281060 WHITE - CITY CLERK
PINK - FINANCE *� !
CANARY - DEPARTMENT � G I TY OF SA I NT �A�V L COUtIC1I Q����
BLUE - MAYOR File N O. v
u cil Resolution
Presented By � �''�°� �'2��
Referred To �� ���'��-� � �� � �.
Committee: Date
Out of Committee By Date
WHEREAS:
1 . On August 30, 1983 the Port Authority of the City of Saint Paul adopted Resolution
No. 2186 giving preliminary approval to the issuance of an industrial revenue bond issue in
the initial principal amount of $6,378,000 to finance the acquisition of 46,929 square feet
of net rentable space on floors 3, 4, 5, 15, 16, 24, and 25 of the Conwed Tower in St. Paul .
The bonds will be underwritten by Miller & Schroeder Municipa1s 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 , sha11 be issued only with the
consent of the City Council of the City of Saint Pau1 , by resolution adopted in accordance
with 1aw;
3. The Port Authority of the City of Saint Pau1 has requested that the City Counci1
give its requisite consent pursuant to said 1aw to facilitate the issuance of said revenue
bonds by the Port Authority of the City of Saint Pau1 , subject to final approval of the
details of said issue by the Port Authority of the City of Saint Pau1 .
RESOLVED, by the City Counci1 of the City of Saint Pau1 , 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. 2186 the exact details of which, including, but not 1imited 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 reso1ution adopted by the Port
Authority, and the City Council hereby authorizes the issuance of any additional bonds
(inc1uding refunding bonds) by the Port Authority, found by the Port Authority to be necessary
for carrying out the purposes for which the aforesiad bonds are issued.
COUNCILMEN
Yeas Nays Requestgd by ment f:
Hunt
�..riwe G�/J.�S [n Favor
Maddox /
McMahon �( B
Showalter A gai n s t Y
Tedesco
Wilson
Adopted by Council: Date
[�CT 2 0 � Form App ed by City Attorney
Certified a_ - y Council S tar ��� �
—/�
Ap by :Vlayor. t OCT ?'' � y�3 pr ved by Mayoc f ub i6sion to Council
By
PuB�ISHEO OCT 2 9 1983
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Resolution No. ��/•!�':�•
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota �
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determi.ned by
the legislature is to promote the welfare of the statP by the
active attraction and encouragement and development of econ�mi-
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 Albion Limited
Partnership I, a Minnesota limited partnership (the "Company" )
and Oxford Development Minnesota, Inc. , ( "Oxford" ) a request
that the Authority issue its revenue bonds to finance the
acquisition of Floors 13, 14, 15 and 16 of the Conwed Tower
located at 444 Cedar Street in Saint Paul, Minnesota for use as
offices (hereinafter collectively called the "Office Project" )
all as is more fully described in the staff report on file; and
WHEREAS, said request has been made pursuant to a
Development Agreement (the "Development -Agreement" ) between the
Authority, Oxford, the City of Saint Paul (the "City") and the
Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "HRA" ) relating to the development of Block 26
in the City (the "Block 26 Project" ) ; and said request will
facilitate development of the Block 26 Project as more fully
set forth in the Development Agreement; and
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WHEIZEAS, 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 ponulation, and the
Office Project and Block 26 Project (collectively the
"Development Projects" ) will assist the City in achieving that
objective and will heln to increase the assessed valuation of
the City and help maintain a positive relationship between
assessed valuation and debt and enhance the i.mage and
reputation of the City; and �
WHEREAS, the Development Projects will result in
substantial employment opportunities in the City;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company and Oxford that conventional,
commercial financing to pay the capital cost of the Development
Projects is available only on a limited basis and at such high
costs of borrowing that the economic feasibility of operating
the Development Projects 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, both the Office Project and the BLock 26 Project are
economically more feasible;
WHER�AS, Miller & Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreement (the
"Bond Agreement" ) relating to the purchase of the revenue bonds
� to be issued to finance the Office 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 Office 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
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
follows:
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1. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Office 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 of the Act; that the Office 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 £urnish such financing will be a substantial
inducement to the Company to undertake the Office Project and
for Oxford to undertake the Block 26 Project, and that the
effect of the Development Projects, 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 will help to prevent chranic
unemployment, and will 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 talent�ed 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 t'ne 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 Office Project and Oxford in reallocating its equity
towards development of the Block 26 Project as contemolated in
the Development Agreement.
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 Office Project and the issuance
of the revenue bonds, the Office Project is hereby approved and
authorized and the issuance of revenue bonds of the Authority
in an amount not to exceed approximately $ (other
than such additional revenue bonds as are needed to complete
the Office Project) is authorized to finance the costs of the
Office Project and the recommendations of the Authority' s
staff, as set forth in the staff inemorandum to the
Commissioners which was presented to the Commissioners, are
incorporated herein by reference and approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Lxecutive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Office Project to the
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Minnesota Energy and Economic Development Authority (the -
"MEEDA") requesting its approval, and other officers, employees
and agents of the AUTHORITY are hereby authorized to provide
MEEDA with such preliminary information as it 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 acquisition and financing
of the Office Project and a form of the Bond 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 Office Project in order that the
Company may proceed without delay with the commencement of the
acquisition of the Office Project with the assurance that there
has been sufficient "official action" under Section 103(b) of
the Internal Revenue Code of 1954, as am��nded, to allaw for the
issuance of industrial revenue bonds (including, if deemed
appronriate, any interim note or notes to provide temporary
financing thereof) to finance the entire cost of the Office
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
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 revenue agreement 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
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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 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 time thereafter deem necessary to complete the
Office 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.
8. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in de�cribing the general nature of the Office Project and
estimating the principal amount of bonds to be issued to
finance the Office Project and in preparing a draft of the
proposed application to MEEDA, for approval of the Office
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 this =�:?_ day of �. . �-�- , 1983.
PORT AUTHO �I�Y OF/THE
CITY OF S IlGT PATdL1, MINNESOTA
� ;' � �
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Attest: � '���� (. /���- :
j :� Presi erit
/�:/,%/�"`%%i t��iii y�
i', G
Secretary�
5
.• Pvrt Authori-`t�► DEPARTt•1ENT ��-'
�• E. A. Kr�aut �, ` . � ? ��:
--ONTAGT
224-5686 PHO�tE
8-31-83 DATE - ���� �
. (Routi�g :and Explarrat�on�.Sheet)
- ,.
Ass�gn �ium�er for Routi ng Order t Cl i p Al l LoGati ons fflr IMayora T: Si ynature):
ALBIDN LIMITED PARTNERSHIP
�— . $fi,:378,OQ0 REVENUE BQPiD IS5UE
. �
/1�►3►�r
;� : ��,��IVED . .
5 City Clerk � SEF`Z iG�33 .
Budget Di rector :
_ N�A�(V�S t�FFiCE
�lhat Wf11 be Achieved tiY Tak�ng Action on tl�e Attached Materfals? (Pu se Rationa�e :
This is the init�al step in the condominiumization of �he Conwed and North Gentral Tc�rs which
wi11 ultimately require the issuance of bonds in excess of $50 mil1ian to make it possible
for Oxford to develop and constr�uct the major retail center expansion on B'iock 26. That
ovsrall project is expected to cost up to $25 millinn and employ 700 peop1e.
F�inan�cial�. Budgetar�y and Personnel in�acts Anticipated: �
N/A .
Fundi ng 5ource a►nd fund Acti vi ty N�nber Char�ged or Credited:
N/A
.Atta�;►aaBaats (L�st and Number a]1 Attachments� :
1. Staff Memorandum:
2:� Draft City Counci] Resoluti�n
3. Port Authori�y Resolution No. 2186
QEPARTMENT RfVIEW CITY ATTORNEY REYIEl�-
� Yes No Council Resolution Required? Resolution Requir�d? X„� Yes No �
� Yes: � No Insurance �equired? ` � Insurance Sufficier�t? X Yes Ho
Yes �(, No insurartce Attached?
Revision of'�cto6er, i982
cc• R. Thorpe �
i..PP RPVPY'SP Sidp f�r 'instructions)
. • " �v��V V
PORT � -
�► UTHORITY �
OF THE CITY OF ST. PAUL
Memorandum
TO: Board of Commissioners DATE: Aug. 26, 1983
Special Meeting August 30, 1983
�
FROM: E. A.���,��
SUBJECT: PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
$6,378,000 REVENUE BOND ISSUE
ALBION I LIMITED PARTNERSHIP
RESOLUTION N0. 2186
PUBLIC SALE HEARING - SALE OF LAND - RESOLUTION N0. 2187 �
1 . THE PARTNERSHIP
Albion Limited Partnership I is comprised of James Stolpestad,
Samuel M. Joy, Stephen E. Smith, Lawrence E. and Beverly A. Stirtz, and
James A. and Janice P. Bernards and Fred Brownson. Albion Partnership
will sell limited partnerships in the amount of $5,430,000, which will
be divided between the four partnerships which will involve the acqui-
sition of 16 floors of the Conwed Tower. The estimated partnership
equity participation in this project is in the amount of $1 ,269,000
In addition, there will be an Oxford Development Company of Minnesota
Purchase Money Mortgage in the amount of $1 ,308,000.
2. BOND ISSUE �
Accordingly, it is proposed to provide revenue bond financing in the
net amount of $4,842,375 which will be derived from a bond issue
comprised of the following:
Net Proceeds $5,442,000
Reserve 701 ,000
Expenses (Est. ) 195,000
Underwriting 40,000
$-6,378,000
The reserve fund will be capitalized in the bond issue and reinvested
to self-amortize and will inure to the benefit of the Port Authority
at the end of the bond amortization term.
The issue would be authorized under Resolution 876; however, every
effort will be made to sell this as a private placement if it can be
done at appropriate rates.
� - �� ` - ��1���
Board of Commissioners
Aug. 26, 1983
Page -2-
3. FINANCING
The partnership will acquire 46,929 square feet of net rentable space
on floors 13, 14, 15 and 16 of the Conwed Tower. Oxford will provide
in addition to taking the notes on the purchase money mortgage a
separate instrument guaranty to insure a cash flow level for the building
equal to the lesser of the amount of the Port Authority's annual debt
service, or $2,281 ,000 on the total of the four projects. Said guaranty
will remain in place through 1990.
The agreement, because of the nature of the limited partnership, will
be a loan agreement and non-recourse so far as the partnership is
concerned.
Under the terns of the agreement the Port Authority will receive fiscal
and administrative fees as follows:
$24,208 per year for the first 10 years
$31 ,131 per year for the second 10 years
$38,049 per year for the final 10 years.
In addition, interest on the sinking funds based on monthly payments in
advance will inure to the benefit of the Port Authority, as will the
debt service reserve at the end of the term.
4. PURPOSE OF ISSUE AND CONDOMINIUMIZATION
The purpose of the issue and the condominiumization of the Conwed Tower .
at this time and the North Central Tower after construction is underway
in Block 26, is to permit Oxford Development Company to reduce its
equity in Town Square so that that equity in turn can be reinvested in
Block 26, thereby assuring the establishment of a regional type shopping
center and by it enhancing the significant retail activity in downtown
St. Paul .
5. RECOMMENDATION
Staff recommends adoption of Resolution No. 2186 approving the preliminary
and underwriting agreements and Resolution No. 2187 approving the sale
of land.
EAK:jmo
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' Agenda
Fi,nance, Management � Personnel Cormnittee
October 13, 1983
' Page 2
10. Resolution amending the Civil Service P,ules by inserting a special provision for
newl�pointed Substitute Library Specialists: (Personnel)
11. Resolution amending the Civil Service Rules by removing the Substitute Library
Specialists from the Special Employments category and placing them in a grade.
(Pers�el)
12. Resolution declaring the intention that the six resolutions and one ordinance
relating to the Substitute Librarian Specialist title be effective retroactively
to September 15, 1983.
13. Resol�o n establishing the title and class specification of EDP Lead Programmer
in the Civil Service Rules. (Personnel)
14. Reso��on approving securities pledged by Swnmit State Bank of Phalen Park to
protect funds of the City of Saint Paul while held in said bank - $350,000.
(Finan� .
15. Resolution approving securities pledged by Capital City Bank of St. Paul to
protect funds of the City of St. Paul while held in said bank - 5 treasury notes.
(Finance)
� aj�f° - `
16. Resolution approving the securities pledged by Exchange State Bank to protect
funds of the City of St. Paul while held in said bank - $50,000, $100,000.
(Finance)
17. Resol�n transfering $720,500 between Com�nunity Health Administration and
various CHS accounts. (Community Services) LA:o O�%i'
18. Resolution amending Capital Improvement Budget to provide increased financing
for the Hillcrest Recreation Center Sitework Project. .S�PP
19. Resolution accepting the settlement of $28,000 in the Minnesota State Human
Rights Department's claim on behalf of Diane A. Boese against the City. �,o
� 20. Resolution for issuance of revenue bond in the amount of �6,378,000 to finance
the acquisition of space at Conwed Tower. (Port Authority).4�/�
21. Resolution for issuance of revenue bonds in the amount of $6,135,000 to finance
the acquisition of space at Conwed Tower for Albion Limited��nership II•. (P.A.)
22. Resolution for issuance of revenue bonds in the amount of $7,275,000 to finance
the acquisition of space at Conwed Tower for Albion Limited��nership III. (P.A.)
23. Resolution for issuance of revenue bonds in the amount of $5,475,000 to finance
� the acquisition of space at Conwed Tower for Albion Limited���nership IV. : (P.A.)
C
_ ,� `� 281��Q
, ' " �_ C�TY OF SAINT PAUL
°`�j�" OFFIC� OF TFI�: CITY COIIl\'CIL
���
�-.s�.::�
•)Alii7iM'�.r.i�� ' . •
'�'*=a';�;;' D a t e . Octoberl3, 1983
, �
� COMM (TT � E RE PORT
TO = SQint Pau 1 City Council �
F R O M � C o m m it t e e O h FINANCE, MANAGEMENT �, PERSONNEL
- ' - CH A I R COUNCILMAN SCHEIBEL
� 1. Approval of minutes of ineeting held September 29, 1983.
v 2. Consideration of an Affirmative Action Plan. (Committee of the tidhole)
.CA/OD�/Pr - _ - - -
3. Resolution establishing a contract between tlie City and Model Cities Health
Center for a consultant to develop a plan for the transfer of the Model Cities
Health Project fro�the City to the Model Cities Health Center, Inc. (Com Services)
�y�� .
4. Resolution indicating to Region V, U.S. Department of Health and Human Services,
the City's intention to transfer control and funding of_ the Model-Cities Health Project
t t-t��fodel Cit'�es�j-Iealth Center, inc. (CoMmunity Services)
�l/t� «z l�mz�a.:�G'd��]
S. Resolution amending�the Salary Plan and Rates of Compensation Resolution to
provide a five-step range for the Substitute Library Specialists. • (Personnel)
l��
6. Resolution amending the Civil Service Rules with regard to promotion for Sub-
stitu� Library Specialists. (Personnel)
/� .
7. Ordinance providing for retroactive certification of the members of the clas.s of
Substitute Library Specialists to the date of original hiring. (Personnel)
Q�
8. Resolution amending the Salary Plan and Rates of Compensation Resolution to delete
special references to Substitute Library Specialists incorporated, due to a
Conmiission order. (Personnel)
Q�o
9. Resolution amending the Civil Service Rules to delete special xeference to Substi-
� tute Library Specialists with regard to accumulating sick leave credits, (Personnel)
ll�
CITY HAT.L SEVLNTH FLOUIL S.11\"C P:�L'I_, M(\\FSOTA 551p2
CITY HALL SEVENTH FLO�'i�"�" SAINT PAUL, MINNESOTA 55102
.�,.��