278317 WHITE - CITY CLERK � j /��
PINK - FINANCE COU[IC11 �I
CANARY - DEPARTMENT C I T Y O F S A I N T PA U L
BLUE - MAYOR File N O.
C uncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On January 26, 1982, the Port Authority of the City of Saint Paul adopted
Resolution No. �g74, giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of approximately $510,000 to finance an addition of 11 ,200
square feet of production facilities to Century Circuits & Electronics, Inc. 's present
building at 155 Eaton Street in Riverview Industrial Park.
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. 1974 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:
F1��i...
Levine In Favor
Maddox
McMahon B
snowaite� _ Against Y
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�''°"- FEB 2 3 1982 = -
Form Approved by City Attorney
Adopted by Council: Date �c�
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Certified Va �c, y ouncil Se B
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Appr by Mayor: Dat ���� � � i9�� App by Mayor f mi sion t uncil
BY� _ - By
PUBLISHED MAR 6 1982
,� i�v � �
� AU� THORIT �' �8317
OF THE CITY OF ST. PAUL
Memorartdum
TO: BOARD OF COMMISSIONERS DATE: Jan. 21 , 1982
(Jan. 26, 1982 P.egular Meeting)
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FR�tv1: B.A. Ma u s , ;�„ .� ,�
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SUBJECT: CENTURY CIRCUITS SIX (CENTURY CIRCUITS & ELECTRONICS, INC. )
PUBLIC HEARING - PRELIMINARY & UNDERWRITiNG AGREEMENT
$510,000 REVENUE BOND ISStJE
RESOLUTION N0. 1974
1 . THE COMPANY
Century Circuits & Electronics, Inc. is presently located at 155
Eaton Street in Riverview Industrial Park. The company was in-
corporated in December of 1976. They are a manufacturer of single
and multi-layer flexible circuits , mainly dedicated to high technology,
state of the art circuits. Applications for flexible circuits are in
the fie7ds of military, aerospace, computer, instrument manufacturing
and medical electronics.
On September 16, 1980, the Board of Commissioners approved an agreement
between the Port Authority and Century Circuits to construct an 11 ,200
square foot building which would employ approximately 20 people. A
$475,000, 876 revenue bond issue was sold to finance the construction
of the facility.
A history of the company and a biographical sketch of the six principals
guaranteeing the repayment of the debt is attached to this memo for your
review.
2. THE PROJECT
The purposal calls for the addition of 11 ,200 square feet of production
facilities doubling the size of the facility in Riverview. The site
provides adequate room for this planned expansion. The company has
completed plans and specifications and received bids to construct the
addition. Based on preliminary information, a bond issue of $510,000
will provide adequate funds for construction and the related issue
expenses.
This expansion will create 25 new jobs.
� � _
BOARD OF COMMISSIONERS
January 21 , 1982 �
Page -2-
3. FINANCING
Mi11er & Schroeder Municipals have agreed to underwrite the proposed
bond issue in the amount of $510,000. The allocation of the proceeds
based on this amount would be as follows :
Construction $367,600
Bond Issue Expense 15,000
Capitalized Interest 35,700
Debt Service Reserve 76,400
Discount 15,300
� TOTAL $510,000
Based on an estimated 14% interest rate, an annual debt service on this
addition would be approximately $76,400. In addition, fiscal and admin-
istrative fees of $2,100 per year for the first 10 years , $2,750 per year
for the second 10 years and $3,400 per year for the 7ast 10 years will
be charged.
The principals of the company, of which there are six, have formed a
partnership called Century Circuits Six. This partnership has personally
guaranteed the repayment of the first bond issue. The current lease
agreement will be amended to include the debt from the second bond issue;
consequently, all six principals are will secure the entire debt. The
following information is attached for your review:
1 . Current personal financial statements on all six principal of-
ficers guaranteeing the issue.
2. Financial statements of the company for the years 1979, 1980
and 1981 .
3. A five-year pro forma for the years 1982 through 1986 prepared
by an independent Certified Public Accountant.
4. A brochure describing the company and the product.
Please note in reviewing the financial statements that the combined worth
of the principals in the company is well in excess of the entire debt owed
by the company. With the new debt, the ratio of equity to debt will be
2.35 to 1 .
4. RECOP1MENDATIONS
The Port Authority has published the required public notice for sale of
bonds. Early notice for District 3 was published, and to date we have
received no written or oral response objecting to the project.
Staff has reviewed the project with Miller & Schroeder and the principals
of the company and recommends approval of Resolution No. 1974.
BAf�f:ca
Attach.
� �. - . � - ���317
Resolution No. /���`�
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, idinnesota
Statutes, known as the Minnesota �dunicipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to pronote Lhe welfare of the state by the
. active attraction and encouragement and development of economi-
cally sound industry and comnerce 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 persistezt unemployment; and
WHEREAS, factors necessitating the active promotion
and development of econamically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly risiny 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 �inance these
increased costs and access to employnent op�ortunities for such
population; and
WHEREAS, on December 1, 1980 the Port Authority of
the City of Saint Paul (the "Authority") issued its industrial
� development revenue bonds, Series 1980-I in the aggrec�ate
principal ainount of $475, U00 to provide financing to Century
Circuits Six, a Minnesota general partnership (the "Company" )
for the construction of an office and distr�bution facility in
the City of Saint Paul; and
WHEREAS, the Authority has received from the Company
a request that the Authority issue additional revenue bonds to
finance the acquisition, installation and cons�ruction of an
expansion (hereinafter called the "Project") to the previously
constructed office and distribution facility all as is more
fully described in the staff report on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the co:nmunity, to retain and improve
its tax base and to help it provide the ranye 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 reputation of the
City; and
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment 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
. significar.tly 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, 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 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 recommendations
contained in the Authority' s staff inemorandum to the
Corrnnissioners 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 (a) of Section
474.02 of the Act; that the Project furthers the purposes
stated in Section 474 .01 of the Act, that tne 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 emergence 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 af 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 development 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 an amount
not to exceed approximately $510,000 (other than such
additional revenue bonds as are needed to complete the Project)
is authorized to finance the costs of the Project and the
recommendations of the Authority' s staff, as set forth in the
staff inemorandum to the Commissioners which was presented to
, the Commissioners, are incorporated herein by reference and
� approved.
3 . In accordance with Subdivision 7a of Section
474.01, Minnesota Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner 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 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 by
the Comm.issioners. 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 Company
' may proceed without delay with the commencement of the
acquisition, installation and construction of the Project with
the assurance that there has been sufficient "official action"
under Section 103 (b) o.f 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 agreem.ent being
reached as to the ultimate details of the Project and its
financing. Said Agreements are hereby approved, and the
President and Secretary of the Authority are hereby authorized
and directed to execute said Agreements.
5 . Upon execution of the Preliminary Agreement by
. the Com.pany, 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 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 }�.he
Authority, or if either of such officers (and his alternative)
are absent, the Treasurer of the Authority in lieu of such
. absent officers, are hereby authorized in accordance with the
provisions of Minnesota Statutes, Section 475 .06, Subdivision
1, to accept a final offer of the Underwriters made by the
Underwriters to purchase said bonds and to execute an
underwriting agreement setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwriters to
said offer but shall be subject to approval and ratification by
the Port Authority in a formal supplemental bond resolution to
� be adopted prior to the delivery of said revenue bonds.
o. 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 or interest
thereon.
.
7 . In order to facilitate completion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to consent, pursuant to Laws of Minnesota, 1976,
. Chapter 234, to the issuance of the revenue bonds ( including
any interim note or notes) herein contemplated and any
additional bonds which the Authority may prior to issuance or
from time to time thereafter deem necessary to complete the
Project or to refund such revenue bonds; and for such purpose
the r�xecutive Vice President of the Authority is hereby
authorized and directed to forward to the City Council c�pies
of this resolution and said Preliminary Agreement and any
additional available information the City Council .may request.
8. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in 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
�Sinnesota, 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 January 26 , 1981 /'
C, /
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Attest \ �/_�� ����-
P r e�s-id.e�nt
The Port uthority of the City
of Saint Paul
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EXPLANATION OF ADMiNISTRATIVE ORDERS,
' RESOLUTIONS, AND URDiNA1�CES
. _ .RECEIVED
.
� � FEB 2 �9�
Date: Januar 21i6, 1982
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� ATTORNEy
' FE3 � - 1���
T0: MAYQ �tGE LATIMER ,
FR: E.A. t.. Paul Port Authority � MAYORS OFFiCE
RE: CENTURY CXRCUITS SIX (CENtURY CIRCUITS & ELECTRONICS, INC.)
$510,000 �EVENUE BOND ISSUE
ACTION REQUESTE�: • - �
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In accordance with the Laws of Minne�ota, Chapter 234, it is requested'that the City
Council, by R�sqlution, a draft copy of which is attached hereto, approve the issuance
of approximately► $510,000 in revenue bonds for the purpose of financing the constr�tctian
of an addition df T1 ,200 square feet of production facilities to Century Circuits &
Electronics, Ir�c. 's present hu.ilding at 155 Eaton.:Street in Riverview Industrial Park.
PURPOSE AND RATIQNAl.E FOR THIS ACTION:
The purpose of the bond issue is to finance the construction of an 11 ,200 square foot
acl'dition to Cent�ry Circuits & Electronics, Inc. 's present building at 155 Eaton Street
in Riverview Ind�strial Park for a term of 30 years. This expansion will create 25 n�r
jobs. e
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The lease will b$ signed by Century Circuits Six, a partnership consisting of A.W. Amund�on,
K.R. ,Elwood, R.E, Barnes, D.D. ._Coyer, J.W. Robinson and N.R. Gibbs, who will:_ a3so personally
guarantee the le�se. The facility will be sublet by the partnership to the campany.
ATTACHMENTS: �
Staff t�morandum 4 -
D�aft City Counci��l Resolution .
Port Authority Reisolution No. 1974
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��; � .; Date ; February 19, 1982
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CC} � i� D s i � � F� � �' O �`� ' �
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�R 0 �rl � C o m t�r i t�t e� o n FIZa�ticE, Ma�,c��NT � PERSO�L _ - -
� � . .
George McMahon , c�oirman, ma�ces the foilowing �
report on� C.F. �11' �-� Ordinance
��) � Resolution _
C{ OthQr '
'f' iTLE :: .
At its meeting of February 18, 1982, the Finance Committee recommended approvaT
• of the following: _
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y ` \ 1. Ordinance amending Ordinance No. 11490 pertaining to severance pay.� (12702-�I)
2. Resolution approving issuance of approximately $510,000 in revenue Bonds by
the Port Authority to finance construction of production facilities by
Century Circuits �, Electronics, Inc. (12710-GM) � .
3. Resolution amending 1980 Capital Improvement Budget to provide funding for
Town Squar� Streets Project. (12687-�� -
' � 4. Resolution revising Co�nerical Rzhabilitation Ldan Program. (12711-Q`4)�
5. Resolution approving Memorand�n of Agreement amending the 1981 hiaintenance�
. Labor Agreement between the City and the Electricians Local 11Q. . (12680-G�i) -
6. Resolution establishing titles and class specifications for Operations - -,�
Assistant-Town Square Park and Program Planner-Town Sauare Park. (12708-�1). .
7. Resolution establishing title and class specification for title of Marine
Mamrnal Keeper-Trainer. (12709-�1) - �
8. Resolution establishing title and class specification for Development Finance
Specialist III and abolishing title and class specification for Development
Finance Specialist and substituting in lieu thereof ne�a title and class
specification for Development Finance Specialist IV. (12707-C�1) -
CITY H�1I.L SEVErTH FLOOR SAI�I"t PAUI., y1IrtiESOTA SS102
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