278394 WHITE - CITY CLERK /r� V394.
PINK - FINANCE COUt1C1I
CANARY - DEPARTMENT G I T Y O F S A I N T �A U L
BLUE - MAYOR � F1I2 N O.
oun il Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On February 16, 1982, the Port Authority of the City of Saint Paul adopted
Resolution No. 1984, giving preliminary approval to the issuance of tax exempt revenue
bonds in the initial principal amount of approximately $4,000,000 to finance the construc-
tion of two office/warehouse, light manufacturing facilities and one office building
totaling approximately 136,000 square feet on Parcel C-2 in Riverview Industrial Park
for Winfield Developments, 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. 1984 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.
COU[VCILMEN
Yeas Nays Requestgd by Department of:
Hunt
Levine In Favoc
Maddox
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-�edeaee
Wilson
� n� Form Approved by City Attorney
Adopted by Council: Date — ��
Certified as e . cre �
By _ �____"...--
App ov d by :blayor. D _��-1 1 ��82 App ov by Mayor for ssien to Council
BY - - B
PUBLtSHED MNK � 0 1982
- POR1' . � .
AUT � ORITY 2�7�394
OF THE CITY OF 5T. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE: Feb. 12, 1982
(Feb. 16, 19$2�Regular.Meeting)
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FROM: B.A,Mdus �V i %�� ��
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SUBJECT: WINFIELD DEVELOPMENTS, INC.
PUBLIC HEARING - PRELIMINARY At�D UNDERWRITING AGREEMENTS
�4,000,000,000 TAX EXEMPT REVENUE BOND ISSUE
RESOLUTION N0. 1984
PUBLIC SALE HEARING - SALE OF LAND
RESOLUTION N0. 1985
1 . THE COMPANY
�tinfield Developments, Inc. of Minnesota is a wholly owned subsidiary
of Winfield Developments Limited, a Manitoba corporation. Since 1970,
Winfield Developments has completed over 2 million square feet of indus-
trial/commercial space throughout Ganada and Minnesata.
On May 9, 1979, the Board of Commissioners approved an agreement between
Winfield and the Port Authority to lease approximateiy 9.7 acres in
Riverview Industrial Park to construct 142,000 square feet of office
and light industrial , multi-tenant space. As of December 31 , 1981 , the
company has successfully leased 69% of the space to new tenants employ-
ing 168 people. Two of the newest buildings, one office/service center
and one office building, were only completed and ready for occupancy
this fall . Already, each of these facilities are 50� 3eased. .
2. THE PROJECT
The company proposes to lease Parcel C-2 (8 acres) in Riverview Industrial
Park across Chester Street from its current development. Winfield is pro-
posing to construct two office/warehouseslight manufacturing facilities
and one office building on this site totaling approxirnately i36,000 square
feet or 39% coverage. Actual configuration of the office and office/warehouse
space may vary depending upon market demand. In addition, the Preliminary
Agreement provides a time frame of up to 2-1/2 years to complete the
facilities which again is to accommodate demand for such space.
3. FINANCING
Winfield proposes to finance the facility through the issuance of tax exempt
bonds or a mortgage which is recommended as a non-876 issue. The financial
statements of Winfield Developments are attached for your review. You will
BOARD OF COMMISSIONERS
February 12, 1982
Page -2-
note that these are 1980 statements. The 1981 statements have not yet
been completed; therefore, a projected balance sheet as of December 31 ,
1981 is also attached.
The estimated amount of the tax exempt issue is $4,000,000.
4. TERMS OF THE LEASE
The term will be for 30 years. In the first year, the company is
required to construct 50� of the square footage which will be defined
through the final design. A11 of the buildings are to be substantially
complete which includes all exterior finishing and landscaping in Z-1/2
years from the date which the lease agreement commenced.
For the purposes of calculating a land price, the parcel will be subdivided
into three lots allowing a 1ot for each of the three buildings. The area
adjacent to the Lafayette Freeway has a land value of $2.25 per square foot
and that area adjacent to Chester Street is valued at $1 .50 per square foot.
These two areas are separated by a large utility easement. This area of
Riverview Industrial Park is known for its poor soil conditions; consequently,
a structural engineer's analysis has been obtained which estimates the
amount of soil correction that would be required to make the site suitable
for construction. The square foot values earlier quoted are recomnended to
be adjusted as follows:
(a) The southernmost area of the parcel where the proposed office build�ng
is to be constructed should be adjusted to $1 .60 per square foot due
to the fact that the structure proposed is a multi-story building and
will require a structural floor.
(b) That portion of the site adjacent to the Lafayette Freeway should be
adjusted from $2.25 per square foot to $1 .85 per square foot.
(c) The land valued at $1 .50 per square foot should be adjusted to �1 .20
per square foot.
These adjustments in land value due to soil correction problems would lower
the cost of the land from $699,225 to $545,797. A soil correction adjustment
will be given only to those parcels that are under construction; atherwise,
full land rent will be charged.
The recommended purchase option is to occur at the end of the lOth year in
the amount of $699,225. After that date, the purchase price will be at ap-
praised value, however, no less than $699,225.
5. RECOMMENDATIONS
When the previous agreement was approved for Phase I and II of Winfield,
a concern was raised regarding the source of tenants for the new develapment;
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BOARD OF COMMISSIONERS
February 12, 1982
Page -3-
specifically, would this much speculative space have an adverse effect
on the Downtown area? Attached you will find a list of tenants for each
of the five buildings which have already been constructed. Please note
that most of the tenants are an expansion or relocation from outside of
the Downtown area or even outside of St. Paul . Nearly all of the tenants
increased their space and their number of employees. Some are new com-
panies entirely. There are currently 168 jobs in the Winfield Development.
If leasing continues at its current rate, employment would go to 275 to
300 jobs. Ninety of these jobs would be new to the St. Paul community.
Projecting the same rate of growth, Phase III of the Winfield Development
proposed in this agreement would also generate 300 jobs. There are a few
businesses that did come from the Downtown area. It appears that most of
them were from the Lowertown area, and tenants indicated that they came
from inadequate space.
The office/service center facility is an important component of an overall
development program. It is the incubator space for new businesses to begin
or small businesses to go to that cannot afford new facilities of their own.
This development appears to have had a positive effect in that it has at-
tracted business out of residential communities and outside of the St. Paul
area.
Early notification has been submitted to District 3. As of this date, no
corranents have been received. Staff recommends approval of Resolution Nos.
1984 and 1985.
BAM:ca
Attach.
� � 2"78394
� Resolution No. ��
RESOLUTI O': OF
T"riE PORT AUTHORITY OF THE CITY OF SAIA''T PAUL
�,'f:�REAS, the purpose of Lhapter 474, t•iinnesota
Statutes, kr_own as the tdinnesota M::nicipal Industrial Develop-
ment Act (hereinafter called "Act"' as found and determined by
the legislature is to promote the �.:elfare of the state by the
active attrac�ion and encourage:;ien� and development of economi-
cally sour.3 industry and commerce �o prevent so far as possible
•. the emergence of blighted an3 mara`_nal lands and areas of
chronic ur.er.:ployment and to aid in the development of existing
areas of rlight, marginal land and persistent unempZoyment; and
t�,�EREAS, factors necessi�ating the active promotion
and develop*r�ent of economically so::nd industry and commerce are
the increasing concentration of po�ulation in the metrapolitan
areas and the rapidly rising incre�se in the amount and cost of
governmental services required to �-�eet the needs of the
ir.creased population and the need =or development of land use
_ which will provide an adequate tax base to finance these
increased costs and access to employrnent opportunities for such
populatior.; and
j�JYEREAS, The Port Authority of the City of Saint Paul
(the "Authority" ) has received fro:� j•;infield Develogrngnts, Inc.
(hereinafter referred to as "Compa:;y" ) a request that the
Authority issue its revenue bonds (which may be in the form o�
one or more notes) to finance the acquisition, installation and
constructior_ of certain office and office/service facilities
(hereinafter collectively called t'r�e "Project" ) in the City of
St. Paul, for a partnership in which ZVinfield Developments,
Inc. is a general partner, all as _s more fully described in
the staff report on file; and
►d'r'•EREAS, the Authority desires to facilitate the
selective development of the commu:�ity, 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 ac:-:ieving that objective. Said
Project will help to increase the essessed valuation of the
City and help maintain a positive =elationship between assessed
valuation a^�d debt and enhance the inage and reputation of the
City; ard
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S�dHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project; �
WHEREAS, the Authority has been advised by re�re-
sentatives of the Company that conventional, commer�ial
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 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 low borrowing cost, the Project is economically more
feasible;
ti;'HEREAS, Miller & Schroeder Municipals, Inc. (the
"Unde�-writer" ) 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 publisn a noticer
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 industriaZ revenue bonds; and
WHER�:AS, 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 tYieir views
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Comr.iissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows:
1 . On the basis of infornation 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 la 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 substantial inducernent to the
Company to undertake the Project, and that tl-ie effect of the
Project, if undertaken, will be to encourage the developnent of
economically sound industry and commerce and assist i.n th e
prevention of the emergence of blighted and marginal land, and
� � , k ill help to prevent c'nronic unemployment, and will help the
City to retain and improve its tax base and provide the range
of services and e,�ploynent opportunities required by its
population, and k•ill help to prevent the :�ove�ent of talented
a:�d e3ucated persons out of the state and to areas within the
state where their services may not be as effectively used and
� k ill result in ,:.ore intensive development aad use of land
within the City and will eventually result in an increase in _
tne City' s tax base; and that it is in the best interests of
the nort district and �he people of the City of Saint Paul and
in furLherance of the general plan of develoP�aent to assist the
Cor:��any in financing the Project. �
2. Subject to the mu�ual agreeraent of the
Authority, the Co:�pany and the purchaser of the revenue bonds
as to �.he details of the lease or other revenue agree:�ent as
de�i�ed in the �,ct, and other documents necessary to evidence
anc e��ect the financing of the Project and tne issuance of the
revenue bonds, t'r►e Project is hereby approved and authorized
� and �h� issuance of revenue bonds of the Au�hority (which may
be in the form of one or more notes) in the approximate amount
oT $4,000,000 (other than such additional revenue bonds or
notes as are needed to complete the Project) is authorized to
fir�ance the costs of the Project and the reco�r�nendations of the
Authority' s staff, as set forth in the staf° memorandun to the
Ca-�-nissioners �•�hich was presented to the Co-nmissioners, are
incorporated herein by reference and approved.
3 . In accordance with Subdivision 7a of Section
� 474.01, Pdinnesota Statutes, the Executive Vice-President of the
AUT�30RITY is hereby authorized and directed to submit the �
proposal for the above described Project to the Commissioner of
Spcurities, requesting his approval, and other officers,
e:nployees and agents of the AUTHORITY are hereby authorized to
provide the Co.�nr,issioner with such preliminary information as
he may require.
4. There has heretofore been filed with the
Aathority a form of Pr.eliminary F,greement bet�•�een the Authority
a�d Company, relatin� to the proposed construction and
financing of the Project and a forr.l of the Underwriting
Agreement. The forn of said Agree:.�ents have been examined by
the Co.-nmissioners. It is the purpose of said Agreements to
evidence the co�rv-�itment of the parties and �heir intentions
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� ' � �vith respect, to 't'ne proposed Project in order that the Company
may nroceed c•�ithout delay with the con.-nencement of the
acquisition, i:�stallation and construction of the Project with
the assurance that there has been sufficient "official action"
under Section 103 (b) o� the Internal Revenue Code of 1954, as
a,;tended, to allow for the issuance of industrial revenue bonds
� ( inclu3ing, if deemed appropriate, any interim note or notes to
provicz temporary financing thereof� to finance the entire cost ,
of tne Project upon agreement being reached as to the ultimate
details of the Project and its financing. Said Agreements are
here�y approved, and the President and Secretary of the
Authority are hereby authorized an3 directed to execute said
Agreer:er.ts.
5 . Upon execution of the Preliminary Agreement by
the Co:npany, the staff o� the Authority are authorized and
directed to continue negatiations with the Company so as to
res�lve the re:«aining issues necess3ry to the preparation of
tne revenue agree::lent and other docune�ts necessary to the
� adop�ion by the Authority of its �inal bond resolution and the
issuance and delivery of the revenue bonds; provided that the
Presic�nt (or Vice-President if the President is absent} and
t2ie Secretary (or Assistant Secretary if the Secretary is
absent) of the Authority, or if either of such officers (and
his al�ernative) are aUsent, the Treasurer of the Authority in
lieu o= such absent officers, are hereby authorized in
accordance with the provisions of i�iinnesota Statutes, Section
475.06, Subdivision 1, to accept a �inal offer of the
Unde�riters made by t��e Underwriters to purchase said bonds
and to execute an underwriting agree:�►ent setting forth such
offer on behalr of th e Authority. Such acceptance srall bind
the Un3erwriters to said offer but shall be subject to approval
and ra�ification by the Port Authority in a formal supplemental
bond resolutior. to be adopted prior to the delivery of said
revenue bonds.
6. The revznue b�nds (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 �eaning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary liability of
the �-.uthority or the City or a charge against tneir general
credit or taxing powers and neither the full faith and credit
nor the taxing po;aers of the Authori�y or the City is pledged
for the payment of the bonds (and interim note or notes) or
interest thereon.
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y � 7. In order to facilitate completion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to consent, pursuant to La��rs of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds (including
. any interim note or notes) herein contemplated and any
additional bonds v�hich the Authority may prior to issuance or
from tim� to time thereafter deem �ecessary to complete the ,
Project or to refund such revenue bonds; and for such purpose
the Executive Vice President of tre Au�hority is hereby
authorized and directed to forward to the City Council copies
of this resolution and said Prelim�nzry Agreement and any
additional available infornation t':.e City Council may request.
8. The actions of the �xecutive Vice-President of
the Authority in causing public no�ice of the public hearing •
and in describing the general natu�e of the Project and
estimating t�e principal amount of bonds to be issued .to
finance the Project and in prepari^g 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 pu�lic at the office of the
Authority from and after the publication of notice Qf the
hearing, are in all respects ratif�ed and confirmed.
Adopted February 16, 1982
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Attest �=
Pre ' d t �
The Po-t Authority of the City
� of Sai� Paul
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/:���i , �ti�'i���i�
� '/'Secretary '
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�.'J�_` ' ��`''A' O�+'F'ICE OF THi: CZ'�.'Y CO�UiYCIL
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- ��' �'�� Da t e ; March 4, 1982
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TO : Soin# Pou! Cit� Caunci! . � � .
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F'R 0 t�l � C o�r�i t�e� o n FINa1vcE, �tAI�;.AGIl��ENT � PERSONNEL _ ` .
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George D7cMahon � , chairman, maftes the foltowing �
report on� �C.F. : (lj .-XX Ordihance� ..
. : (T) Q Resolution . .
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At its meeting of March 4,: 1982, the Finance Committee recommended appro�Tal of
' the following: _
1. Resolution approving issuance of approximately $4 million in tax exempt revenue ^
bonds to finance construction of two office/i�arehouse, manufacturing facilities
and office building for Winfield Develapments, Inc.. (12756-Q�7)
2. Resolution authorizing execution of an agreement with Ramsey County whereby -
City will provide �Coiuity with health education services for period of 1 year
commencing January 1, 1982. (12741-�I) �
• 3. Ordinance change to provide permit fees for installatian of electric spa�e
- heating eauipment. (12745-GM) . :
4. Resolution authorizing lease agreements with b2idc,ray Chevrolet and M�dway Ford
_ for leasing of motor vehicles to Police Department. (12734-GM) :
5. Resolution authorizing lease agreement witYi Metropolitan Porsche-Audi for
leasing of motor vehicles to Police Department. (12733-(�I) -
6. Resolution authorizing City to enter into Agreement with City of Minneapolis -
for participation in the Twin City Area Urban Corps Program.
7. Resolution authorizing City to enter into Agreement with Ramsey County for
participation in the Twin Cities Area Urbari Corps Program. .
8. Resolution establishing title and class specification for Vehicle rtaintenance
Clerk. (12748-GM) �
(C�Oti"I'INIJED . . . )
CITY HALL SEVEl�iTH FLOOR SAINT PAUL. �1I`�:ESOTA �5102
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EXRLANATION OF ADMINISTRATi,VE ORDERS, �(7V9� �:
RESOLUTIQNSL AND ORDINANCES -
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' Da�e: Feb. 16, 1982
� FEB 2 21�2
`T0: MAYOR 6 0 GE LATIMER ►iflAYO�CS OF�10E ,
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FR; � E.A. Kra , �9���.L Port Authority � �
RE: WINFIELD �QEVELOPMENTS, INC. }
$4,000,000 TAX EXEMPT REVENUE BOND ISSUE
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ACTI0IV REQUESTED: �
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In accordance with the Laws of Minnesota, Chapter 234, it is requested that. the City ;
;. Council , by Resolution, a draft copy of which is attached hereto, approve the issuance , .
of an approximately $4,000,000 tax exempt revenue bond issue fc�r the purpose of financing
� the construction of two officeJwarehouse, light manufacturing facilities and one office �;
t � truiiding totaling approximately 136,000 square feet on Parcel C-2 in Riverview Industrial 3
r' � Park for Winfield Developments, Inc. �
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� PURPOSE AND RATIONALE FOR THIS ACTIDN: � ;
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The purpose of the bond issue is to finance the construction of two office/warehouse, light s
' manufacturing faciliti,es and one office building totaling approximately 136,000 square feet �
in Riverview Tndustrial Park for Winfield De�elopments, Inc. for a term of 30 years. It is �
'`� anticipated that this project will create 300 new jobs. � }
This is a non-Resolution 876 project not involving the security of the Port Authority. �
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ATTACHMENTS: �
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Staff Memorandum . ' �
Draft C�ty Council Resolution �
Port Authority Resolution No. 1984 �
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