280551 WMITE - CITV CLERK �[`l � �y
PINK - FINANCE COUIICII 37��� ���
CANARV - DEPARTMENT GITY OF SAINT .PAUL �`� y�� "� '-
BLUE - MAVOR File NO.
� Co ncil Resolution
. �
Presented By c.�!'?'1r� � -
' eferred To �1 ����V L�' Committee: Date ��� ��
Out of Committee By Date
WHEREAS:
1 . On May 17, 1983, the Port Auir�ority of the Gity of Saint Paul adopLed Resolution
No. 2142, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount of $565,000 to finance the consLruction of a 15,000 Square foot office/
distribution center on Parcel E-12 in Riverview Industrial Park for Crescent ElecLric
Supply Company. Miller & Scr�roeder Municipals has agreed to underwrite the revenue bond
issue for a term of 30 years.
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. 2142 the exact details of which, including, but not limited to, provisions relating
to maturities, interest rates, discount, redemption, and for the issuance of additional
bonds are to be determined by the Port Authority, pursuant to resolution adopted by the
Port Authority, and the City Council hereby authorizes the issuance of any additional bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas Nays Requested by Department of:
Fletcher �
�evine In Favor
Masanz
NiCOSia
Scheibel _ __ Against BY
Tedesco
Wilson
Adopted by Council: Date —
JUN 3 01983 Form Approved by City Attorney
Certified P ss d b Council S a BY
r' V
By
t� by 14 vor: Dat _J� � 19 3 Ap by Mayor Eor Su i Council
�
�
PUBLISNEO JU� 91983
,i
' � O R T � � : <�z;�ti���'��
`� 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: CRESCENT ELECTRIC SUPPLY COMPANY
PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT
$565,000 REVENUE BOND ISSUE
RIVERVIEW INDUSTRIAL PARK
RESOLUTION N0. 2142
PUBLIC SALE HEARING - SALE OF LAND
RESOLUTION N0. 2143
1 . THE COMPANY
Crescent Electric Supply Company is an electrical equipment wholesale
company which was established in Qubuque, Iowa in 1919. The company
is now based in East Dubuque, Illinois. The company is owned by Mr. James
Schmid and has 64 different locations throughout the Midwest. The company
serves electrical contractors, utility companies and large manufaciurers
with electrical equipment.
2. THE PROJECT
Staff is recommending approval for Crescent Electric to construct a
15,000 square foot office/distribution center on Parcel E-12 in Riverview
Industrial Park. The building as shown on the rendering is to be
constructed out of prestressed concrete panels. The majority of the
space will be warehouse/distribution area with trie remainder serving
as offices and a City Desk to serve customers.
3. FINANCING
Staff proposes to finance the project through the issuance of an 876
industrial revenue bond in an amount of approximately $565,000 Bond
proceeds will be allocated as follows:
Construction $501 ,212
Bond Issue Expense 20,000
Capitalized Interest - 6 months 26,838
Debt Service Reserve - By Company - - -
Discount 16,950
TOTAL $565,000
� . . ���'���`� -
; � . �
BOARD OF COMMISSIONERS
May 13, 1983
Page -2-
The property will be leased during the term of the financing by Crescent
Realty Corporation. A copy of the balance sheet and income statement
for Crescent Realty is attached for your review. The stockholder's
equity of Crescent Realty, the amount of long-term debt and the average
annual income over the past couple of years indicate that this would
be an excellent risk for the Port Authority.
The Port Authority will charge its normal fiscal and administrative
fees. Land value has been set at $1 .75 per square foot for approximately
40,000 square feet. The terrn of the financing is 30 years.
4. RECOMMENDATIONS
The project will create fifteen new jobs to St. Paul which are in the
process of being added while they are leasing space from Asirocom in
Riverview West. Staff has reviewed the project in detail with the
company and recommends approval of Resolution Nos. 2142 and 2143.
BAM:ca
Attach.
• � . ;����i��i�°�
. .
Resolution No. �����--
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT P.�UL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, knawn as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act" ) as found and determined by
the legislature is to promota the welfare of the state by the
active attraction and encouragement and development 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 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 employment opportunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority" ) has received from Crescent Realty
Corporation, an Iowa corporation (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
acquisition, installation and construction of facilities for
the warehouse and distribution center (hereinafter collectively
called the "Project" ) at the intersection of Eaton and State
Streets in the City of St. Paul, all as is more fully described
in the staff report on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the 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
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment apportunities- in the
Pro ject; '
WHEREAS, the Authority has been advised by repre-
sentatives of the Contpany 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 economi.c 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 low 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 capy 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
+dHEREAS, 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. .
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follaws:
1. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
business within the meaning of Subdivision 1 of Section 474.02
��
, . . �t��;�,���
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 substantial 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 ass-ist- 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 opportunities recfuired by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
state where their services may not be as effectively used and
will result in more intensive 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 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
$565,000 (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�aissioners, 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.
. . . . ; ���t���
. � . _
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 theiF- intentions
with respect to the proposed Project in order that the Company
may proceed without delay with the conunencement 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 allav 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 agreeraent 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 hereby authorized and directed to execute said
� Agreements.
5. Upon execution of the Preliminary Agreement by
the Company, the staff of the Authority are authorized and
directed to continue negotiations with the Company so as to
resolve the remaining issues necessary to the preparation of
the lease and other documents necessary to the adoption by the
Authority of its final bond resolution and the issuance and
delivery of the revenue bonds; provided that the President (or
Vice-President if the President is absent) and the Secretary
(or Assistant Secretary if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative) �
are absent, the Treasurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with the
provisions of Minnesota Statutes, Section 475.06, Subdivision
1, to accept a final offer of the 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 meaning of any constitutional or statutory limitation and
. . . � . . ����,��,�
. .
shall not constitute or give rise to a pecuniary Itability 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 time thereafter�deem necessary to complete the
Project or to refund such revenue bonds; and for such purpose
the Executive Vice President of the Au�hority is hereby
authorized and directed to forward to the City Council copies
of this resolution and said Preliminary Agreement and any
additional available information the City Council may request.
8. The actions of the Executive Vice-President of
the Authority in 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 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 _
�� ,
Attest � � t��
' Pres
The Po Authority of the City
�'' ,� / of Saint Paul
, �'
, ,
���%��f-//� i��'�"ii/�'�./�'/A.i
Secretary
a r ��4✓�V'��
St. P ul P r EPARTt�€NT
�
B A Ma�t E.A._ Kraut �'ONTACT
224-5686 PHONE ���� ��
May 17, 1983 DATE
(Routing and Explanation Sheet)
Assign Number for Routing Order (Clip All Locations for Mayoral Signature): E�
1 Department Di rector ��� 1 1983
�_ City Attorney �°�-��I��� ��TY ATTpRNEY
3 /�Yor ,1 U N 2 i��:�
5 City Clerk iVIAYORS OFFICE
Budget Director �
What Will be Achieved by �'aking Action on the Attached Materials? (Purpose/Rationale):
The Purpose for the revenue bond issue is to finance the constructior� of a 15,000 square
foot office/distribution center on ParceT E-12 in Riverview Tndustrial Park for Crescent
Electric Supply Company. The amount of the bond issue is $565,000 and the term is for
30 years. :
Financial , �udgetary and Personnel Impacts Anticipated:
It is anticipated that the project will create 15 new jobs to St. Paul .
Funding Source and Fund Activity Number Charged or Credit�d:
Attachments (List and Number all Attachmentsl:
1 . Staff Memorandum
2. Draft City Council Resolution
3. Port Authority Resolution No. 2142
cc. R. Thor e Man ower Services
UEPARTMENT REVIEW CITY ATTORNEY REVIEW
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
(See Reverse Side for �Instructions)
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'e::� -`;� . �'�` ' � � . Jime 22, 1983
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�R O M � C O��'dl I���e O h FINANCE, MANAGEh1ENT F, PERSONNEL
� " � . C H A I R James Scheibel
-�9�r99��. �
���1. Approval of minutes from meeting held June 1G, I983. �
2. Resolution authorizing the��City to apply to t�UD for sup lemental FY 1983 .
��- � CDI3G Year IX funds. (Community De��elopment} .�+ d���-P-�- -
R�.
3. 3tesolutiqn authorizing the submission of an application to EDA fox additional
funding for Energy Park. (Community Development)�p�-�,��_--_��
.r
4, fiesolution approving the issuance of tax ezempt re��enue bonds t.o finance acquisi-
—�- � tion and remodeling of the Hampden Bui.lding. (Port Authority) ,�i�f�L'���=-��
5. Resolution approving the issuance of re�jenue bonds to finance construction,of.
a maintenance facility for Central ltarehouse Company. (Port Autliority�'�j�j'����
� � �
6. Resolution approving t}ie issuance of revenue boncls to finance constrnction �
of an office/distribution center.for Crescent Electric Supply Co. (Port Authorit �)
�ro�� ����
7. Resolution approving additions to the 1953 Budget to take care of eapenses i
incuri'ed for the 1983 Tax Anticipation Certificate Sale. (Finance llept:) ���^�/�t{'(' Z-
S. Resolution approving additions to the 1953 Budget for disbursement of funds
� from the Debt Service Account. (Finance Dept.�ppr,�r���-�� � .
9. Resolution approving securities pleclged by Comrnercial State Rank. Finance Dept.)
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CITY }IALL $EVENTN FLOO1: SAII`'T PAUL. �i1�i�GSOTA 55J02
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