84-1326 WHITE - CITV CLERK
PINK - FINANCE G I TY O F SA I NT PA LT L Council /
CANARV - DEPARTMENT ��//J
BLUE - MAVOR File NO• �� � T
�
� Co nc ' Resolution
Presented By �
✓Refer 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. 2326 giving preliminary approval to the issuance of a tax exempt mortgage
note in the initial principal amount of $1,000,000 to finance the rehabilitation of an
existing 90,000 square foot facility at 800 Hampden in St. Paul and expand it by 40,000
square feet for Roger Greenberg dba Bro—Tex, 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, subject 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. 2326 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.
COUNCILMEIV Requested by Department of:
Yeas fisl�iror��C�NN S ��
Drew In Favor � - -
Masanz
Nicosia �I <<-� �'J'����� ������`��
scne�be� `t/ __ Against BY
Tedesco
YIN1svn
SEP 2 7 198�4 Form Approved by City Attorney
Adopted by Council: Date �
R�
Certified Y ss ounci - ,e r By ���' �- � '
By ��- 3 r'- �'�
E�p by 1Vlavor: Date � _ 1 198� Approved by Mayo fo u ' sion to Council '
PU LISHED OCT 6 1984
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EPARTt�1ENT
C.M. Towle, E.A. Kraut �ONTACT
224-5686 PHONE �� �� .
Au ust 22, 1984 DATE �v
(Routing and Explanation Sheet)
Assign Number for Routing Order (Clip All Locations for Mayoral Signature):
,� oepartment oi rector RECEIVED
��c.��' jy
2 i ty Attorney AUG 3 1 1984
Girector of Management/Mayor � � 4 g84
S r�� A
Fi nance and Management Servi ces Di rector ,;_c;TOR TT !�'�v
pF; ,c;--. t); �HL �'F.�a4racE ��� rf 1 1 QRIlGJ
5 City Clerk ,.�. .N-r nr
�_��^ '' GEIv�ENT SERV ICES
Budget Di rector AND s�"�At� ROGER GREENBERG dba BRO-TEX, INC.
" � $1 ,000,000 TAX EXEMPT MORTGAGE NOTE
tdhat Will be Achieved by iaking Action on the Attached Materials? (Purpose/Rationale):
The purpose of the tax exempt note is to finance the rehabilitation of an existing
90,000 square foot facility at 800 Hampden in St. Paul and expand it by 40,000 square
feet for Roger Greenberg dba Bro-Tex, Inc. Bro=Tex, Inc. processes fabric and distributes
various paper, fabric and cleaning products.
Financial , Budgetary and Personnel Impacts Anticipated:
The amount of the tax exempt note is �7 ,000,000 will be for a term of 30 years. The
project will create approximately 20 ,h�ew jobs in addition to the 100 existing jobs.
This is a non-Resolution 876 projectjnot involving the security of the Port Authority.
Funding Source and Fund Activity Numbler Charged or Credited:
Attachments (List and Number all Attachments� : �, , -; � -
_ .��5.. �.1;
1 . Staff inemorandum
2. Draft City Council Resolution 1,�,1�;; ;�� �_�
3. Port Authority Resolution No. 2326
cc. D. Thorpe �
UEPARTMENT REUIEW CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? X Yes No
Yes X No Insurance Required? Insurance Sufficient? X Yes _ No
Yes � No Insurance Attached?
Revision of October, 1982
(See Reverse Side for Instructions)
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HOW TO USE THE�GRE�i�T S�iEET �
The GREEN SHEET has several purposes:
1. To assist in routinq documents and in securinq
required signatures
2 . To brief the review�rs of documents on the i.mpacts
of approval
3. To help ensure that r.ecessary supporting materials
are prepared and, if required, attached.
ROUTING .
�ost GREEN SHEET actiens must �e rev?��ae� �y a �e�ar::nent
�irec�or, �:�e Citj� �t�or�ey, �:�e �iz�cLOr or i�ianagen,enL, the
Director of Finance and Management Services. Other possible
reviewers/signatures are listed.
BRIEFING •
M�ost of the GREEN SHEET headings aze designed to assist in
developing a precis of the decision which the attachments
represent. The headings are offered to remind users of so�
of the more critical elements of this brief. .
The Financial, Budgetarv and Personnel Im acts heading pr-ovides
a space to explain the cost/benefit aspects of the decision.
Costs and benefits relate both to City budget (General F�and 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 F'ull-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 City Council resolutions include:
a. Contractual relationship with another government unit.
b. Collective bargaining.
c. Purchase or sale of land, or lea,se 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 routing.
♦
P O R T � � . �. - ���i�.���
AUTHORITY ��
OF THE CITY OF ST. PAUL
Memorandu�n .
TO: BOARD OF COMMISSIONERS pq�;Aug. 16, 1984
(August 21, 1984 Regular Meeting) ,
FROM: C.M. Towl -
SUBJECT: BRO—TEX, INC. (ROGER GREENBERG)
PUBLIC flEARING — PRELIMINARY AND UNDEBWRITING AGREEMENTS
$1,000,000 TAX EXEMPT MORTGAGE NOTE — PRIVATE PLACEMENT (NO�T-876)
OFF—SITE
RESOLUTION N0. 2326
Mr. Roger Greenberg, President of Bro—Teg, Inc. and sole owner of the real
estate leased to his company, has arranged with the First Security State
Bank of St. Paul for a private placement of a 30—year ta$ exempt mortgage
note in the amount of $1,000,000 which will be used to rehabilitate his
existing 90,000 square foot facility and expand it by 40,000 square feet.
Bro—Tex, Inc. , located at 800 Hampdea, processes fabric and distributes
various paper, fabric and cleaning products. The project is in an
Industrial Development District, and the tax ezempt mortgage has been
extended based on the credit of the borrower only.
The Port Authority will be receiving sinking fund earnings and its
customary fiscal and administrative feea based on the formula of .42X per
million per year for the first ten qears, .54X per million per year for the
second ten years and .66X per million per year for the third ten years of
the lease.
Staff recommends approval of Resolution No. 2326 .
CMT:ca _ _
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Resolution No. �
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 leyislature is to promote the welfare of the state by the
active attraction and encouragement and develop�nent 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 develo�nent of existing
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and
WHEREAS, 'The Port Authority of the City of Saint Paul
(the "Authority") has received from Roger Greenberg, President
of Bro-Tex, Inc. (hereinafter referred to as "Borrawer") a
request that the Authority issue its revenue bonds (which may
be in the form of a single note) to finance the renovation of
the Company' s existing facility at 800 Hampden, in the City of
St. Paul and the construction of a 40,000 square foot expansion
thereto (hereinafter collectively called the "Project" ) , all as
is more fully described in the staff report on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the community, to retain and improve
its tax base and to help it provide the range of services and
employment opportunities required by its population, and said
Project will assist the City in achieving that objective. Said
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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 the
Borrower 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 borrowing that the economic
feasibility of operating the Project would be significantly
reduced, but the Borrower 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, First Security State Bank of St. Paul (the
"Purchaser") has made a proposal in an agreement (the "Commit-
ment") relating to the purchase of the revenue bonds to be
issued to finance the Project;
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 Borrawer 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
Commissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
with respect to the proposal.
�tOW, THEREEORE, BE IT RESOLVED by the Commissioners
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 1 of Section 474.02
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of the Act; that 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 Borrower would not undertake the
Project, and that the effect of th� Project, if undertaken,
will be to encourage the development of economically sound
industry and co�uaerce 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 tax base and provide the range
of services and employment oppoztunit�.es required by its
population, and will help to prevent t�Y�e movement of talented
and educated persons out of the state �a�nd 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 Borrower and the Purchaser of the revenue bonds
as to the details of the 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
$1,000,000 (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 Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Comznissioner 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 Preliminary Agreement between the Authority
and Borrower, relating to the proposed construction and
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financing cf the Project. The form of said Agreement has been
_ examined by the Commissioners. It is the purpose of said
Agreement to evidence the canmitment of the parties and their
intentions with respect to the proposed Project in order that
the Borrower may proceed without delay with the co�amencement 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
financing. Said Agreement is hereby approved, and the
President and Secretary of the Authority are hereby authorized
and directed to execute the same. �
5. Upon execution of the Preliminary Agreement by
the Borrower, 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 Purchaser to purchase said
bonds and to execute ari 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 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 statutor�r .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 powers 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 co�►pletion 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 contempl�i�e� �ai suance or
additional bonds which the Authority may p
from time to time thereafter deem necessary to complete 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 resoYution and said Preliminary Agreement and any
additional available information the City Council may request.
S. 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 Cormnissioner 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
Presiden
. /� The Por Authority of the City
;
, � of Sai Paul
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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 l9urtele 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,
rwarehouse 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 bevelopments, 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 an d garage rep air
facility and a 2, 100 sq. ft. cooler 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 sc�. 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.
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�veen 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.
2I• Issuance of Industrial Revenue Bonds for Continental Safety Building. (PED)