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280947 , wi�t�TE.. - Cirr CLERK COUf1C1I ����'�� / PINK - FINANCE G I TY OF SA I NT PAU L CANARV - DEPARTMENT �� � BLUE - MAVOR File NO. I•,�� � � Council Resolution Presented By Councilmen Fletcher and Scheibel � Referred To Committee: Date Out of Committee By Date RESOLUTION TO AUTHORIZE SUBMISSION OF GRANT APPLICATION TO THE MINNESOTA WASTE MANAGEMENT BOARD AND SPECIFICATION OF SPECIAL TERMS AND CONDITIONS WHEREAS, the city of Saint Paul has initiated the Homegrown Economy Project to develop a more diversified, self-reliant, and interdependent local economy; and WHEREAS, Recycling Unlimited's efforts to expand waste recycling processing; increase employment opportunities; reduce the diseconomies and environmental cost of waste disposal ; and open secondary markets for use of recyclables, and are wholely compatable with the goals and objectives of the Homegrown Economy Project; and WHEREAS, the city of Saint Paul has worked in cooperation with Recycling Un- limited for five years to make recycling services available to residents of Saint Paul ; and WHEREAS, the city of Saint Paul is eligible to apply for grant and loan assist- ance from the Minnesota Waste Management Board's Solid Waste Facilities Demonstration Program to assist the expansion of Recycling Unlimited's recycling operations; now therefore, be it RESOLVED, that upon the recommendation of the Mayor, the Council of the City of Saint Paul does hereby approve the filing of an application for $654,675 (54� loan and 46% grant) in state assistance to provide for the acquisition of a facility and equipment to expand the operations of Recycling Unlimited, and be it FURTHER RESOLVED, that Mayor George Latimer, as Chief Executive Officer of the city of Saint Paul , is hereby authorized and directed to submit said application for state assistance to the Minnesota Waste Management Board Solid Waste Processing Facility Demonstration Program, in such form as prescribed by the regulations of the Waste Management Board, and be it COUIVCILMEN Requested by Department of: Yeas Fletcher Nays ceii� [n Favor Masanz Nicosia scnetbe� __ Against BY Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date Certified Yassed by Council Seccetary BY gy, t�pproved by 1Aavor: Date Approved by Mayor for Submission to Council By BY �«�-nrs. - c�r� CLERK Council �,�+ ����� PINK - FINANCE GITY OF SAINT PAUL ,1 CANARV - DEPARTMENT BIUE - MAVOR File 1\O. /r��J• , a' � Council Resolution Presented By Councilmen Fletcher and Scheibel Referred To Committee: Date Out of Committee By Date continued - page two FURTHER RESOLVED, that the Mayor is hereby authorized and directed to guarantee the repayment of the city's loan, if awarded by the Waste Management Board, conditio- nal upon an agreement by Recycling Unlimited to dedicate revenues, over a period of 13 years, in an amount sufficent to reimburse the city for both the principle and interest of the city's Waste Management Board loan; and be it, FURTHER RESOLVEU, that the Mayor is hereby authorized and directed to secure an option to purchase a facility located at 775 Rice Street for use by Recycling Unli- mited to carry out the terms of the city's grant/loan agreement with the Minnesota Waste Management Board; and be it FURTHER RESOLVED, that the Mayor is hereby authorized and directed to dedicate $150,000 of municipally-generated support for a term of two-years (1984-1985) to subsidize Recycling Unlimited's operations through the initial period of expansion. COU[VCILMEN Requested by Department of: Yeas Nays Fletcher � Galles [n Favor Masanz Nicosia Scheibel � __ Against BY Tedesco Wilson Adopted by Council: Date S�P 2 9 1983 Form Approved by City Attorney Certified as- ouncil e r BY gy, «. t#pproved b IVlavor: Da SEP 2 91983 Approved b M yor f S ssion to Council By � _ — By �'" " "'e�!/ v PUB�ISHEQ OCT' �8 1983 � ���°��!'�e F06�l**o.� GITY OF SAINT PAUL o � � OFFTCE OF THE MAYOR � i=il i 1�u ► e p@ �Q 347 CITY FIALL �"� SAINT PAUL, MINNESOTA 55102 GEORGE LATIMER (612) 298-4323 MAYOR September 29, 1983 Councilman Victor Tedesco, President Saint Paul City Council 700 City Hall Saint Paul , MN 55102 Re: Request for authorization to submit grant application to the Minnesota Waste Management Board Dear Councilman Tedesco and Members of the Council : I seek your authorization to submit an application to the Minnesota Waste Management Board requesting $654,675, $354,675 in loan and $300,000 in grant funds. This assis- tance will be used to acquire a building at 775 Rice Street, and to purchase equip- ment to support the expansion of recycling in Saint Paul. The application is due Friday, September 30, 1983, so your most immediate attention is requested. This effort is being undertaken in cooperatian with Recycling Unlimited as part of the Homegrown Economy Project. Recycling Unlimited meets the criteria for a homeg- rown enterprise. It is a locally-owned firm which provides jobs to city residents, converts waste products into valuable resources, and promotes the development of secondary industries by providing useable raw materials. Recycling Unlimited affords immediate returns to the city's economy, and long term environmental , economic and social gains. There is a growing market for Recycling Unlimited's services. If adequate expansion funding is provided, I am confident that Recycling Unlimited will serve as a prototype for the homegrown ventures we seek to develop. Recycling Unlimited wants to expand its services to reach all of the city's seventeen planning districts. The organization has projected that the increased volume in recyclable collections will make its operations self-supporting by early 1985. It is estimated that a capital investment of $905,000 will be needed to expand Recycling Unlimited's capability to meet these goals. For the past several months, members of the city council (notably Councilmen Fletcher and Scheibel) Public Works and PED staff, and the Homegrown Economy Project staff have been working with Recycling Unlimited to develop a plan and secure financing to cover the expansion costs. With the assistance of city staff, Recycling Unlimited has been awarded a grant of $250,000 from the U.S. Department of Health and Human Services, Office of Community Services. These grant funds will be used to acquire rolling stock to increase curbside service. �N ��?���'��� � . . .. Councilman Uictor Tedesco September 29, 1983 - Page Two The remainder of the organization's capital needs are addressed in city's Waste Management Board application, which is before you today. The major componets of the grant application are: 1 . $570,000 to acquire and rehab 775 Rice St. ; and 2. $139,350 for the purchase of processing equipment; and 3. City will lease 775 Rice St. for 13 years to Recycling Unlimited; and 4. City will transfer title to 775 Rice St. to Recycling Unlimited at the end of the lease period for a nominal sum; and 5. City will commite up to $150,000 in municipally-generated funds to cover an anticipated shortfall in operating revenues during the first 18 months of Recyling Unlimited's market expansion. I encourage the adoption of the attached resolution autliorizing the submission of a grant appliction to the Minnesota Waste Management Board with the special terms and conditions spelled out above. Your support of this cooperative venture with Recyc- ling Unlimited will expand the meaning of "recycling" to encompass waste management and environmental responsibility, within the context of the homegrown economy, a responsible approach to local economic development. - Sincerely, ,.`� � • George Latimer - MAYOR PED �°'���L�",� �EPARTFIENT Bob Tracy CONTACT X 7494, X215 PHONE 9-29-83 DATE ���� v � ' (Routing and Explanation Sheet) Assign Number for Routing Order EC1ip All Locations for Ma�yoral Signature): 1 Department Di rector . . 3 City Attorney 4 Di rector of Management/Ma�yor Finance and Management Services Director City Clerk 2 Budget Director . 5 Councilman Fletcher �Ihat Will be Achieved by Taking Action on the Attached Materfals? (Purpose/Rationale): Authorize submission of grant/loan application to the I�innesota Wast Management Board. Request for $654,675 (a grant of $300,000 and a loan of $354,675). Assistance to be used to purchase a faci7ity and equipment for a recycling plant to be operated by Recyclinp Unlimited. Financial , Budgetary and Personnel Impacts Anticipated: The City will accept the loan from the Waste Management Board contingent upon an agreement whereby Recycling Unlimited would make monthly 1ease payments to the City in an amount equa1 to the City monthly debt service. The city woul�d arrange for a municipally-generated subsidy of up to $150,000 for Recycling Un1imited's first 18 �un�i ng�Sour�e an�Fund Aet v ty SNur�er Charged or Credi ted: Should RecycTing Unlimited default on its lease agreement, the cYty wa�ld be responsible for the loan payback. The sale of the building should generate revenue to pay off the loan. The funds f�r the expansion operating subsidy need not com� from tax-base source and Attachments (List and Nwnber all Attachments� : may come from pr�vate grants. 1 . Mayor's Transmittal Letter � 2. Council Resolution 3. Grant Application (4 copies) DEPARTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resolution I�quired? Resolution Required? Yes No Yes � No Insurance Required? Insurance Sufficient? Yes No Yes X No Insurance Attached? , Revision of October, 1982 �SPP RPVPM'CP SidP fer �Instructions)