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84-1325 WHITE - GITV CLERK PINK - FINANC�E COUnCII /� /J ���jjj CANARV - DEPARTMENT G I TY OF SA I NT PAUL X � //f BLUE - MAVOR File NO• ��+ °� 1 - Co nci �Zesolution Presented By ✓ Referre To � � 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. 2316 giving preliminary approval to the issuance of a tax exempt mortgage in the initial principal amount of $600,000 to finance the construction of a 2,500 square foot truck and garage repair facility and a 2,100 square foot cooler addition to the building at 370 University Avenue for Old Home Foods, 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. 2316 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 by Department of: �istsher `'��N/�y ��x,?-� �l-•-l J �� D���✓ In Favor � Masanz Nicosia BY ��� ,�l�� _ �-�---�'�� , Scheibel �__ Against Tedesco � Mfilaa� Adopted by Council: Date SEP 2 7 198� Form Approved by City Attorney � �� Certified V�ss b u cil ec BY��-�-�'�'"""' $-� �- � �` tapp by Ylavor: Date �CT — I I�8't Approved by May f ' sion to Council By PUBLSS�iEO OC�' � 198� . . , � . ��---��a�' St. Paul Port Authorit_v DEPART�,IENT !. D.G. Dunshee, E.A. Krau�rONTACT l/ . 224-5686 PHONE � August 22, 1984 DATE reen � (Routing and Explanation Sheet) Assign Number for Routing Order (Clip All Locations for Mayoral SignatWr�)�EC EIVE D a� Department Di rector R��FI�IED ..�- AUG ' 2 Ci ty Attorney � � �y� � Di rector of Management/Mayorl S`� � 4 � CITY AT`� � Finance and Management Services Dire�tmrt�: oF �- E i��� T O R �R��� 5 City Clerk c=�' '"�'r�`Nr F FiN tvCE AND fviAlVPi�� S VICES Budget Director � l�'.U'�' ''' �_- i��:,', � ��hat Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):_ The purpose of the tax exempt mortgage is to finance the construction of a 2,500. square foot truck and ga.rage repair facility and a 2,700 square foot cooler addition to the building at 3:7�0 University Avenue for"Old Home Foods, Inc. Financial , �udgetary and Personnel Impacts Anticipated: The amount of the tax exempt mortgage is $600,000 and will be for a term of 10 years. The project will create approximately 10 new jobs in addition to the 45 existing jobs. This is a non-Resolution 876 proj�ct not involving the security of the Port Authority. Funding Source and Fund Activity Nu�er Charged or Credited: Attachments (List and Number all Attachmentsl : l . Staff inemorandum 2. Draft City Council Resolution 3. Port Authority Resolution No. 2316 cc. D. Thorpe UEPARTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resolution Required? Resolution Required? X Yes No Yes X No Insurance Requi,red? Insurance Sufficient? X Yes _ No Yes X No Insurance Attaahed? Revision of October, 1982 (See Reverse Side for Instructions) . • w HOW TO USE THE GREEN $HEEZ' � The G�tEEN SHEET has several purpo se s: 1. To assist in routinq documents and in securing requfred siqnatures 2 . To brief the reviewers of documents on the i.mpacts of approval � 3. To help ensure that r.ecessary supportinQ materials are prepared and, if required, attached. ROUTING , . ' :; ��st GREEV SHEET ac�i�ns must �P rev_e•ae�? Sy a �e�arl�ent �irec�or, �:�e City ?,t��r:�ey, �:�e �ire�tor o= i�tanages.enL, the Director of Finance and Management Services. Other possible reviewers/signatures are listed. BRIEFING • Most of the GREEN SHEET headings are designed to assist in developing a precis of the decision which the attachments represent. The headinqs are offered to remind users of some of the more critical elements of this brief. . The Financial Bud etar and Personnel ImAacts heading provides a space to explain the cost benefit aspects of the decision. Costs and benefits relate 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. • SJPPORTING MATERIALS In the Attachments section, list all attachments. If the GREEN SHEET is well one, no letter of transmittal need be included (unless signing such a letter is one of the requested actions) . Note: Actions which require Citx Council resolutions include: a. Contractual relationship with another government unit. b. Collective bargaining. c. Purchase or sale of land, or lease of land. d. Issuance of bonds by City. e. Eminent domain. f. Assumption of liability by City, or granting by City of indemnification. g. Agreements with State or Federal Government under which they are providing funding. Note also: If an agreement requires evidence of insurance/co- insurance, a Certificate of Insurance should be one � • of the attachments at time of rou�ing. � P O R T � . j , � � ��/-�,��� � UTHORITY � OF THE CITY OF ST. PAUL � Me�norandum . TO: BOARD OF COMMISSIONERS DATE: August 17, 1984 (Regular Meeting 8/21/84) FROM: D. G. Dunshee � SUBJECT: OLD HOME FOODS, INC. $600,000 TAX EXEMPT MORTGAGE PRIVATE PLACEMENT - NON-876 , PUBLIC HEARING PRELIMINARY & UNDERWRITING AGREEMENT AND CREATION OF INDUSTRIAL DEVELOPMENT DISTRICT 370 UNIVERSITY AVENUE - OFFSITE RESOLUTION N0. 2316 and 2317 1. The Pro3ect Old Home Foods, Inc. who is a processor and packager of dairy products, proposes to construct a 2,100 sq.ft. cooler addition to their present building. They also propose to construct a 2,500 sq.ft. truck and garage repair facility to replace a facility they currently lease which is being sold by the owner. 2. Financing The proposed financing for Old Home Foods, Inc. would be done as a tax exempt mortgage to be placed with American National Bank for a 10 year term with proceeds as follows: Construction �580,000.00 Bond Issuance Expense 6,500.00 Capital Interest 13,500.00 $600,000.00 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 for the ten years of the lease. . 3. Recommendation Staff and the Company met with the District 8 citizen's comnittee on Wednesday, August 15th and received approval for the project. Staff recommends approval of Resolution No. 2316 and 2317. approving the Preliminary Agreement and the Creation of the Industrial Development District. DGD:Ir �► � . ����/�-i3� ; _ Resolution Ka. � 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 promote the welfare of the state by the active attraction and encou�agement and development of economi- cally sound industry and comcnerce 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 develop�ment of economically sound indust=y 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 Old Home Foods, Inc. (hereinafter referred to as "Company" ) a request that the A�uthority issue its revenue bonds (in the form of a single note) to finance the acquisition, installation and construction of a cooler addition and a truck and garage repair facility (hereinafter collectively called the "Project") related to facilities currently operated by the Company at 370 University Avenue 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 canmunity, 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 Project will help to increase the assessed valuation of the , • 6 ` - �a �/ � - City and help maintain a positive relationship �etween 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; WHEREAS, 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, 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; WHEREP,S, American National Bank & Trust Company (the "Bank") has made a proposal in an agreetaent (the "Commitment" ) relating to the purchase of the revenue bonds to be issued to finance the Project; WHEREP,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 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 Co�aissioners 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 Co�nissioners of the Port Authority of the City of Saint Paul, Minnesota as follaws: 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 1 of Section 474.02 of the Act; that the Project furthers the purposes stated in .-- a , , f , �,r��/3aS° , Section 474.01 of the Act, that but for -the availability of the financing under the Act and will.ingness 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 c�caerce 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 will result in more intensive develop�aent 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 Gity of Saint Paul and in furtherance of the general plan of developanent 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 $600,000 (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 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 Development, 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 Preli.minary Agreement between the Authority and Company, relating to the proposed construction and financing of the Project. The form of said Agreement has been , � � ��`�i��� � _ , � examined by the Comaaissioners. It is the purpose of said Agreement to evidence the com�aitment of the parties and their int�ntions with respect to the proposed Project in order that the Company may proceed without delay with the co�nencement 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 alla�v 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 P'rpject and its financing. Said Aqreement is hereby approv!�d, 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 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 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 1, to accept a final offer of the Bank made by the Bank to purchase said bonds and to execute an agreement setting forth such offer on behalf of the Authority. Such acceptance shall bind the Bank 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 t]Ze 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 li.mitation 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. � � , ' ����-����� s � � , 7. In order to facilitate campletion 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 may prior to issuance or fraa time to time thereafter deem necessary to caaplete 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 cau�ing public notice of the public hearing and in describing the general nature of the Project and estir�ating 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 Econoanic Develogment, 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 � � ;'�, i 1 / I Attest ' � ; �,� ' /� Pr i e t - The rt uthority of the City � ' of Sain Paul �j�/ ! %`�, ,���%������ = �Secretary ' , � � . � - .� � �r'�y��� Finance Committee Agenda September 20, 1984 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 leasehold improvements at 450 N. Syndicate for the C. Angus Wurtele, Clarkson Lindley F� Mary i9urtele Vaughan Trusts. 11. Resolution consenting to the issuance of Port Authority Revenue bonds in the ramount 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. . ��to be subleased to Craighead $ 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 iVinfield Developments, Inc. 13. Resolution consenting to the issuance of Port Authority Revenue bonds in the amount of $600, 000 to finance the constxuction of a 2,500 sq. ft. truck an d garage repair facility and a 2, 100 sq. ft. e�ooler addition to the building at 370 University A�-e. 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 sc{. ft. facility at 800 Fiampden 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. 16. 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 1Vater Laborer in the Civil Service Rules. (Personnel) 19. Resolution approving 1984-1985 Agreementi bet�aeen the ISD #625 an d 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 ivith respect to the set-aside program. 21. Issuance of Industrial Revenue Bonds for Continental Safety Building. (PED)