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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 . _ __ . .. � �1 -�/—/�✓" � . 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) .. . _ . , 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 _ _ � � �- , . . �, �,�= ��/- /,3a� i -� 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 . - - , � , . � ' � . � �.��y/�-�� t - 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 . ' . . . � - _ � �y�/,�=z�• � .. 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 � � ' � , �. . � ��_�/i�-�� : -� 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. � : - .( . . _ - , ���/i�� . � 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 ' � . '���� � . �� • ' � Attest Presiden . /� The Por Authority of the City ; , � of Sai Paul ;� �` ;�� ,` . %'%G;'��'� ,� '��7��`r��'��'� �, /% = �retary . � � � /�i��li . ' ., :� ��-� 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)