276176 WMITE - CITY CLERK �;� j�,,
PINK - FINANCE ��y��`��
CANARY - DEPARTMENT � G I TY OF SA I NT PAIT L COIlI1C1I Vy
BL,UE - MAYOR • �
File N .
C
o ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On December 16, 1980, the Port Authority of the City of Saint Paul adopted Resolution
No. 1761 giving preliminary approval to the issuance of revenue bonds in the amount of approxi-
mately $4,500,000 to finance the construction of a 480 space parking ramp by the St. Paul
Parking Commission on the Harkins site. The lease would be between the Port Authority and
Ted Glasrud & Associates and a sublease from Ted Glasrud & Associates to the City of St. Paul .
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. 1761 , 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 Requestgd by Department of:
Yeas Nays , � �
Hunt J-.-
Levine In Favor
Maddox �
McMahon
snowaite� __ Against BY
Tedesco
Wilson
.�AN 13,1981 Form Ap r ed by City torn /
Adopte y Council• Date — B L C�'/�'K/ /Z /'��/�O.
Ce ied Yas- by C ncil Secretary - `/ � /
By _
App e by ;Vlavor: Da �N 15 ��� Ap o ed by Mayor for Sub ' si to�Council
By — BY
�� JA�J 241981
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Resolution No. 1761
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. 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 deterr�ined by
the legislature is to promote the welfare of the state by the
active attraction and encouragement and developr*►ent of economi-
cally sound industry and commerce to prevent so far as possible
the emerqence of blighted and marginal lands and areas of
chronic unemployr�ent and to aid in the development of existing
areas of blight, r�arqinal land and persistent unemnloyr.ient; and
. WHEREAS, factors necessitatinq the active promotion
and developr�ent of econoMically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly risinq increase in the ar�ount and cost of
qovernmental services reguired to meet the needs of the
increased population and the need for developr�ent of land use --
which will provide an adequate tax base to finance these �
increased costs and access to er�ployment opportunities for such
population; and
WHEREAS, The Port Authority of .the City of Saint Paul
(the "Authority") has received from � TGA, Inc. (hereinafter
referred to as "Company") a wholly owned subsidiary of Glasrud
Associates, Inc. .( the "Housing Developer") a request that the
Authority issue its revenue bonds (which may be in the form of
a single bond or note} to finance the acquisition, installation
and construction of parking facilities to be leased to the
Company (hereinafter collectively called the "Project") in the
City of St. Paul, and subleased to the City, all as is more
fully described in the staff report on file; and
WHEREAS, the Housing Developer has represented that .
the Project is a substantial inducement for and indispensable
for the feasibility of an owner-occupied housing project ( the
"Housing Project" ) to be located on top of the Project; and
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WHEREAS, the Authority desires to facilitate the
selective development of the cor�r�unity� to retain and ir�prove
:,� its tax base and to help it provide the range of services and
employment opportunities required by its population, and to
meet existing and projected demands for parking facilities int �
eh City of Saint Paul, and said Project will assist the City in .
achieving those objectives. 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 ir�age and reputation of the City; and
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employr�ent opportunities in the
Project and in the Housinq Project and is located within a
developr�ent district within the r�eaning of Minnesota Statutes,
Section 458. 191 and a redevelopment project within the neaning
of Minnesota Statutes, 462. 421 and accordingly consists of
"marginal" and "deteriorated" land within the meaning of those
provisions; 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 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; and
WHEREAS, Miller & Schroeder Municipals, Inc. ( the
"Placer�ent Agent") has made a proposal in an agreer�ent (the
"Placement Agreement") relating to the placement of the revenue
bonds to be issued to finance the Project; and
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 bv the issuance of its industrial revenue bonds; and
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WHEREAS, the Authorit_y did conduct a public hearing
pursuant to said n�tice, at which hearing the recor�mendations
.� contained in the Authority' s staff inern�randum to the
. Cor�missioners 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, P9innesota 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 1 of Section 474. 02
of the Act; that the Project furthers the purposes stated i�n
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
Cor�pany to undertake the Project and to the Housing Developer
to undertake the Housing Project, and that the effect of the
Project, if undertaken, will be to help meet existing and
� projected demands for parking facilities in the City and to -
encourage the developr�ent of econor�ically sound industry and
commerce and assist in the elir�ination and prevention of the
emerqence of bliqhted and r,larqinal land, and will help to
prevent chronic unemployment, and will help the City to retain ^
and improve its tax base and nrovide the ranqe of services and
' employment opportunities required by its population, and will
help to prevent the mover�ent of talented and educated persons
out of the state and to areas within the state where their
services r�ay 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 developr.►ent 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, sublease and other documents
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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 or
bond) in an amount not to exceed approximately $4 , 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 recor�mendations of the Authority' s staff, as
set forth in the staff inemorandum to the Commissioners which
was presented to the Comr,�issioners, are incorporated herein by
reference and approved.
3. In accordance with Subdivision 7a of Section
474.01, Minnes�ta Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the CorriMissioner of
Securities, requesting his approval, and other officers,
employees and agents of the AUTHORITY are hereby authorized to
provide the Cor�missioner with such prelir�inary inforr�ation as
he riay require.
4. There has heretofore been filed with the
Authority a form of Prelir.►inary Agreement between the Authority
and Company, relating to the propbsed construction and
financing .of the Project and a form of the Placer.►ent Agreenent.
The form of said Agreer�ents have been exami•ned 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 Cor�pany
may proceed without delay with the commencement of the
acquisition, installation and construction 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 deer�ed appropriate, any interim note or notes to
provide temporary financing thereof) to finance the entire cost
of the Pro�ect 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
Aqreements.
5. Upon execution of the Preliminarv Aqreement by
' the Cor�pany, the staff of the Authoritv are authorized and
directed to continue negotiations with the Company and the City
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so as to resolve any remaining issues necessary to the
preparation of the lease and other docur.►ents necessary .to the
adoption ,bv the Authority of its final bond resolution and the
issuance and delivery of. the revenue honds.
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 r:ieaning of any constitutional� or statutory lir.►itation 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 payrnent of the bonds (and interim note or notes) or
interest thereon. ' �
� 7. In order to facilitate cor�pletion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to (a) 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 r�ay prior to issuance or
from time to time thereafter deem necessary to complete the
Project or to refund such revenue bonds and (b) authorize
execution of the sublease and other financing documents
required to be executed by the City for the transaction and the
Housing and Redevelopment Authority of the City of Saint Paul,
Plinnesota ( the "HRA") is herebv requested to authorize �:_
execution of the financing docur�ents required to be executed by
the HRA for the transaction. The Executive Vice President of
the Authority is hereby authorized and directed to forward to
the City Council and HRA .copies of this resolution and said
Preliminary AgreeMent and any additional available infornation
the City Council or HRA r.►ay request for purposes of this
transaction.
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 Pro�ect 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 Comr�issioner 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 fror� and after the publication of notice of the
hearing, are in all respects ratified and confirmed.
Adopted ��- ���° ,
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- � Attest -
� e sa e •
The Po t Authority of the City
of Saint Paul
���- Secretarv
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�} . OM Ol : 32/19?5
� - • Rev. : 9/� ;16
� EXPLANATION OF A[N�9INISTRATIVE ORDERS, �t��,=�, �-E ��' _, ��r��
RESOLUTIONS, AND ORDI�I�►NCES - ,q�•
. . . DEG29Y�.�,
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. �ate: De�ember 19, 1980 R���iVF„U
T0: MAY ORGE LATIMER ��'�' � � �
FR: � l p,.LANNING & ECONOIV�If�
E. A. •�----� DEYEWPM�Nt
RE: ST. UL PARKING COhMISSION - 48U SPACf PARKING RAM�
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HARKINS SITE - $4,:500,000 REVENUE BQ1VD ISSUE
ACTION REQUE5TED:
In accordance with the l.aws of Minnesota, Chapter 234, it is requested that the City
Counc�l , by R�solution, a draft copy of which is attached hereto, approve the issuance of
a re�er�ue bond issue in the amount of approximately $4,500,000 to finance the constructf�n
of a �80 space parking ramp by the St. Paul Parking Commission ort the Harkins site. The
lease wouid be bet�ween the Port Authority and Ted Glasrud & Associates and a sublea�se
from Ted 6lasrud d� Assocfiates to the City of St. Paul .
PURPOSf AND RATIONALf FOR THIS ACTI4N: � � �
The purpose of the revenue b�nd issue is to finance the constructior� af a 480 space parking
ra�r+p by the St. Paul Parking Commission on the Harkins site. ' In addition to financing
�he c�nstruction of the project, the issue will also inciude expenses, skyway connecti�n
to the Oxford complex, and capitalized interest for one year. The parking ramp permits
a sig�ificant develapment in downtown St. Paul and meets the growing n�ed for additional
shoppers parking in the irronediate vicinity of Town Square.
AT"tACNMENTS:
Staff Merr�randum
Draft City Council Resolutian
Port Authority Resolution No. 1761
RORT
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AUTHORITY
.��:�. ��
OF THE CITY OF ST. PP►UL
Merrrorandum
TO: Board of Commissioners DA'fE Dec. 12, 1980
Meeting Dec. 16, 1980
FRO�: E. A, r �
SUBJECTs PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
SALE OF $4,500,000 REVENUE BOND ISSUE - ST. PAUL PARKING COMMISSION
480 SPACE PARKING RAMP - HARKINS SITE
RESOLUTION N0. 1761
The City of St. Paul will authorize the sale on December 17, 1980 of a
housing bond issue for Ted Glasrud & Associates to provide funds for the
. construction of 221 condominium units on top of the Harkins shoppers ramp.
This project was initially contemplated to be only a shoppers ramp financed
in a manner similar to the Radisson parking ramp to serve the needs of the
increased traffic volumes generated by the new Donaldson's store and the ��_:.:
Oxford development. The negotiations towards its construction by the Port
Authority were previously approved by the Board of Corr�nissioners.
We now propose to enter into a preliminary agreement with the Housing and
Redevelopment Authority, the City of St. Paul , Ted Glasrud & Associates ,
Inc. , and a shell corporation which will act as the intermediary for purposes
of construction which will be identified as TGA. The final documentation
will involve numerous documentation between the parties. The preliminary
agreement provides the terms under which these documents will be drawn and
authorize everyone involved to proceed with construction.
The final result will be a lease between the Port Authority and Ted Glasrud
& Associates- and a sublease from Ted Glasrud-& Associates to the�City of St.
Paul .
The Port Authority will issue approximately $4,000,000 in revenue bonds to
finance construction of the project, expenses, .skyway connection to the
Oxford complex, and capitalized interest for one year.
Under the authority of this preliminary agreement we will be authorized to
sell these bonds on or before January 31 , 1980, unless authorized to extend
the date of sale beyond that time by Ted Glasrud & Associates. The reason
for this project is to take advantage of l.ower interest rates that may be
available at that time.
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Board of Commissioners
Dec, 12, 1980
Page -2-
. This initial issue will be sold as a short-term note or short-term bonds
which will provide that we may reissue these bonds for a full 30-year term
at such time as it is deemed advisable based upon interest rates.
The Port Authority will maintain title to the land and the parking ramp for
the full term of the bonds. Such title to be transferred to us at ,bond
closing.
The agreements provide an interim sale to Glasrud so that construction can
comnence to meet his December 1981 deadline. The negotiated terms provide
the City of St. Paul will repay the Port Authority for the cost of the skyway
connection, and will deposit with the Port Authority the proceeds from the
sale of the air rights to Ted Glasrud & Associates. This will amount to
$500,000 which will be held in escrow by the Port Authority for a period of
five years. The principal and earnings thereon will be used to offset any
opera�ing or debt service deficits that may occur during this initial time.
The City under the terms of the agreement will operate the parking facility
as a public ramp with a guaranty from Oxford and Ted Glasrud & Associates
that each will take 10� of the spaces available in the 500-car ramp.
In addition, the earnings on the construction fund will be maintained by the
Port Authority as an additional cushion against deficits in debt service
funds. -
The parking ramp permii�s a significant development in downtown St. Paul
but more importantly meets the growing need for additional shoppers parking
in the immediate vicinity of Town Square.
Siaff recommends approval of the preliminary agreement by adoption of
Resolution No. 1761 .
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