� ��,:- � � *k � � �` � � 3`s�'��`'��'3 �� ,,i) �; �� 1��T u r � k ,., �� '.l�'+�� J S/��M�,�j 7 , 1f � k } k �� .'��i�� .,.'j�� .:�'�� S �'1'4q Y.: +Y : 1 �� `� 5� � y�<c.�. _-.`�� :J�, ��.. �� ^e� �Y-�, � � r" 4�" �" �t3t �i � f "r �"�,< �'�1 A� :� "' i' 7 ��'� �y ' �. � �� *�' f�` �' �k 4 v �'.i�'l i �t �'�.r� �S ��.��,�� t ra a .,e�^ a> f � c S - - r� � � � . . ;�y. �., . . , ., w. . ,.t.., .< . . ... .. . . ,.._�: . . , .. ._. , . .-:... t�... � 7 r S � ,� " k ri .. tr� ` ,. : .,.. . .: .�. � ,. i�- y� * y� j/� ^�n, �` k �'� � .� � �.��'. ��E` : n� #r� - �� L�� ?� .-'��i�•f'�.+'� ��...4"�' �� °~ �� s�'t F� e��i�`r �' � } �1y, � d ��r � f,�� '§ V ' ... . ' , _. ' ��,K �. �� `.y� � F ,�� ti�iR�� Y��4�V1 �� Y�� . .`i ,3` ..�� .�., . . ., / 2- L � � {��,��y-A }� � Y� �� "� ':� �x �i K g � � �' �' �� t � � �� s�' , 5 �" �� .��` � i�'yY K �'�^��'� 1��!'I'� ,t S ��ry x " .n7 ` l; `. {9 4 �k Y� .fi n��7l�Y � '4 . 3' '� i �. 4 ,� . � � ! !._ �-4 Y+ a r� r� '�1� ?+ . :,� ,� � � �C�� '�:'i��'�+��!' .� � � `,j{ R y ,I'j, � � �� '. �� ,' �?��i�# � �rc� �.� �k C �Pr� 3*... �.-��'��t��IIRk� . �� ¢ {•t Y7 t ^ { 5,t• `� t x�� • � f�k �yY�3f� '� �� `�. �� t � ` �'� #��; , t" �h ;, . e , ' � ." . ✓� ` ��" � � t; ,:, `� ��, ,� ��, + c ��r � '�� '� � � � y �� } �� a ;t � � ,�`�� ,�:'��# � .�`�� k�k s 'r �� ' ,�� µ, ��'��„� �c ��,.. , , .. � . a''1 y S� :.�a ' �,� '�`� d - , �� x ' � E'� _ a '' sa # .� "'r .�^ �� ; '' ��. �'! ;1�� , '��'� A'�'�EC�:�� t � � � . fa�Y�, ��; � � �qi M� � , - , ... _. , "`""".- `, "" . . . ,., : ; ,� ' � �= fi �,x�,i'i rt 'L''�,�r ,'�i hr$j - �. ��.3�.,�`� Q��'��' �� f7_1�7F{R1i� � � � ,�� 4 Y � s�A1�1 %�* g. Y! �' _ ��"� ��rr�,�j �Y��Y#�iwj �n� t�"ia�l ��a�r{^,,�� a�d �� ;�� .'� � � �� x� j,v at �'"�7 � 4�i"+.t�4l��`I� -�y/ '��t7► ��i��'i��"�Ll" . ' � ,'� f t ftS � a e� ��}'+�.'-Y t J � � i k� A' � NT� �� y� rN t , � F �� i � � ! � } � y�� .�k a � { �" % 4:_ $ �}5'� � �,1 � .. . . � y, . F 1 I- Y ., . : � . . 'A � � � •� . ' :: - k �� y � � �F wro �� .,�'� �'�;� �'�.�' � r� � � { �� ` < �� u � �� ry3- � j :_ ,. .: ' .. .. �. .. � p" .. - `� .'. ..K k ,i <'� -�' �.Y ,[' , J[ X�i ��`�t�F`�i i��, ��'�'.��` 8�@ '��.��'�+'x��?��]��'��`�� ,'� �' ' � �� x�h `�' :;�f ��' �.:�� -�� T��•^R,�Ir'l`�' i�� "�� ♦ � 'R + � � ��F�� 6 f , ��k��'� c h ? �;; �� .>{ � ' • , . s v t �� T�? '��'-��#�#:i9� ��r � $C�- � i��#z"!�� - � � �� ?� ,� ` �tM� �� -. x esi� t r� s �, i �tt �-. ` �-`. ,,/ �� { � . � i: s�;: s .: t �, �� a � � $ .��.' ns: •'�#.F�' �iM741:�t'FV P�� {i��..,,�� '� n• +�n . , , , ' � .��: .• , +` yd q� � � }y � � � �� k r& , �'a ,� �t � �{�cr ��w�, � � t�� x- � � ��I,� � �ft�.i� " ' . �� . . t�j�!''�'`. �� I/'h�k1y�+` .k 3`� � , �} • . y .. - �� '�+lr��{ x .N� ;C K e"J �� y� ��. �j '� •�� Y1�� ,fi� ; !Y '.. "�� ; f � �� ,1�.�r� i.� .��H+ s/ �:��L� `�� u f��h� F �:� � {�.�.L�3 k�3�"' L f �� 3� :s��t�� ' ; j ' �`�� ,� �;� , a� �gi�1{ ��j. ]� �+,}i� �{' �jQf 4 p��y{y]y, �t�f��}'�� 3 d .,�� ,< �i �F�`M�� i�il� 7��i/'�5i��St�� •' Gf?�� .,t"J'�, f "` : Y A / �f`� `�s .� � . . ,' q «* ?� Y��4 r�-� `�r �5�. �� - � ..s � *� 4.ri�`�.5 � s4• F f ° '� t' �g�y�'d'G�� `�� g� ;�� <J � �� ;� ��"� J ...r =�. .�� a{' ; � .�. ' . : ��. �� .. : i . �, � �4 d: � .��. � ;�;,1E�8 �,i� ��C"�1 ��1 �'lO�r' �t��:l^ed� ��►'�� "�`� �" }i �� ,:�,��`F�� . � �� '�• . . . . c ' iz ,� �. "� o �, ;� � 1 �� ,� ��"�� .t""�� 5 � F �qR,�rM�r,�,i+; r�. .� _ � ' S� ��,i�'°��i � '� i�`�t?��y�. '�t��+J�`,!'i��r i�t�i �� ' ln x�s�r��: 2'k F �� ( � � :4++M�lw►.`�` � . �, , ` , ' .�' : ;� � " a'� � �� "",'k ,s.�._ a� �, � .. i I � 5 yy �t �' �5�� a " .f�. k j � A`�� . . ��t � ? ��R i�� ..� �'`�� °`S��ky,� f �i.. . �� i��:��N�� .�k �� i ��t k.' : K fi si��e:'�`f3" m .. . . _ . . R. _ , . . , u. _ , . �+3 :_ orue}"%1..,a., i ,.._ Fb.c� ..__ . , a..w.. . _e. R O R T � � - � GF-�y�.�� ` AUTHORITY � OF THE CITY OF ST. PAUL Memorandum TO: BOARD OF COMMISSIONERS �A�' August 17, 1984 (Regular Meeting 8/2 84) FROM: D. G. Dunshee SUBJECT: M. G. ASTLEFORD COMPANY $1,140,000 TAX EXEMPT MORTGAGE - �VON-876 PUBLIC HEARING PRELIMINARY & �UNDERWRITING AGREEMENT - PUBLIC SALE HEARING - SALE OF LAND RIVERVIEW INDUSTRIAL PARK RESOtUTION NOS. 'L318 and 2319 1. The Project M. G. Astleford Company proposes to purchase the office and truck terminal now owned by P. L. Company in Riverview Industrial Park. This terminal was originally built in 1969 for ABC Freight Forwarding with private financing. ABC sold the terminal to P. L. Company in March 1981 and the acquisition was financed by a $480,000, 10 year tax exempt mortgage placed with the First National Bank of St. Paul . P. L. Company will be selling the terminal to the Astleford Company who proposes to construct a 17,500 sq.ft. addition to the warehouse area that would be subleased to the U.S. Postal Service for five years with two, five year bptions. The facility currently is vacant and the U.S. Postal Service will be bringing 15 jobs to the site. The building will be used for bulk mail distribution. As part of the expansion, they will be purchasing a site containing 89,306 sq.ft. north af their present property for use as a truck maneuvering and storage area. The land currently sits in the middle of the clear zone for the downtown St. Paul airport and no physical construction can take place on this site. The site would be sold for 50�/per sq.ft. or $44,653.00. 2. Financing The proposed financing would be done as a tax exempt mortgage that will be placed with the Richfield Bank & Trust Company for a term of 30 years. Proceeds would be as follows: Building Acquisition $ 605,000.00 Construction 495,000.00 Bond Issuance Expense 10,000.00 Capitalized Interest - 3 Months 30,000.00 $1,140,000.00 - � � C�,��--��i q ,. .. BOARD OF COMMISSIONERS August 17, 1984 - Page 2 The Port Authority would receive earnings on the sinking fund as well as customary fiscal and administrative fees based on a formula of .42� per million per year for the first ten years, .54� per million per year for the second ten years and .66X per million per year for the third ten years of the lease. 3. Recommendation - Staff has reviewed the financial statements of the Company, interviewed the officers and recommends approval of Resolution Nos. 2318 and 2319. Bond counsel has advised that pending final review of the provisions in the 1984 Tax Law, it may not be Fossible to issue a tax exempt mortgage for a building where the principal user is a Federal Agency. If that is the case, the Resolution wou7d only permit the assumption of the existing tax exempt mortgage by M.G. Astleford Company. DGO:Ir \ �' � � � . � � C��//�� : Resolution No. 3/� RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, the gurpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Develop- ment Act (hereinafter called "Act") as found and determined 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 developtaent 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 (t�e "Authority") has received from M.G. Astleford Company (hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds (which may be in the form of a single note) to finance the acquisition of the office and truck terminal currently owned by P.L. Company in Riverview Industrial Park, and the installation and construction of a 17,500 square foot addition to such facilities, for lease to the United States Postal Service (hereinafter collectively called the "Project" ) in the City of St. Paul, all as is more fully described in the staff report on file; and WHEREAS, the Authority desires to facilitate the selective development of the community, to retain and improve its tax base and to help it provide the range of services and , • - �, � � ��E/-��r� employment opportunities required by its population, and said _ Project will assist the City in achieving that objective. Said Project will help to increase the assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; and WHEREP,S, the Project to be financed by revenue bonds will result in substantial employment opportunities in the Project; WHEREAS, the Authority has been advised by repre- sentatives of the Co�any that conventional, co�nmercial 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 economi.c feasibility of operating the Project would be significantly reduced, but the Company has also advised this Authority that but for the aid of revenue bond financing, and its resulting low borrowing cost, the Project would not be undertaken; �VHEREAS, Richfield Bank & Trust Company (the "Purchaser") has made a proposal in an agreement (the "Cmnmit- ment") relating to the purchase of the revenue bonds to be issued to finance the Project; tVFiEREP,S, the Authority, pursuant to Minnesota Statutes, Section 474.01, Subdivision 7b did publish a notice, a copy of which with proof of publication is on file in the office of the Authority, of a public hearing on the proposal of the Company that the Authority finance the Project hereinbefore described by the issuance of its industrial revenue bonds; and WHEREP,S, the Authority did conduct a public hearing pursuant to said notice, at which hearing the recommendations contained in the Authority' s staff inemorandum to the Cammissioners were reviewed, and all persons who appeared at the hearing were given an opportunity to express their views with respect to the proposal. NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Port Authority of the City of Saint Paul, Minnesota as follaws: l. On the basis of information available to the Authority it appears, and the Authority hereby finds, that said Project constitutes properties, used or useful in connection with one or more revenue producing enterprises engaged in any .. - . ', - ��,�-��9 business withi.n the meaning of Subdivision 1 of Section 474.02 of the Act; th3t the Project furthers the purposes stated in - Section 474.01 of the Act, that but for the availability of the financing under the Act and willingness of the Authority to furnish such financing the Company would not undertake the - Project, and that the effect of the Project, if undertaken, will be to encourage the development of econosnically sound industry and cormaerce and assist in the prevention of the emergence of blighted and marginal land, and will help to prevent chronic unemployment, and will help the City to retain and improve its taa base and provide the range of services and employment opportunities required by its population, and will help to prevent the movement of talented and educated persons out of ths state and to areas within the state where their _ services may not be as effectively used and will result in more intensive development and use of land within the City and will eventually result in an increase in the City' s tax base; and that it is in the best interests of the port district and the people of the City of Saint Paul and in 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; and subject to the receipt of our approving opinion of bond counsel with respect to such Bonds, the Project is hereby approved and authorized and the issuance of revenue bonds of the Authority (which may be in the form of a single note and which may be either taxable or tax exempt) in an amount not to exceed approximately $1,140,000 (other than such additional revenue bonds as a=e needed to complete the Project) is authorized to finance the costs of the Project and the recommendations of the Authority's staff, as set forth in the staff inemorandum to the Commissioners which was presented to the Commissioners, are incorporated herein by reference and approved. 3. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Executive Vice-President of the AUTHORITY is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Energy and Economic Developzaent, requesting his approval, and other officers, employees and agents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary information as he may require. . ; . . ��/��' � 4. There has heretofore been filed with the Authority a form of Preliminary Agreement between the Authority - and Company, relating to the proposed construction and financing of the Project. The form of said Agreement has been eaamined by the Commissioners. It is the purpose of said Agreement to evidence the commitment of the parties and their intentions with respect to the proposed Project in order that the Company may proceed without delay with the commencement of the acquisition, installation and construction of the Project with the assurance that there has been sufficient "official action" under Section 103(b) of the Internal Revenue Code of 1954, as amend�c�, to allow for the issuance of industrial i revenue bonds Gi�ncluding, if deemed appropriate, any interim note or notes ta provide temporary financing thereof) to finance the entire cost of the Project upon agreement being reached as to the ulti.mate details of the Project and its financing. Said Agreements are hereby approved, and the President and Secretary of the Authority are hereby authorized and directed to execute said Agreement. 5. Upon execution of the Preliminary Agreement by the Company, the staff of the Authority are authorized and directed to continue negotiations with the Company so as to resolve the remaining issues necessary to the preparation of the revenue agreement. and other 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 if the Secretary is absent) of the Authority, or if either of such officers (and his alternative) are absent, the Treasurer of the Authority in lieu of such absent officers, are hereby authorized in accordance with the provisions of Minnesota Statutes, Section 475.06, Subdivision l, to accept a final offer of the Purchaser made by the Purchaser to purchase said bonds and to execute an agreement setting forth such offer on behalf of the Authority. Such acceptance shall bind the Purchaser to said offer but shall be subject to approval and ratification by the Port Authority in a formal supplemental bond resolution to be adopted prior to the delivery of said revenue bonds. 6. The revenue bonds (including any interim note or notes) and interest thereon shall not constitute an indebtedness of the Authority or the City of Saint Paul within the meaning of any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liability of \ _ ► . . r .. - .� /�l� . �' Y ` (�j � 7 � the Authority or the City or a charge against their general credit or taxing pawers and neither the full faith and credit - nor the taaing powers of the Authority or the City is pledged for the payment of the bonds (and interim note or notes) or interest thereon. 7. In order to facilitate completion of the revenue bond financing herein contemplated, the City Council is hereby requested to consent, pursuant to Laws of Minnesota, 1976, Chapter 234, to the issuance of the revenue bonds (including any interim note or notes) herein contemplated and any � additional Uonds which the Authority may prior to issuance or from time to �time thereafter deem necessary to contplete the Project or to refund such revenue bonds; and for such purpose the Executive Vice President of the Authority is hereby authorized and directed to forward to the City Council copies of this resolution and said Preliminary Agreement and any additional available information the City Council may request. 8. The actions of the Executive Vice-President of the Authority in causing public notice of the public hearing and in describing the general nature of the Project and estimating the principal amount of bonds to be issued to finance the Project and in preparing a draft of the proposed application to the 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 the hearing, are in all respects ratified and confirmed. 9. As an alternative to the issuance of revenue bonds to finance the Project, in the event that an approving opinion of bond counsel cannot be obtained for the revenue bonds conteniplated hereby, the Port Authority hereby specifically authorizes the assignment by P. L. Co. of its obligations under the Lease currently in place with respect to the existing facility. Adopted August 21, 1984 ' _ _ / , i Attest � � �� °� . �'- , sza /� The Por,t Authority of the City , � �- of Saint Paul �,i" �-C ��l' �/�y.�� Secretary- ```�\�:.v...... '°R.....��_ • �%}'f . ' CITY f OF �AINT �C�.A,UL ��y /`3l� ��. t . �;. . :�. .,t = r+'+'' � i OI+`FICI� OF '1'FI� CITY COUNCIL �t �:ii7.L:.1",t�:= �,;:`_ /i : �"'`'�:'�...: • Date: September 14, 1984 M�-Jv1BERS �/1EETING N�T��E ,a,,ES S�H�ta��, CHAIR F�NANC� MANAGEM�NT & CHRIS NICOSIA ��R��N�I�L CQitiMITTE� l9ILLIMt �tiILSOV � JO!-L�I DREIV (ALT.) � c� r++ -� —O MEETING DATE: September 20, 1984 -`n-�c� --' ^ TIME . 1: 30 p.m. ;� N rn �cn � ° PLACE . Room 707, City Hall ;° � '--�*, � c� c� m -�- A G E N D A 1. Approval of minutes from meetings held September 5, 6, 10, 12, 11, 1984. 2. Ordinance amending C'.:apter 101 of the St. Paul Administrative Code pertaining to cor��ensation paid to members of the Civil Service Commission. �`�`� 3. Ordinance amending Chapter 33 and Chapter 370 of the Legislative Code requiring a permit for certain in-plant maintenance and repair work and establishing a certifi- cate of competency for the In-Plant Master Maintenance T4echanic. (Com. Serv.) --� 4. Resolution amending the 1984 budget by adding $5,126 to the Financing Plan and Spending Plan for the Resource Expansion Grant Special Revenue Fund. (Com. Serv.) S. Resolution amending the 1984 budget by adding $41,000 to the Financing Plan and Spending Plan for Fire Fighting Equipment Fund. (Fire £� Safety Servi ces) 6. Resolution amending the 1984 budget by transferring $41,000 from Contingent Reserve to Fire � Safety Servi ces, Fire Operations Division. (Fire F� Safety Services) 7. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount of $1,140,000 to finance the purchase of an office and truck terminal in Rivervie�a Industrial Park and the construction of a building addition for M.G. Astleford Co. 8. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount of $1, 750,000 to finance the construction of a 25,000 office, training, assembly and distribution facility in Energy Park for Purup North America. (Continued on Back) CI7'Y HALL SEVENTH FLOOR SAINT PAUI_, A4INI`ESOTA SSt02 �"�a