84-1324 WH17E - CITV CLERK
PINK - FINANCE G I TY OF SA I NT PA U L Council � (/
CANARV - OEPARTMENT File NO. �/ '/���
OLUE - MAVOR
1
, �o n i� Resolution
Presented By
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��Referred To �' /���/ C 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. 2320 giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of $5,000,000 to finance the construction of a 72,170 square foot
building in Energy Park for Partnership Technology, Inc. , a wholly owned subsidiary of
Winfield Developments, Inc. The building will be partially condominiumized with smaller
spaces for presale with Winfield retaining a portion of the building for lease. The bonds
will be underwritten by Miller & Schroeder Muncipals, Inc.
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. 2320 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:
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Adopted by Council: Date SEP 2 7 198� Form Approved by City Attorney
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Certified P s-e b Council et BY
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tapp by Mavor: Date — � 19v� Approved by May for ubmi ion to Council
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PUBLISHED ocr s �ss�
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St. Pau1 Port AuthoritX DEPART(�ENT
� M Tow1e.�A= Kraut �ONTACT
224-5686 PHONE ,r.ee�, ��
August 22, 1984 DATE
(Routing and Explanation Sheet)
Assi n Number for Routin Order Cli t for Ma oral Si nature :
� Department Di rector �Ft��� .��r ��H� �� ��;'-„TOR RECEIV
��.Pf,l.,;-�.n� -r �F ���aNCE ED
City AttOrney ANU MANA ti EN- SERVICES
Girector of Management/Mayor AUG 3 1 1g84
�Fi nance and Management Servi ces Di rector�-��"�i��'� �
5 C�ty Clerk
'��`" CITY ATTORNEY
Budget Director PARTNERSHIP TECHNOLOGY, INC.
$5,000,000 REVENUE BOND ISSUE
�Jhat Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):
The purpose of the bond issue is��to finance the construction of a 72,170 square foot
building in Energy Park for Partnership Technology, Inc., a wholly owned subsidiary of
Winfield Developments, Inc. The building wil7 be partially condominiumized with
smaller spaces for presale with Winfield retaining a portion of the bui7ding for
lease.
Financial , �udgetary and Personnel Im�pacts Anticipated:
The amount of the bond issue is $5,000,000 and will be fo.r a term of 30 years. The
project will create approximately 150 new jobs.
Funding Source and Fund Activity Nurnber Charged or Credited:
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Attachments (List and Number all Attachments) :
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1 . Staff inemorandum '^ '��,
2. Draft City Council Resolution
3. Port Authority Resolution No. 2320
cc. D. Thorpe
UEPARTMENT REVIEW CITY ATTORNEY REVIEW
X Yes No Council Resolutior� Required? Resolution Required? X Yes No
Yes ,� No Insurance Required? Insurance Sufficient? X Yes _ No
Yes � No Insurance Attached?
Revision of October, 1982
(See Reverse Side for Instructions)
� O R T, . . , �,F��=�.���
�' AUTHORiTY � -
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE�ug. 16, 1984
(Aug. 21, 1984 Regular Meeting)
FROM: C.M. Towl
i � ' � 1
SUBJECT:P�TNERSflIP TECHNOLOGY, INC.
A WHOLLY OWNED SUBSIDIARY OF WINFIELD DEVELOPMENTS, INC.
PUBLIC HEABING - PRELIMINARY AND UNDERWRITING AGxEEMENTS
$5,000,000 REVENUE BOND ISSUE
ENERGY PARK
RESOLUTION N0. 2320
PUBLIC SALE HEARING - SALE OF LAND
BESOLUTION N0. 2321
1. TI3E COMPANY AND THE PROJECT
Winfield Developments, Inc. and its subsidiary companies have developed
195,000 square feet of office/warehouse/manuacturing space in Riverview
Industrial Park and approximately 342,000 square feet in New Brighton
and Edina projects. Previously all of their projects were built for
lease to smaller office/warehouse/manufacturing users. The Energy Park
project will be unique in that this proposed 72,170 square foot
building will be partially condominiumized with smaller spaces for
presale with Winfield retaining a portion of the building for lease.
The Port Authority will lease them a 217,800 square foot site
immediately east of the Control Data Energy Technology Center and south
of Energy Park Drine ia Energy Park. The land lease will be at a rate
of $2.25 per square foot plus 10� interest for a 30-qear term with an
annual rent of $53,277 or $4,440 per month commencing at the time the
first tenant takes occupancy.
Multi-tenant office/warehouse facilities will hane anywhere from two to
three employees per thousand square feet; and using an average of 2.5
employees, we would anticipate there would be approximately 180 people
employed in this facility.
3. FINANCING
The proposed financing wold be done as an 876 industrial development
revenue bond issue for a 30-year term with Winfield Developments
serving as managers of those portions of the project for sale.
Proceeds from the bond issue would be as follows:
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BOABD OF COMMISSIONERS
- August 16, 1984
Page —2—
Building — $3,912,000
Bond Iasue Expense — 50,000
Capitalized Interest — 9 Months 372,000
Debt Service Reserve — 524,000
Discount — 142,000
TOTAL BOND ISSUE $5,000,000
The Port Authority would receive earnings on the debt sernice 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 .42%
per million per year for the first tea years, .54X per million per year
for the second ten years and .66X per million per year for the third
ten years of the lease.
4. UNDERWRITING
Miller & Schroeder Municipals, 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 September
Commission meeting. _
5. TERMS OF TIiE LEASE
The term of the lease would be for 30 years with the company having an
option to purchase the land for one—half the original cost at the end
of the term and tea and twenty—year options to acquire the building for
lOX of the original bond issue cost plus retirement of outstanding
bonds and lOX of the original bond issue at the end.
6. RECOMMENDATIONS
The company and staff inet with Council 46 on August 13, and they
endorsed the pro�ect by unanimous vote. Staff has interviewed officers
of Winfield Developments, reviewed their financia� statements and
recommends approval of Resolution Nos. 2320 and 2321. .
CMT:ca
Attach.
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:
Resolution No. v? 3�2 (�
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, knawn as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to pranote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and coanmerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unen�loyment and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREP,S, 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 Partnership Technology,
Inc. (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 provide funds to finance the purchase of
portions of an approximately 72,170 square foot building
(hereinafter called the "Project") to be constructed by the
Company 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 develogment 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
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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 -
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREP,S, the Authority has been advised by repre-
sentatives of the 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 borrawing
that the economic feasibility of operating the Project would be
significantly reduced, and 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;
WHEREAS, Miller & Schroeder Municipal�, Inc. (the
"Underwriter") has made a proposal in an agreement (the
"Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finance the Pr.oject;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 474.01, Subdivision 7b did publish a notice,
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal of
the Company that the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds; and
WHEREAS, the Authority did conduct a public hearing
pursuant to said notice, at which hearing the recommendations
contained in the Authority' s staff inemorandum to the
Comanissioners 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 Com�nissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows:
1. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
business within the meaning of Subdivision la of Section 474.02
of the Act; that the Project furthers the purposes stated in
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Section 474.01 of the Act, that the avai�ability of the
financing under the Act and, but for the willingness of the
- Authority to furnish such financing, the Company would not
undertake the Project, and that the effect of the Project, if
undertaken, will be to encourage the development of
economically sound industry and connnerce 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 the state and to areas within the
state where their services may not be as effectively used and i
will result in mo=e 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 develogment 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 the Authority (which may
be in the form of a single note) in an amount not to exceed
approximately $5,000,000 (other than such additional revenue
bonds as are 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 Statute�, 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 Development, requesting his approval, and
other officers, employees and agents of the AUTHORITY are
hereby authorized to provide the Comanissioner with such
preliminary information as he may require.
4. There has heretofore been filed with the
Authority a form of Preliminary Agreement between the Authority
and Company, relating to the proposed construction and
financing of the Project and a form of the Underwriting
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Agreement. The form of said Agreements have been examined by
_ the Co�aamissioners. It is the purpose of said Agreements 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 co�unencement of the
acquisition, installation and construction of the Project with
the assurance that there has been sufficient "official action"
under Section 103(b) of the Internal Revenue Code of 1954, as
amended, to allaw for the issuance of industrial revenue bonds
(including, if deemed appropriate, any interim note or notes to
provide temporary financing thereof) to finance the entire cost
of the Project upon agreement being reached as to the ultimate
details of the Project and its financinq. Said Agreements are
hereby approved, and the President and Secretary of the
Authority are hereby authorized and directed to execute said
Agreements.
5. Upon execution of the Preliminary 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 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 if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative)
are absent, the Treaaurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with the
provisions of Minnesota Statutes, Section 475.06, Subdivision
1, to accept a final offer of the Underwriter� made by the
Underwriters to purchase said bonds and to execute an
underwriting agreement setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwriters to
said offer but shall be subject to approval and ratification by
the Port Authority in a formal supplemental bond resolution to
be adopted prior to the delivery of said revenue bonds.
6. The revenue bonds (including, an interim note or
notes) and interest thereon shall not constitu�e 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
the Authority or the City or a charge against their general
credit or taxing pawers and neither the full faith and credit
nor the taxing powers of the Authority or the City is pledged
for the payment of the bonds (and interim note or notes) or
interest thereon.
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7. In order to facilitate cadpletion 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 bonds which the Authority niay prior to issuance or
from time to time thereafter deem necessary to ecm►plete 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 he issued to
finance the Project and in preparing a draft of the proposed
application to the Co�nissioner 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.
Adopted August 21, 1984
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Attest � ��
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The Por Authority of the City
� of Sai Paul
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S�.cretary
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Finance Committee Agenda
September 20, I984
Page 2
9. Resolution consenting to the issuance of Port Authority Revenue bonds in the
amount of $4,750,000 to finance the construction of an 80,000 square foot cooler
and freezer facility in Riverview Industrial Park for GRL Cold Storage.
10. Resolution consenting to the issuance of Port Authority Revenue bonds in the
amount of $1,100,000 to finance Ieasehold improvements at 450 N. Syndicate for
the C. Angus Wurtele, Clarkson Lindley �, Mary iVurtele Vaughan Trusts.
11. Resolution consenting to the issuance of Port Authority Revenue bonds in the
�amount of $1,325,000 to finance the construction of a 25,000 sq. ft. office,
;warehouse and distribution facility in Energy Park for P.M. Properties, Inc.
`�o be subleased to Craighead F� Associates, Inc. dba Power/Mation:
12. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount
of $5,000,000 to finance the construction of a 72,170 sq. ft. building in Energy
Park for Partnership Technology, Inc. , a subsidiary of �Vinfield Developments, Inc.
13. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount
of $600, 000 to finance the construction of a 2,500 sq. ft. truck and garage repair
facility and a 2, 100 sq. ft. c*ooler addition to the building at 370 University Ave.
for Old Home Foods, Inc.
14. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount
of $1,000,000 to finance the rehabilitation of an existing 90,000 sq. ft. facility
at 800 Iiampden in St. Paul and to expand it by 40,000 sq. ft. for Roger Greenberg
dba Bro-Tex, Inc.
15. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount
o� $1,400,000 to finance the construction of a 40,000 sq. ft. warehouse addition
to the building at 403 Fillmore Avenue East in Riverview Industrial Park for Kaplan
Paper Box Co. , Inc. -
1G. Ordinance amending Sections 34.K �, 34. L in the Civil Service Rules by establishing
the classification Associate Director of Personnel in the Unclassified Ser:�ice.
(Personnel)
17. Resolution amending the Salary Plan and Rates of Compensation Resolution regarding
the Associate Director of Personnel classification. (Personnel)
18. Resolution revising the class specification for iVater Laborer in the Civil Service
Rules. (Personnel)
19. Resolution approving 1984-1985 Agreement betiveen the ISD #625 and the Teamsters
� Local 320 representing Food Service Personnel. (Personnel)
20. Ordinance amending Chapter 183 of the St. Paul Legislative Code and pertaining to
the set-aside program �rohibiting acts regarding the same, and vesting investigative
responsibilities in the Human Rights Department with respect to the set-aside program.
21. Issuance of Industrial Revenue Bonds for Continental Safety Building. (PED)