277572 WHITE - CITY CLERK �Y'�}���
PINK - FINANCE COUi1C1I /
CANARY - DEPARTMENT G I T Y � O F S A I N T PA LT L �� n
BLUE - MAYOR File N O.
Cou cil Resolution
Presented B �
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On September 22, 1981 , the Port Authority of the City of Saint Paul adopted
Resolution No. 1896, giving preliminary approval to the issuance of a Tax Exempt
Mortgage Note (private placement) in the initial principal amount of approximately
$500,000 to finance the construction of a 7,000 Sq. Ft. office building on a site
located at the intersection of Grand Avenue and Ghatsworth in St. Paul for Fairmount
Investments, Inc. (Louis H. Meyers, Principal Owner) ;
2. Laws of Minnesota 1976, Chapter 234, provides that any Tax Exempt Mortgage Note
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 Tax
Exempt Mortgage Note 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 Note for the purposes described in the aforesaid Port Authority Resolution
No. 1896 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 � �- L� �7
Levine In Favor
Maddox d
McMahon B
snowaite� __ Against Y
Tedesco
Wilson
OCT 1 3 1981 Form Ap e y Ci Att m
Adopted by Council: Date — `
Certified P s y Council , cre BY � ���"��
gy,
�(�ll�� �
Approv 1�lavor: Dat O�T 1 5 1981 Appro y Mayor for Su is ion�Council
By B
PUBLISHED OCT 2 4 i981
P O R T � ���`����
AUTHORITY
OF THE CITY OF 5T. PNUL
Memorandum
TO: BOARD OF COMMISSIONERS �AT� September 21 , 1981
(Pleeting September 22, 1981 )
FROM: Donald G. Dunshee
SUBJECT: FAIRMOUNT INVESTMENTS, INC - OFF-SITE
PUBLIC HEARING - $500,000 TAX EXEMPT MORTGAGE NOTE (PRIVATE PLACEMENT) ,
UNDERWRITING AGREEMENT
RESOLUTION N0. 1896
CREATION OF INDUSTRIAL DEVELOPMENT DISTRICT
RESOLUTION N0. 1897
1 . THE COMPANY/PROJECT '
The Company is a Minnesota Corporation owned by Louis H. Meyers
formerly Senior Vice President of Twin City Federal Savings and
Loan Association. The Corporation proposes to purchase a parcel
of land on Grand Avenue at Chatsworth containing 16,906 Sq. Ft.
and constructing a 7,000 Sq. Ft. office building for lease to a
local real estate company. Mr. hleyers has secured a committment
from Burnett Realty to lease the entire facility.
2. FIhANCING
Miller & Schroeder Municipals has agreed to try and find a private
placement for the Tax Exempt Mortgage. The total mortgage will be
approximately $500,000 and done on the credit of the partnership and
not as a Port Authority 876 issue. We project a thirty year term
with our standard fiscal and administrative fees of .42, .54 and .66.
In order for the Port Authority to issue bonds, it is necessary that an
industrial development district be created. Staff recommends approval of
Res�lution No. 1897 creating a district for Fairmount Investments, Inc. �
Staff also recommends approval of Resolution No. 1896 for a �a500,000 Tax
Exempt Mortgage Note (Private Placement) and Underwriting Agreement .
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Resolution No. 1896
�=
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
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 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
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul -
(the "Authority") has received from Fairmount Investments,
Inc. , a Minnesota corporation (hereinafter referred to as
"Company") a request that the Authority issue its revenue bonds
(which may be in the form of a single note) to finance the
acquisition, installation and construction of a 7, 000 square
foot office building (hereinafter called the "Project" ) in the
City of St. Paul, all as is more fully described in the staff
report on file; and
WF�KEAS, the Authority desires to facilitate the
selective development of the community, to retairi 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 that objective. Said
Project will help to increase the assessed valuation of the
City and help inaintain a positive relationship between assessed,
valuation and debt and enhance 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 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
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
"Placement Agent") has made a proposal in an agreement (the
"Placement Agreement" ) relating to the placement 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
jJ�iEREAS, 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
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 la 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 substantial inducement to the
Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to errcourage the development of
economically sound industry and commerce and assist in the
prevention of the emergence of blighted and marginal land, and
� . �1`1��7�
� 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 employrnent 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 w2'iere 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 furt2zerance 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 araount not to exceed
approximately $500,000 (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 AUTHORZTY 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 Preliminazy Agreement between the Authority
. and Company, relating to the proposed construction and
financing of the Project and a form of the Placement 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 Project in order that the Company
may proceed without delay with the commencement of the
acquisition, installation and construction of the Project with
tY►e 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
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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 Yiereby 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 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 bonds.
� 6. 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.
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 Aut'hority 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 AutYiority 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.
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
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application to the Commissioner ' 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.
Adopted September 22, 1981 /J - .
G �
Attest �
Presi
The Port uthority of the City
- of Sain Paul
, �
G� ��'� � �
ecretary
G M �- P� c� �- g�-.�7�
QM 0'1; t 2/19�5
� . • Rev. : 9J8I76
� EXPLANATION OF ADMINISTRATIVE �RDERS, � r-��}
RESOLUTIQNS, AND ORDINANlCES, � i�i�` I�I fw
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Date: September 22, 1�81 �P Zq��
_ . ,.,--••..-�.-r�(�C
. T0: MRYO EORGE LATIMER �
FR; � Eugen aut .
:RE: fAIRMOUNT INVESTMENTS, INC. (LOUIS H. NEYERS, PRINCIPAL OWNER)
$500,000 TAX EXEMPT MQRTGAGE NOTE (PRIYATE .PLACEMENT)
ACTI aV ltEQUESTED:
In accordance with the Laws of Minnesota, Chapter 234, it is requested that the �
City Cour�cil , by Resolution, a draft copy-of which is attached hereto, approve
a $500,Q00 Tax Exempt Mortgage Note (Private Placement) to finance the construction
of a 7,Ofl0 Sq. Ft. office building on a site locat�d at the intersection of Grand �
Avenue and Ghatsworth in St. Paul . The site contains 16,906 Sq. Ft.
PURPOSE AND RATION�tL.E FOR THIS ACTION: - � �
The purpose of the Tax Exempt Mortgage Note is to finance the construction of
an office buildin�g for a national r�al estate firm who wishes to expand and
relocate their St. Paul operation. Approximat�ly 30 new jobs will be created
as a result of this project. '
ATTACHMENTS:
Staff Memorandum �
Draft City Council Resolution
Port Authority Resolution No. 1896
. .__..` • CI�rY°. o�` ci�.IivT F.A.�C7'L �'���`�
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� OFFxCE OF' THi.CITY COWi CIL
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� O a fi e ; October 8, 1981
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� co �� � �-�;� � � . � � � o �°r .
T0 : Soin�T Paui City Council .. . �
F R O iy� ' C O TI I m I��Q@ ��l FZNANCE, MANAGEM;NT & PERSONNEL .
George McMahon � G11oI�mClt1� makes the following '
report on� C.F. , '� �-[� Ordinance �
(�) � Resolution .
� Other �
`f' !'t"L E :� �' -
At its meeting of October 8, 1981, the Finance Committee recommended �approval
' of the following: . � -
--.. _ _ __ __ _.._„- __ .-- --- _...
1. Resolution approving issuance of up'to $25,000;000 in bonds by Port �Authority
to finance construction in Energy Park. _
2. Resolution approving issuance of .$500,000 Tax Exempt Mortgage Note by the Port
Authority to finance construction of office building for Fairmount Investments, Inc.
(12334-GM) . .
3. Resolution approving issuance of approximately $1,200,000 iri revenue bonds by
• the Port Authority to finance new pollution control equipment For Cargill; Inc.
' ' (12 33 3-GM) � � ' ' .
4. Resolution authorizing issuance of duplicate City of Saint Paul bonds and
coupons reported lost. (12319-McM) � . . . �
5. Resolution replacing class specification for Storekeeper I. (12267-GM) ' •
6. Resolution amending minimum qualifications on class specification for Po�ice - '
Officer. (12266-GM) ,
7. Resolution removing title of Food Service Equipment Specialist from the
Equipment Maintenance (Non-Supervisory) Group and placing it in Maintenance
Supervisory Group. (12275-GM)
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CI'IY H�'1LL SEVE?v'TH FLOOR SAINT PAtJi.,14iI`NESUTr1 S�IOZ �
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