Loading...
277729 WMITE - CITY CLERK ((('''��� `A, II PINK - FINANCE COUflC1I �����J � CANARY - DEPARTMENT G I T Y O F S A I N T PA U L � o Ft+ BLUE - MAYOR File N O. 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. 1922 giving preliminary approval to the issuance of approximately $2,OOD,00� in revenue bonds to finance the construction of one floor containing 12,350 square feet of I condominium office space in the St. Paul Hotel Parking Ramp project by Kueppers, Kueppers, Von Feldt & Salmen, a local law firm currently occuping space in the Northern Federal buil ing. 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 I consent of the City Council of the City of Saint Paul , by resolution adopted in accordancej 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 appro�ral of the I details of said issue by the Rort Authority of the City of Saint Paul . RESOLVED, by the City Council of the City of Saint Paul , that in accordance with Lawsi of Minnesota.1976, Chapter 234, the City Counci1 hereby consents to the issuance of the aforesaid re�renue_ bonds for the purposes described in the aforesaid Port.Author-ity Resolut�on No. 1922, 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 -reso"]ution adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additiona1 bond� (inc]uding refunding bonds) by the Port Authority, �Pound by.the Port.Authority to be , necessary for carrying out the purposes for which the aforesaid bonds are issued. ' COUNCILMEN Requestgd by Depactment of: Yeas Nays ��, T Hunt �� Levine In Favor Maddox � McMahon Showalter - __ AgaitlSt BY �ede�ee �Ison ' NOV 2 4 1981 Form Appro ed , Adopted by Council: Date — � , Certified a_s d by C un � Se ary BY sy � � 2 � �98� Approv Mayor for Sub is o to Council I Appr by :Nayor. Da e — i � By � PUBLISHED D E C 5 1981 • , Y }'�6/ � �C ���� Resolution No. 1922 I�, 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 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 I 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 metr000litan 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, through the cooperative efforts of the Port Authority, the City of Saint Paul (the "City") and the federal government (specifically including funds made available to the City under an Urban Development Action Grant) the existing Saint Paul Hotel has been acquired and is being renovated by the Saint Paul Hotel Li.mited� Partnership (the "Hote1 Project") and a parking ramp is being constructed on land adjacent to the • Hotel by the Saint Paul Parking Ramp Limited Partnership (the "Ram� Pro�ect" ) ; and WHEREAS, 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 OctoUer 6, 1981, the Port Authority gave preliminary approval to the issuance of approximately $20,00O,OOU in its industrial development revenue bonds to finance the developinent of a ,I condominium office tower in the air rights above the Ramp . Project; and I� i j . �i��~��a7 ' WHEREAS, The Port Authority of the City of Saint Paul (the "Authority") has received from Kueppers, VonFeldt & Salmen, a i�innesota partnership (hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds to finance � � the acquisition, installation and construction of a one-story office facility (hereinafter called the Office Project ) above �� �� the Ramp Project in the City of St. Paul, all as is more fully described in the staff report on f ile; and �aHEREAS, 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 Office Project will assist the City in achieving that objective. Said Office 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 Office Project to be financed by revenue bonds will result in substantial employment opportunities in the Office Project; , � WHEREAS, the Authority has been advised by repre- sentatives of the Company that conventional, commercial � financing to pay the capital cost of the Office Project is � available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the 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 Iow borrowing cost, the Project is economically more feasible; t�T'dEREAS, 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 tb finance the 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 hearing were given an opportunity to express their views with respect to the proposal. � � i i I , . ' , f �r'�` B i !±?� 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 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 Act; that the Office Project furthers the ' nurposes 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 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 unemployr.�ent, 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 (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 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 ' Office Project is hereby approved and authorized and the , issuance of revenue bonds of the Authority in an amount not to exceed approximately $2,000,000 (other than such additional revenue bonds as are needed to complete the Office Project) is authorized to finance the costs of the Office Project and the recommendations of the Authority' s staff, as set forth in the � staff ine�-norandum to the Commissioners which was presented to the Co.-nmissioners, are incorporated herein by reference and approved. i � �� . . � �������� 3. There has heretofore been filed with the Authority a for,n of Preliminary Agreement between the Authority and Company, relating to the proposed construction and financing of the 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 Office Project in order that the Company may proceed without delay with the commencement of the acquisition, installation and construction of the 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 issnance 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 Office Project upon agreement being reached as to the ultimate details of the Office Project and its financing. Said Agreements are hereby approved, and the President and Secretary of the Authority are hereby authorized and dir.ected to execute said Agreements. 'I 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 � 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 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 ' , l, to accept a final offer of the Underwriters made by the Underwriters to purchase said bonds and to execute an �nderwriting 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. 5 . The revenue bonds (includin� 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 ; . • i �. . ' . � y� ti A~�f+ 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 t�iinnesota, 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 Of�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 forward 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 public hearing to be published describing the general nature of t2ze Office Project and estimating the principal amount of bonds to be issued to finance the Office Project and to prepare a draft of the proposed application to the Commissioner of Securities, State of Minnesota, for approval of the Office Project. Adopted November 3, 1981 � � � , � Attest Pre The Po�Authority of the City of Saint Paul , . , � � ^ G%�. Secretary j � , . �=, /� +� �'� � � �_�9 - . _ QM Ol : i2/19?5 . . • . • Rev. : 918f76 � EXPLI4NATION OF ADMINISTRATIdE ORDERS, � Rf50LUTI0NS,�AND ORQINANCES � Date: November 3, 1981 �E(�� T0: MAYO ORGE lATIMER NOV 6 19�� ' � C FR: � E. A. , St. Paul Port Authori�ty M�YORS 0� RE: KUEPPERS, KUEPPERS, VON FELDT & SALMEN $2,000,400 REVENUE BOND ISSllE ACTIOW 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 approxi mately $2,000,000 in revenue bonds to finance the construction of one floor. cantaining 12,350 square feet of condominium office space in the St. Paul Hotel Parking Ramp projec by Kueppers, Kueppers, Von Fel�t 8� Salmen, a local� law f�irm current1y occupying space in the � Northern Federal building. PURPOSE AND RATIONALE F4it THIS ACTION: . . The purpose of the bond issue is to finance the constructian of one floor conta�ning 12, 50 square feet of condominium off.ice space in the St. Paul Hotel Parking Ramp praject by Ku {apers, Kueppers, Von Feldt & Salmen for use as their new law office. The developer of tfie offi e tc3wer project, Gene Rahcone of Yorktown :Investrr�nt Company, Inc. , plans to bui1d at leas a 17-stary office building atop the St. Paul •Hotel Parking Ramp completing the black on which reconstruction of the old St. Paul Hotel is now underway. RTTACHMENTS: Staff Memorandum � Draft: �City CounciT Resolution Port Authority Resolutian No. 1922 cc: R. Thorpe, Manpawer Services � PORT � �� � °� , � UTHORITY � OF THE CITY OF ST. PAUL Memorandum TO: 6oard of Commissioners DATE Nov. 2, 1981 Special Meeting Nov. 3, 1981 FROM: E,�A. t � � SUBJECT: PR�LIMINARY AGREEMENT - KUEPPERS, VON FELDT & SALMEN $2,000,000 REVENUE BOND ISSUE CONDOMINIUM OFFICE - ST. PAUL HOTEL PARKING RAMP PROJECT RESOLUTION N0. 1922 ; 1 . THE COMPANY AND PROJECT Kueppers, Von Feldt & Salmen is a local law firm.current1y occupying space in the Northern Federal building. They have agreed to acquire one I floor of 12,350 square feet in the new Amhoist building. 2. TERMS OF THE LEASE The terms of the lease agreement with option to purchase would be for 30 years under Resolution 876 with customary fiscal and administrative fees, sinking fund earnings, and any debt service reserve earnings inuring to the benefit of the Port Authority. 3. UNDERWRITING Mi11er & Schroeder Municipa1s has agreed to underwrite the bond issue with the interest rate to be to be estab1ished on the date of sale. ' i The bond issue wi11 be made up as follows: �� Construction $1 ,252,000 �, Reser�ce 253,000 I Capitalized Inter�st - 21 Months 420,000 ' Expenses 15,OOD � Underwriting 60,000 TOTAL $2,000,000 4. RECOMMENDATION Staff recomnends adoption of Resolution No. 1922. EAK:jmo '