278969 WHITE - CtTY CLERK ��896�/
PiNK - FINANCE COUi1C1I
CANARY - DEPARTMENT G I T Y O F S A I N T PA LT L �
BLUE - MAYOR File N O.
Council Resolution
Presented By ��`�'.����'�
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On June 22, 1982, the Port Authority Corr�nission adopted Resolution No. 2012 giving
preliminary approval to the issuance of revenue bonds in the initial principal amount of
approximately $2,585,000 to finance the construction of a 450 space parking ramp to serve
the parking needs of Bandana Square in Energy Park for AHW Corporation, a subsidiary of
the Wilder Foundation.
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. 2012 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
,�w�1 [n Favor
Maddox
McMahon B
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Tedesco
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JUL 1 31981 Form Approved by City AttC,o,r�y
Adopted by Council: Date — �
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O� THE CITY OF ST. PAUL
Memorandum
TO: BOARD QF COMMISSIONERS DATE: June 9, 1982
(June 22, 1982 Regular Meeting)
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FROM: B.A. Maus
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St�BJECT: AHW CORPORATION PARKING FACILITIES
PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT
$2,585,000 RESOLUTION 876 REVENUE BOND ISSUE
ENERGY PARK
RESOLUTION N0. 2012
i . THE COMPANY
The Port Authority Commission has previously approved bond issues for
AHW Corporation, a subsidiary of the Wilder Foundation. AHW is cur-
rently developing the Como Shops facilities known as Bandana Square.
Bandana Square contains approximately 200,000 sq.ft. which will be
�eveloped as reta�l , commercial and community facilities.
2. THE PROJECT
AHW is requesting that the Port Authority authorize a $2,585,000 Reso-
lution 876 revenue bond to finance a 450 space parking ramp to serve
Bandana Square. This parking ramp will in part serve the parking needs
of Share Health, the HMO proposed for Bandana Square. Share has agreed
to guarantee $137,000 per year to AHW or approximately 40� of the debt
service. The balance of the parking facility will be used to serve
the Como Shops retail complex.
In the UDAG agreement approved on April 7, 1982 in the amount of
$3,431 ,000, it was estimated that $5.5 million would be expended for
parking facilities to serve the Como Shops development. Development
of this parking ramp is a partial fulfillment of that commitment. As
additional tenants commit to Bandana Square, more parking facilities
can be justified.
3. FINANCING
The proposed financing is as follows:
Construction $2,024,312.50
Reserve 343,275.00
Capitalized Interest 109,862.50
Bond Issue Expenses 30,000.00
Discount 77,550.00
TOTAL �2,585,000.00
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BOARD OF COMMISSIONERS
June 9, 1982
Page -2-
The Port Authority will assess its standard fiscal and administrative
fees on the project of .42% of the principal amount of the bonds per
year for the first 10 years of the term of the lease, .54� for the
second 10 years and .66% for the third 10 years.
AHW Corporation will be the guarantor. Current net worth of AHW is
approximately $8 million providing substantial coverage for the new
debt.
4. RECOMMENDATIONS
The parking ramp is being constructed primarily for Share Health who
as stated earlier is guaranteeing a portion of the debt service. Share
as a first tenant in Bandana Square will initially bring 10,000 customers
through the facility each month. This will be a significant factor
in the success of the entire development.
Early notice was sent to the affected districts and no response was
received.
Staff recommends approval of Resolution No. 2012.
BAM:ca
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": - Resolution iJo. �� vi=�--
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 Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature is to promote the welfare of tYie state by the
active attraction and encouragement and developnent of ecanomi-
cally sound industry and comnerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unemploynent and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
6VHEREAS, factors necessitating the active promotion
and development of economically sound industry and co.:unerce are
the increasing concentration of population in t'ne metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services reguired to m�et t'ne needs of the
_ increased population and the need for development of land use
which will provide an adequate tax base to finance these
increase3 costs and access to employrnent opportunities for suc'n
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(tne "Authority") has received from AHW Corporation
(hereinafter referred to as "Corapany") a request that the
Authority issue its revenue bonds to finance the acquisition,
installation and construction of public parking facilities
(hereinafter called the "Project") in Saint Paul Energy Park in
the City of St. Paul, all as is more fully described in the
staff report on file; and
V,1fiEREAS, the Authority desires to facilitate t'ne
selective development of �ne community, to retain and inprove
its tax base and to help it provide the ra•nge of services and
empZoyment. opportunities required by iLS population, an3 said
Project ��aill assist the City in achieving thaL objec`ive. Said
Project wi11 help to increase tne assessed valuation o� the
City and help maintain a positive relationship pet��een assessed
valuation and debt and ennance 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 e.�-nployraent opportunities in the
Project;
�VHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, conmercial
financing to pay the capital cost o� the Project is available
only on a lirnited 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;
�VHEREAS, Miller & Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreement (the
"Underwriting Agreer.iznt") 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 tYie Authority, of a public hearing on the propo�al 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 Authorit�' s staff rnenorandur.t to the
- Cor�nissioners were reviewed, and all persons who anpeare3 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:
l. 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 the availability of
the financing under the Act and willingness of the Authority to
furnish such financing will be a su�stantial in3ucement 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 com,;�erce an3 assist in the
prevention of the �nergence oi blighted and marginal land, and
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- � � 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 rnay 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 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 svidence
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 $2,585,000 (other than such
addi�ional 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 tYxe
AUTHORITY is hereby authorized and directed to submit the
proposal for tYie 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 Comnissioner with suc'n 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 Conunissioners. It is the purpose of said Agreements to
evidence the cor�mitment of the parties a�d their intentions
�.�ith respect to the proposed Project in ordPr that the Company
may proceed wi�hout 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) of the Internal Revenue Code of 1954, as
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" � ' anended, 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 Agreements.
5. Upon execution of the Preliminary Agreement by -
the Company, the staff of the Authority are authorized and .
directed to continue negotiations with the Company so as ta �
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 the
Authority, or if either of such officers (and his alternate)
are absent, the Treasurer of the Authority in Zieu of such
absent officers, are hereby authorized in accordance with the
provisions of Minnesota Statutes, Section 475.06, Subdivision
l, 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 Undenariters 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.
_ 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 t'ne taxing powers of the Authority or
the City is pledged for the payr,ient of the bonds or interest
thereon.
7. In order to facilitate conpletion of the revznue
bond financing herein contemplated, the City Council is hereby
requested to consent, oursuant to Laws �f Minnesota, 1976,
Chapter 234, to the issuance of tne revenue bonds herein
contemplate3 and any additional bonds wizich the Authority may
prior to issuance or from time to tine thereafter de�•n
necessary to conplete the Project or to refund such revenue
bonds; and for such purpose the Eaecu�ive Vice President of the
Authority is her�by authorized ana direc�ed to forward to t'ne
City Council copies of this resolution an3 said Preliminary
Agreement and any additional available information the City
Council nay request.
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x ' _ . 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 Energy Planning and
Development, 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.
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Adapted June 22, 1982 _ �
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Attest F ���
Presi ent
The Por Authority of the City
of Sain Paul
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E�tPLARESO� T�ONS➢MANDSO QINAN ESDERS, ��CEIV
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Qate: June 22, 1982 � C�� A�t
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: TO: MAYOR GEORG LATIM�R
FR: Eugene A. st. Paul Port A nor;ty RECEI1lED
JUN 2 419�2
RE: AHW CORPOR TION P RKING RAMP
$2,585,000 REVENUE BOND ISSUE MAYORS dFFICE
ACTIOPI REQUESTED: • �
In accordance with the Laws of Minnes ta, Chapter 234, it is requested that that the C'ty
Council , by Resolution, a draft copy f which is attached hereto, approve the issuanc
of revenue bonds in the amount of app oxima�ely $2,585,000 to finance the construction '
of a 450-space parking ramp to serve he parking needs of Bandana Square in Ener.gy Par
' for AHW Corporation, a subsidiary of he Wilder Foundation.
PURFOSE AND RATIONALE FOR THIS ACTION:
The purpose of the bond issue is to finance the :construction of a 450-car parking ram
to serve the parking needs of Bandana Square for AHW Corporation for a term of 30 yea .
This parking ramp will in part serve he parking needs of Share Health, the HM0 propo d
' for Bandana Square. Approximately th ee riew jobs will be created as a resul�t of this �
` project.� �
_ A7'fACHMENTS:
Staff hlemorandum
Draft City Council Resolution
Port Autfiority Resolution No. 2012
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F R Q � ' C41T1 t71)��'e l° O Cl �'ZNANCE, MANAGEr3.ENT & PERSQ�I�tEL �
. J'ames' Scheibel � �hoi�-m o n, _ '
The Finance Committee; �at the meeting of �8�'Z , recommended approval of the fo�lowing:
l. Approval of minutes of ineeting held July 1, 1982. d'1�_ � '
2. Resolution authorizing an A,-nendator} Agreement betcvPen Ilrig�s & riorgan .
Drofessional Association for bond counsel services so as tv increase fees
for issuance of general oblibation bonds from 50 cents to 75 cents per
thousand. �PPr���� 3-�, . �
3. Resolution authorizing an agreement with the Firearms ZnFirmar}' provid.ing
for the inspection, service and repair of City owned firearms. PF�e°t'OJe �_A
4. Resolution approving the issuance o£ revenue bonds ($3,�i00,000) to tinance
the construction of a clinic facility in the Como Shops of Energy Park for
Share Health. Frp�1Q.� 3-O
�. Resolution approving the issuance of revenue. bonds (52,585,000) to finance
! � the construction of a parking ra�p to serve the needs of Bandana Square in
Energy Park for AH[J Corporation. AA�oJ� 3�0. . -
6. Resolution amending the 1979 and 1950 Capital Improvement 33uclgets to provide
County aid funding for certai.n street resurFacing projects (�s outlined in
the resolution.) C.A�U 0 VPaQ
7. Resolution permitting the West Sector Patrol Unit to neove frorci Edgecnmbe
School to the Unidale rfall. A�pro�� 3-O .
E. Discussion of the proposal to allow city employees voluntary lcave without
pay as a money saving incentive. CThe Finance Committee voted pn a motion
which approves Councilman Tedesco•s resolution. They also requested that the
: administration proceed with. surve}ang city employees to find our their response
to this incentive. Those resultts of the survey will be returned to the Finance
Committee prior to this resolution being on the City Council agenda. �,Z�) F1��
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