280549 WHITE - C�TV CLERK �!, ^((('''��� ///���
PINK - FINANCE COUIICII �� �A�
CANARY - DEPARTMENT CrI TY� OF SA I NT PA iT L �� l.A
BIUE - MAVOR � � File NO. J�" �
Jl
�o ncil Resolution
Presented ��'��!'�Y� �
By
�eferred To �� ���'C-1= Committee: Date ����83
Out of Committee By Date
WHEREAS:
1 . On May 17, 1983, the Port Authority of the City of Saint Paul adopted Resolution
No. 2140, giving preliminary approval to trie issuance of tax exempt revenue bonds in the
initial principal amount of approximately $1 ,000,000 to finance the acquisition and remodeling
of the Hampden Building at 830 Hampden Avenue in St. Paul for the Hampden Building Limited
Partnership. f�lr. Jerry Trooien will be trie general partner. The bonds will be privately
placed with the lead underwriter being Miller & Schroeder Municipals , 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. 2140 the exact details of which, including, but not limited to, provisions relating
to maturities, interest rates, discount, redemption, and for the issuance of additional
bonds are to be determined by the Port Authority, pursuant to resolution adopted by the
Port Authority, and the City Council hereby authorizes the issuance of any additional bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas Nays Requested b Dep ment of:
Fletcher �
Levine In Favor
Masanz �
Nicosia -
scne�ne� _ _ Against BY
Tedesco
Wilson
JUN 3 0 1983 Form Approved by City Attorney
Adopted by Council: Date Y ^
/y
Certified P ss y uncil ec t ry B /
By
L 1 83 Ap v d by Mayor for Subm s ion to Council
tap y ; avor. Da ,�j
��r
BY - – —
BLISNEO J U L 9 1983
P O R T � . . . �����►��
�"� AUTHORITY �
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE: May 13, 1983
(May 17, 1983 Regular Meeting)
FROM: B•A. Maus
SUBJECT: CENTRAL WAREHOUSE COMPANY
PUBCIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT
$445,000 REVENUE BOND ISSUE
OFF-SITE
RESOLUTION N0. 2144
1 . THE COMPANY
On April 17, 1979, the Port Authority Commission approved the issuance
of bonds in the amount of $3,420,000 to finance the construction of
a facility for Central Warehouse Company located at 739 Vandalia. Since
that time, Central Warehouse has been an excellent Port Authority tenant
from which we have not experienced any problems.
2. THE PROJECT
The company proposes to construct a 9,600 square foot truck maintenance
facility on their site in the Midway area. This is will be an 80 X
120 square foot steel building in which they will repair and maintain
trucks owned by Central Warehouse and its affiliated companies.
3. FINANCING
The proposed financing is through the issuance of an 876 revenue bond
or a privately placed mortgage in the amount of $445,000 Bond proceeds
are distributed as follows:
Construction $353,306
Bond Issuance Expense 20,000
Captalized Interest - 3 months 10,569
Debt Service Reserve 47,775
Discount 13.350
TOTAL $445,000
The Port Authority will amend zhe current agreement with Central Warehouse
and add this new debt io the financing. We will also collect our normal
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BOARD OF COMMISSIONERS
May 13, 1983
Page -2-
fees on the additional debi. The term of the financin�g is 30 years.
Current financial statements for Central Warehouse are attached for
your review. The financial statements indicate in the opinion of staff
that this would be a good risk. �
4. RECOMMENDATIONS
Staff has met with District 12 and reviewed the project with them; the
District 12 Council has approved the project. Construction of this
new maintenance facility will allow Central Warehouse to consolidate
its operations on site consequently allowing them to add approximately
20 jobs at the Midway location which are not currently located in
St. Paul. Staff recomnends approval of Resolution No. 2144.
BAM:ca
Attach.
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Resolution No. �<��y`�
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT- PPiUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and co�nerce to prevent so far as possible
the emergence v£ blighted and marginal lands and areas of
chronic unemployment and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and 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 employraent op�ortunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from Central Warehouse Company
(hereinafter referred to as "Company" ) a request that the
Authority issue its revenue bonds (which may be in the form of
a single note) to finance the improvement of its public
warehouse facility (hereinafter called the "Project") located
at 739 Vandalia, in the City of St. Paul, all as is more fully
described in the staff report on file; and
'�VF3EREAS, 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
� 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
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WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, conaaercial
financing to pay the capital cost of the Project is available
only on a li�mited basis and at such high costs of borrowing
� that the economic feasibility of operating the Project would be
�significantly reduced, but the Company has also advised this
Authority that with the aid of revenue bond financing, and its
resulting law borrowing cost, the Project is economically more
feasible;
WHEREAS, Miller & Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreement (the
"Underwriting Agreement" ) relating to the purchase of the
revenue bonds to be issued to finance the 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 Company that the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds; and
WHEREAS, the Authority did conduct a public hearing
pursuant to said notice, at which hearing the recommendations
contained in the Authority' s staff inemorandum to the
Conunissioners were reviewed, and all persons who appeared at
� the hearing were given an opportunity to express their views
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the 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 m�ore revenue producing enterprises engaged in any
business within the meaning of Subdivision 1 of Section 474.02
of the Act; that the Project furthers the purposes stated in
Section 474.01 of the Act, that the availability of the
financing under the Act and willingness of the Authority to
furnish such financing will be a subs�antial inducement to the
Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the development of
economically sound industry and commerce and assist in the
prevention of the emergence of blighted and marginal land, and
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will help to prevent chronic unemployment, and wili help the
City to retain and improve its tax base and provide the range
of services and employment opportunities required by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
state where their services may not be as effectivel�j, used and
will result in more intensive development anc� 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 Company and the purchaser of the revenue bonds
as to the details of the lease or other revenue agreement as
defined in the Act, and other documents necessary to evidence
and effect the financing of the Project and the issuance of the
revenue bonds, the Project is hereby approved and authorized
and the issuance of revenue bonds of the Authority (which may
be in the form of a single note) in an amount not to exceed
approximately $400,000 (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 Com�nissioners, are
incorporated herein by reference and approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner of
Securities, 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 Company, relating to the proposed construction and
financing of the Project and a form of the Underwriting
Agreement. The form of said Agreements have been examined by
the Commissioners. It is the purpose of said Agreements to
evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Company
may proceed without d�lay with the commencement 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 allow for the issuance of industrial revenue bonds
(including, if deemed appropriate, any interim note or notes to
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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 Agreements are
hereby approved, and the President and Secretary of the
Authority are he=eby authorized and directed to execute said
Agreements.
5. Upon execution of the Prelimiiiary Agreement by
the Company, the staff of the Authority are authorized and
directed to continue negotiations with the Company so as to
resolve the remaining issues necessary to the preparation of
- the lease and other documents necessary to the adoption by the
Authority of its final bond resolution and the issuance and
delivery of the revenue bonds; provided that the President (or
Vice-President if the President is absent) and the Secretary
(or Assistant Secretary if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative)
are absent, the Treasurer of tY►e 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 Underwriters made by the
Underwriters to purchase said bonds and to execute an
underwriting agreement setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwriters to
said offer but shall be subject to approval and ratification by
the Port Authority in a formal supplemental bond resolution to
be adopted prior to the delivery of said revenue bonds.
6. The revenue bonds (including any interim note or
notes) and interest thereon shall not constitute an
indebtedness of the Authority or the City of Saint Paul within
the �aning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary liability of
the Authority or the City or a charge against their general
credit or taxing 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.
7. In order to facilitate completion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds (including
any interim note or notes) herein contemplated and any
additional bonds which the Authority may prior to issuance or
from time to tiine 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 resolution and said Preliminary Agreement and any
additional available information the City Council may request.
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8. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing �
and in describing the general nature of the Project and
estimating the principal amount of bonds to be issued to
finance the P=oject and in preparing a draft of the proposed
application to the Commissioner of Securities, 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 May 17, 1983 -
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Attest � - �� --
� Pre de �
�^ The Port Authority of the City
� �:i of Sai Paul
, ,�
r�y �,�/
�� _ i/�% . , '�Ci�`'-��!�%!_ ,
�' cretary
� ..�_:'J.�~ � . � ! 1
St. Paul Port Auth ritv DEPARTt,1ENf . '�`���ta��
B A. Maus. E.A.. Kra�t �ONTACT
224-5686 PHONE ���� �� .
-Q4a�}--U�'�� [�tTE
(Routing and Explanation Sheet)
Assign Number for Routing Order (Clip All Locations for Mayoral Signature): RECEIVED
Department Di rector / ,1UN 1 �98,3
City Attorney �� R�C�IV�D ��
/�or � .1 U�v 2 -a . rY ATTORiV�Y
��53
5 City Clerk I��l'ORS OFFICE
Budget Director
What Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):
The purpose for the tax exempt revenue bond issue is to finance the acquisition and remodeling
of the Hampden Building at 830 Hampden Avenue. in St. Paul for the Hampden Building Limited
Partner�ship. Mr. Jerry Trooien will be the general partner. The amount of the bond issue
is $1 ,000,000 and the term is 30 years.
Financial , Budgetary and Personnel Impacts Anticipated:
This development will create an additional 30 lobs in the Midway area.
Funding Source and Fund Activity Nurnber Charged or Credited:
Attachments (List and Number all Attachments� :
1. Staff Memorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 2140
cc. R. Thor e Man ower Services
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? � Yes No
Yes X No Insurance Required? Insurance Sufficient? _�___ Yes No
Yes X No Insurance Attached?
Revision of October, 1982
(See Reverse Side for �Instructions)
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� -�-- � �,��; D a t e : June 22, 1983
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TO = 5atn? Pau I� Citv Co�nci ! �
�F� O nl� = C O i/l I�1 jTf`Q e O h FINANCE, MANAGEMENT F, PERSONNEL
' � C H A I R James Scheibel
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1. Approval of minutes from meeting held June 1G, 1983. ���r!"' ..
2. Resolution authorizing the��City to apply to HUD for sup lemental FY 1983 .
=- ' CDBG Year IX funds. (Community Development)-�� _ � .
3. Resolutiqn authorizing the submission of an application to EDA for additional
funding�for Energy Park. (Community Development).��r-�(,��-�-��
..
R: fiesolution approving the issuance of tax exempt revenue bonds to finance acqi�isi-
- - � tion and remodeling of the }iampden Building. (Port Aut7iority) ,��j{U���-��
S. Resolution approving the issuance of re�renue bonds to finance construction_of.
a maintenance facility for Central lti'arehouse Company. (Port 1lutliorityj��j��'��.=.d
' J .
6. Resolution approving t}ie issuance of revenue bonds to finance constrvction �
of an office/distribution center.for Crescent Electric Supply Co. (Port A�ut�h���) �_�
7. Resolution approving additions to the 1953 Budget to take care of eapenses s
incuri'ed for the 1953 Tax Anticipation Certificate Sale. (Finance llept:)���^QI�'� �-�
S. Resolution approving additions to the 1953 Budget for disbursement of funds
� from the Debt Service Account. (Finance Dept.}�p�"�(,�{�*�� ,
9. Resolution approving securities pleclged by Commercial State Rank. Finance Dept.) �
;�,orol�e� -Z=C�'
CIT�' }iALL SEVENTlI FLOOfi SAT2�'T PAUL, �il�'1L•SOTA SSI02
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