277573 WHITE - CITY CLERK ,�
PINK - FINANCE COUIICII ������
CANARY - DEPARTMENT G I T Y O F SA I N T PA U L
BLUE - MAYOR File N O. � �
ncil Resolution
Presented By .
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. 1885 giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of $1 ,200,000 to finance new pollution control equipment for
Cargill , Inc. at the North Star Steel plant in Red Rock Industrial District. North Star
Steel is a wholly owned subsidiary of Cargill , Inc.
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. 1885, the exact details of which, including, but not limited to, prov.isions 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 / C Q �V'
Levine � �Il FBVOi
Maddox
nn�nnano� _ A gai n s t By
Showalter -
Tedesco
Wilson
OCT 13 1981 Form Appro d C� ttorn �"
Adopted by Council: Date � �
Certified _s d by Counci , ret By '�
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Appro by :1Qayor: D OCT i 5 1981 App v by Mayor for S i 's ' 'n to Council
By B
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y ' P'ORT . �,
� UTHORITY '�����
OF THE CITY OF S�. P�UL
Memorandum
TO: BOARD OF COMMISSIONERS DATE Sept. 15, 1981
(Sept. 22, 1981 Regular Meeting)
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SUBJECT: PUBLIC HEARING - SALE OF BONDS - PRELIMINARY & UNDERWRITING AGREEMENT
CARGILL, INC. (NORTH STAR STEEL) •
RED ROCK INDUSTRIAL DISTRICT
$1 ,200,000 INDUSTRIAL REVENUE BOND ISSUE (PRIVATE PLACEMENT)
RESOLUTION N0. 1885
1 . THE COMPANY & THE PROJECT
The project is for the addition of $1 .2 million in pollution �
control equipment at North Star Steel in Red Rock Industrial
District. North Star Steel is a wholly owned subsidiary of
Cargill , Inc. under whose credit the bonds will be issued.
The addition of this new pollution control equipment is in
compliance with standards set by the Pollution Control Agency.
The improvements to be added to the facility involve the following:
A. Lagoon - A new lagoon is being constructed which will eliminate
any leaching of heavy metals into the ground waters. We are
currently not in compliance with the temporary lagoon that is
used on occasion.
B. Selas Furnace Discharge - The discharge. containing pollutants
currently flows into the Mississippi River backwaters. It
will be diverted into the closed loop system in the new water
facility. �
C. Casting and Electric Furnaces - Four sealed heat exchangers
will be used to supply a closed water system for these opera- �
tions. The water is treated with chemicals which cannot be
discharged to any water system.
2. FINANCING
The financing will be in the form of industrial revenue bonds as
a non-876 issue. The bonds will be issued under the credit of .
Cargill , Inc. The Port Authority wi11 co1lect its normal fiscal
: and administrative fees. The term of the bonds will be for 30
years. ,
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BOARD OF COMMISSIONERS
Sept. 15, 1981
Page -2-
3. RECOMMENDATIONS
Staff has reviewed this project with the company, Miller &
Schroeder Municipals and has provided the appropriate notice
to the District Council .
Staff r.ecommends approval of Resolution No. 1885• .
BAM:ca
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r �� � Resolution No. 1885 �
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� RESOLUTION OF
THE PORT AUTHOR?TY 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 �•�elfare of the state by the �
active attraction and encouragenent 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
t�i�REAS, factors necessitating tlie active promotion
and development of economically sound industry and comrnerce 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 develonment a� land use
which will provide an a'clequate tax base to finance tliese
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 the North Star Steel
Company (hereinafter referred to as "Company") a request that
� the Autl-►ority issue its revenue bonds to finance the
acquisition and installation of certain pollution control
equipment to be located in the facility currently located in
the City of St. Paul (which acquisition and installation is
hereinafter called the "Project") all as is more fully
described in the staff report on file; and
WHEREAS, the Authority desires to facilitate the
selective development of the com7r�unity, 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
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; � Project will assist the City in achieving that 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 image and re�utation of the
City; and
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 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 rnore :
feasible; and _
L�lf-iEREAS, Miller & Schroeder Municipals, Inc. and A.
G. Becker Incorporated (collectively the "Underwriter") have
made a proposal in an agreement (the "Underwriting Agreement")
relating to the purchase of the revenue bonds to be issued to
. finance the Project; and
WHEREAS, the Authority, pursuant to i�4innesota
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 t�iat 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' s staff inemorandum to the
Cozunissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
��ith 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 .
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• with one or more revenue producing enterprises engaged in any
business within the meaning of 5ubdivision 1 of Section 474.02
of the Act; that the Project furthers tlze purposes stated in
Section 474.01 of the Act, that t7ie 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 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 t'he range
of services and enployment 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 tYieir services may not be as effectively used and
will result in more intensive develonment 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 ot}ier revenue agreement as
defined in the Act, and other documents necessary to evide.nce
and effect the financing of t71e Project and the issuance of the
revenue bonds, the Pro��ct=is hereby approved and authorized
and the issuance of revenue bonds of the Authority in an amount
not to exceed approaimately $1 , 200, 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 f.orth in the
staff inemorandu.*n 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-Presiclent 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 AUTHORITY are hereby authorized to
provide the Commissioner with such preliminary information as
he may require.
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4. There has 'heretofore been filed with the
Authority a form of Preliminary Agreement between the Authority
and Company, relating to the proposed acquisition, installation
and financing of the Project and a form of the Underwriting
Agreement. The forra of said Agreements have been examined by
the Cominissioners. It is the purpose of said Agreements to
evidence the corar�itment of the parties and their �intentions
with resPect to the pronose3 Project in order that the Company
may proceed without delay with the comrnencement of tne
acquisition, installation 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 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 "
� 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 I�utliority 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 tlie 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
indeUtedness of the Authority or t'ne City of S�int 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 ciiarge 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 t'ne 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 conte;anlated and any
additional bonds which the Authority r:iay prior to issuance or
from time to time thereafter deem necessary to complete the
Project or to refund suclz revenue bonds; and for such purpose
the Executive Vice President of tlle 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 -
tlie Authority in causing public ,riotice of the public hearing
and in describing tlie general nature of the Project and
estimating the principal amount of bonds to be issued to
finance tY�e Project and in preparing a draft of the proposed
application to the Commissioner of Securities, State of
A9innesota, for anproval of tize 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 resl�ects ratified and conf irmed.
Rdopted 5entember 22, 1981 :
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Attest
Pres '
The Port A thority of the City
of Saint Paul
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ecretary .
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� EXPLANATION OF ADMINISTRATIVE ORDERS, � /5`�3 :
RESOLUTIOKS, AND ORDINANCES - ��� �
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Date: september 22, 19s1 �jE�'Z���� ,
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T0: MAYOR RGE LATIMER � . �
FR: � E.A. Kr t. Paul Port Authority �
RE': CARGILL," INC. (NORTH STAR STEEL)
$1 ,200,000 REVENUE BOND ISSUE
ACTION REQUESTED:_
In accordance with the Laws af Minnesota, Chapter 234, it is requested that the City
Counc�l , by Resolution, a draft copy of which is attached hereto, approve the issuance
of revenue bonds in the amount of approximately $1 ,200,000 to finance new pollution control.
equipment for Cargill , Inc. at the North Star Steel plant in Red Rock Industrial District.
Pt�RPQ5E AND RATIONALE FOR THIS AGTION: - �
The purpose of the bond issue is to finance new pollution control equip�nt at NQrth Star
Steel in Red Rock Industrial District. The term of the bonds wi11 be far 30 years. Approx-
imately. five new jobs will be created. , ,
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This is a non-Resolution 876 issue with the bonds being issued under the credit of Cargill ,
Inc.
ATTACHMENTS: ' .
Staff Nl�morandum '
Draft City Council Resolution
Port Authority Resolution No. 1885
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Q a t e . October 8, 1981
G 0 �ii �] � 1 I ` E � . � � � 4 '��`
TO : Sain� Poui City �ouncil . �
. F R Q +�, � C o�r►m i tt e� �n FINANCE, M�INAGEMENT & PERSONNEL � �
George McMahon � C h O 1 F'(Tt a t1� tn tl!(e S t h e f o! i o w i n q � �
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r e p a r t o n� C.F. '- -.� O r d i n cin-e��' �
(�) � Resolutian .
[� Other . . .
�' t�I'L� :- � .• -
At its meeting of October 8, 1981, the Finance Committee recommended approval
' of the following: � _
Y l. Resolution approving issuance of up'to $25,OQO;OOO 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 Investsnents, Inc.
(12334-GM) .
3. Resolution approving issuance of approximately $1,200,000 in revenue bonds by
• the Port Authority to fir�ance new pollution control equipment �or Cargil2, Inc.
' " (12333-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. Resolu�ion amending minimum qualifications on class specification for Police = '
Officer. (12266-GM)
7. Resolution removing title of Food Service Equipment Specialist from tk�e
Equipment Maintenance (Non-Supervisory) Group and placing it in Maintenance
Supervisory Group. (12275-GM) �
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CITY H�'�LL SEVEitiTH FLOOR SAINT PAUL, S�1Iti�iESUTA 55102 �
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