279599 WHITE - CITV CLERK COUI1C11 2�� 95��
PINK - FINANCE G I TY OF SA I NT PAU L
CANARV - DEPARTMENT
BLUE - MAYOR File NO.
Counc 'l Resolution
Presented By � -�.t� �
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On November 30, 1982, the Port Authority of the City of Saint Paul adopted Resolution
No. 2082 giving preliminary approval to the issuance of approximately $1 ,900,000 in revenue
bonds to finance the purchase and remodeling of a building at Fifth and Broadway ac oss from
the Farmers Market for Broadway Square. The Broadway Square Partnership will use t e space
for commercial , retail and office facilities.
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue ba ds
authorized by the Port Authority of the City of Saint Paul , shall be issued only wi h the
consent of the City Council of the City of Saint Paul , by resolution adopted in acc rdance
with law;
3. The Port Authority of the City of Saint Paul has requested that the City C uncil
give its requisite consent pursuant to said law to facilitate the issuance of said evenue
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 �f the City of Saint Paul , that in accordance wi h Laws
of f�linnesota 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 esolution
No. 2082, the exact details of which, including, but not limited to, provisions re ating
to maturities, interest rates, discount, redemption, and for the issuance of additi nal
bonds are to be determined by the Port Authority, pursuant to resolution adopted b the
Port Authority, and the City Council hereby authorizes the issuance of any additio 1 bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas Nays Requested by ��ment of:
Fletcher
�' [n Favor
Masanz
Nicosia
Scheibel _ __ AgalllSt By
Tedesco
Wilson
�C `� i �9�2 Form Appro by City Attorney
Adopted by Council: Date .�---�.
Certifie assed b Co il S cretary BY ��
,�
gy,
/�lppro y 1+lavor: D�te � .�eC 2 � ��� App ove by Mayor for S vo to il
\
g /YY� Qi-� B
PUBLISHED D E C 31 198�
.
V� � �
St. Paul Port Authority �
__ —_DEPARTh1ENT
oD—'na"fT�urls ee r�1
�u�n� n �r���t rONTACT `?J
(612) 224-5686 PHONE �95�9
-� DATE re�n e e
-November 30. 1982
(Routing and Explanation Sheet)
Ass ' n Number for Routin Order Cli All Locations for Ma oral Si nature :
Department Director
Ci ty Attorney ._.. _ - -�
� �`'�� r � �1 .."I �.k': .
Ma � ...�.�._ .. .
/4 Fi nan e and Mana ement Servi ces Di rector OEC 3 – ��2
c g
5 City Clerk � 4.
[J;�c`�.:��', �::�-��EL
Budget Director
What Will be Achieved b iakin Action on the Attached Materials? Pur ose Ration e :
Broadway Square is a General Partnership who purchased the former Cardozo wareho se
at the corner� of Fifth and Broadway across from the Farmers f�larke�. The Partnershi
proposes to c�nvert the basement and first and second floors of the six-story build ng
into cor�nerci�l , retail and office space. There would be 24,646 leaseable Sq. Ft. r
comnercial an� retail space and 14,004 Sq. Ft. for offices. The Partnership has si ned
leases for 58.8� of the retail and commercial space and are working on finalizing t or
three additiomal leases that would bring the total preleases space to more than 70�
Financial., �ud�etary and Personnel Impacts Anticipated:
Broadway Square will accomplish an expansion of the City's tax base by addition of cilities
worth more than $1 ,900,000 and employment of 250 people. Approval by the City Coun '1 will
permit the St. Paul Port Authority to sell the industrial development revenue bonds or the
project. '
Fundina Sourcle and Fund Activity Nur�er Charged or Credited:
�
Attachments (�.ist and Number all Attachments) :
1 . Staff Memarandum
2. Draft City! Council Resolution
3. Port Autharity Resolution No. 2082
cc: R. Thor , Man ower Services
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
X Yes No Council Resolution Required? Resolution Required? X Yes No
Yes X No Insurance Required? Insurance Sufficient? X Yes _ No
Yes X No Insurance Attached?
Revision of October, 1982
(See Reverse Side for Instruction )
HOW TO USE THE GREEN SHEET �
The GREEN SHEET has several purposes: `
1. To assist in routinq documents and in securinq
required signatures
2 . To brief the reviewers of documents on the impacts
of approval �
3. To help ensure that r.ecessary supportinq materials
are prepared and, if required, attached.
ROUTING . .
�ASt GREEV SHEET actiens must �e rev_a•ae�? Sy a �e�ar_:�ent
�irec�or, �:�e City ?,t�or:�ey, �:�e Dir�ctor o= i�ianage�r.snt, the
Director of Finance and Management Services. Other possible
reviewers/signatures are listed.
BRIEFING �
M�ost of the GREEN SHEET headinqs are desiqned to assist in
developing a precis of the decision which the attachments
represent. The headings are offered to remind users of so�
of the more critical elements of this brief. .
The Financial, Budgetarv and Personnel Im acts heading provides
a space to explain the cost/benefit aspects of the decision.
Costs and benefits relate both to City budget (General Fund and/or
Special Funds) and to broader financial impacts (cost to users,
homeowners or other groups affected by the action) . The personnel
impact is a description of change or shift of Full-Time Equivalent
(FTE) positions. �
SiJPPORTING MATERIALS
In the Attachments section, list all attachments. If the GREEN
SHEET is well one, no letter of transmittal need be included
(unless signing such a letter is one of the requested actions) .
Note: Actions which require City Council resolutions include:
a. Contractual relationship with another government unit.
b. Collective bargaining.
c. Purchase or sale of land, or lease of land.
d. Issuance of bonds by City.
e. Eminent domain.
f. Assumption of liability by City, or granting
by City of indemnification.
g. Agreements with State or Federal Government
under which they are providing funding,
Note also: If an agreement requires evidence of insurance/co-
insurance, a Certificate of Insurance should be one
� � of the attachments at time of routing.
� ORT �� ��;�
� AUT� HORITY
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE: November 3, 1982
(Special Meeting Nove 30, 1982)
,
FROM: Donald G. Dunshee �
SUBJECT: BROADWAY SQUARE
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
$1 ,900,000 876 REVENUE BOND ISSUE - OFF-SITE
RESOLUTION N0. 2�82
PUBLIC SALE HEARING - SALE OF LAND - OFF-SITE
RESOLUTION N0. 2083
1 . The Partnership
Broadway Square is a General Partnership consisting of Leonard P.
Lilyholm and Carol Lilyholm, Roger Swardson and Dr. P. C. Roy, Jr
This Partnership purchased the former Cardozo warehouse at the
corner of Fifth and Broadway across from the Farmers Market in
January of this year for development. The Partnership has been
working with the City of St. Paul on development of the areas
around the Farmers Market and last year secured a sixteen year
parking lease from the City that provides forty-six spaces during
the day and ninety-four in the evening.
The four General Partners would join with Financial Management
Services who would also serve as a General Partner and sell twent -
one Limited Partnerships each contributing $45,000 as follows:
$10,000 per unit at closing
$25,000 per unit May 1 , 1983
$10,000 per unit May 1 , 1984
Carol and Len Lilyholm have been involved for several years in th
development and sale of residential condominiums in the Irvine Pa k
Area (Panama Flats - 40 Units) and Ramsey Hill (Delina - 20 Units
and Tasswell - 40 units).
. ��� sqq
BOARD OF CO��IMISSIONERS
BROADWAY SQUARE
NOVEP�BER 30, 1982
PAGE 2
2. The Project �
The Partnership proposes to convert the basement and first and sec nd
floors of a six-story building at Fifth and Broadway into commerci l ,
retail and office space. This building is located on the Eastern dge
of the Lowertown Development Corporation area that is being redev oped
to provide new industrial , corr�nercial , retail , office and residen 'al
space. It is located directly across from the Farmer's Market an the
Gillette Company, less than one block from the two Control Data B iness
Technology Centers and near many buildings that are now undergoin
remodeling and renovation. The basement and first floor contains
total of 24,647 leaseable Sq. Ft. for commercial and retail space. The
second floor which would be used for offices contains 14,004 Sq. t.
The Broadway Square Partnership has secured from the First Nation l Bank
of St. Paul $4,200,000 of mortgage funds and an additional $1 ,200 000
from Lowertown Development Corporation to provide residential mor gages for
the sixty-one condominiums at an effective interest rate of 9 7/8 . The
� units are being sold for between $49,900 and $128,000 of which 12 have
been sold.
In addition to the proceeds from the bond issue Broadway Square h s secured
an Urban Development Action Grant (UDAG) in the amount of $400,00 that
would be used for additional improvements in the corr�nercial and o fice area.
That UDAG loan would provide for interest only payments during th first
ten years of the loan at which time the original principal and th
capitalized interest on the first year of the loan would be writt n into
a new loan agreement. The UDAG loan would bear an interest of 3 /2% for
years two through four, 6% for years five through seven and 9% fa years
eight through ten.
Broadway Square has been actively marketing the retail and commer ial
space and has signed leases for 58.8% of the space. They also ar working
on finalizing two or three additional leases that would bring the total
preleases space to more than 70%.
A review of the fifteen businesses that have signed leases shows hat five
will be new businesses to the area, seven will be firms that are xpanding
to a second or third retail location in the Twin City Area and t o firms
are now located in the Downtown Area and are expanding and would elocate.
These fifteen businesses project that they will provide 197 jobs hen their
businesses open in October of next year.
The $945,000 in money from the Limited Partnership will be used f r the
following purposes:
� � 9��9
BOARD OF COMt+IISSIONERS
BROADWAY SQUARE
NOVEMBER 30, 1982
PAGE 3
1 . Fund the debt service reserve in cash - $220,000
2. Provide $306,500 for tenant improvements
3. $105,000 in marketing and promotion expenses
4. $200,000 to fund projected operating losses through
1985 assuming that the current occupancy levels are
not increased. $94,954 will be reimbursed to the
General Partners based on their proportional share
of the original purchase cost of the building.
3. FINANCING
The proposed financing would be done as an 876 industrial develop ent
revenue bond issue with a thirty year term. Proceeds from the bo d
issue would be as follows:
Remodeling and Acquisition $1 ,609,000.00
Bond Issue Expense 25,000.00
Capitalized Interest - 12 Months 209,000.00
Debt Service Reserve
(Funded by Company - $220,000)
Discount 57,000.00
$1 ,900,000.00
The debt service reserve would be funded in cash by the Limited P' rtners
with interest earnings on the reserve inuring to the benefit of t e
Partnership during the term of the lease. Because of the fact th project
would be developed on a Limited Partnership basis this would be a non-
recourse lease. The Port Authority has secured appraisals from 6J' lliam
Muske and Dwi.ght Dahlen, both MAI ' s who have placed a value on th project
after the remodeling of $2,000,000 and $2,300,000.
The Port Authority would receive earnings on the sinking fund as ell as
its customary fiscal and administrative fee based on the formula f
.42% per million per year for the first ten years, .54% per milli n per
year for the second ten years and .66% per million per year for t e third
ten years of the lease.
4. UNDERWRITING
Miller and Schroeder Municipals has agreed to underwrite the bond issue
with the interest rate to be set at the time the bonds are sold. We
anticipate selling the bonds on December 21 and closing before th end
of the year.
BOARD OF COMMISSIOPdERS
BROADWAY SQUARE
NOVEMBER�30, 1982
PAGE 4
5. TERt�1S OF THE LEASE
The terms of the lease would be for thirty years with the Partner hip
having the option to purchase the land and building for 10% of th
original bond issue cost at the end of the lease or 10% of the ori inal
bond issue cost plus retirement of any outstanding bonds at the e of
the tenth or twentieth year.
6. RECOMMENDATION
Staff has interviewed members of the General Partnership. reviewe the
leases and proforma and feel that in view of the initial cash fun 'ng of
projected revenue shortfalls during the first three years of the p oject
and based on current signed leases that the project should experie ce no
future problems. The General Partners have agreed that at closing in
addition to the initial $210,000 cash payment from the Limited Par ners,
the General Partners will provide a letter of credit for the rema� ing
$735,000 in Limited Partnership proceeds that will be coming from ayments
in 1983 and 1984.
The Port Authority would be issuing $1 ,900,000 in industrial devel pment
revenue bonds and in addition to our investment there would be an dditional
. $926,500 in hard equity placed in the project as follows: $220,00 in cash
funded by the Limited Partners for the debt service reserve, 'the U AG loan
in the amount of $400,000 for improvements would be subordinated t the Port
Authority and the Limited Partners would use another $306,500 for dditional
hard cost improvements. Besides this amount of equity the Partner hip would
contribute an additional $305,000 in other equity capital to be us d to fund
a marketing and promotional program and cover projected rental sho tfalls
during the first three years of operation.
This represents a 33% equity in the project as it relates to hard osts and
' a 39% equity when soft cost investments are included.
Staff recommends approval of Resolution Numbers 2082 and 2083.
sjs
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� 95��
y Resolution No. .�" �Y �
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 Deve ' p-
ment Act (hereinafter called "Act") as found and determine by
the legislature is to promote the welfare of the state by e
active attraction and encouragement and development of eco mi-
cally sound industry and commerce to prevent so far as poss�� ble
the eraergence of blighted and marginal lands and areas of
chronic unemployment and to aid in the development of exist ng
areas of blight, marginal land a�d persistent unemployment;j and
WHEREAS, factors necessitating the active promoti n
and development of economically sound industry and commerce� are
the increasing concentration of population in the metropoli an
areas and the rapidly ri.sing increase in the amount and cos of
governmental services required to meet the needs of the
increased population and the need for development of land ui e
wY►ich will provide an adequate tax base to finance these ',
increased costs and access to employment opportunities foriuch
population; and
WHEREAS, The Port Authority of the City of Saint aul
(the "Authority") has received from Broadway Square, a
Minnesota general partnership comprised of Leonard P. Lily lm,
Carol Lilyholm, Roger Swardson and Dr. P. C. Roy, Jr. a re est
that the Authority issue its revenue bonds to finance, on
behalf of a limited partnership which it intends to form
(hereinafter referred to as "Company" ) , the renovation of a
portion of the former Cardozo Warehouse located at the corri r
of Fifth and Broadway in the City of St. Paul into corcunercil l,
retail and office space (hereinafter collectively called t
"Project") all as is more fully described in the staff rep t
on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the community, to retain and impro e
its tax base and to help it provide the range of services d
employment opportunities required by its population, and � id
Project will assist the City in achieving that objective. � Said
Project will help to increase the assessed valuation of th •
City and help maintain a positive relationship between as� ssed
valuation and debt and enhance the image and reputation o� the
City; and
WHEREAS, the Project to be financed by revenue nds
will result in substantial employment opportunities in the�
Project;
� WHEREAS, the Authority has been advised by repre
sentatives of the Company that conventional, commercial
financing to pay the capital cost of the Project is availa le
only on a limited basis and at such high costs of borrowin
that the economic feasibility of operating the Project wou d be
significantly reduced, but the Company has also advised th s
Authority that with the aid of revenue bond financing, and its
resulting low borrowing cost, the Project is economically ore
feasible;
WHEREAS, Miller & Schroeder Municipals, Inc. (th
"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 not e,
- - a copy of which with proof of publication is on file in th
office of the Authority, of a public hearing on the propos of
the Company that the Authority finance the Project hereinb ore
described by the issuance of its industrial revenue bonds; , nd
WHEREAS, tY►e Authority did conduct a public hear�; g
pursuant to said notice, at which hearing the recommendati s
contained in the Authority' s staff inemorandum to the
Commissioners were reviewed, and all persons who appeared a�
the hearing were given an opportunity to express their vie
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Commissione s
of the Port Authority of the City of Saint Paul, Minnesota ' s
follows:
1. On the basis of information available to the�
Authority it appears, and the Authority hereby finds, that aid
Project constitutes properties, used or useful in connectio
' � �--� � ��
• with one or more revenue producing enterprises engaged in an�
business within the meaning of Subdivision la of Section 474. 2
oP the Act; that the Project furthers the purposes stated in
Section 474.01 of the Act, that the availability of the
£inancing under the Act and willingness of the Authority to �
furnish such �inancing will be a substantial inducement �to t e
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, a d
will help to prevent chronic unemployment, and will help the�
City to retain and improve its tax base and provide the rang'
of services and employment opportunities required by its
population, and will help to prevent the movement of talentek
and educated persons out of the state and to areas within t'�
state where their services may not be as effectively used a
will result in more intensive development and use of land
within the City and will eventually result in an increase i
the City' s tax base; and that it is in the best interests o
the port district and the people of the City of Saint Paul nd
in furtherance of the general plan of devolopment 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 bon' s
as to the details of the lease or other revenue agreement a
defined in the Act, and other documents necessary to evide e
and effect the financing of the Project and the issuance of! the
revenue bonds, the Project is hereby approved and authoriz
and the issuance of revenue bonds of the Authority in an unt
not to exceed approximately $1,900,000 (other than such
additional revenue bonds as are needed to complete the Proj ct)
is authorized to finance the costs of the Project and the
recommendations of the Authority' s staff, as set forth in e
staff inemorandum to the Commissioners which was presented
the Con�issioners, are incorporated herein by reference an
approved.
3. In accordance with Subdivision 7a of Sectio
474.01, Minnesota Statutes, the Executive Vice-President o' the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commission� r of
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authoriz to
provide the Commissioner with such preliminary information as
he may require.
.
� 4. There has heretotore been filed with tY►e
Authority a form of Preliminary Agreement between the Autho ity
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 y
tYie Commissioners. It is the purpose of said A�reements to�
evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Comp ny
may proceed without delay with the commencement of the
acquisition, installation and construction of the Project w th
the assurance that there has been sufficient "official acti "
under Section 103(b) of the Internal Revenue Code of 1954,
amended, to allow for the issuance of industrial revenue bo s
(including, if deemed appropriate, any interim note or note ' to
provide temporary financing thereof) to finance the entire st
of the Project upon agreement being reached as to the ulti e
details of the Project and its financing. Said Agreements e
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 Agreeicnent
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 t E
Authority of its final bond resolution and the issuance and �
delivery of the revenue bonds; provided that the President ( r
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 alternativ )
are absent, the Treasurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with th
provisions of Minnesota Statutes, Section 475.06, Subdivisio
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
said offer but shall be subject to approval and ratification � y
the Port Authority in a formal supplemental bond resolution
be adopted prior to the delivery of said revenue bonds.
6. The revenue bonds (including any interim note � r
notes) and interest thereon shall not constitute an
inclebtedness of the Authority or the City of Saint Paul withi�
the meaning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary liability o�?
� . � 79��' �
• the Authority or the City or a charge against• their general �
credit or taxing powers and neither the full faith and credi�
nor the taxing powers of the Authority or the City is pledg
for the payment of the bonds (and interim note or notes) or
interest thereon.
7. In order to facilitate completion o£ the rev ue
bond financing herein contemplated, the City Council is her y
requested to consent, pursuant to Laws o£ Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds (includin
any interim note or notes) herein contemplated and any
additional bonds which the Authority may prior to issuance r
from time to time thereafter deem necessary to complete the
Project or to refund such revenue bonds; and for such purpo e
_ the Executive Vice President of the Authority is hereby
authorized and directed to forward to �he City Council copi s
of this resolution and said Preliminary Agreement and any
additional available information the City Council may seque t.
8. The actions of the Executive Vice-President f
the Authority in causing public notice of the public hearin
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 propose
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 th
Authority from and after the publication of notice of the �
_ hearing, are in all respects ratified and confirmed.
-
Adopted November 30, 1982. � �
� C.� .
, �
� �� ,
Attest � �� -a "
� Presiderrt,
r. The Por� Authority of the City
„/ � ' ' of Saint Paul
l i
e'`j�"%-f/"��� /'�%���%/!/.�/9
/i.� �,
. �ecretary
� ���i ��►�l
' 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 Develo -
ment Act (hereinafter called "Act") as found and determined y
the legislature is to promote the welfare of the state by th'
active attraction and encouragement and development of econo i-
cally sound industry and commerce to prevent so far as possi le
the emergence of blighted and marginal lands and areas of
chronic unemployment and to aid in the development of existi g
areas of blight, marginal land a�d persistent unemployment; d
WHEREAS, factors necessitating the active promotio
and development of economically sound industry and commerce e
the increasing concentration of population in the metropolit
areas and the rapidly rising increase in the amount and cost ' f
governmental services required to meet the needs of the
increased population and the need for development of land us
which will provide an adequate tax base to finance these
- increased costs and access to employment opportunities for s h
population; and
WHEREAS, The Port Authority of the City of Saint P 1
(the "Authority") has received from Broadway Square, a
Minnesota general partnership comprised of Leonard P. Lilyhol, ,
Carol Lilyholm, Roger Swardson and Dr. P. C. Roy, Jr. a reque t
that the Authority issue its revenue bonds to finance, on
behalf of a limited partnership which it intends to form
(hereinafter referred to as "Company") , the renovation of a
portion of the former Cardozo Warehouse located at the corner
of Fifth and Broadway in the City of St. Paul into commercial
retail and office space (hereinafter collectively called the '
"Project") 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 andl
employment opportunities required by its population, and sa
Project will assist the City in achieving that objective. aid
Project will help to increase the assessed valuation of the •
City and help maintain a positive relationship between asse sed
valuation and debt and enhance the i.mage and reputation of he
City; and
WHEREAS, the Project to be financed by revenue bo ds
will result in substantial employment opportunities in the
Project;
WHEREAS, the Authority has been advised by repre-'
sentatives of the Company that conventional, conunercial
financing to pay the capital cost of the Pro�ect is availa� e
only on a limited basis and at such high costs of borrowin�
that the economic feasibility of operating the Project woul be
significantly reduced, but the Company has also advised th�
Authority that with the aid of revenue bond financing, and � ts
resulting low borrowing cost, the Project is economically re
feasible;
WHEREP,S, Miller & Schroeder Municipals, Inc. (th
"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 not ce,
- a copy of which with proof of publication is on file in th
office of the Authority, of a public hearing on the propos 1 of
the Company that the Authority finance the Project hereinb fore
described by the issuance of its industrial revenue bonds; ' and
WHEREAS, the Authority did conduct a public hear ng
pursuant to said notice, at which hearing the reco�mmendati ns
contained in the Authority' s staff inemorandum to the
Commissioners were reviewed, and all persons who appeared t
the hearing were given an opportunity to express their vie� s
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Commissior� rs
of the Port Authority of the City of Saint Paul, Minnesota as
follows:
1. On the basis of information available to th
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connect' n
. � �'� 5�9
with one or more revenue producing enterprises engaged in an
business within the meaning of Subdivision la of Section 474102
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 wi11 be a substantial inducement to t e
Company to undertake the Project, and that the effect of thei
Project, if undertaken, wiZl be to encourage the development�l of
economically sound industry and commerce and assist in the
prevention of the emergence of blighted and marginal land, a d
will help to prevent chronic unemployment, and will help the
City to retain and improve its tax base and provide the rang
of services and employment opportunities required by its
population, and will help to prevent the movement of talente
and educated persons out of the state and to areas within th
state where their services may not be as effectively used an
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 a d
in furtherance of the general plan of devslopment to assist ' he
Company in financing the Project. I
- 2. Subject to the mutual agreement of the
� Authority, the Company and the purchaser of the revenue bond
as to the details of the lease or other revenue agreement as
defined in the Act, and ot2ier documents necessary to evidenc
and effect the financing of the Project and the issuance of he
revenue bonds, the Project is hereby approved and authorized
and the issuance of revenue bonds of the Authority in an amo nt
not to exceed approximately $1,900,000 (other than such
additional revenue bonds as are needed to complete the Proje t)
is authorized to finance the costs of the Project and the
recommendations of the Authority' s staff, as set forth in th
staff inemorandum to the Commissioners which was presented tol
the Commissioners, are incorporated herein by reference and '
approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Executive Vice-President of he
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissionerlo.f_
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authorized o
provide the Commissioner with such preliminary information a
he may require.
�. . �'� � �I � � .
4. There has heretotore been filed with the
Authority a form of Preliminary Agreement between the Author' ty
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
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 Comp y
may proceed without delay with the commencement o£ the
acquisition, installation and construction of the Project w` h
the assurance that there has been sufficient "official acti "
under Section 103(b) of the Internal Revenue Code of 1954,
amended, to allow for the issuance of industrial revenue bo s
(including, if deemed appropriate, any interim note or note to
provide temporary financing thereof) to finance the entire st
of the Project upon agreement being reached as to the ultim e
details of the Project and its financing. Said Agreements re
hereby approved, and the President and Secretary of the
Authority are hereby authorized and directed to execute sai
Agreements.
5. Upon execution of the Preliminary Agreement
the Company, the staff of the Authority are authorized and
directed to continue negotiations wi.th the Corapany so as to;
resolve the remaining issues necessary to the preparation o,
the lease and other documents necessary to the adoption by , he
Authority of its final bond resolution and the issuance andl
delivery of the revenue bonds; provided that the Fresident ; or
Vice-President if the President is absent) and the Secreta �
(or Assistant Secretary if the Secretary is absent) of the �
Authority, or if either of such officers (and his alternat� e)
are absent, the Treasurer of the Authority in lieu of such �.
absent officers, are hereby authorized in accordance with tt e
provisions of Minnesota Statutes, Section 475.06, Subdivis n
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
the Authority. Such acceptance shall bind the Underwriter to
said offer but shall be subject to approval and ratificati by
the Port Authority in a formal supplemental bond resolutio to
be adopted prior to the delivery of said revenue bonds.
6. The revenue bonds (including any interim no e or
notes) and interest thereon shall not constitute an
indebtedness of the Authority or the City of Saint Paul wilhin
the meaning of any constitutional or statutory limitation nd
shall not constitute or give rise to a pecuna,ary liability� of
. ' . �'�9 �9
�the Authority or the City or a charge against thezr general ,
credit or taxing powers and neither the full faith and credi�
nor the taxing powers of the Authority or the City is pledg�
for the payment of the bonds (and interim note or notes) or
interest thereon.
7. In order to facilitate completion of the rev ue
bond financing herein contemplated, the City Council is her y
requested to consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds (includin
any interim note or notes) herein conteraplated and any
additional bonds which the Authority may prior to issuance
from time to time thereafter deem necessary to complete the
Project or to refund such revenue bonds; and for such purpos
_ the Executive Vice President of the Authority is hereby
authorized and directed to forward to the City Council copi '
of this resolution and said Preliminary Agreement and any
additional available information the City Council may reques .
8. The actions of the Executive Vice-President
the Authority in causing public notice of the public hearin
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 propose
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 November 30, 1982. ;
I �= .
//
Attest ��`C � � �
� G L -i
� President,�
�. The Port' Authority of the City
f � ' ' of Sai.nt Paul
�
� -"r/;/J.-�/i.'/���/�i�%��,%�%�j�/ .
5ecretary /� '
w,�,���y � ' CI�rY or S.�ziv�r P.�Z�T� � ; �+��
� �` _
OP'1�'lC:P: C)}r '1't�I�: CITY GOI7I�CIL
' ...1+;-rf����:.
`� ..,. .. �
�y �._.�.�� �d t e : December 1 E�, 1982
�. --
'� ,f
°�:
`� COMMI"�i EE RE P � �T '
TO = Salnt Pau t City Cou�cil
FRQ � : COC'l)�1�`�'�°�. Oh Finance, Mgmt. $ Personnel
C H a I R Jim Scheibel
• l. Approval of. minutes from meeting held December 9, 1982.
- 2. 198�' Bond Sale (Finance Dept.)
3. Resolut authorizing additions to the 1982 Equipment Services Fire F Poli� �
Budget. •, e Department)
,
4. Resolutio thorizing an Agreenent between the City of St. Paul arid the U M
whereby the will provide an instructor tv teach in the U of ti's Divisi
of School Neal ucation. (Health Dept. �
- � Resolution -authorizing the Port Authority to sell indi�strial development re nu
bonds for the Broadway Square project at Fifth F, Br.oadway Sts. (Port Author' y . �
6. Resolution authorizing the Dept. of Finance �, P.igmt. Services to pay the Ass . .
of rtetropolitan Municipalities and the League of �iinnesota Cities for membe ships.
(Finance Dept.)
7. Resolution authorizing the hlinnesota Dlutual Life Insurance Co. to nake paym nts
to employees of the City for dividends earned throuoh the Group �lealth Insu ance
policy. (Personnel) P, � �
8. Resolution amending the Civil Service Rules for employees in the Fire � Pol ce
Groups to insure that all in these groups live itiithin areas from trhich they
can report to duty in a timely manner. (Personnel) _
9. Reso 'on revising the fee schedule for emergency medical services, a feel �
for fa larms caused by malfunctioning electronic £ire sur��eillance
equipment, a fee structure for certain fire�revention inspection
servi ces. ( Dept.) 7��is�C..�
�_�-# c�r, ,�-uu.L«� n��Ci� :
10. Resolution concerning a hot water District Heating System
11. Resolution authorizing the investment of HRA Pension Plan contributions to be
transferred from Mutual Benefit Life Insurance Co. to Investment Advisors, I �$
�—-