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277728 WMITE - CITY CLERK }-�. I� PINK - FINANCE COIlRC1I �,���� I' CANARY - DEPARTMENT G I T Y O F S A I N T PA U L BLUE - MAYOR titi� File N 0. C uncil Resolution � Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: ' 1 . On November 3, 1981 , the Port Authority of the City of Saint Paul adopted '' Resolution No. 1920 giving preliminary approval to the issuance of approximately $10,000,0�0 in revenue bonds to finance the construction of five floors of condominium office space equal 'ng 61 ,750 square feet in the office tower planned atop the St. Paul Hotel Parking Ramp by Ame�ican Hoist & Derrick Co. � 2. Laws of Minnesota 1976, Chapter 234, provides that any issue of retrenue bonds I! authorized by �he Port Authority of the City of Saint Paul, shall be issued only with the ' consent of the City Council of the Ci�ty of Saint Paul , by resolution adopted in accordance�, with law; 3. The Port Authvrity of the City of Saint Paul .has requested that the City Council !, give its requ�site consent pursuant to said law to facilitate the issuance of.said revenue! bonds by the Port Authority of the City of Saint Pau1 , subject to final approval of the details of s��id issue by the Port Authority of the City of Saint Paul . � RESOLUED, by the City Council of the City of Saint Pau"I, that in accordance with Lawsl of Minnesota. 1976, Chapter 234, the City Counci1 hereby consents to the issuance of the I aforesaid revenue.bonds for the purposes described in the aforesaid Port.Author-ity Resolut�on No. 1920, the exact details of which, including, but not limited to, provisions relating ', to maturities, interest rates, discount, 'redemption, and for the .issuance of additional ' bonds are to be determined by the Port Avthority, pursuant to reso7ution adopted by the I Port Authority, and the City Council hereby authorizes the issuance of any additional bond$ (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, ', II COUNCILMEN Requestgd by Department of: Yeas Nays � 1 Hunt � , Levine � In Favor , Maddox � McMahon snowaite� __ Against BY � wlson N�V 2 4 1981 Form Approve by Ci Adopted by Council: Date — � Certified P•s_e y Council cr ry BY i 1' ` � Appro by Nlayor. te Q� Approve Mayor for Submis ion Co I By BY PUBLISHED �' DEC 5 i981 . � � . ����r��*(.� �, Resolution I1o. 1920 RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, the purpose of Chapter 474, tdinnesota , Statutes, known as the Minnesota Municipal Industrial Develop- ment Act (hereinafter called "Act" ) as found and determined by the legislature is to gromote 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 conunerce 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 wRich will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population;� and WHEREAS, through the cooperative efforts of the Port Authority, the City of Saint Paul (the "City") and the fe�eral government (specifically including funds made available ta the City under an Urban Development Action Grant) the existin� Saint Paul Hotel has been acquired and is being renovated by �he Saint Paul Hotel Limited Partnership (the "Hotel Project") and a parking ramp is being constructed on land adjacent to the , Hotel by the Saint Paul Parking Ramp Li.mited Partnership �the , "Ramp Project") ; and , 'v7HEREAS, at the time of the negotiation for financing of the Hotel Project and Ramp Project the development of an office tower in the air rights above the Ramp Project was contemplated; and WHEREAS, by Resolution 1906, adopted on October 6, 1981, the Port Authority gave preliminary approval to the issuance of approximately $20, OUO,OOU in its industrial �, i _ __ . . . � � �}�`����j develogment revenue bonds to finance, on behalf of persons or i entities who were not then identified, the development of a � condominium office tower in the air rights above the Ramp � Project; and WHEREAS, The Port Authority of the City of Saint Paul (the "Authority") has received from thA American Hoist & Derrick Company (hereinafter referred to as "Company") a request that the Authority issue a portion of the revenue bonds given preliminary approval on October 6, 19t31 (which may be in the form of a single note) to finance the acquisition, installation and construction by the Company of a five floor � office facility (hereinafter called the "AmHoist Office ' Project ) in a portion of the air-rights above the Ramp 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 p"rovide the range of services and employment opportunities required by its population, and said Ar.�Hoist Office Project will assist the City in achieving that objective. Said Ar.iHoist Office Project will help to increase the assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enYiance the image and reputation of the City; and WHEREAS, the AmEioist Office Project to be financed by revenue bonds will result in substantial employment opportunities in the AmHoist Office Project; WHEREAS, the Aut�ority has been advised by repre- sentatives of the Company that conventional, commercial financing to pay the capital cost of the Ami3oist Office Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Arr�ioist Office 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 AmHoist Office 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 AmHoist Office Project; , . � � . , . ������ WHEREAS, the Authority did conduct a public hearing at which hearing the recommendations contained in the Authority' s staff inemorandum to the Commissioners were reviewed, and all persons who appeared at the Y►earing were , . given an opportunity to express their views with respect to the proposal. � . NOW, THF.REFORE, 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 � AmHoist Office Project constitutes properties, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Rct; that the AmFioist Office 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 Office Project, and that the effect of the AmHoist Office 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 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 AmHoist Office Project. 2. Subject to (a) 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 AmHoist Office Project and the issuance of the revenue bonds, and (b) the compliance with all � provisions of the Act relating to revenue bond financing, the AmHoist Office Project is hereby approved and authorized and I� � � � � �Y�'�1�$ 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 $10,000,000 is authorized to finance the costs of � the AmHoist Office 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. 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 AmHoist Office Project and a form of the � Underwriting Agreement. The form of said Agreements have been examined by the Commissioners. It is the purpose of said Agreements to evidence the commitment of the parties and their intentions with respect to the proposed AmHoist Office Project in order that .the Company may proceed without delay with the � commencement of the acquisition, installation and construction of the AmHoist Office Project 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 interim note or notes to provide temporary financing thereof) to finance the entire cost of the AmHoist Office Project upon agreement being reached as to the ultimate details of the AmHoist Office Project and its financing. Said Agreements are hereby approved in substantially the form submitted, and the President and Secretary of the Authority are hereby authorized and directed to execute said Agreements upon receipt of notice from staff that the negotiations with the Company as to tY►e final terms of such agreements have been satisfactorily completed. � 4. 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 t�7e lease (or other 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 l�onds; 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 r � � ' � ������ 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 I supplemental bond resolution to be adopted prior to the delivery of said revenue bonds. ' 5 . 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. 6. 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 AmHoist Off ice Project or to refund such revenue bonds; and for such purpose the Executive Vice President of the Authority is hereby authorized and directed to fozward to the City Council ' copies of this resolution and said Preliminary Agreement and ' any additional available information the City Council may request. 7. The Executive Vice-President of the Authority is hereby authorized to cause public notice of the pubZic hearing to be published describing the general nature of the Project and estimating the principal amount of bonds to be issued to finance the AmHoist Office Project and to prepare a draft of - the proposed application to the Commissioner of Securities, , State of Minnesota, for approval of the/ oist Office Project. Adopted November 3, 1981 ' � �� �. Attest " ��"`' Presid n e P Authority of the City of Sai Paul � , G%��. Secretary ', � r :� . . ; . V F ,� �. �"� � .0 8 -aag � or� a� : 12/19Ys �. . • REV. : 9�8��6 EXRL RESOLUT�IONS�AND 0 DINANCESDERS, ���� � � . RECEI�IED Da�e: November 3, 1981 N�v 6 9Mtf1 T0: MAY R EORGE LATIMER MAYORSOFFICE FR: E. St. Paul Port Authority � ' RE: AMERI N HOIST & DERRICK C0. $10,000,000 REVENUE BOND ISSUE � ACTION REQUESTED: • � In accordance with the Laws of Minnesota, Chapter 234, it is requested that the City Cou cil, by Resolution, a draft copy of which' is attached hereto, approve the issuance of appr.oxi mately $10,000,Q00 in revenue bonds to finance the construction of five floors of condo- minium office space equaling 61 ,750 square feet in the office tower planned atop the St. Paul Hotel Parking Ramp by American Hoist & Derrick Co. They would also be using 40 par ing stalls in the Ramp. They would also require the developer, Gene Rancone, to reserve two � additional floors equaling 24,700 square feet for future expansion. PURPOSE AND RATIONALE FOR THIS ACTION: � The purpose of the bond issue is to permit the construction of fi�re floors of condominiu office space by Amer�ican Ho�st & Derrick Co, for the relocation o�F their corporate offic to downtown St. Paul . American Hoist would be the Anchor tenant in the St, Pau1 Hotel Parking_ Ramp project. The company current�y emp1oys in excess of 1 ,Ob0 persans in �t. ul . ATTACHMENTS: Staff Memorandum Draft City Council Resolution Rort Authority Resolution No. 1920 cc: R. Thorpe, Manpower Ser�tices _� � o R � ' �'� � U '� �iOR1TY ; � � � � � � � ���` � OF THE CITY OF S7. PAUL ', Memorandum , TO; Board of Corrmissioners pqfE; Nov. 2, 1981 �I Special Meeting Nov. 3, 1981 ', r� �i , , FROM: E• A�'�Kr � I � , SUBJECT: PRELIMINARY AGREEMENT - AMERICAN HOIST & DERRICK C0. , $8,000,000 REVENUE BOND ISSUE ', CONDOMINIUM OFFICE - ST. PAUL HOTEL PARKING RAMP PROJECT ', RESOLUTION N0. 1920 1 . THE COMPANY AND PROJECT I American Hoist & Derrick Co. is in negotiation with developer Gene Rancar�e of Yorktown Investment Company, Inc. to become the Anchor tenant in the I office tower planned atop the St. Paul Hotel Parking Ramp. American Hoist's commitment is for five floors equaling 61 ,750 square fe�t of office space plus 40 parking stalls with an additional 140 stalls to qe obtained off-site either at the Civic Center or at the Port Authority's , parking lot at 7 Corners. I In their projections they are requiring developer Rancone to reserve twol additional floors �qualing 24,700 square feet for future expansion. The ' uncertainty of pending Congressional action on commercial industrial rev�nue bonds prompts us to request approval of the preliminary agreement prior o the public hearing required by the Minnesota Securities Commission and ; prior to the public sale hearing required for the sale of property. I American Hoist & Derrick Co. is a publicly held Fortune 500 company cur- '. rently employing in excess of 1 ,000 employees in St. Paul . We feel thei� relocation here, which has been encouraged by the Port Authority for som� time and keyed to this block' s development, is an important event in �I the future of downtown St. Paul . 2. FINANCING �, The bond issue will be made up as follows: I� Construction $ 6,500,000 C�pitalized Interest - 21 Months �, (Net of Interest Income) 1 ,903,000 i Reserve . 1 ,255,000 j Expenses 42,000 I Underwriting 300,000 � $10,000,000 'I II I � . 7 � ��� . , . � Board of Commissioners ' Nov. 2, 1981 �' Page -2- , This building will be condominiumized so that each of the entities will ' own their own sectors and have the opportunity to exercise options to I acquire title when the bonds are amortized. ' The terms of the lease are for 30 years and an option to purchase at $1 .d0. Fiscal and administrative fees are as follows: .42q per million for the first 10 years .54% per millien for the second 10 years .66q per million for the last 10 years ' The issue will be financed under Resolution 876. The final details of whether or not this issue will be placed privately, backed by Resolution '' 876, or marketed publicly will depend upon the success of negotiating an ' appropriate ; interest r�ate wi�h l�cal financial institut�ons pr�or to thle s�le cf bonds on the 24t" of ";ov�mb�r. Numerous details must yet be worked out between the parties involved, i.�. , Lincoln Hcte?s, �'efferson Compan„ the Port Author;ty, and other entitie� but we believe t�es2 can be accomplis�ed prior to the scheduled bond sal�. 3. !�ND�RWRITING ' Miller & Schr�eder Municip�ls has agreed to underwrite the bond issue with th� interest rate to be set on the date of bond sale. , 4. RECOMMENDATION Staff recommends adoption of Resolution No. 1920. � � EAK:jmo I i �