280374 WHITE - CiTV CLERK
PINK - FINANCE COUIICIl �������
CANARV - DEPARTMENT � G I TY OF SA I NT PAU L
C�t�,Attny/JTH File N0.
T CQu cil Resolution
Presented By �?'�''�
Referred To Committee: Date
Out of Committee By Date
RESOLUTION APPROVING SEVENTH PLACE
REDEVELOPMENT PROJECT FINANCING PLAN
FOR THE CIVIC CENTER IMPROVEMENT
WHEREAS, the Housing and Redevelopment Authority of the City of
Saint Paul, Minnesota (HRA) by its Resolution No. 83-5/25-3 adopted
May 25, 1983 , approved certain changes to the Redevelopment Plan,
Seventh Place Redevelopment Project relating to the inclusion of a
Civic Ce�.ter Auditorium and Parking Ramp Improvement Project as a
public improvement undertaking in said Redevelopment Project and
approved the Financing Plan (Attachment 1) for the Civic Center
improvement, including a proposal for the pledge of the P.edevelop-
ment Project tax increments payable under a Tax Increment l��ote
(the "Note") to be delivered to the City, for submission to the
City Council; and
WHEREAS , the proposed Civic Center improvement and Financing
Plan are integrally related to the Civic Center Sale/Leaseback
proposal (Attachment 2) by which the City would enter a term
ground lease of the Civic Center land and sell the Civic Center
facilities to HRA under an agreement (the "Purchase Agreement") ,
HRA would assign the ground lease and enter into a purchase agree-
ment with Civic Center Partn.ers Limited Partnership and issue
revenue bonds to finance the transaction and improvements, and the
Partnership and City would enter into a 25 year operating lease
of the facilities , all of which transactions are set forth in de-
tail in Attachment 2 ; and
WHEREAS , the City has authority under Minnesota Statutes
Section 462 .581, for the purpose of aiding and cooperating in
the planning, undertaking, construction or operation of HRA re-
development projects and upon such terms as the City may determine,
COU[VCILMEN Requested by De artment of:
Yeas Nays I `�"—J
Fletcher
GaO� [n Favor
Masanz
Nicosia
scneibe� _ Against BY `
Tedesco
W Ilson
Form Approved City Att ney
Adopted by Council: Date �
Certified Passed by Council Secretary BY �
By
tlpproved by lVlavor. Date Approved b Mayor for Submission to Council
By BY
- ���4�"'�'�
• , 4 , P �
-2-
to sell , convey or lease any of its interest in any property, to
cause the Civic Center improvement to be furnished in connection
with the Seventh Place Redevelopment Project , to incur the expense
thereof, and otherwise to do any thing necessary or convenient in
undertaking such redevelopment project ; and
WHEREAS , the HRA has authority under Minnesota Statutes Section
462. 585 Subdivision 3 to receive, expend or pledge tax increments
generated in the Seventh Place Redevelopment Project with respect
to which redevelopment project HRA requested certification of
original assessed valuation prior to August 1 , 1979, until the
public redevelopment cost thereof has been fully paid; and
WHEREAS , the Saint Paul Planning Commission has reviewed the
proposed improvement of the Saint Paul Civic Center, including the
acquisition, improvement , sale and leaseback of the Civic Center
facilities , and the changes to the Seventh Place Redevelopment
Project Redevelopment Plan (heretofore approved by HRA.) , finding
said improvement and Plan changes to be in conformance with the
Saint Paul Comprehensive Plan and recommending their approval ;
and
WHEREAS, the Council Finance, Management and Personnel Comm-
ittee has reviewed the Civic Center Sale/Leaseback and Seventh
Place Redevelopment Project Financing Plan for the Civic Center
Auditorium and Parking Ramp improvement attachments and the finan-
cial undertakings and land transactions thereby proposed and has
recommended approval ; now therefore , be it
RESOLVED by the Council of the City of Saint Paul as follows :
l . That the improvement of the Civic Center facilities
by renovation of the Auditorium and major repair of the Parking
Ramp is essential to the efficient operation of the entire Civic
Center complex.
2 . That the cost of these Civic Center improvements may be
feasibly financed by the proposed sale and leaseback of the Civic
Center land and facilities , and that the proceeds of the sale/
leaseback transaction may be reasonably applied to the payment
of the public redevelopment cost of the Seventh Place Redevelop-
ment Project represented by the Civic Center improvement as well
as other Project activities such as the North Wabasha and Town
Square East areas .
WNITE - CITV CLERK r,y
PINK - FINANCE � �
CANARV - OEPARTMENT COUflCll � t
GITY OF SAINT PAUL •� �����' �
BIUE - MAVOR File �0•
� 1
� CQu cil Resolution
Presented By ���''� �.�
Referred To Committee: Date
Out of Committee By Date
-3-
3 . That these activities and other supplemental proposals
contained in the Seventh Place Redevelopment Project Financing
Plan, Attachment 1 , and Civic Center Sale/Leaseback, Attachment
2, by providing for the improvement and continued public opera-
tion of the Civic Center facilities for the purposes for which
they were initial.ly undertaken and by carrying out the objectives
of the Project Redevelopment Plan, are in the public interest and
will advance the public health and welfare.
4. That the Civic Center Sale/Leaseback and the financing
thereof as herein approved will provide community facilities
adjacent to and in connection with the Seventh Place Redevelopment
Project as authorized by Minnesota Statutes , Section 462 . 581 .
5. That the Financing Plan approved by the HRA and recommen-
ded to the City Council including the Purchase Agreement, Note and
pledge of tax increments thereunder and the estimated expenditure
of revenues pledged to support the Civic Center lease rental pay-
ments are hereby approved as set forth in Attachment 1 .
6 . That the Civic Center Sale/Leaseback, including the several
land transactions necessary to effect the sale, improvement and
leaseback of the Civic Center facilities are hereby approved as
set forth in Attachment 2 .
7 . That the Depar.tment of Planning and Economic Development
and City Attorney are authorized and directed to take all actions
necessary to implenzentation of these Plans and to negotiate final
documents for City Council consideration and approval.
,�
COUIVCILME[V Requested by Department of:
Yeas Nays �
Fletcher
ceu� In Favor
Masanz
Nicosia
Scheibet d __ Against BY
Tedesco
�
Adopted by Council: Date MAY 2 6 ��3 Form App by City Attor ey
Certifie Passe y ncil ecretary BY
r �
BS' �r�E, cT- �y�T
F Approve #e�er for Submission to C uncil
tappr by iNavor: �
By dZ% -
v
PUBL ED J UN � �9g�
������
. SEVENTH PLACE' REUEVELOPMENT PROJECT FINANCING PLAN
FOR THE CIVIC CENTER AUDITORIUM AND PARKING RAMP IMPROVEMENT PROJECT
A. OVERVIEW
The $10 million improvement project for the St. Paul Civic Center Auditorium
and Parking Ramp is financed in part by tax increments from the Seventh Place
Redevelopment Project area. As described in the Civic Center sale/leaseback
financing program, tax increments provide a principal source of revenue for
City lease payments. The estimated amount and timing of these tax increments are
detailed on Exhibit A. The estimated total tax increment obligation between
1983 and 1998 is $49,314,895. The present value of this obligation is
$19,487,780 when discounted at 12.25 percent.
B. FINANCIAL BENEFITS TO THE CIVIC CENTER PROJECT
The provision of tax increment revenues provides a substantial financial
benefit for the Civic Center Improvement Project. As detailed on Exhibit A,
a total of $11 ,806,9$9 in funds will be committed from Civic Center revenues
and hotel/motel tax revenues to repay the revenue bonds sold for the improve-
ment project. Without the assistance provided from the Seventh Place Re-
development Project area, the $11 .8 million in Civic Center and hotel/motel
tax funds would only have been sufficient to support $6.3 million in project
costs (see Exhibit B attached). As Exhibit B also makes clear, the tax
increment assistance helps reduce the effective borrowing cost to a rate of
3.1 percent.
C. FINANCIAL BENEFIT TO THE CITY
The use of tax increments also eliminated the need to sell City General
Obligation Bonds to support the improvements needed at the parking ramp and
the auditorium. In fact, the City received specific legislative authorization
to sell $4 million of General Obligation Bonds for the parking ramp project in
the 1982 legislative session. The tax increment assistance, which made the
sale/leaseback financing structure possible, eliminated the need for reliance
on the City's gener�l credit. In addition, the improvements to the St. Paul
Auditorium will provide substantial benefits to the downtown hotel and
convention econorqy. .
D. FINANCIAL BENEFITS TO THE HRA
In addition to the low-cost financing provided for the Civic Center and the
elimination of the need for General Obligation Bond financing, the tax
increment obligation will also make available an estir�ated $21 .6 million in
funds from the sale proceeds of the Civic Center for use by the HRA in a
development fund pledged primarily to redevelopment activities in the Seventh
Place Redevelopment Project area. This $21 .6 million fund is made available
to the HRA upon closing of the sale/leaseback financing. While the HRA will
maintain a $14,185,000 obligation to the City due in 1998 to assist in the
repurchase of the Civic Center out of this fund, the remaining dollars avail-
able in the fund will yield significant revenue for development projects
necessary to complete Seventh P1ace Redevelopment Plan.
� �
������/�
�,.' ,r t �F . G�'•'�
As Exhibit A demonstrates, the net present value of the $21 .6 million fund,
when invested in securities yielding 12.25 percent, is $19,2�$,G38 after
deducting the $14,1$5,000 obligation due in year 15. The availability of
these funds for project activities outlined below in Section E wil� also
` eliminate the need for any additional borrowing by�the HRA or the City to
meet necessary redevelopment project costs. The estimated savings in
capitalized interest, underwriting fees, and legal expenses, which would
all have been required if the HRA sold bonds in anticipation of future tax
increments,_ is very substantial . . .
E. HRA DEVELOPMENT FUND _ _ .
Proposed Program for Investment and Use of Fund Earninqs
. __. _ The HRA Development Fund will be established on closing of the Civic Center
sale/leaseback financing. Approximately $21 .6 million will be deposited
into this fund. Staff is recorranending that these funds be invested in
long-term securities in order to provide the maximum yield for this
significant new account. It is estimated that corporate bonds or mortgage
banked securities. wilJ be purchased at� an effective yield to m�turity of
12.25 percent for the 15 year term of thjs fund.
The annual earnings on this fund will be approximately $2.6 million.
The primary use of these funds will be to meet several significant obligations
which exist within the Seventh Place Redevelopment Project area:
A. North Wabasha Improvement
As set forward in the implementation plan for the North Wabasha Project
approximately $13.5 million of public costs are expected as a part of
this significant project undertaking ouer the next 5 to 6 years. Some
of these costs may be financed through Urban Development Action Grants �
and other sources of public assistance. The primary source for the
financing, however, will be the earnings on the HRA Development Fund.
6. Town Square East
In addition to improvements needed in the North Wabasha area the property
immediately to the east of Town Square is also in need of significant
public improvements. These include the extension of the Seventh Place
Mall between Minnesota and Sibley ($2.5 million), the acquisition and
redevelopment of the old Donaldson's property ($2 million), and the con-
� struction of a new parking facility on the old Donaldson's parking ramp
. site ($3.5 million). The total amounts expected for the Town Square East
Project are $7.5 million.
In addition to these two significant Seventh Place Redevelopment Project
activities, there exist a small number of redevelopment obligations outside
of the Seventh Place Project area. These involve the North Quadrant area
of Lowertown, which will require $3-4 million of additional public assistance
over the next 4-5 years. In addition several significant neighborhood
redevelopment project activities will require funds in order to provide the
necessary public facilities to encourage private reinvestment. These will
include University Avenue ($2.5 million), Selby Avenue ($1 .5 million), the
North Capitol Area ($2.3 million), and the Space Center Industrial Park
Project ($3 million).
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;�;���� � .
A portion of HRA Development Fund earnings (an estimated 20 percent) will
be available to meet a portion of these public obligations outside of the
Seventh Place Redevelopment Project area.
As the above list indicates, the requirement for redevelopment funds will outstrip
the ability of financial assistance from the HRA Development Fund. Other sources
of assistance will need to be relied on in order to meet the necessary public cost.
These sources will include Urban Development Action Grants, financing through the
Lowertown Redevelopment Corporation, financial assistance from the St. Paul Port
Authority, tax increment financing, and other private contributions.
SBW:5/18/83 -3-
� . � � �`��a��� �
EXHIBIT;nA
� INT RATE Pi�S VRL[IE FUT VAt.tE
ST. PAU. CIVIC C�(TER S�.E LE�BAQ( SAl.E PROCEEDS • 33,191,8�0
FIIVA�IN6 PL(�! �IN REpJRI�RSE FWD 9.757c 6,488,468 E6,1�,000
- -- -'�"°E S�CLlRITY FLR� 12.25% Z,435,659 cy 435,699
� SFi7RTFALI Ft�ID 9.75x 2,61@,66B
FBIA DEVELQPpiENT FUIm IZ 25x Pl,656,2� 14,185,8@0
����
LERSE RE1�ilE TAX CIVIC TOTAL HRA
6ROSS �t�1RITY SHORTFRLL II�RE.�HT CENTER FVMOTEL CITY DE1I�LOPlkNT
PAYPiE�IT 1FASe Fll�tD FlJl+m PLED6E REVEt� .TAX FUNDS� FIAID
2,435,659 2,628,666 2I,656,Z05 e1�.E5x
E.5 1,632,00@ 149,184 527,816 988,800 4@8,8� 55,�0 955,808 1,3P5,443 _
I.� 1�b32��@ 149�184 626�441 68��800 208�880 56,375 856,375 1,3Pb,443
1.5 1,63E,8e8 149,I94 625,032 G00,8A8 Z88,800 57,784 857,784 I,3z6,443
2.2 1,63?,890 149,184 623,587 bN8,888 Z0B,808 99,?�9 859�229 1,326,443
Z 5 1,63E,808 149,i84 G091686 6�,8AQ 212,500 68,718 , 873,218 1,326,�3
3.8 2,878,888 149,184 0 � 1,645,888 Z12,588 G2,227 1,9Z8,816 1,3Z5,493
3.5 2�870�8M 149�1B4 8 1!562s 033 275��B 63�783 1�9�816 1,3Z6,443
4.8 2,878,800 149,184 A 1,579,188 P76,258 G5,378 1,428,816 1,3�6,443
4.5 2,878,80B 149,184 8 1,563,Tl'2 E98,831 67,812 1,9Z0,816 1,326,443
5.8 ?y 87P��@�8 l49�1$4 8 1�568�784 Z91�345 68,687 1,9z8,816 1�3z6�443
5.5 2,495,8� 149,184 8 1,970,221 3BS,191 78,405 2,345,816 1,326,443
b.0 2,49�,�8 149,184 B 1,967,681 366,570 72,165 Z,345,816 1,�6,443
6.5 2,495,808 149,184 8 1,951,362 3z8,485 73,969 E,345,8l6 1,326,443
7.$ 2,495,@� 149,184 0 1,948,063 321,934 75,818 2,345,816 1,326,443 �
7.5 2,495,8� 149,184 8 1,944,682 3Z3,428 77,714 2,345,816 1,326,4�3
&8 Z,495,68B 149,184 8 i,941,Z16 324,943 79,656 2,345,816 1,3�fs,443
8.5 �,445,880 i49,184 8 1,937,664 326,584 81,b48 2,345,816 1,3Z6,443
9.8 2,495,@00 i�r9,194 0 1,934,6P3 3?8,184 83,689 2,345,816 1,325,443
9.5 E,495,800 149,184 8 1,938,� 3E9,744 85,781 �,345,8i6 1,3?b,493
.18.0 2,495,880 149,184 8 1,926,465 331,426 87,9Z6 2,345,816 1,3z6,443
10.5 2�495�0� �' I49�184 6 1,922,543 333,149 98,1P4 Z,345,816 1�3Z6�4S3
11.0 2,495,Q�8 l49,184 8 1,918,5�4 334,915 92,377 2,345,816 1,3z6,443
I1.5 z,495,800 i49,184 8 1,914,404 336,725 94,686 2,345,816 1,326,443 '
12.8 2,495,0m8 149,�84 8 1,910,181 338,581 97,054 Z,345,616 1,326,443
I2.5 2,495,8Q$ 149,184 8 1,905,8Ss 340,483 99,488 2,345,816 1,3Z5,443
13.8 �,495,080 149,iB4 8 1,901,416 342,433 181,967 2,345,816 1,326,443
13.5 2,�95,�8 � 149,184 8 1,896,859 344,431 184,526 2,345,816 i,32b,4�i3
14.@ 2,495,Q�0 144,184 8 1,8�,208 346,479 187,1P9 E,345,816 1,3z6,443
14.5 2,495,060 149,184 , 8 1,887,430 348,579 189,887 2,34E5,8lb 1,3Zb,443
15,� 2,4°5,000 149,184 8 1,T94,3e2 438,961 11�,552 2,434,046 6,B95,165
68,410,0� 4,475,523 49,314,895 9,280,682 2,414,649 b1,818,2�6 47,362,880
NPVP12.� 19,487,788 19,?88,638 NPVQ12.25x
� 19,487,788
_ 199,141 �
• � ����e�'�/�
' - ..; EIMIBIT B
�
. . f ST P�J[. CIVIC CEJ�TER SALE LE�E�K �
6.0. BO�1D ArFORD�I3ILITY TRff.E
TOT0.. FkIITEL TOT0.�. �.0. Eu!�5 Fi.B9x fi.0. R�!�S F3.�
CCA t�'Ur l�3TEL S=_"SI-RN.►�"JRI. 1¢,��,f►� 6,�`,�'
YcAR SEKI-A�YI� t�X
1933 �'A,B�a 118,Q+�0 512�22Z� 1 767,133 787,I33
19E4 200,Pr2� 57,i�i3 w7,7`A 787 1�3
190� 'ct1@,0P,8 57,75E 257,7`.,2 2 7B7,133 �
1995 212,5�i 60,5�,9 273,138
_ 19d5 Z12,5�2 68,638 273,i39 3 787,!33 787,I33
� 1985 Z75,C� b3,669 's38,669 ?�7 i�
1�3� Z75,02�2 63,669 :38,659 4 707,1:.a �
i%"s7 23@,Q��3 b6,�`3 s"55,8Ss . 7E7 133
1567 2�32,022 66,853 a;5,853 5 787,is3 ,
1988 3e5,125 70,195 375,3P6 ?b? 133
iS38 3e5,1� 70,2?5 375,3z0 . 6 787,1 __. _ _ ,
1989 322,361 73,705 394,097
19g9 328,381 73,1E5 394,687 7 787,133 7&I,�33
1932 323,275 17,39� 42�,656 787 !33 .
1g32 3?3,27'S 77,391 4Q�,665 B 787,is:s s
1?31 3?o,3i4 81,260 427,514 •
1931 3?�,314 81,Po2 4?7,574 9 7$7s?s� 767,13.i
1?; �3,`R5 6�,3?3 4i4,8_°8 787 Is3 �
199? 3?3,`�'S 85,3�3 4f4,E?B 10 7�7,:?.3 +
1993 332,855 69,SE3 �2,444 787 �33
1993 332,855 89,589 �a2,444 !f 757,i33 s-
ig�► 3?6,373 94,0�9 43Q,441 � 787 133
lgg4 336,373 94,2�9 436,441 ?2 767,:3's �
lygs 3q0,P,o5 98,772 438,8� 797 133
tg35 ?42,@�6 98,77Z c3g�g39 13 787,:33 + .
ig?5 343,945 163,711 �7,E� 767 1's3
' 1g3; 343,g45 103,711 447,655 14 761,S3s s .
1°57 �►8,C17 iCB,895 456,9:3 i87 i:�.?
1937 3+8,6i7 1�8,695 455,°l3 15 787,Ia3 ,
lg�', Y?,293 114,3k1 455,634
TOTA:� 9,3i9,0�5 c,487,983 11,8u�,989 1i,6�'�5,�a9 li,Esl�t58g
5�� r�2Y i9 i993 .
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' • . . CIVIC CENTFR SALE/LEASEBACK
• (AUDITORIUM AND PARKING RAMP IMPROVEMENT PROJECT)
A. OVERVIEW
The financ.ing plan for the $10 million in improvements needed for� the Civic ,
Center Audi�orium and Parking Ramp Project is based on sale/leaseback
financing financed by an estimated $52,130,000 tax exempt bond sale and
$6.25 million in equity xaised by a private partnership. While this sale/
leaseback financing is complex, three fundamental principles were relied on
to guide the structuring of the plan:
1 . Provide �10 million in improvements at the lowest possible effective
rate of interest;
2. Eliminate the need for City General Obligation Bond financing;
3. Rely on revenues from the Civic Center and from the City' s hotel/motel
taxes (25 percent) for debt service payments.
B. OUTLINE OF THE TRANSACTION
The following is a summary outline of the Finance Plan.
PROPERTY: Civic Center Arena
Civic Center Auditorium
Civic Center Concourse and Meeting Rooms
Civic Center Parking Ramp and Pedestrian Tunnel. �
�
GROUND LEASE: The City enters into a term ground lease with the HRA
for the land under the property.
TRANSACTION I : The City sells the property to the HRA subject to the
ground lease for �33,191 ,000. .
TRARSACTION II : The HRA sells the property to the Partnership subject
� . to the ground lease for $33,191 ,000. The terms are for
� cash. The sale proceeds will be invested at both
restricted and unrestricted yields to secure the
repurchase price of the Civic Center in Year 15, and �
� to fund public development costs in accordance with
t�innesota Statutes, Chapter 452 (Housing and Redevelop-
ment Act), and by approval of the HRA and the City
Council .
LEASE: The City enters into a 25-year lease of the property
' from the Partnership. The semiannual lease payments
will be as follows:
. � � �������
Estimated first semiannual payment . $1 ,532,000
Estimated primary term years .5 - 5 $1 ,632,000
� � Estimated primary term years 6. = 15 $2,495,000
Estimated primary term years 15 - 25 $4,000,000
The Partnership cash flow shortfall during the first
five years will be capital contributions secured by .
a letter of credit from �'he First Trust Company of
Saint Paul.
PURCHASE OPTIONS The City's options to purchase the property from the
OF THE CITY: Partnership will be� at years 15 and 25. The purchase
- price will be at "fair market value" not to exceed
$42,750,000 in Year 15�.
It�IPROVEMENTS: The Partnership will agree to fund the improvements to
the property in accordance with the plans and specifi-
cations of the City and Civic Center Authority.
Improvements are anticipated to be: $2,500,000 to the
Parking Ramp, and �7,500,000 to the Auditorium.
1983 BONDS: The HRA will issue approximately $52,130,000 of IDR .
Bonds for benefit of the Partnership with the proceeds
to be used to pay the costs of issuance, to acquire the
property, and to establish debt service reserve funds.
The term of the loan will be 25 years at an interest rate
about 9.0 percent, with payments being made semiannually
based on a 25-year amortization schedule. All HRA front-
. end fees and annual servicing fees are included in the
above.
TRUSTEE: The First Trust Company of Saint Paul will serve as
Trustee and will control all payments from the City to
the Partnership for distribution and application of funds
flow.
Exhibit A provides a flow chart for the steps outlined above.
C. SOURCES AND USES OF FUNDS
See Exhibit B for a Sources and Uses of Funds outline.
D. FLOW 'OF FUNDS
� Exhibit C provides a detailed flow of funds over the source of 'the first 15
years of the transaction. In the upper right-hand corner of this chart� is
a breakdown of the �33,191 ,000 in sale proceeds received by the HRA on
closing. Four funds are established.
1 . The minimum repurchase fund requires approximately 56,488,468 at closing.
This amount will be invested at an estimated yield-restricted rate of
9.75 percent. This amount will yield approximately �26,132,000 in 15 .
years and will be designated toward repurchase of the facility in 1998.
. -2- �
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� 2. The lease security fund will require approximately �2,435,659 on��J�� g •
closing. This fund will be invested at an estimated 12.25 percent and
s .will be unrestricted regarding yield. This fund will provide security
. against any short-fall in leas�e payments. The annual interest earnings
� . will offset the Ci.iied at thelendeofathenl5-year termttowardhtherincipal
amount w�ll be app
� repurchase. � -
3. The revenue short-fall fund will require approximately $2,610,668 on
closing. This amount will be invested at estimated yield-restricted
rates of 9.75 percent. On the first 5 semiannual payments, this amount
will be drawn down to pay portions of the City's gross lease payment.
After the first 5 payments this f und will be exhausted.
4. The HRA development fund represents the balance of the $33,191 ,000 in
sales proceeds. It will be made available to establish a new fund for .
redevelopment activities of the HRA. This fund will be approximately
�21 ,656,205 on closing. These funds will be invested at an estimated
12.25 percent which will yield approximately �1 ,326,443 semiannually on
an interest only basis. At the end of the 15-year term, �14,185,040 of
this fund will bend�rthe leasensecurbtyefundttofcoverfthe �42,750,000
repurchase fund a
maximum repurchase obligation.
With the explanation of these various funds in mind, it is now important to
understand the structure chosen to cover the City' s lease obligation. In
the second column labelled "Gross Lease" is a list of the first 15 years of
semiannual payments due from the follow�nghsourceste partnership. These
amounts will be covered
1 . The lease security fund. �
2. The revenue short-fall fund.
3. Tax increments from the Seventh Place Redevelopment District,
4. Civic Center revenues.
5. Hotel/motel tax receipts.
The Civic Center revenues are based on the schedule of payments agreed to be-
tween the City and the Civic Center Authority. These revenues are a combination
of e�cisting revenues estimated to be produced from current operations, along
with additional revenue to be produced from the remodelled auditorium. Exhibit
D provides detail on the Civic Center debt service. The hotel/motel tax funds
are a commitment of the City of which only a portion is anticipated to be used.
This amount is equivalent to an estimated 25 percent of hotel/motel tax col-
lections from 1983 escalated at a 5 percent annual rate. The tax increment
funds represent the balance required to cover the City's gross lease payment
after taking into account the other sources of revenue.
E. HRA DEVELOPMENT FUND
k'hile the City' s commitment of tax increment funds HRAvreceivesa�21 ,656,205he
- funds to cover the City' s gross lease payment, the
in sale proceeds which is available to cover redevelopment project costs.
� � -3- �
� � -
• � ���'�
' sg',�; t : y �
The present value of 15 years of principal and interest available from the
HRA development fund is $19,288,638. The present value of the tax increment
obligation to make the lease payments is $19,487,780. �
The benefits the HRA will receive from the establishment of this development
° fund when combined with the value of the $10 million in improvements provided
at the Civic Center are felt to justify the significant tax increment
obligation.
F. COST OF FINANCING
Exhibit D provides a description of the estimated cost of the financing.
Column A�outlines the net cost to the City over the first 15 years. These
� amounts when discounted at a rate of 8 percent result in a $7.9 million cost
over the 15 years. Column B shows the net present value of a comparable
stream of debt service payments from financing of General Obligation Sond debt
at an $�$ percent i.nterest rate is �10.7 million. This analysis demonstrates
that there has been a �2.8 million cost saving to the City over time from the
reliance on this financing. Column C outlines what rate General Obligation
Bonds would have to be sold at in order to achieve the equivalent rate of
financing. This analysis demonstrates that an interest rate of 4 percent
would have to be achieved in order to achieve the same result as the sale/
leaseback financing does for the City and the Civic Center Authority.
G. REPURCHASE OBLIGATION
The City has the option to repurchase the facilities at the end of the 15th
year. Funds are being escrowed to provide tfie necessary amount to cover the
maximum repurchase price. The actual �repurchase price will not exceed the
' �42,750,000 amount, and could be somewhat less. The minimum repurchase
amount is �26,132,000.
It should be emphasize that prospective lease payments beyond the 15th year .
for the City increase dramatically. If the City does not choose to follow
through on its repurchase obligation, a careful financial analysis. should be
undertaken to review the long-term risk that the City would face. The
financing plan has been structured �vith the assumption that the City would
make the repurchase at the end of the 15th year.
SBw':5/18/83
. -4-
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".' '�'� EXHIbIT B
SOURCES AND USES OF FUNDS (ESTIMATED)
SOURCES AT CLOSING •
E;OND PROCEEDS ��E�����
EG?U I TY 1����a
TOTRL
�c751Z��Q�l.�
USES AT CLOSING
ACG!UISITION �.:�1�1��Q�
IMPROVEMENTS 1���'����
UNDcRWr�I TtR' S D I SCGUNT 15��4�t2�
E�OND I NSU RANCE 1������+�
rOND COSTS . � 7��E�'�
ISSL�cR' S FEE �c����
. DEBT S�RVICE F�SERVE ��E����
TOTAL ��7��Q��'
---------------------------------------------
EG?U I TY E�REAF'.DOWN
AT CLOSIhlG 1�����
LEASE AEsATEMENTS �������'�
I NTc R�ST :�cE+ZiQ��
GENERAL PARTNER' S FEES 85►2►�C�tZ�
RETA I L COMMi I S�I ONS ��'-�+��
LETTER L�F CREDI'+ FEES i��:����
TOTAL E������
s e• 1
' , "
. .- - �!'���`�►s� .
, � �
. . .�
.-..f ,:.
" � EXHIBIT C � .
` IHT R�TE PRcS VAU� fUT VALI�C
ST. P�JI. CIVIC CE��TER SA:.E LER�RCK SAt.E PR7CFFDS • 33,191,800
=I�h�Ih� PIAk MIN R�aJRCF�SE F't� 9.757c 6,488,458 2b,1sP,0A0
_ ��„�� SE(xJRITY Ft!!� 12.PS% P,435,659 2,�35,659
R:"V'ck°�c SK�IRTFQ'.1. FIEYD 9.75� 2,61fl,668
HRR D�Vc�_OP.�T FL{hc� 12.ZSx 21,656,P�5 14,185,60C9
4�,7y2,659
1.Fo.� R�V�nI'J: TRX CIVIC T07A� .H+'t�
^o�'J5S S=CIiRITY S:�O�TFA1 It+R�!+�fi't CEN?ER NJ!'ATE! CITY I}���LO rD"it-NT
�.A';'M:�i !�= FUt� �'iktD PLEDGE ' e TAX FUNDS ftl�
2,435,659 2,5i0,666 21,655,2@5 E1Z.P57c
0.5 1�E3P�62�' 149�2 L4 527,816 SQ�O,0�0 428,802 55�886 955f 600 1,�5,443
:.�? 1�6,.�2i(!22 1 L9��8Ei 526�441 62i'�8Z2 POe�Q�O� .�i6�375 856��75 1�3?0�443
:.5 1,6s'P,0�8 149,1 B4 6?5,�32 6Q+�,� 2Q�0,�3 57,lfs4 &57,784 1,326,443
c.� 1,F."s?,i� 149,184 623,597 6Nu',P�20 2¢�'+,Q�0 59,r.�,'9 859,c�9 1,326,443 �
2.5 :,53?,�8 14?,184 6�9,626 60C,0@2 z12,,`,00 60,718 673,210 1,�E,443
3.Q 2�878�88Q 149�184 8 1,646,Z88 212�SQEO b2�227 1��20�816 1�3�5�443
3.5 P,078,888 l49�184 0 1,582,633 275�8uS 63�783 1s9�8�816 1�3Z6�443
4.2 21078�006 149�184 0 1�579�:BS P76�Z58 65�31B 1,928,816 1�326�443
4.5 2,�7Q!,Q�;6 149,184 8 1,563,772 �',,@31 67,812 1,9P4,81b 1,3Pfi,443
5.Q 2�876�� 149�1Bk e i,�e,1e� 291i345 58�687 1��8�816 1�326�443
5.5 2;4S5,0.'�2 �49,184 0 1,97P,221 325,191 76,4E5 P,345,816 1,�6,443
6.� 2549:+�200 149�184 ¢ 1�957�681 306�570 72�165 Z,345,816 1�3�5�443
6.5 2,495,628 149,184 0 1,451,362 320,485 73,909 2,345,816 l,�b,443
7.Z 2,445,QtiZ!2 ?49,1E�4 0 i,948,��63 r 1,934 75,8i8 �,345,9i6 1,s..�6,443
7.5 2,495,822 149,184 0 1,944,682 3Z3,420 77,714 2,345,816 1,�6,44's
8.2 2,4f,Q38 149,184 8 1,941,216 3z4,943 79,655 P,345,B16 1,�'b,443
8.5 z,445,@�C 149,2�4 0 1,931,664 � 326,504 8l,648 2,345,8i6 1,3z6,443
9,e 2�495�Q�2E l49�164 Q 1�934��23 �.'8�lQ►4 83�689 2�345�816 1,�5,443
9.5 2,495,Q�l2 149,184 � 1,930,296 329,744 E5,78I 2,345,816 1,�6,4�3
Ie�f 2�4;5�Q�2!0 • 149�1E4 0 1�926�465 331t426 87,526 2,345,8l6 1��6�443 _
i L'.� 2,435,6�� 149,1F4 2 1,�'2,543 . 333,149 93�lZ4 2�3�45�816 1,s'''.6,443 �
?1.Q 2�k°5�4�?� f 49,164 0 1�9?8�524 334�915 S2�377 ?�345�816 1�'s�6�443
:1., ?,49�,?,aA ?49,184 8 1,914,484 a35,7z5 °4,6B6 P,'s45,816 1,326,443
:Z.� ��4°��Q•2� 149�t 84 a 1�9iT�181 33E�581 97,t;54 Z,345,B?6 i��6�4►,3
Ir.S Z�415�0Z0 149s1B4 6 1,9Z5,853 's40�48� 99�48Q, P,345,616 1�s25�443
i"s.� 2,k95�23� 149�184 0 1s921�416 342�433 181�967 c,3�5,8!6 1�3Zo�443
13.5 �,4?5,@�� " 149,184 0 1,E96,659 344,431 l84,516 Z,sE,S,81b 1,�.'o,443
;<.i 2�495�Q�(', 149�184 8 1�8S��Z08 346,479 107�129 P,345,B16 1;3?6,443
!4.5 Z,4°5,8Z2 149,184 • 0 1,887,430 348,579 1@4,807 2,345,81b �,�6,443
:`.Q 2,495,Q� 149,1$4 0 1,794,322 438,951 112,552 2,434,646 8,895,165
6F,41Q,8Q0 4,475,�3 49,314,895 9,PB0,682 2,41�,549 5I,010,2P6 47,3b2,002
NPV�12.�Si 19,487,780 19,288,638 kPV@12.P5�
� 19,4B7,7B0 � .
� 193,141
. _�,. , -
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a
�^ •' ' '� EXHIBIT D
ST P�UL CIVIC CENTER Sf�E LER�CK
H'cVEt:�c G�.I6AtI0A5
CIVIC L�t�'TER RUTHORITY R1lD F�?El M.OTE! TAX •
EXIS;IKG It�RE��t�'TF�. TOTAL TOi� � F�11TEL TD7F�. TOT�
DPzRATIho OPcRATIk3 CCA REVt�k^JE �A R:'L't!�!'�F_ MaTc1 S�I-�i4"•.1Ai R!.?�"J�'t
�:.R� I "' . � I��O� 5J4I-RtiL�;J�L A�'.1�.iAL TRX
?�3 420,800 4�"►.�C32 4�??�Q:l'k� i i e,ee�a 5?C�?+C�2 SIO�E�3C 195s
:s� �ae,e�a �,eaa �,�se =�,7se
;se.E �,¢�a �ee,�ze ��,�ae �t,ts� �,�a SIS,568 �sa�
:9�5 212,52� P12,5fS0 b8,638 z73,i39
1°,SS 21P,500 �iP,`00 4c"5,Q+2� 60,6�8 z73,?38 546,275 1°ES
:5�5 i5,?�2w 50�t:Z?� ^c75�F�� 63�669 339�659
1°E6 �S,8?�' �L�,8(H2 275,L''� 55'�,022 63s 659 336,bb9 677,335 1960
i:=7 2�7,�8+� �%,�dk �92,f�2 .66,853 3i6,8,`�3
1 y?7 �37,50� 5?,�� £'92,P.�,2 =.�2,Zf� 65,B53 �5,853 713,70b 1967
. 1568 �`.�C,�2+6 55,iZ5 �,?25 72,145 375,3c'0
15is8 252,P�,B 55,125 3�5,1P5 6i@,c.�6 7(ii 195 3i5�3^P,c 752,64i 1988
:569 "c6?,502 57,881 �,3Si 73s725 394,887
i9a9 P62,:22 �,881 328,381 648,763 73,7@5 394,097 7BBi173 1989
19'� 2b2,`�B 68,775 �3,275 77,391 4L'a,666
:G 30 25?,5�@ EB,775 3c?,2� E�46,�5? 77,?91 4e�,fib5 861,3:s� 19'}�
:991 2�?,SE':� 63,81�r �?5,3i4 6i,268 f.87,�4
:9�i 26?,.`�0 63,@14 s?b,3i4 6v2,b2A B1,2b0 4(�7,�4 815,146 1991
:S:i 25='�5fi2' E7�C.5 3�3�.5i5 E5��? 4 i4�8?8
�°92 252,52@ 67,Q25 3?3,`n'� �57,C10 � 85,323 414,828 8z9,6`� 1?�
i�':s ^c62,50� 7Es� 3;,�,B55 B'3,599 4�3,444
i�33 �6�,.`n'M2 10,s'S5 33?,FS5 b5�,718 89.St39 4�444 .84�,838 1993
�g34 25?,�20 73,873 3s6,s'73 94,QS9 430,441
±gg4 �6Z,SZ0 7�,&73 335,373 672,746 94,Q�9 43�,441 85fl,863 1994
� 15� 26?,SP2 77,`�56 340,255 98,77E 438,839
i 975 26c,`�+2 77,565 345,�6b E�&►,1?,.�� 98,?72 438,8�9 877,677 1995
1°5o c:�:x� 81,44� 343�945 10?�711 447�555
1?06 26?,50�3 81,4k5 343,945 F,87,893 123,711 447,6`5 895,31I 1990
1997 c^b-,�'.•2 85,.�i17 s48,E17 1��8,89b 455,913
1?97 2�P,�2u E5,517 34B,617 595,034 IQ�9,656 455,913 913,6P5 1957
:93$ 2b�,5�� 85,793 3.`i`,c�3 114�s41 455,634
�;�tg3 465,634 ?996
TOTa.S 7,637,5'"i•L' 1,69 i,.`�CS 9,3i9,Q�iS 9;3?S,0�� �,487~933 i l,6l�9�9 11,B2�6t 9Fs9
SBi� �L4Y I7 1983
� � . . � .
, .4 , • '
. . � ���1��� -
s .
. • • .} .
aixiBir E'� � �
CIYIC Ce].'tcR A�lDItORIUM F�+lD PRRKIN6 RF�MP PROJECT
CQST Or FINR4�I1� •
�
6ROSS B�:D 52,138,80B �
IHT RATE 8.845
ITSR 5,195,8�
)SiN PUR 7,632,6�J
lit�9 DISC P.415x
� 17.. C. �
FET I�T compsrable coaparable
TO CITY g.o. issue �B.Bx g.o. is5ue @3.177c
(18,82'v,Q2�2) 18,2�,680 18,288,Q�8
t's??�,�?r2) 1 1,wB,498 1 665,QR�O
� t472,682) 2 1,250,498 P 865,000
147Z,6�) 3 1,250,498 3 865,02Md �
f457,2g?l 4 1,258,499 4 865,C@� �
t�57,29z) 5 1,w2,498 5 8b5,P,aO
598,386 6 ,i,250,498 6 865,t'�8
59Q,386 7 1,2�,�9B 7 865,0a0
590,3&6 8 1,Z50,498 6 865�8�
590,386 9 i,c"58,498 9 865,&38
59i,386 18 1,252,498 10 865,880
1,615,336 11 ?,259,498 11 8G5,8@�
1,Bi5,386 I2 1t250,49B 12 865,800
'.,Q?�,335 13 1,25Q,498 13 865,N00
1,¢15,38b 14 1,250,498 14 655,800 .
1,815,'s85 15 1,250,498 15 865,�0
1,0I5,386 .
1,015,3�5 npvR27c 18,757�478 npvEB7� 12,975,820 �
1�6I5,38o npvCjBX 10,783,611 npvRBX 7�483,949
1,e15,336 .
1,Q15,335 '
1;215,386 . ,
,,�15,395
1,21J�386
1,?15,386
1,Q15,386
1��1��� �
1,?:�,38b
;,�15,386 •
�.r 7 • .
l,�.:,.,65
(5,:=�9,34a)
.3,5�4,53� =t:?V COST 0x
12,718,139 �AV CQST 37c
1,483,4`4 ���'J CQST 8x .
�NHITE - C�TV CLERK
� PL�UE MAVOR E GITY OF SAINT PALTL � . 11���,�,.. �
CANARV - DEPARTMENT
�ity Attny/JTH , , �••��w
Co,uncil Resolution
Presented By
� �,'� ..
Referred To Committee: Date
Out of Co mittee By D e
RESOLUTION APPROVING SEVENTH P CE
REDEVELOPMENT PROJECT FINANCI PLAN
FOR THE CIVIC CENTER IMPROVE NT
WHEREAS , the using and Redevelopme Authority of the City
of Saint Paul , Minne ota (HRA) by its Re lution No . 83-5/25-
adopted May 25 , 1983 , pproved certain anges to the Redevelopment
Plan, Seventh Place Re velopment Proj t relating to the inclusion
of a Civic Center Audito ium and Park' g Ramp Improvement Project
as a public improvement u dertaking ' said Redevelopment Project
and approved the Financing lan (At chment 1) for the Civic Center
improvement , including a pr osal r a 15 year pledge of the
Redev�lo�ment Project tax inc eme s , for submission to the City
Counci�; and
WHEREAS , the proposed Civi enter improvement and Financing
Plan are integrally related to he Civic Center Sale/Leaseback
proposal (Attachment 2) by wh' h th City would enter a 25 year
ground lease of the Civic Cen er lan and sell the Civic Center
facilities to HRA, HRA. would assign t ground lease and enter a
purchase agreement with Civ' Center P tnership and issue revenue
bonds to finance the trans tion and imp ovements , and the Partner-
ship and City would enter nto a 25 year erating lease of the
facilities , all of which ransactions are t forth in detail in
Attachment 2 ; and
WHEREAS , the City as authority under pro ision of Minnesota
Statutes Section 462 . 5 1, for the purpose of ai 'ng and cooperating
- in the planning, under aking, construction or ope tion of HRA
redevelopment projec and upon such terms as the ity may determine,
to sell, convey or ase any of its interest in an property, to
cause the Civic Cen er improvement to be furnistzed conr�ection
COU[VCILMEN Requested by Department of:
Yeas Nays
Fletcher
�e��ne [n Favor
Masanz
Nicosia
scheibei __ Against BY
Tedesco
Wilson
Form A roved by C'ty At orney
Adopted by Council: Date —
Certified Passed by Council Secretary BY �
B}�
I�pproved by 17avor: Date — Approv by Mayor for Submission to Council
BY - – — BY
,�`�
-2-
with the Seven Place Redevelopment Project , to i cur the expense
thereof, and othe ise to do any thing necessary convenient in
undertaking such re evelopment project; and
WHEREAS, the HRA has authority under prov sion of Minnesota
Statutes Section 462 . 5 5 Subdivision 3 to re ive, expend or
plec�ge tax increments g erated in the Seve h Place Redevelopment
Project with respect to hich redevelopmen project HRA requested
certification of original assessed valuat' n prior to August 1 ,
1979, until the public red velopment cos thereof has been fully
paid; and
WHEREAS , the Saint Paul lanning ommission has reviewed the
proposed improvement of the Sa nt Pa Civic Center, including the
acquisition, improvement, sale nd aseback of the Civic Center
facilities , and the changes to t e eventh Place Redevelopment
Project Redevelopment Plan (heret ore approved by HRA) , finding
said improvement and Plan change o be in conformance with the
Saint Paul Comprehensive Plan a r commending their approval ;
and
WHEREAS , the Council Fi nce, Man ement and Personnel Comm-
ittee has reviewed the Civic Center Sal Leaseback and Seventh
Place Redevelopment Project Financing Pl for the Civic Center
Auditorium and Parking Ra improvement a achments and the
financial undertakings an land transactio thereby proposed and
has recommended approval now therefore , be ' t
RESOLVED by the C uncil of the City of S 'nt Paul as follows :
1. That the im ovement of the Civic Cente facilities
by renovation of th Auditorium and major repair f the Parking
Ramp is essential the efficient operation of th entire Civic
Center complex.
2 . That t cost of these Civic Center improvem nts may
be feasibly fi nced by the proposed sale and leasebac of the
Civic Center land and facilities , and that the proceeds of the
sale/leaseback transaction may be reasonably applied to he pay-
ment of the public redevelopment cost of the Seventh Plac Rede-
velopment Project represented by the Civic Center improvement as
well as other Project activities such as the North Wabasha and
Town Square East areas .
N�HITE - CITV GLERK
PINK - FINANCE G I TY OF SA I NT PA U L COIIIICII
CANARY - DEPARTMENT
BLUE - MAVOR File NO.
oun "l Resolution:��
Presented By s�{�
Referred To Committ . Date
Out of Committee By Date
-3-
3 . That these acti ities and other supplemental proposals
contained in the Seventh lace Re evelopment Project Financing
Plan, Attachment l , and Ci ic Ce er Sale/Leaseback, Attachment
2 , by providing for the imp ve nt and continued public operat-
ion of the Civic Center faci ' t es for the purposes for which
they were initially undertake and by carrying out the objectives
of the Project Redevelopment P n, are in the public interest and
will advance the public healt a d welfare .
4. That the Financing lan a roved by the HRA and recommended
to the City Council includi the p posed pledges of revenues to
support the Civic Center le se renta payments are hereby approved
as set forth in Attachment .
5. That the Civic C nter Sale/Leas back, including the
several land transaction necessary to e ect the sale , improve-
ment and leaseback of th Civic Center fac lities are hereby
approved as set forth i Attachment 2 .
6 . That the Depa tment of Planning and conomic Development
and City Attorney are uthorized and directed o take all actions
necessary to implemen ation of these Plans and o negotiate final
documents for City C ncil consideration and app oval .
COUNCILMEN
Yeas Nays Requested by Department of:
Fletcher �
�evine In Favor
Masanz
Nicosia
Scheibel _ __ Against BY
Tedesco
Wilson
Form Appro by City ttor ey
Adopted by Council: Date
Certified Passed by Councii Secretary B
By �
t�pproved by iVlavoc Date _ p ov d ayor for Submis i t Council
BY - – —
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PIWK }+ FINA�CE t:.r . .. � .. . � � . � ..
� GITY OF � '."�.'�'A�NT PALTL �:
-CAHARV��y;'�AP.IfitTlSkEN� . .. ���� � . .
:��w ¢
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COUNCII�MEN �? �
Y.eats � Flstehsr Nays ` Reqaested by Depertment of,� '
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Msssnz � '
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scho�ber _ Against BY
- Tsd�eco
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Form Ap ved by Ci t rr►ey
Adopted by Council: Date
Certified Passed by.Council Secretary ' BY �
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Approved by Mavor: �ate._ APPr�+ Ma�+or for 3u�nission ta Cout�il.
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CANARY:�-DEPARTMEN7� . . . . �J.ITY O�F� '�AINT PAITL . :�F�,!$ �. NV.. � . . ., "'�
BLUE +`��-MAVpR �� , � . . . '
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CDU�tCILNIEN ' Requested by Depact�t of: �
Yeas .F1�lehsr Nays
Levine r
Mesanz [n Favor ,� -
. Nicosia. _
. scr�absi � Against BY .
Tad�co '
lAl��son . a, .
Form Ap�r _by City. tto . y J
� � Adopted by Council: Date
'Certified Passed by Gounci!'�'Sec€e�ary -- B '� .
Bs� : r
. A►Fproved hy 11�1avor Date ov yor for Subai s t ouncil �
� �{
$y ._. , Y _ -
WHITE - CITV CLERK � � � � � �
�Gil�""''q���".�.:, �
PINK� - FINANCE GITY OF SAINT PAUL - �
CANARV - DEPARTMEN't �
�i�tJ ���j� _ . . File
, o��cil Resolution
:�. . _,�' - ,�.�',�`
Presented By �� � � -r�
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Referred To Committee: � `I�ate
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COUIVCILMEN ' �
" Requested by Department of: ' �
Yeas Nays �,
Fletcher `i
�evtne In Favor '�.
Masanz ,�
, NiCOEl9 ,_.:w
scnetbe� Against BY
Tedesco
Wilson , �..,�:.,,�
Adopted by Council: Date Form Approved by Cit Attorney
Certified Yassed by Council Secretary By ` -` �
By i � �
t�pproved by IVlavor: ,pate Approve y Mayor for Submission to Council
By BY
WHITE - CITV CLERK .
PINK': - KINANCE ��G�ITY OF� SAINT PAUL Conncfl � �� �
GANARY - DEPARTMENT � �
BLUE � - MAVOR � � � F1Ie NO. ��
� ,Coun il Resolution
� f�/ �
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Presented By -�'''r-t- ir �:.<v!-' �•�"
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Referred To Committ�: �' Date �
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Out of Committee By ate
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3� That ti�ss �t� �t�t .�ar�ta2 pr+e��o�als
ee�ataiwd in t�r Sr�ru lr+oj�ret Fisaaeis�
llan, At��t �, a�wd Sa , A�ta�'l�a�t
2Zoabof tht�f C.�nr "�s � �for�i�i� t m`
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of t3�r lr+ej�t lt�d�nnsl� . aa�'' n tl� p�b2� ist+�csst a�d
rill advan�s t�rs p�li� r�� .
4. Tl�at th� �' . a �� L� tltia BBA +a�d �e��i�
to t�a Cit^�r �cil P��,rdS�s of s�� to
s��p�nct ti�r Ci�ria C�atsr_,�. ` t p�s�`'�ara �b7 spps�r�
. a�e as�t l�ior�ct� in At�t . �-
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appzdv+�d as �et fos�h 2.
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COUNCILMEN <'
Yeas Nays � Requested by Department of:
FletCher
�evtne ��� In Favor � .
� MasBnz -
Nicosia
Scheibel A gai n s t BY
Tedesco
Wilson
Form Approu by City ttor ey
Adopted by Council: Date
Certified I�assed by Council Secretary B `
By , � ,
Approved by IVlavor: Date Ap�ov yor for Submis �t '�Council
BY gY ����, 3 � �� 1""�---
,
� - . � ���3 ��
-- .ATTACHMENT 1
SEVENTH PLP.CE REDEVELOPMENT PROJECT FINANCING PLAN
� (fOR--THE CIVIC CENTER AUDITORIUM AND PARKING RAMP IMPROVEMENT PROJECT )
A. OV V I EV�. :.. ' "
The �$10 illion improvement project for the St. Paul 'vic Center Auditorium
. and Parki Ramp is financed in part by tax. incremen from the Seventh Place
� Redevelopme •Project area. As described in the C' ic Center sale/leaseback
financing pro am, tax increments provide a princ' al source of revenue for
City lease paym ts. The amount and timing of ese tax increments are
detailed on Exhib A. 7he estimated total ta increment obligation between
1983 and 1998 is � 314,895. The present v ue of this obligation is
$19,487,780 when disc unted at 12.25 percen .
6. FINANCIAL BENEFITS TO TH CIVIC CENTER P JEC7
The provision of tax increm t revenue provides a substantial financial
benefit for the Civic Center prove nt Froject. As detailed on Exhibit A,
a total of $11 ,806,989 in fund wil be committed from Civic Center revenues
- and hotel/motel tax revenues to y the revenue bonds sold for the improve-
ment project. Without the assist ce provided from the Seventh Place
Redevelopment Project area, the 1 . million in Civic Center and hotel/motel
tax funds would only have been ffic' nt to support �6.3 million in project
costs (see Exhibit B attached} As Ex 'bit B also makes clear, the tax
increment assistance helps re ce the e ctive borrowing cost to the Civic
Center to a rate of 3. 1 perc t.
C. FINANCIAL BENEFIT TO THE C Y
The use of tax increment also eliminated the n d to sell City General �
Obligation Bonds to sup rt the improvements nee d at the parking ramp and
the auditorium. In fa , the City received speci legislative authorization
to sell 54 million of eneral Obligation Bonds for e parking ramp project in �
the 1982 legislative ession. The tax increment ass� tance, which made the
sale/leaseback fina ing structure possible, eliminate the need for reliance
on the City' s gener 1 credit.
0. FI��ANCIAL BENEFI TO THE HRA
In addition to he low-cost financing provided for the Civic enter and the
elimination o the need for General Obligation Bond financing, the tax
increment ob igation will also make available an estimated �a21 . million in
funds from the sale proceeds of the Civic Center for use by the in �a
development fund pledged primarily to redevelopment activities in he Seventh
Place Redevelopment Project area. This �21 .6 million fund is made vailable
to the HRA upon closing of the sale/leaseback financing. While the A will
maintain a �14,185,000 obligation to the City due in 1998 to assist in the
repurchase of the Civic Center out of this fund, the other dollars available
in the fund will yield significant revenue for development projects necessary
to complete Seventh Place Redevelopment Plan.
As Exhibit A demonstrates, the net .present value of the �21 .E million fund,
s , . when invested in securities yielding 12.25 percent, is $19,2�$,G38 after
� �deducting the $14,185,000 obligation due in year 15. The availability of
� these funds for project activities outlined below in Section E will 'lso
eliminate tMe need for any additional borrowing by�the HRA or the ity to
-- meet necessary redevelopment project costs. The estimated savi s in
capital�iz.ed'interest, underwriting fees, and legal expenses, ich would �
� al�., have`�.been required if the NRA �sold bonds in anticipatio of.future tax
increments, is ry substantial . . _
� E. HRA DEVELOPMENT FU
Pro osed Proqram for nvestment and Use of Fund Earni s
The HRA Development Fun will be established on cl ing of the Civic Center
sale/leaseback financing. Approximately �21 .6 mi ion will be deposited
into this fund. Staff is ecommending that thes funds be invested in
long-term securities in ord to provide the m imum yield for this
si nificant new account. It 's estimated tha corporate bonds or mortgage
ba�fked securities will be purc �sed at an ef ctive yie]d to �aturity of
12 percent for the 15 year term f this fun .
The annual earnings on this fund w 11 be proximately 52.6 million.
The primary use of these funds v,�ill meet several siqnificant obligations
���hich exist within the Seventh Place evelopment Project area:
A. North Wabasha Improvement
As set forward in the implemen tion pl n for the North Wabasha Project
approximately 513.5 million o public co ts are expected as a part of
this significant project und taking over he next 5 to 6 years. Some
of these costs may be finan d through Urb Development Action Grants
and other sources of publi assistance. Th primary source for the
financing, however, will the earnings on t e HRA Development Fund.
B. Town Square East .
In addition to improve ents needed in the North b! asha a�°ea the property
immediately to the ea t of Town Square is also in ed of significant
public improvements. These include the extension o the Seventh Place
Mall between Minnes ta and Sibley (52.5 million) , the acquisition and
redevelopment of t e old Donaldson' s property (52 mill 'on) , and the con-
struction of a ne parking facility on the old Donaldso ' s parking ramp
site (S3. 5 milli n) . The total amounts expected for the 7ovm Square East
. Project are 57. million.
In addition to thes t►-ao significant Seventh Place Redevelopmen Project
activities , there exist a small number of redevelopment obligati s outside
of the Seventh Place Project area. These involve the North Quadr nt area
of Lowertovrn, which will require S3-4 million of additional public assistance
over the next 4-5 years. In addition seve�al significant neiqhborhood .
redevelopment project activities will require funds in order to provide the
necessary public facilities to encourage private rein��estment. These will
include University Avenue (52.5 million) , Selby Avenue ($1 . 5 million) , the
P�orth Capitol Area (52. 3 million) , and the Space Center Industrial Park
Project (53 million). �
_�_
. . . _ ,, � �-� .� ��
A portion of HRA Development Fund earnings (.a.n estimated 2 percent) will
be available to meet a portion of these public obligatio outside of the
Sevetith Place Redevelo ment Project area.
As the above list indicates, the requirement for redevel ment funds will outstrip
- the ability. of financial assi tance from the HRA Devel ment Fund. Other sources
of assistance -will need to be elied on in order to m t the necessary public cost:
� These- sources=�wi11 include Urb Development Action ants, financing through the
Lowertowri Redevelopment Corpora ion, financial assi tance from the St. Paul Port
. - ..Authority, tax increment financi g, and other pri te contributions.
SB4;:5/18/83 -3-
i 1 ..
, �f . � . " . � . _ � �� - .
� " EXHIBIT A
� INT PE�S Vi�.l� FUT VALIE
ST. P►�.�. CIVIC CJ�TER S�.E � SALE PROCEEDS 33,191,�
rIt�K�!1� PLA.►� MIN R"tPUR"}�SE Ft� 9.75X 6,468,459 2b,1s2,B00
c S�q.IR ITY FtD� ' 12.25x 2,435,659 �.,435,653
c SFi�7RTFfkl FLP�i 9.75Z 2�618,6b8
HR 't�OPt�(T FIR�D I2.25X 21,656,Z� 14,185,N00
4�_.,752,659
LEEb= REV�.�' TFX CIVIC TOTAr ,HRA
Gr20SS SrG7RITY S�iDRTFA•.l It�'f�. H/!'ATEL CITY D-�1.O�NT
PAY.�i-'�7 l.ERSz f[A1D FUND PLEDG� t .TAX FU�S FlA�
2,435,659 E,610,668 21,655,205 BiZ.25:
E.5 1,63?,6�'� 149,184 527,816 5Ba,B�uO d,6� 55,888 955,0� 1,3z5,443
i.1 1�63?�C�2 149�184 62£�44I 608�@22 �0� ;6,375 E56,3T 1�32b�443
?.S ?�632�008 149�184 6?Ss P.32 6Q�0�0�33 PQ�O� 23 57�764 &S7�784 1�32�,�Ei�43
?�� 1,63?,P� 149,184 623,597 bA�,t'�02 �, 59,r."29 859,�9 1,,s2E,443
?.5 1,63?,B►8 149�284 6Q9�6B5 6P,e� Z12�500 60�710 873�z18 1,326,443
3.6 2,878,88�' 149�1B4 8 1�646� 212�568 62�2i7 ls g?0�816 1��fi�443
3.5 2,076�0� 149,184 8 1,582, Z75,B� 63,783 1,5�0,616 1,�6,443
4.0 2,878,80a I49,1&4 0 1,579 83 Z76,�3 378 1,520,815 1,32�,443
4.5 ?.�870�0a0 149�184 8 1� �772 �90�Qt31 67� 12 :,�,816 1�32fi�443
5.6 2,07�,2�8 149�184 8 1� �784 291�345 68� 1�928�816 l�326�443
5.5 2�495�8?+2 149�184 8 1 72�Z21 3?Ss191 70�425 �,345,816 1T326�443
E.0 2,4°�,e20 149,184 8 ,957,881 305,570 7P,I65 ,345,816 1,325,443
6.5 2,4°5,� 149,184 0 ,95I,352 328,4�85 73,9�9 S,816 1,3?6,443
7.�u 2�415�?�L' 149�1E4 8 1,94B,?�63 3?1�934 75�8i8 2� 5�616 1,".��6,443
7.5 2,495,6a2 149,184 1,944,682 323,420 77,714 2,34 816 1,32b,4�3
B.0 2s4°5�?38 149�184 1,9�4i,�16 324�943 79�655 z�3F.5� 16 1�3�6�443
8.5 2.,4°5,8�Z i49,184 8 1,937,654 � 326,5�4 81,648 P,345,8 1,326,443
9.2 2,4°15,Q�'E 149�184 e 1,934,623 328�1Q�4 6�t 689 ?�345�81 1��5�443
9.5 2�445�8e2 149�184 0 1,9�P,,290 329�744 65�781 2,345,816 1,�6,443
1e.0 2�445�28� 149�184 8 1�926�465 331�426 87�5�6 2,345,8I6 3�c'�443
10.5 2,495,0� 149,184 6 I,�P,543 . 333,149 98,124 2,3k5,816 1, 6,443
:1.? 2,w?5,('�u 149,164 } 0 1,918,524 334,915 92,377 2,345,816 1, ,443
i I.5 2,4°5�62� }49,184 � 8 1,9?4,484 336,725 94,636 Z,3Er5,816 lt�' 4�i3
:2.P 2,4K,f�2 149,?84 F3 8 1,91T,181 33E,5B1 97,�54 2,345,816 1,�6, 3
i�.5 2�4 J5�02�3 149�184-" 0 1,�5,853 340�483 93�4$8 2�345�816 1��6� 3
13.0 2�495�6� 149�1B4' 8 1�921�416 342t433 161�957 Z,345,816 1�'..�6�44
13.5 P,435,008 149,184 8 1,896,859 344,431 184,516 2,'s�5,816 1,326,443
14.? 2,435,P�3C I49,18� 8 1,85?,228 346,479 107,I29 2,345,816 1,326,443
lk.� 2�4°��O�Z 149�184 .� 0 1,687,432 348��9 1B9�8E7 2,345,8!6 ?�32fi�443 .
:�,? 2�44,`S�Q� 149�194 8 1�794�3P2 438�561 112�5�2 2,4s4,2.46 8,6°5,165
58,�1Q,620 4,475,5z3 49,314,895 9,280,682 2,414,649 61,018,226 47,3ik,6�
NPV@12 25Z 19,487,780 19,288,638 NPVRiP.257c
f9,487,788
199,141 �
� . EXHIBIT B
ST Pi�1l. CIVIC ER SALE LERSEBA�."K
6.0. BOND AFFO LITY TA�..E
TOTA:. t�ITEL TOTA! 6.0. 5�!�D5 81.89�c 6.D. $Q1'�5 F9.2%
CCA R�cYr?�Etfc l�OTEL � I-RNh"JFll. 1@,2E'�0,2�� --- 6,3�-4,834
Y"cAR S�SI-�tIIAL TRX
1983 4A0,0E� 110,8Q'� 517, 22 1 781,1.,'3 787,is'3
19&4 200,22� 57,750 c 7,7
1984 2ff2,000 57,752 257,75P, 2 787,1 7A7,1s"3
1985 212,500 60,638 273,138
_ 1985 212,5a0 60,638 273,I38 3 78 !s3 787,133
198fi 275,060 63,669 3's8,669
19&5 275,6�2 63,b69 �'s8,659 4 n;,l.:.s ?37,Is3
1987 290,0r8 66,8`s s'S.5,85.i .
1987 296,@� 66,853 �s56,853 787,133 787,is3
19B$ 3QS,125 70,195 375s3Z6
1488 305,125 70,195 375,�0 787,I33 1b7,133
i989 32e,3&1 73,7�5 394,097
1989 328,381 73,705 .,'94,087 7 7 1s3 787,133
1990 323,z75 77,391 460,666 .
1932 323,�75 77,341 470,666 B 787,1 7$7,i33
19'31 3?6,314 81,260 4�7,574 .
1991 3?6,314 81,260 4�7,574 9 781,?3s 787,I3s'
194P s'29,�+'S 85,323 414,8?8 '
199? �'9,.`�5 85,3cs 4i4, IP 757,:;::, 787,i,i3
1993 33z,855 89,SB9 �2,
1993 332,855 89,589 � 444 il 787,133 787,?33
1994 336,373 9k,053 4 ,441
2994 336,373 94,6b9 38,4�1 12 767,:33 787,133
1945 340,666 9$,772 439,839
193� 340,056 98,772 438,839 13 787,:33 787,133
1996 343,945 IB3,711 447,6�
1935 343,945 103,71 447,655 14 787,133 7,1's3
1�!'37 s48,617 i 68,8 456,9?3
1997 348,817 2Q8, 95 4�6,913 15 787,1's3 767, 's3
1998 s,2,293 I1 ,341 466,634
TOTA�S 9,319,0i25 c,487,983 11,825,989 li,BQ5,939 i1,8+Z�,989
SRf� h'�Y 29 1983
�" ATTACHMENT 2
� � �
� ' __ CIVIC CENTER SALE/LEASEBACK f
� (AUDITORIUM AND PARKING RAMP IMPROVEMENT PROJECT)
- A. OVERVIEW`��
>
The financing p n for the $10 million in impr vements needed for the Civic
- " Center Auditoriu nd Parking Ramp Project is ased on sale/leaseback
financing financed an estimated $52,130,0 tax exempt bond sale and
$6. 25 million in equ raised by a private artnership. While this sale/
leaseback financing is omplex, three fund ental principles were relied on
to guide the structurin of the plan:
1 . Provide $10 million in ' provements t the lowest possible effective
rate of interest;
2. Eliminate tne need for City Gener Obligation Bond financing;
3. Rely on revenues from the Civ enter and from the City' s hotel/motel
taxes (25 percent) for debt se ce payments.
B. OUTLINE OF THE TRANSACTION
The following is a summary outli of t Finance Plan.
PROPERTY: C�vic Center Arena
Civic Center Auditorium
Civic Cente Concourse an Meeting Rooms
Civic Cent r Parking Ramp d Pedestrian Tunnel
GROUND LEASE: The City ntcers into a groun lease with the HRA for 25
years fo the land under the operty. Fair market �
value r tal will be determine at the beginning of the
lease.
TRANSACTION I : The Ci y sells the property to th HRA subject to the
groun lease for �33,191 ,000.
TRANSACTION II : The RA sells the property to the Pa tnership subject
to e ground lease for $33,191 ,000. The terms are for _
cas . The sale proceeds will be inves ed at both
re tricted and unrestricted yields to s cure the
re urchase price of the Civic Center in ear 15, and �
� t fund public development costs in acco ance with
nnesota Statutes, Chapter 462 (Housing d Redevelop-
ent Act), and by approval of the HRA and e City
ouncil . �
LEASE: . he City enters into a 25-year lease of the p operty
the Partnership. The semiannual lease pa ments
wi 11 be as fol l o�as : �,
� Estimated first semiannual payment $1 ,632,000
� Estimated primary term years . 5 - 5 $1 ,632,000
- � . __ Estimated primary term years 6 - 15 ' $2,495,000
Estimated primary term years 16 - 25 $4,000,000
_ . The Partnership cash flow shortfal during the first
• - - five years will be capital contri tions secured by .
� .. �., letters of credit from The First ational Bank of
- . Saint Paul .
� PURCHASE OPTIQNS he City's options to purchase the property from the
OF THE CITY: rtnership will be at years and 25. The purchase
p 'ce will be at "fair marke value" not to exceed
$4 750,000 in Year 15.
I��PROVEMENTS: The rtnership will agre to fund the improvements to
the pr erty in accordan with the plans and specifi-
cations f the City and ivic Center Authority.
Improvem ts are antici ted to be: �2,500,000 to the
Parking R p, and �7,5 ,000 to the Auditorium.
1983 BONDS: The HRA wil issue ap oximately �52,130,000 of IDR
Bonds for be fit of he Partnership with the proceeds
to be used to ay th costs of issuance, to acquire the
property, and es blish debt service reserve funds.
The term of the loa will be 25 years at an interest rate
about 9.0 percen , , ith payments being made semiannually
based on a 25-yea amortization schedule. All HRA front-
end fees and annu servicing fees are included in the
above.
TRUSTEE: The First Natio al B k of Saint Paul will serve as
Trustee and wi cont 1 all payments from the City to
the Partnershi for di ributionan.d application of funds
flow. �
Exhibit A provides a flow char for the step outlined above.
C. SOURCES AND USES OF FUNDS
See Exhibit B for a Sources nd Uses of Funds o line.
D. FLOW OF FUNDS
Exhibit C provides a deta' ed flow of funds over th source of �tne first 15
years of the transaction. In the upper right-hand c rner of this chart is
a breakdown of the $33,1 1 ,000 in sale proceeds recei ed by the HRA on
closing. Four funds are established.
1 . The minimum repurchase fund requires approximately ,488,468 at closing.
This amount will be invested at an estimated yield-r tricted rate of
9. 75 percent. This amount will yield approximately $ 6,132,000 in 15
years and will be designated toward repurchase of the acility in 1998. .
� � -2-
' . ?. The ��cC° �S°CU!'i±V fUtl� h'1 i� reeuire ae�roxima�e��� �2,�3�,E�Q C11 .
closing. � This fund will be invested ai an esti�r�ated 12.25 percent and
�, will be unrestricted regarding yield. This fund will provide security
, �� '�. �..-against any short-fall in lease payments. The annual interest earnings
� will offset the City's gross lease payments. In addition, t e principal
amount will be applied at the end of the 15-year term towar the :
-_ repurchase. �
� - 3�.. . The revenue hort-fall fund will require approximately 2,610,668 on
`-�`=�ca�osing. Thi amount will be invested at estimated y' ld-restricted
rates of 9.75 ercent. On the first 5 semiannual pa ents, this amount
� � " will be drawn wn to pay portions of the City' s gr s lease payment.
After the first payments this fund will be exhau ed.
.,
4. The HRA developme t fund represents the balance f the 533,191 ,000 in
sales proceeds. I will be made available to e tablish a new fund for
redevelopment activ ties of the HRA. This fun will be approximately
$21 ,656,205 on closi These funds will be nvested at an estimated
12.25. percent which w 11 yield approximately 51 ,326,443 semiannually on
an interest only basis. At the end of the -year term, $14,185,000 of
this fund will be drawn ut and combined w' h funds :from the minimum
repurchase fund and the ase security fu to cover the ��2,750,000
maximum repurchase obliga 'on.
- k'ith the explanation of these va 'ous funds n mind, it is now important to
understand the structure chosen to cover t City' s lease obligation. In
the second column labelled "Gross L ase" i a list of the first 15 years of
semiannual payments due from the Cit to he private partnership. These
ar�ounts will be covered from the foll i g sources :
1 . The lease security fund.
2. ihe revenue short-fall fund.
3. Tax increments from the Seventh lace Re velopment District. �
4. Civic Center revenues.
5. Hotel/motel tax receipts.
The Civic Center revenues are b ed on the schedule f payments agreed to
between the City and the Civic enter Authority. Th e revenues are a
combination of existing revenu s estimated to be prod ed from current
operations , along with additi nal revenue to be produc from the remodelled
auditorium. Exhibit D provi es detail on the Civic Cen r debt service.
The hotel/motel tax funds a e a commitment of the City. his amount is
.equivalent to an estimated 25 percent of hotel/motel tax c llections from
1983 escalated at a 5 per ent annual rate. The tax increme t funds represent
tne balance required to over the City' s gross lease payment after taking
into account the other urces of revenu.e.
E. HRA DtVELOPhiENT FUND
blhile the City' s commitment of tax increment funds provides a majority of the
funds to cover the City' s gross lease payment, the HRA receives 521 ,656,205
in sale proceeds which is available to cover redevelopment project costs.
. � -3-
The present value of 15 years of principal and interest available from the
HRA development fund is $19,288,638. The present value of the ax increment
� vblig�tion to make the lease payments is $19,487,780. �
The benefits the HRA will receive from the establishment of his development
_ fund when combined .with the value of the $10 million in im ovements provided
at the Civic� �enter are felt to justify the significant t increment
- obligation.,:
�. ; ,.
F. COST OF FINANCI G
Exhibit D provides a description of the estimated co of the financing.
Column A outlines t net cost to the City over the irst 15 years. These
amounts when discoun d at a rate of 8 percent res t in a $7.9 million cost
over the 15 years. Co umn B shows the net presen value of a comparable
stream of debt service yments from financing o General Obligation Bond debt
at an $�$ percent i.nteres rate is $10.7 millio . This analysis demonstrates
that there has been a �2.8 illion cost saving o the City over time from the
reliance on this financing. Column C outline what rate General Obligation
Bonds would have to be sold a in order to a ieve the equivalent rate of
financi,ng. This analysis demo trates that n interest rate of 4 percent
would have to be achieved in or r to achie e the same result as the sale/
leaseback financing does for the ity and e Civic Center Authority.
G. REPURCHASE OBLIGATION
The City has the option to repurchase t e facilities at the end of the 15th
year. Funds are being escrowed to pro de the necessary amount to cover the
maximum repurchase price. The actual urchase price will not exceed the
�42,750,000 amount, and could be some a less. The minimum repurchase
amount is $26,132,000.
It should be emphasize that prospec ve leas payments beyond the 15th year �
for the City increase dramatically. If the 'ty does not choose to follow
through on its repurchase obligati , a carefu financial analysis� should be
undertaken to review the long-term risk that th City would face. The
financing plan has been structure with the assu tion that the City would
make the repurchase at the end of the 15th year.
SBW:5/18/83
. -4-
�. . �
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- . ��
.^�.' ' �� EXHIbIT H
SOURCES AND USES OF FUNDS (ESTIMATED)
SOURCES AT CLOSING
E{OND PROCtEDS 5c:6��Z►0Q►�
EG!U I TY f 5tZi0��
TO"fAL ��7�����
USES AT LOSING
A G?UISITI N .?,?�191�0tZ�
IM OVEM TS 1�►Z�2��0��
UND 'WR I ER' S D I SCOUNT 15"4�@
BOND N URANCE 15����c��
�:�7ND TS . � 7�06��►
ISSUcR FEE 5c6�T0�
. DERT . ICE RESERVE S�:E,�00�
TOTA ��7�����
------------ -------- -----------------------
EG?U I TY BREA .DOWN
CLOS I NG 15�iZ►►Z��Z►
EASE A$ATEMENTS -�������
INT�REST i��E���
GENERAL Pf�RTNER' S F S 8������
RETA I L COi�(�i I SS I ONS ��''_����
LETTER CF CREDI� FEES i�.�kk��?�
TOTAL E������
1 �
' a
�'i
" � EXHIBIT C
` IKT RATE Pft�'S VALI� FLfT VALL�
ST. P�JL CIVIC CE1�'TER SALE S�k.E PROCEEDS 33,191,8�0
FI�KCINS PI.Ak MIN REP'iJRCkRSE 9.75x 6,488,4G9 P6,1 c,0@0
E SECURITY 12.F5X 2,435,659 �,�35,659
1�VcFrilc SEf�7RTF Ft�t� 9.75X 2,618,b68
HRA DcVE!OW.+�N FI�ED IZ.257L 21,655,2E5 14,185,00f!
42,752,659
LER� itcV�k;1� RX CIVIC TOTA! .HRR
u,�i SS S=CLiRITY S:i�RTFA'1 IM R.. �hT CEN?ER H/KATEL CITY DEV'�LOPPt'tNT
AAYMa? LE�t" FUt� Fl�'D PLE REVEtr'U� TAX Fl.AdDS FIRdD
_ 2,435,659 P,610,668 21,655,265 Al2.P5X
8.5 1,E32,02�D 149,?84 5�7,816 5Q ,000 488,8� 55,800 955,8� 1,32fi,443
i.i� 1,6„�2,P2� 249,184 626,441 Q,0t'�2 �PiO,8@@ 56,375 856,375 1,3�6,443
:.5 1,632,�0 149,184 625,832 @,� 0,620 57,1fs4 857,784 1,326,443
"� 1�E.,s��P,1� 149,184 623�5$7 600,l�0 Q�iO 59�229 859�c�'� 1�326�443 �
2.5 1,63�,@28 149,184 669,626 60C,00� 212, 68,718 673,220 1,�6,443
3.� 2�678�66A I49�184 @ 1�646�2$8 212�5 62�2c7 1�320�816 1,3�6,443
3.5 2,070,� 149,184 1,582,233 275,806 63,783 1,3�0,816 1,3�fi,443
4,2 2,078,8�6 149,184 1,579,388 276,258 65,37B 1,928,816 1,3Zb,443
4.5 2,07@,Q�30 149,1B4 0 1,563,772 290,Q�31 67,8i2 1,9?0,816 1,�6,443
5.Q 2�07e�0AB 149�184 6 l�56@�784 2"91�345 �687 l,928,816 1,326,443
5.5 2,4S5,�6 149,184 0 1,97Q!,221 325,191 7 485 �,345,816 1,326,443 .
6�a z,as:,,eea 149�184 e 1,957,681 306�570 72� 2�345�82b 1�325�443
6.5 P,495,0?8 149,184 0 1,951,362 320,485 73, 2,345,816 1,326,443
7,z ��495�Q�22 l49�184 0 1�948��3 �11934 75�B18 z,345,916 1�326�443
1.5 2,495,8a2 149,1B4 0 l,944,682 323,42@ 77,714 ,345,816 1,�6,k43
8.0 2�445�e28 149�184 0 1�941�216 324l943 79�655 34r5�816 1,�6,443
8.5 2,495,8�2 149,1B4 0 1,937,664 326,504 81,649 2, 45,8i6 1,326,443
9.2 2,495,N22 I49,1 @ I,934,023 328,iQ�4 83,689 2, ,816 1,�5,443
9.5 ��495�Q� 149�1 6 1,930,290 s'29�744 85�781 2�34 16 1,32fi,443
IQ.Q' 2�445�028 149� 84 0 1,926,465 331�426 87�926 2�345� 6 1,�6,443 _
1E.5 2,445,�20 14 184 e 1,9�2,543 333,149 �,124 2,345,81 1,326,k43 '
?1.2 2,495,Q�6 1 ,164 0 1,918,524 334,915 92s377 2t345,816 1,3c�1443
:?,5 ?,495,6?t'd 9,184 0 1,914,484 335,725 94,686 P,a445,816 326,443
:2,Q 2�4?5�Q.22 t94 0 1�9i0�181 338�581 97�254 2�3k5�816 i�' �443
1"c.5 2,495,02� 149,184 8 1,9:�i5,853 340,483 99,480 2,345,816 1,� ,443
i3.@ 2,495,2+38 149,184 0 1�9P1,416 342,433 181,967 2s 3Ei5,816 1,320 4+43
13.5 P,495,� � 149,184 0 1,896,659 344,431 284,516 2,'s45,616 1,�6, 3
S4.P 2,4g5,@�f0 149�184 8 1,892,208 346f479 107�129 2�345�816 1�3?6s44
14.5 2,495,0�0 149,184 • @ 1,8B7,430 348,579 1@9,B07 2,345,816 �,�'.6,443
;`,Q 2�435�Q�P0 149�184 0 1�794�3P2 438ti96I 112�552 2,434,246 8,845,165
6E,412,�0 4,475,523 49,314,695 9,z80,682 2,414,649 6I,010,226 47,362,0�'d
NPV@12.257� 19,487,780 19,�BB,638 NRt�i2.25x
19,487,780
199,141
- �i
�� ' �� EXHIBIT D
ST R�l1L CIVIC CEHTER LERS�ACK
f�VEttJE OBLI6RTIDt�
CIVIC f�t�'TER R'JTIiORITY f�iJ TEL M�TEL TAX
EXISTI�G INCREr'�� R'i. TOTRL TOTRL HDTEL TOTt`k TOT�
OPERATINB OPERA i I CCA REVth1lE �R Rc'V� M�TcI. 5�I-AN .iA` Ah'M1"J(�
YEA� II�Q�4� I!��OM� ► I-R�!!�"JJ�L RV1.,lAL TAX
?383 4L0,B00 4,E�u2' 42?,C'Q4? 112,E�+2 ?6,2+Q�2 SIO,P�t� 195's
:s� �e,aea t eaa sr,�se ��,�sa
.gaa �,�� �ce, �a,eaa s�,7s� �,�a sis,s�a �9a�
?985 212,54�6 �12,` 68, P73,138
19�55 212,50f! 21?,;�a 425,Q� 60, 8 273,!38 54b,275 IQ85
:S85 Zc^5���2Z+ 50�l'�� 275�?���E4 63 69 338�669
1°E6 225,8ita2 50,� 275,� _t�,�20 =659 338,669 677,339 l966
1c�7 237,50� 5�,�� P9�+,f�0 ,853 3.`�5,8,`i3
1387 237,50Q� 5?,5a0 29Z�, '' `,�2, � 55,853 ?S5,853 713,7Q�6 1967
. 1568 2`.�0,@?6 �,125 3�'S,?25 7&,19'S 375,3'�0
1968 �sa,eaa 55�125 305�125 6i2�� 765195 375�3^cP 75'Z'�641 1988
?989 ^c6?,500 57,881 3'�8,s9: 73,7e5 394,887
1989 262,`Q�2 57,881 328,381 64.8, 73,7�.5 394,087 788,173 1989
1933 26^c,560 60,775 323,275 77,391 4E0,6b6
:930 25P,5@@ 68,775 3"c?,275 E ,55? ,?91 4$0,6b6 BP,1,3� 19�
:991 Z62,503 63,814 �'6,3i4 81 68 4�i,574
:�1 26?,`•�F,',0 63,@14 �6,3i4 55?,E�29 81, ErE7,574 615,!�8 1991 -
15�? 2tr='�5P3� 67���5 3���5�3.zi 85�'.,2' 4i4i&28
1992 252,5Q+0 67,Q25 3?9,5�5 �59,210 � 65,323 414,828 829.6`� 1992
i�'�s ^c6?,56a 72,355 3.s�, 89,589 422,444
i g33 ^c6�',.`n'+� 70,355 33?, 665,716 84.5a'� 2,444 844,888 199's
14''�t 25?,5�� 73,673 33b 73 94,P�9 4 ,441
1994 262,520 7?,87s' ,'s73 E�72,746 94,@69 43 441 850,883 1994
?995 26?,5�2 77,`�6 ,e�55 98,772 438,
i 3y5 EF,2,�+22 77,566 40,�66 Ef�,i.',3 98,772 4's8,8 87i,677 1995
1596 �o_,:k"�3 Bi,445 343,945 103,711 447,655
19a6 262,50a 81,445 343,945 6&7,839 103,711 447,6;5 895,31I f996
1597 ^c6?,St?t 85,517 s49,f17 188,895 455,913
1?97 25?,52� 85,5' 348,017 695,034 IFB,&96 455,913 3,6?5 1997
2�3$ 2b?,52� 8 93 3.`�,c'33 114,341 455,634
Y?,�?3 466,6's4 ?996
TOTf�S 1,6's7,500 1,651,`,�5 9,3I9,Q�5 9;3 i S,�5 c,487,983 i l,8�5,969 11,FsQS,?59
SB�1 M4Y i7 1983
.� . . ,7 �
- - � � ,� � �' .
� � �
�
- ��
EXFtIBIT'E�
CIVIC CcNTER Rt1UITDRIIfM AhID RKIN6 RF1�P PRQTECT
COST QF FINFt3CIN6 •
.
6ROSS B�ID , ,80�
INT RATE
DSR 5,195,
l�IN POR 7,630,659
UhD DISC 2.415x
�+ I>- � '
1€T L'UST comparable conparabl��
TO CITY y.o. issue R8.Bx g.o. issue N31,17Z
(18,6`d0,Q�Z l 18,268,6d0 10,280,�8
(3�?,4.2) 1 1,250,498 1 865,Q�00
(472,688) 2 1,250,498 Z 865,P.00
(472,688) 3 1,250,496 3 �; 865,0'd� � .
(457,2g?) 4 1,250,495 4 865,2
(457,29�f 5 1,w2,448 5 865,
598,�86 6 1,258,498 6
590,386 7 I,E50,498 7 ,020
5�,a96 8 1,250,498 B ,000
�90,3e36 9 1,c,�,498 9 865,038
592,386 18 1,250,498 10 865,80tD
1,015,386 11 1,258,498 il 855,8@0
1,0i5,3B6 12 1,250,498 865}800
?,215,390 13 1,25R,498 3 865,000
1,015�386 14 1,250,498 14 865,800
1,015,386 IS 1,25@,498 15 865,880
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1,815,396 npvC� 18,757,470 pvC+B'�c 12,975,B20
1,615,3ab npvC�Bx 10,703,611 npv@8X 7,483,949
1,Q.S,336 ,
1,?15,336
� 1,215,386 .
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15,386
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PED DEPARTh1ENT
Steve Wellin�ton�rONTACT
292-1577, Ext. 252 PHONE ���� � '
Mav 19, 1983 DATE
(Routing and Explanation t)
Assi n Nurr�er for outin Order Cli All Locations for oral Si ture :
�
�/ Department Di ctor �j
City Attorney �� CEIV
/Mayor -" �
Finance and Manageme ' s Director MAY �98�
City Clerk � OFFICE 7HE ��r�croR
3 Budget Director �` DEPA MENT 0�' !v4^�L�E
�'� wfVD NAGENENT SEr�VICES
4 Transmit to Councilman Sch '�bel
What Will be Achieved b Takin Acti on the tached Materials? Pur ose Rationale :
Resolution provides for certain change `�'�o e Seventh Place Redevelopment Project
Financing Plan specifically to include t� ' repair and renovation of the Civic Center
Auditorium and Parking Ramp as a pub ' • improvement project of the District, and
to approve the financing plan for such i o ement project.
Financial , Bud etar and Personnel acts Anti ' ted:
�inancing Plan includes a 15-year pledge of Down n and Seventh Place Tax Increment
revenue. Such monies will help pport the Civic C er lease rental payment.
�
,
Fundin Source and Fund Activ' Number Char d or Credi ed:
ti
�
Downtown and Seventh Place T x Increment District - Capita�, Projects Fund.
Attachments (List and Number all Attachments) :
1. City Council Resoluti�n and its attachments
Attachment 1: �Seventh Place Redevelopment Project Fin ncing Plan
Attachment 2:� Civic Center Sale/Leaseback - Overview o Transaction
DEPAt�TMENT REVIEW CITY ATTORNEY REVIE
Yes No Council Resolution Required? Resolution Required? Yes No
Yes No Insurance Required? Insurance Sufficient? Yes No
Yes No Insurance Attached?
Revision of October, 1982
(�ee Reverse Side for 'Instructions)