276478 WHITE - CITY C{.ERK r.-.,., ,� *_s
PINK - FINANCE
CANARY - DEPARTMENT COUIICII
BLUE - MAYOR � G I T Y O F S A I N T PA U L File � N O. '� '� � j
� : C cil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On March 5, 1981 , the Port Authority of the City of Saint Paul adopted Resolution
No. 1787 givin preliminary approval to the issuance of revenue bonds in the amount of
approximately �480,000.00 to finance the acquisition of the A.B.C. Freight Forwarding
Company building in Riverview Industrial Park by P.L. Co. Mr. Robert Short of P.L. Co.
proposes to use the existing building for local cartage business. The A.B.C. building
contains 14,900 Sq. Ft. and is situated on an 86,000 Sq. Ft. site which was purchased
by A.B.C. Freight Forwarding Company in 1970;
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 St. 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. 1787, 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.
COU[VCILMEN
Yeas Nays /� Requestgd �epartment of:
Hunt lV �
Levine In Favor
nneadoX �
McMahon
snowa�ter A gai n s t
Tedesco -
�Ison MAR 1 � �g0� ,
���'� Form Approv by orney
Adopted Council Date �.- -
.
Cer � ied Pa:- y Council Secretary
�_�
Ap d by ;Vlavor: e `MAR 13 1981 Approve y Mayor for Submission to Council
By BY
p�t,tstt€� MAP � 1 1981
��... .__ ' '�'ITY 07E' �A3NT �A7TI.�
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�;._ �t� Da t e . March 5, 1981
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To : saint �'�u� c;ty co�nc�� .
FRO � = COt17t'f'tif��@ QI'1 FINANCE, MANAGEMENT AND PERSONNEL
George McMahon, chairman, makes the fo� lowing
report on �.F. [�] 9rc�nance
�� ) [� Resoiu#ion
� Other
T l�L� :: Resolution approving sale of $480,000 Revenue Bond Issue for
P. L. Company - -
At its meeting of March 5, 1981 , the Finance Corr�nittee .recommended the
above resolution be forwarded direct to the City Council without. a
committee recommendation. � �
CSTY �I..�LL SE'JENTH PLGOR SAII�IT PAUL, I�tIN�tEapi.� SSI02
:''>�.,'�.r J '�.:•'p � �:
..�*'� ' , . .
F ORT
-� UTHORITY ����*�g
OF THE CITY OF S7. PAUL
Memorandum
TO: BOARD OF COMMISSIONERS DATE March 5, 1981
(Meeting March 5, 1981)
► �
M1�
/1 �[��\
�,� i��
�Rp�q; Donald G. Dunshee ��,'i'
;
SUBJECT: PUBLIC HEARING - SALE OF BONDS - INDUSTRIAL DEVELOPMENT REVENUE BOND ISSUE,
LOAN AND UNDERWRITING AGREEMENT - PRIVATE PLACEMENT - $480,000 - P.L. C0.
RESOLUTION N0. 1787
1 . THE COMPANY
P.L. Co. has asked the Port Authority Corr�nission to consider the
issuance of $480,000 in industrial development revenue bonds to
be privately placed. On December 10, 1979 the Port Authority
Commission approved the assignment of the $690,000 revenue bond
issue of Exec-U-Air, Inc. to P.L. Co. The original Exec-U-Air
lease was for the construction of a 28,000 Sq. Ft. airplane hanger
at the downtown St. Paul Airport. The proceeds from the privately
placed bond issue would be used to finance the acquisition of the
existing A.B.C. Freight Forwarding Company building in Riverview
Industrial Park.
2. THE PROJECT
The company proposes to acquire and remodel the existing truck terminal
for use as a local cartage operation. The existing building contains
14,900 Sq. Ft. and is situated on an 86,000 Sq. Ft. site which was
purchased by A.B.C. Freight Forwarding in 1970.
Under amendment to Chapter 474 the Port Authority published notices in
the Legal Ledger and St. Paul Dispatch/Pioneer Press on February 17, 1981
and February 17, 1981 respectively that the proposed project would be
considered by the Port Authority Commission on Thursday, March 5, 1981 .
If the project is approved by the Commission on Thursday, March 5, 1981 ,
a formal application will be submitted to the Commissioner of Securities
before the bond issue is closed.
On January 23, 1981 , the Port Authority notified District 3 of the pro-
posed project and I have discussed the acquisition with the Cortvnunity
Organizer for the district.
. '
� � ,�"`-.xi y 74�
������
BOARD OF COMMISSIONERS '
(Meeting March 5, 1981)
P.L. Co.
Page 2
3. FINANCING
The proposed financing of the project would be done through a private
placement of an industrial development revenue band issue through Miller
�& Schroeder. Proceeds from the bond issue would be as follows:
Facility Acquisition $450,000.00
Bond Expense 15,6Q0.00
Discount 14,400.00
$480,000.00
In addition to the monthly rent, the Company will pay a fiscal and
administrative fee as follows:
First 10 Years �300 per month per million issued
4. TERMS� OF THE BOND ISSUE
The bond issue would be for a term of ten years beginninc �larch 1 , 1981
and terminate February 28, 1991 at an interest rate of 12;:.
Under the terms of the original assignment for P.L. Co. cf tiie Exec-
U-Nir building Mr. Robert Short transferred the ownership of a facility
he owns at 215 South llth Street in Minneapolis into P.L. Co. as an
asset. At the time the facility was transferred into tne Corporation
as an asset, an NiAI Appraisal was done estimating a value of $950,000.00.
The building is free and clear of a mortgage and P.L. Co. will be granting
a first mortgage on the facility to the Port Authority as additional
security.
P.L. Co. would have an option to purchase the facility at the end of the
lease for $1 .00.
5. RECOMMENDATION
Staff has reviewed the project in detail along with the financial state-
ments of the corporation and recommends approval of Resolution No. 1787 �
authorizing the issuance of $480,000 in industriai development revenue
bonds through a private placement.
: . , � OM Dl: 12/i975
. � • Rev.: 9l8J76
fXPLANATIpN OF AOMIN�STRATIVE ORDERS, 2�6�"�8 ;
RESOLUTIONS, AND ORDT�lANCES
Da�e� March 5, 1981
70: MAYOR G GE LATIMER
FR: : E. A. K a � � . .
�= P.L. C0. ACQUISITION OF THE A.B.C. FREIGHT FORWARDING COMPANY
BUILDING - RIVERVIEW INQUSTRIAL PARK - $480,000.00 REVENUE BOND ISSUE -
PRIVATE PLACEMENT
ACTI�t REQUESTED: '
In accordance rvith the Laws of �Minnesota, Chapter 234, it is requested that the
City Council , by Resolution, a draft copy of which is �attached fiereto, approve
the issuance of a revenue bond issue in the amount of appraximately �480,000.00
to finance the acquisition of the existing A.B,C. Freight Forwarding Company •
' Buiiding in Riverview Industrial Park. Mr. Robert Short proposes to use th�
existing truck terminal for local cartage business. The existing buil�ing con- - _
tains 14,90D Sq. Ft. and is situated on an 8b,0Op Sq. Ft. site which was purchased
. by A.B.C, Freight Forwarding in 1970. �
PURPQSE AND RA7IpNALE FOR THIS ACTION: �
The ,purpose of the revenue bond issue is to finance the acqu:isition of the A.B.C.
Freight Forwarding Company building in Riverview Industrial Park by P.L. Co.
The building would be used for 1oca1 cartage business. Approximately fifteen
new jobs will be created as a resultoof this pro�ect. ,
- .
ATTA�„HMEN7S:
S.taaff Memorandum
:� �� City £ounci1 Resolution
Port Authority Resolution No. 1787