277285 WHITE - CITY CLERK �►+y���
PINK - FINANCE
CANARY - DEPARTMENT COl1flC1I �� a J
BL.U6 - MAYOR G I T Y O F S A I N T PA U L File N O.� �
Council Resolution
Presente
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On July 28, 1981 , the Port Authority of the City of Saint Paul adopted
Resolution No. 1853, giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of approximately $1 ,520,000 to finance the construction of a
25,500 square foot office building and a 10,000 square foot shop facility in Rivervieu�
Industrial Area West for Carl Bolander & Sons Co.
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bond$
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 accor�ance
with law;
3. The Port Authority of the City of Saint Paul has requested that the City Coumcil
give its requisite consent pursuant to said law to facilitate the issuance of said reWenue
bonds by the Port Authority of the City of Saint Paul , subject to final approval of tfhe
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 tMe
aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Re$olution
No. 1853 the exact details of which, including, but not limited to, provisions relatimg
to maturities, interest rates, discount, redemptaon, and for the issuance of addition�l
bonds are to be determined by the Port Authority, pursuant to resolution adopted by t{he
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 De artment of:
���t � In Favor
Levine
Maddox �
McMahon __ A a1I1St BY
Showalter g
Tedesco
wlson
qUG � � �� Form Approved
Adopted by Council: Date � -
Certified Y• _s d by Council Secret
App by :4lavor. Da UG i 9 19 1 App d by Mayor fo b ission to Council
BY -
��JBLtSHEO A��c � 91981
� R.� �� T
A �� THORITY ,�...���
r.�. .y � ��.� _.�
OF THE CITY OF ST. P^UL
Memoraedum
TO: Board of Commissioners �A� July 23, 198�
(July 28�; 198�1 Regular Meeting) .
ti
FROM: B.A. Mau s.4° �
1
SUBJECT: PUBLIC HEARING - SALE OF BONDS - PRELIMINARY & UNDERWRITING AGREEMENTS
CARL BOLANDER & SONS C0.
$1 ,520,000 REVENUE BOND ISSUE - RIVERVIEW INDUSTRIAL AREA WEST
RESOLUTION N0. 1853
PUBLIC SALE HEARING - SALE OF LAND
CARL BOLANDER & SONS :C4.
RESOLUTION N0. 1854
1 . THE COMPANY & THE PROJECT
Carl Bolander & Sons is=a !�-annesota construction company specializing
in site preparation, piling, demolition and other general construction
and hauling. David Bolander, President, has requested on behalf of
the company to lease Parcel D in Riverview Industrial Area West from
the Port Authority to construct a 25,500 square foot office building
of which 50� will be occupied by Mr. Bolander's company and the re-
maining 50% will be available for lease purposes. The company has
recently purchased property adjacent to Parcel D from American Hoist
(formerly the baler plant) for cash. The company also proposes to
construct a 10,000 square foot shop facility on the property formerly
owned by American Hoist.
Carl Bolander & Sons, currently headquartered in Minneapolis, is a
third generation company with an excellent reputation in the Twin •
City area. The company will be moving its headquarters to St. Paul .
This development will include 60 new jobs and approximately $30,000
per year in new real estate taxes. The Port Authority has received
a letter of support from the West Side Citizens Organization (District
3) regarding the project.
2. FINANCING
Bolander Construction Company has requested permanent financing
under Resolution 876, a Port Authority secured issue, in the amount
of $1 ,520,000. This includes the construction of the office building
and shop facility and all costs related to the bond issue. Proceeds
of the bond issue will be allocated as follows:
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BOARD OF COMMISSIONERS
July 23, 1981
Page -2-
Construction $1 ,364,000
Bond Issuance Expense 20,000
Capitalized Interest - 6 Months 90,000
Discount ' - 46,000
$1 ,520,000
As shown on the enclosed projection, Bolander Construction will have
sufficient income to retire the debt.
3. TERMS OF THE AGREEMEP�T
The term of the agreement is for 30 years. Included in the agreement
is a provision whereby Mr. Bolander will surrender title to the property
recently purchased from American Hoist. This property was appraised in
1979 at $550,000. Holding title to this parcel free of debt will serve
as a substantial equity contribution to the project.
Parcel D would be leased to Bolander at a rate of �1 .50 per square foot
at 10� interest for 30 years. Purchase options for the land would be
available as follows: �In the lOth year for $159,556.25; in the 20th
year for $113,968.75; and in the 30th year for $68,380.25. There will
also be a purchase option for the building in the lOth, 20th and 30th
years for 10% of the principal amount of the bonds plus retirement of
the outstanding bonds.
The lease will be guaranteed by Bolander Construction Company which
will reflect a debt to equity ratio on this project of 1 to 1 .5.
Miller & Schroeder Municipals has agreed to underwrite the issue. The
interest rate for the bond issue will be determined at the time of closing.
4. RECOMMENDATIONS
The project will provide facilities that will attract a new firm to
the City of St. Paul adding new jobs and tax base to the community.
The staff has reviewed the project and financial statements of the
company and recommends approval of Resolution Nos. 1853 and 1854.
BAP1:ca
Attach.
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Resolution No. 185 3 �+�f�',���5�'.�
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RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL •
47�iEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop�
nent 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 econom�.-
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, rnarginal land and persistent unemployment; and
i4fiEREAS, 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 af
governmental services reguired 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
Wf�iER�AS, The Port Authority of the City of Saint Pau1.
(the "Authority" ) has received from Carl Bolander & Sons
Company, a Minnesota corporation (hereinafter referred to as
"Company") a request that the Authority issue its revenue bonds
to finance the construction and installation of an office and
equipment repair shop (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 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
Project will assist the City in achieving tYiat 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 inage and reputation of the
City; and
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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 limited basis and at such high costs of borrowing
that the economic feasibility of operating tYie 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, 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 rs 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 tlle 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 tYie emergence of 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 �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 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 (which may be in the
form of a single note) in an amount not to exceed approximately
$1,600,000 (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 nemorandum 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 af
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authorized ta
provide the Commissioner with such preliminary information as
he may require. .
4. Tl-iere has heretofore been filed with the
Authority a form of Preliminary Agreement between the Authority
and Company, relating to tY►e proposed construction and
financing of the Project and a form of the Underwriting .
Agreement. The form of said Agreenents have been exarained by
the Commissioners. It is the purpose of said Agreements to
evidence the comr:►itment of the parties and their intentions
with respect to the proposed Project in order that the Company
may proceed without delay with the conmencement of the
acquisition, installation and construction of the Project witY�
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 l�nds
(including, if deemed appropriate, any interim note or notes to
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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 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 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 t�ie
� 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 tY►e
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.
- 6. The reven-ue 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 yeneral
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 tl�e 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 Executive Vice President of the Authority is hereby
authorized and directed to forward to the City -Council copies
of this resolution and said Preliminary Agreement and any
additional available information the City Council may request.
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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
estinating the principal amount of bonds to be issued to
finance t]ie Project and in prepar�ng a draft of the proposed
ap�lication to the Cor�unissioner 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. "
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Adopted July 28, 1981
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Attest �
res� en
� The �Por Authority of the City
� of Saint Paul
�2��� �
ecretary
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; PORT AUTHORITY OF THE CITY OF SAINT PAUL
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; 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
July 28, 1981
Mr. James Bellus
Director -
Planning & Economic Development Department
City of Saint Paul
14th Floor City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: CARL BOLANDER & SONS C0.
$1 ,520,000 REVENUE BOND ISSUE
Dear Jim:
We submit herewith for your review and referral to the office of the
Mayor, City Council and the City Attorney's office details pertaining
to the issuance of revenue bonds in the amount of $1 ,520,000 to
finance the construction of a 25,500 square foot office building and
a 10,000 square foot shop facility in Riverview Industrial Area West
for Carl Bolander & Sons Co.
In addition to the staff inemorandum, we are attaching a draft copy of
the proposed City Council Resolution and a copy of Port Authority
Resolution No. 1853 which authorized the sale of revenue bonds in the
amount of $1 ,520,000.
Your expeditious handling of this matter will be appreciated.
Y urs truly,
,.
Eugene A. Krau
Assistant Executive
Vice President
EAK:ca
cc. R. Broeker '
ROBERT F.SP�2AFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CUFFORD E.RAMSTED RONALD O.SCHEITL.E
EXECUfNE V�CE PRES�DEM i5357ANf EXCCUfIVE VICE pRESIpEM qRFCTOR,NDUSfRIqL pEVELOPMEM CHtEF ENG�NEER CMIEF ACCOUNfANf
COMMISSIONERS GEORGE W.WIMER GEORGE R. McMAHON ARTHUR N.GOODMAN VICTOR P.REIM JFAN M,WEST WILL{AM Wlt.$pN WILLIAM J.SEIFER
PRESiDEM VICE PRESIDEM ScCBETARV iREASURER
e�p 2
C.I.D. Certified Industrial Developer
x- �. ..��.. � . � � OM Ol : i 2/1975
. • Rev. : 9/8/76
. . . �� m �" P���� -l33 �
fXPLANATION QF ADMINISTRATIVE ORDERS, �
RESOLUTIfNVS, AND ORDINANCES
Date: �u�y 2s, �9s� RECEIVED
T0: MAYOR GEORGE MER AU6 4 1981
FR• E.A. Kraut, St. Authority � �IIAYOR� OFFiCE
RE: �� BOLANDER & NS C0.
�1 ,520,000 REVEN E BOND ISSUE
ACTION REQUESTED: •
In accordance with the Laws of Minnesota, Chapter 234, it is requ�sted that the City
Council , by Resolution, a draft copy of which is attached hereto, approve the issuance
of revenue bonds in the amount of approximately $1 ,520,440 to fi�ance the construction
of a 25,500 square foot office building and a 10,000 square foot shop facility in '
Riverview Industrial Area West for Carl Bolander & Sons Co. .
Pt1RPOSE AND RATIONALE FOR THIS ACTIQN: �
The purpose of the bond issue is to finance the construction of approximately 25,500 s uare
feet af office and 10,000 square feet of shop facilities in Riverview Iridustrfal Area st .
for Carl Bolander & Sons Co. for a term of 30 years. The company will be moving its h ad-
quarters from Minneapolis to St. Paul and a�proximately 60 new jobs w911 be.created.
ATTACHMENTS:
Staff Memorandum � �
Draft City Council Resolutian
Port Authorlty Resolution No. 1853
.-• -�--- CI�Y' O�' ►�'�AIi�7�' �JA.UL
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;�; � �, OFFICE OI+' THi+i CITY COUNCIL ��r :o��,f ..
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Date ; August 13, 1981
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... CQ13/ii'/1i � � t.�.. � � � � Q ����
TO : Sain�T Paut Giiy Council ..� :
F R O i�', • C O�fi'1 I��e�' O�1 FINANCE, MANAGEMENT & PERSONNEL .
George McMahon � chairman, makes the foliowing
. ._� Ordinarrc�
report on� GF. .
(4) � Resoiution _
� . � Other �
Tt�'LE :: . I
, At its meeting of August 13, 1981, the Finance Committee recommended approv�Z __
of the following: - - - ..-
r._.Y:..--;:-- _ _�_:__ . :: ,::.�
1, Resolu�ion approving issuance of a $1,085,000 tax exe�:�t mortgage note by the
Port Authority to finanr.e construction of two-story office and warehous� on
Lafayette Frontage Road for Durino Partnership (Sublease to Collins Comm�nications
Systems Co.) (12174-McM)
2. Resolution approving issuance of revenue bond by Port Authority for app�'oximately
$1,520,000 to finance construction of office building and shop facility in
� . Riverview Industrial Area West for Carl Bolander & Sons Co. (12173-McM)
�I� 3. Resolution approving execution of City/School District Operating Aqreement
for 1981. (Requested by Finance Department) (12159-McM)
4. Resolution approving collateral pledged by Sumrnit National Bank to pro�ect city
funds held in said bank. (Requested by Financ,e. Department) (12178-McM)
,
CI-ry H��L SEVE?tiTH FLOOR SAI�IT PALTL, �IIv`�SOTA S�L�Z
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