279161 WMITE - CITY CLERK �`"t9161
PINK - FINANCE COURCII
CANARY - DEPARTMENT G I T Y O F S A I N T �,�U L
BLUE - MAYOR . F1Ie NO..
oun 'l Resolution
Presented By �
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On July 20, 1982, the Port Authority of the City of Saint Paul adopted Resolution
No. 2032, giving preliminary approval to the issuance of a tax exempt note in the initial
principal amount of approximately $250,000 to finance an addition to the plant facility
of Twin City Concrete Products Company (Cemstone) on Trout Brook Circle. The project will
consist of equipment and a small building addition to house that equipment.
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 tax exempt note for the purposes described in the aforesaid Port Authority Resolution
No. 2032 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.
COUNCILMEN
Yeas Nays Requestgd by Department of:
Hunt
Levine In Favor
Maddox �
McMahon B
snowaite► - __ Against Y —
Tedesco
Wilson
� `� ��1 Form Approved by City Attorney
Adopted by Council: Date — ,/�'
CertiEi assed Co .il S re*tary By f A �' t
By � ` , , )
Appro e y :Nayor. te `�Gr � �� Appro e by Mayor f r is on to Council
By B �.
PUBtiStfED S E P 11 1982
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.� � �� �� � � t �` Y
OF THE CITY rJF ST. PAUL
� Memorandurs�
TO: BOARD OF CQMMISSIONERS DATE: July 15, 1982
(July 20, 1982, �egular Meeting)
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FROM: B.A. Maus: � �
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;;
SU�.�ECT: TGJIN CITY CONCRETE PRODUCTS COMPANY (CEMSTONE)
PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEt�1ENT
�250,000 TAX EXEMPT MORTGAGE NOTE - OFF-SITE
RE�OLUTION N0. 2032
On June 26, 1979, the Port Authority Commission approved a Resolution
876 revenue bond issue to finance the construction of a building for
Twin City Concrete Products. The construction of the project is now
complete.
The company has now approached the Port Autherity and requested approval
of a privately placed, non-876, $250,000 tax exempt mortgage to finance
an addition to the plant facility. The project will consist of equipment
and a small building addition to house that equipment which will produce
sand for railroad locomotives.
Cherokee State Bank of St. Paul has agreed to finance the project.
Financial statements of the company are attached.
Staff recommends approval of Resolution No. 2032.
BRM:ca
At±ach.
1 ^ � '
Resolution No. �Gv��
RESOLUTION OF 2'�g161
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 determined by
the legislature is to promote 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 c3evelopment 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 Twin City Concrete Products
(hereinafter referred to as "Company" ) a request that the
Authority issue its revenue bonds ( in the form o_f a single
note) to finance the acquisition of equipment and the
installation and construction of an addition to its existirig
building in the City of St. Paul (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 and
employment opportunities required by its population, and said
�roject will assist the City in achieving that objective. Said
Project will help to increase the assessed valuatior. of the
City and help maintain a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
City; and
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WHEREAS, the Project to be financed by revenue bonds
will result in substantial employr,ient opportunities in the
Proj ect; �
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 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 ;
WHEREAS, Cherokee State Bank has made a proposal
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 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 reco;nmendations
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:
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
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 Project furthers the purposes stated in
Section 474 .OI 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 einergence of blighted and marginal land, and
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will help to prevent chronic unemployr.tent, and will help the
City to retain and improve its tax base and provide the range
of services and em�ployment opportunities required by its
population, and will help to prevent the mavement of talentec7
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 deveZopment 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 and
in furtherance of the general plan of develonment 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 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 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 the form
of a single note) in an amount not to exceed approximately
$250,000 (other than such additional revenue bonds as are
needed to complete the Project) is authorized to f inance the
costs of the 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 Sectian
474 .01, Minnesota Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the eommissioner of
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authorized to
provide the Commissioner 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 Campany, relating to the proposed construction and
financing of the Pro�ect. The form of said Agreeinent has been �
examined by the Commissioners. It is the purpose of said
Agreement to evidence the commitment of the parties and their
intentions with respect to the proposed Project in order that
the Company may proceed without delay with the commencement of
the acquisition, installation and construction of �the Project
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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 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 authorized and directed to execute said Agreement. �
� 5. Upon execution of the Preliminary Agreement bv �
the Company, the staff of the Authority are authorized and
directed to continue negotiations with the Company sa 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.
6. The revenue bonds 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.
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 herein
contemplated and any additional bonds which the Authority may
prior to issuance or from time to time thereafter deem
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 Council copies of tlzis resolution and said Preliminary
Agreement and any additional available information the City -
Council may request. - - "
r
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8. The actions of the Executive Vice-President of
the Authorit'y in causing public notice of the public hearing
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 proposed
application to the Commissioner of Securities, State of
Minnesota, for approval of the �roject, 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 July 20, 1982
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Attest �i�
;
Pres t
�� The Port uthority of the City
� of Saint Paul
. ,
�, .
��; ��%� � � 2�� .
d" �Secretary
� , CITY OF SAINT PAUL
� � ���sl
- OFFIC� OF TH7� CITY COIINCIL
..,...•
�- ..�..........
� .,�=..�,�n.
�. � D d t e : August 26, 1982
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� COMMITTEE RE PORT
TO = Sq�nt Paut City Council .
F R O M = C a m m it fi�e e O h Finance, Ma.nagement $ Personnel
C H A I R Jim Scheibel
2. Resolution amendi�ng the Civil Service Rules regarding xei� � � Personne] llept'.)
3. Resolution authorizing City officia7.s to execute an Agrcement t�ith the U of ?•I -
Hospitals for the physician services in the Southeast Asian Clinic znd Atodel
Cities Health Program. (Commeuiity Services Dept.
. 4. Fesolution amending the 1982 Special Services $udget (Commu '� ervices De�t.) .
�
5. Fesolution establishing several titles and class specifications in t?ie Clexical
Group� (Procurement) as well as abolishing the titles of Bu er I aiid Buyer TT o�= t:�e
Civil Service Rules. (Personnel Dept_) "
6_ Resolution aufihoxizing the submission of an application amendment to tlie Economic
Development Administration for the continuatzon of a P2anning Ass' . Cxant: (]'EI)) .
�
?. Resolution establishing the title of Paintex General Foxeman of tlie CiviI Sexvice
Rules (Personnel Dept.)
S_ Resolution establishing the xate of pay for the new ti.tJ.e of Painter, Gen�ral
Foreman (Personnel Dept. .:�. ,;. '
9. Resolution approving the issuance of a 2ax exempt mortgage note to finai�ce co»s�r.uct:i.on
of an addition to the 11,rin City Concrete Products Plant at 1351 9'rout Brook Cixcle �
(Port Authoxi�ty)_ ��,'�'-�� .��}
�0. P.esolution approving the securities pled�ed by Summit hatl.. Bank to protect funds �:hile
held in said bank. (Finance � Aigmt. Services Dept.) " -
11. Resolution incxeasing the 1982 Budget for the Public Health - Community Seryices
(this will allo�,r the transfer of �monies bet►,reen various Community flealth Services
accounts. There tiaill be no increase in the amount of monies paid out.� (Community
Service�) _
12. Resolurion increasing the 1982 budget for the Publi�c Health Center - Health Records
to enable the Health Center - Health Records Program's entire budget to t�e enterecl
on the computer. (Community Services) �' � � � °�:��
CITY HALL SEVENTH FLOOR SAINT PAUL.MINNESOTA SS102
.�,•�,
• ' � � OM 01 : 12/T 97��f a7� . : :
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•: . , . Rev.:_ 9/8/76 -
EXPLANA7ION OF. ADMINISTRATIVE QRD€RS, ����`VEQ
RESOlUTIQNS, aND ORDIMANCES �UL, 23� ���
: _ CITY ATT�RiVEY. . :
` Oate. July 20, 1982
�`�
(.� 1
T0: YO G�ORGE LATIMER RECEIVED : ���
FR: E• ut St. Paul Port� Authori � ��� Z 6 �
�; TW N CITY CONCRETE PRODUCTS COMPANY (CEMSTONE) MAYORS OFFICE
$250,Op0 TAX EXEMPT MORTGAGE NOTE �
ACTION REQUESTED: • -
Tn accordance with� the Laws of Minnesota, Chapter 234, it is requested that the.City
Council , by Resolution, a draft copy of which is attaahed hereto, approve the issuance ",
of a tax exempt mortga� note in the amount of approximately $250,000 to finance the
construction of an add�ta:on to the plant facility of Twin City Concrete Products at �
1351 Trout Brook Circle: The project will consist of equipment and a sma11 building
to t�use that equipment.
PURPOSE ANfl RATIONALE FOR THIS ACTION: �
The purpose of the bo.nd issue is to finance the construction of a small building addition
and equipment for Twin City Concrete for a term of 20 years. The credit of the Port
Authority is not pledged for this issue. ARproximately two new'�obs will be created
as a result of this pro�ect. � '
ATTAGHMENTS•
S�aff hlemorandun
Draft City Council Resolution
Port Autharity Resolution No. 2032 �
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