278537 WHITE - CITY CLiRK � -1;��_
PtNK - FIMANCt COUOCII 1
CANARY - Dt�ARTMENT � G I T Y O F S A I lY T PA LT L - � - �� � �
BLUE - MAYOR File N O. � — •
uncil Resolution -
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On March 5, 1981 , the Port Authority Commission adopted Resolution No. 1788 giving
preliminary approval to the issuance of revenue bonds in the amount of $1 ,450,000 to finance
the acquisition of a site for FastGrow Incorporated by William C. Norris on South Wabasha
previously owned by Kaplan Paper Box Company for construction of a new industrial facility.
On June 16, 1981 , by Resolution No. 1847, the Port Authority Commission approved a $200,000
Tax Exempt Mortgage to finance additional piling and structural floor and utility extension
costs. On March 16, 1982, the Port Authority Commission adopted Resolution No. 1992
giving preliminary approval to the issuance of bonds in the amount of approximately �950,000
to finance the acquisition and remodeling of the existing Minnesota Envelope facilii:y o�� South
Wabasha containing 45,000 Sq. Ft. situated on a site containing 40,000 Sq. Ft. for the
FastGrow Incorporated expansion.
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. 1992 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 Depar, nt of:
Hunt
Levine In Favor
Maddox _/
McMahon (�� B
snowaite� - __ Against Y
Tedesco
Wilson
APR 6 1982 Form Approved by City Attorney
Adopted by Council: Date — .-►�.
Certified Pa ; b Council ret By� —�— � �
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Ap by :Vlayor. D APR 8 1982 Ap roved by Mayor fo b 'is'�sio to Council
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PUBL{SHE`D APR 17 198�.
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At its meeting of April.l, 1982, the Finance Conmrittee recomanended approval of .
.:_....... _th�-._following: . . : . .. ..
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� 1. Resolution approving� issuance of revenue bonds by Port� Authority'£or approximately
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$950,000 to finance acc{uisition and remodeling of existing Minnesota Envelope . -
� � facility for FastGrow -Incorporated expansion. (12824-GN� . . ._ . . .
. 2. Resolution approvimg 'cQllate.ral pledged by Stm�nit Bank, St. �Paul, to pirotect � _
. . city funds heId .in_s.aid �bank. j12812-Q�I) . . . : . . . . - -
3. ResAlution approving coilateral pledged by..First �rand�Avenue State Bank,� St. ,Paul, :
� to protect city� funds' held in said bank. � (12813-t� : _ - _ -
. 4. Resolutiort approving-b�dge�t transfer to provide portion of city's contribution._ �
for implementation costs of E911 System. (12814-Q�I) - : �
. � . . �
. 5. Resolution approving a�reement bettiveen City, Schbol District and Randolph . � '
��;:.Heights School PTA for purchase and installation of playgrotmd equipment at '
�� � Randolph.Heights School. •(12825-C��) ' . - - �
' 6. Resolution authorizing city �to pay $7,000 to General Security-Services ' . "
Corporation in full settlement of their contract action against city. (12826-Q�t)
!'ITl' iL1LL SEYE;tiTH Fl.�OR S.�I\T Y�:�Z, +�Ii;:�ES'�T1 5�1�=
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' EXPLANA'f I0N OF Af1t�9INISTRATIVE QRDfRS, ���",�� ,_
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� RESOLUTION�, AND ORDINANCE5
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� � - RE�EII��D; ��;�;��.�.
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' � MAR 19198'L
�te; March 16, �9s2 CITY AT�ORNEY .
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� T0: MAYOR EO GE Li4TIMER
FR: Eu9ene ��C�IVED .
` ��� FASTGRDW iNCORPORATED MAR � � �jy�,
.�6q5t�,��$85s;9@� REVENUE BOND ISSUE (876) '
LEASE AMENDMENT MAYORS OFFiCE �
RIVERVIEW INDUSTRIAL AREA WEST .
. ACTItNV REQUESTED: • �
In accordance with the Laws of NFinnesota, Chapter 234, it is requested that the
City Council , by Resolution, a draft copy of which is a�ttached hereto, approve
- the issuance of a revenue bond issue in the amount of approximately .�,0U0'
to finance the acquisition and remodeling of the existing Minnesota Envelope •
facility on South V�abasha containing 45,000 Sq. Ft. situated on a site containi�g
40,000 Sq. ft. for the FastGrow Incorporated Expansion.
PURPOSE AND RAtIONALE FOR THIS ACTION: �
The purpose of the revenue bond issue is to finance the acquisition and remodelinc�
of the existing Minnesota Enuelope facility for FastGrow's hydroponies raising of
lettuce, tomatoes and other vegetables plus tr�e seedlings. Approximat�ly 18 new
jobs will be created as a result of this project. .
,
ATTAGHhtE�1TS•
Staff Memarandum
Draft City Cor�nc�1 Resolution
Port Authority Resolution No. 1992 �
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AUTHORITY . E����� 's
OF THE CITY OF ST. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DAT� March 12, 1982
(Meeting March 16, 1982)
FROM: Donald G. Dunshee
SUBJECT: PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREE��IENT
FASTGROW INCORPORATED - �950,000 REVENUE BOND ISSUE (876)
RIVERVIEW INDUSTRIAL AREA WEST - LEASE AMENDMENT
RESOLUTION N0. 1992
PUBLIC SALE HEARING - SALE OF LAND - FASTGROW INCORPORATED
RESOLUTION N0. 1993
1 . Compan
FastGrow Incorporated is a Firm that was formed in 1980 to operate
a hydroponics growing laboratory. The Port Authority Cor�nission on
March 5, 1981 , approved by Resolution No. 1788 the issuance of
$1 ,450,000 in industrial development revenue bonds to acquire land
and finance the construction of a manufacturing facility on a site
in Riverview Industrial Area West. On June 16, 1981 the Commission
approved a tax exempt mortgage for FastGrow Incorporated in the amount
of $200,000 to finance additional structural floor costs and utility
extension costs for the building that was completed last month. The
two major principals in the company are William C. Norris, Chairman
of the Board and Chief Executive Officer of Control Data Corporation
and Roger A. Norris, President of FastGrow Incorporated.
2. Project
The company proposes to acquire the former Minnesota Envelope building
on South Wabasha which contains 45,936 Sq. Ft. on four floors and is
situated on a site containing 40,000 Sq. Ft. The new building is
ad3acent to the original FastGrow structure and will permit the company
additional space for production, genetic research and development, offices
and a retail store. At the present time FastGrow employs fifteen people
and they project the expansion would permit them to increase employment
by eighteen.
3. Financing
The proposed financing of the project would be done under Resolution
No. 876. Proceeds from the bond issue would be as follows:
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BOARD OF COMMISSIONERS
March 16, .1982
FastGrow Incorporated
Page 2
Acquisition of Existing Building $665,000.00
Remodeling Cost 172,375.00
Bond Issue Expense 20,000.00
Debt Service Reserve Escrowed*
Capitalized Interest - 6 Months 64,125.00
Discount 23,500.�0
$950,000.00
*The company has agreed to fund the debt service reserve at bond
closing in the amount of approximately $139,320.
In addition to the monthly rent the company will pay a fiscal and
administrative fee as follows:
First 10 Years $350 per month per million issued
Second 10 Years $450 per month per million issued
In view of the fact FastGrow Incorporated is a new corporation, William
C. Norris and Roger A. Norris have agreed to personally guarantee the
bonds plus provide the cash debt service reserve.
4. UNDERWRITING
Miller and Schroeder Municipals has agreed to underwrite the bond issue
for a term of 19 years co�nencing May 1 , 1982. The interest rate for the
bonds will be set 10 days prior to closing.
5. TERMS OF THE LEASE
The proposed lease is for a term of 19 years which will coincide with
the original issue. The company would have an option to purchase the
land and building for 10% of the bond issue cost.
6. RECOMMENDATION
Staff has reviewed the project in detail , interviewed officers of the
corporation and recommends aPproval of Resolutions No. 1992 and 1993
authorizing the issuance of $950,000 in industrial development revenue
bonds.
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Reso�ution No. /99Y ` .
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of C'hapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to prornote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and commerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unemployment and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received fro,-n Fastgrow, Inc. , a Minnesota
corporation (hereinafter referred to as ."Company") a request
that the Authority issue its revenue bonds to finance the
acquisition, installation and construction of facilities for
the expansion of the hydroponic growing laboratory previously
financed through the issuance of the Authority' s Industrial
Development Revenue Bonds, Series 1981-C in the amount of
$1,450,000 and its Commercial Development Revenue Note of 1981
in the amount of $200,000 (which expansion is hereinafter
collectively called the "Project" ) in the City of St. Paul, all �
as is more fully described in the staff report on file; and -
WHEREAS, the Authority is currently leasing the
hydroponics growing laboratory, which is to be expanded, to the
Company pursuant to the terins of a lease agreernent (the
"Lease") dated as of February 1, 1981; and
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WHEREAS, the Authority desires to facilitate the
selective develogment of the community, to retain and improve
its tax base and to help it provide the range of services and
employment opportunities required-by its population, and said
Project will assist the City in achieving that objective. Said
Project will help to increase the assessed valuation of the
City and help maintain a positive relationship between assessed
valuation and debt and enhance the image and reoutation of the
City; and
WHEREAS, the Project to be financed by revenue bonds
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 available
only on a linited 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 Iow borrowing cost, the Project is economically more
feasible;
WHEREAS, Miller & Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreement (the
.. _ "Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finanee the 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 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 inemorandurn 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:
1. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
witYi one or more revenue producing enterprises engaged in any
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business within the meaning of Subdivision 1 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 inducement to the
Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the development of
economically sound industry and commerce and assist in the
prevention of the eriergence of blighted and marginal land, and
will help to prevent chronic unemployment, and will help the
City to retain and improve its tax base and provide the range
of services and employment opportunities required by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
� state where their services may not be as effectively used and
will result in more intensive development and use of land
within the City and will eventually result in an increase in
the City' s tax base; and tY►at it is in the best interests of
the port district and the people of the City of Saint Paul and
in furtherance of the general plan of development to assist the
Company in financing the Project.
2. Subject to the mutual agree.'nent of the
Authority, the Company and the purchaser of the revenue bonds
as to the details of the Amendment to the Lease or other
revenue agreement as defined in the Act, and other docurnents
necessary to evidence and effect the financing of the Project
and the issuance of the revenue bonds, the Project is hereby
approved and authorized and the issuance of revenue bonds of
the Authority in an amount not to exceed approximately $865,000
(other than such additional revenue bonds as are needed to
complete the Project) is authorized to finance the costs of the
Project and the recom�ciendations 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, as amended, the Executive
Vice-President of the AUTHORITY is hereby authorized and
directed to submit the proposal for the above described Project
to the Director of the Minnesota Department of Planning, Energy
and Economic Development, requesting his approval, and other _
officers, employees and agents of the AUTAORITY are hereby
authorized to provide the Director with such preliminary .
information as he 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 construction and
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financing of the Project and a form of the Underwriting
Agreement. The foria of said Agreements have been examined by
the Commissioners. It is the purpose of said Agreernents to
evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Conpany
may proceed without delay with the commencement of the
acquisition, installation and construction of the Prolect with
the assurance that there has been sufficient "official action"
under Section 103(b) of the Internal Revenue Code of 1954, as
amended, to allow for the issuance of industrial revenue bonds
(including, if deemed appropriate, any interira note or notes to
provide temporary financing thereof) to finance the entire cost
of the 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 authori�zed and directed to execute said
Agreements.
5. Upon execution of the Preliminaiy 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 Amendment to Lease and other doctunents necessary to the
adontion 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 resoiution to be adopted prior to the delivery of said
revenue bonds.
6. The revenue bonds (including any interim note or
notes) and interest thereon shall not constitute an
indebtedness of the Authority or the City of Saint Paul within -
the meaning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary 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.
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� 7. In order to facilitate completion of the revenue
bond financing herein conte:mplated, 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 conte��plated and any
additional bonds which the Authority may prior to issuance or
from time to time thereafter dee.'n necessary to complete the �
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 Co�ncil copies
of this resolution and said Prelirninary Agreement and any
additional available information the City Council may request.
8. The actions of the Executive Vice-President of
� the Authority in causing public notice of the public hearing
and in describing tYie 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 provosed
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 March 16, 19 82
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Attest � �u�.
Pres
The Port uthority of the City
of Sain Paul
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GCGb�. .Secretary
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