277432 WNITE - CITY CLERK
PINK - FINANCE COUtICll ...�����
CANARY - DEPARTMENT G I T Y O F S A I N T PA LT L f��
BLUE - MAYOR File � N O.
o ncil Resolution
Presented y `
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
l . On August 18, 1981 , the Port Authority of the City of Saint Paul adopted
Resolution No. 1864, giving preliminary approval to the issuance of revenue bonds
in the initial principal amount of approximately $1 ,240,000 to finance the construction
of a 30,000 Sq. Ft, office, manufacturing and warehousing facility on a site located
near the intersection of York Avenue and the East Interstate 35-E Frontage Road for
EMC Corporation.
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. 1864 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 ���
Levine In FavOr
Maddox
McMahon
� _��__ Against BY
Tedesco
Wilson
SEP 17 1981 Form Approve y Cit orne
Adopted by Council: Date — �
Certified Y• -s d by Council cre B �
!
sy —
Appr by :V►ayor: Date Appr v d by Mayor for S mi io to Council �
gy _ BY
UBUSHED S E P 2 61981
� � RT , . ��'����
AUTHORITY
OF THE CITY OF ST. PAUL
Memo�ondum
TO: BOARD OF COMMISSIONERS DATE August 18, 1981
(Meeting August 18 981 )
FROM: Donald G. Dunshee
SUBJECT: PUBLIC HEARING - SALE OF BONDS
PRELIMINARY AND UNDERWRITING AGREEMENT
EMC CORPORATION - $1 ,240,000 REVENUE BOND ISSUE - OFF-SITE
RESOLUTION N0. 1864
PUBLIC HEARING - SALE OF LAND
EMC CORPORATION
RESOLUTION N0. 1866
1 . The Company
EMC Corporation is a publicly held Company producing and marketing �
educational textbooks and multimedia materials for schools and
libraries. They operate one of the country's largest tape and
cassette duplication services for educational publishers, industry
and government. The Company was started in 1951 and has been leasing
space since 1961 in the Sibley building at Sixth and Jackson. Their
present building is being taken as part of the Block 40 project and
they will be forced to relocate by February 1 , 1982.
2. The Project
The Company proposes to construct a 30,000 Sq. Ft. office, manufacturing
and warehousing facility on a site located near the intersection of York
Avenue and the East Interstate 35-E Frontage Road. The site contains
213,721 Sq. Ft. which will provide the Company with space for expansion.
Space in the new facility would be divided as follows: office, 8,000
Sq. Ft. ; manufacturing, 10,000 Sq. Ft. ; warehousing, 12,000 Sq. Ft.
r .
BOARQ OF COMMISSIONERS
(Meeting August 18, 1981)
EMC Corporation
Page 2
3. Financing
The proposed financing would be done as an 876 industrial development
revenue bond issue with a 30 year term. Proceeds from the bond issue
would be as follows:
Land $ 220,000
Building (30,000 Sq. Ft. ) 890,000
Bond Issue Expense 20,000
Capitalized Interest (6 Months) 73,000
Debt Service Reserve ($157,000) (Funded by Co. )
Discount 37,000
1 ,240,000
� The Company will be funding in cash at bond closing the debt service
of �157,000. In addition to the monthly rent the Company will pay the �
customary fiscal and administrative fee based on the formula of .36%
per million per year for the first 10 years, .48% per million per year
for the second 10 years and .60� per million per year for the third 10
years of the lease. ` °
4. Financing
Miller and Schroeder Municipals has agreed to underwrite the bond issue
with the interest rate to be set at the time the bonds are sold.
5. Terms of the Lease
The lease would be for a term of 30 years and the Company would have
an option to purchase the property at the end of the 5th, lOth, 15th,
20th, 25th and 30th years for lOr of the original bond issue cost plus
retirement of any outstanding bonds.
The Planning and Economic Development Department notified District 5
of the proposed project and both the District 5 Planning Council and
South of Case Project Review Board have provided letters of support
for the project.
6. Recommendation
Staff has reviewed the project, the financial statements of the Corp-
oration and interviewed the officers and recommends approval of
Resolutions 1864 and 1866.
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� . Resolution No. 1864
,
RESOLUTION OF �
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHF.REAS, the purpose of Chapter 474, T4innesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by �
the legislature is to promote tY►e welfare of the state by the -
active attraction and encouragement and development of economi-
cally sound industry and comnerce 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 E1�9C Corporation, a
Minnesota �corporation (hereinafter referred to as "Company") a .
request that the Authority issue its revenue bonds to finance
the acc�uisition, installation and construction of an
approximately 30,000 square foot office, manufacturing,
warehouse facility (hereinafter collectively called the
"Project") in the City of St. Paul, all as is more fully
described in the staff report on file; and
WHEREAS, 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
eriployment 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 maintain a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
C ity; and
� � . � ��'����
WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project; �
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
"Underwriter" ) has made a proposal in an agreement (the
"Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finance the Project;
WfiEREAS, 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
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
Commissioners were reviewed, and all persons ��ho 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:
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
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.O1 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 inducemen.t 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
' • .
, � • � � �'�����
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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 employment opportunities required by its �
population, and will help to prevent the mavement of talent.ed
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 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 in an amount
not to exceed approximately $1,240,000 (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 whic2h was presented to
the Corrunissioners, are incorporated herein by reference and
approved.
3 . In accordance with Subdivision 7a of Section
474.01, P�Sinnesota 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 AUTHORITY 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 Preliminaiy Agreement between the Authority
and Company, relating to the proposed construction and
financing of the Project and a form of the UndeYwriting
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
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
,
� � ' � �'��!A'd,7
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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 hereby 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 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
1, to accept a final offer of the Underwriters made by the
Undezwriters to purchase said bonds and to execute an
underwriting 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.
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 Authority 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 �Authority is hereby
authorized and directed to fonaard to the City Council copies
of t�iis 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
the Authority in causing public notice of the public hearing
and in describing the general nature of the Project and -
estimating the principal arnount of bonds to be issued to
finance the Project and in prepari:ng a draft of the proposed
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 August 18, 1981
r
Attest ' ����
Preside
: o Authority of the City
of Sa'nt Paul
.
��/ ,
Secretary
�
�� � ' Councilman George McMahon
�—� Room 716 City Hall
'� f � �, St. Paul , Minn. 55102
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PORT AUTHORITY OF THE CITY OF SAINT PAUL
25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
August 18, 1981
Mr. James Bellus
Director
Planning and Economic Development Department
City of St. Paul
14th Floor, City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: EMC CORPORATION
$1 ,240,000 REVENUE BOND ISSUE
Dear Jim:
We submit herewith for your review and referral to the office of the
Mayor, City Council , and.:.the-.City Attorney's office details pertaining
to the issuance of revenue bonds in the amount of $1 ,24�,000 to finance
the construction of a 30,000 Sq. Ft. office, manufacturing and warehousing
facility on a site located near the intersection of York Avenue and the
East Interstate 35-E Frontage Road.
In addition to the staff inemorandum, we are attaching a draft copy of the
proposed City Council Resolution and a copy of Port Authority Resolution
No. 1864 which authorized the sale of the revenue bonds in the amount of
$1 ,240,000.
Your expeditious handling of this matter will be appreciated.
'� Yours truly,
t
-�._1��
Eugene A. Kraut
'Assistant Executive
Vice President
EAK:sjs
cc: R. Broeker
ROBERT F.SPRAFKA EUGENE A KRAUf,C.I.D. DONALD G.DUNSHEE,C.I.�. CLIFFORD E.RAMSTED RONALD O.SCHEITLI
EXECUiNE V�CF ORE9'JEM HSSISIANi EXECUfNE VICE PRESIDEM qRECfOR.INpU$IRIhL pE�,1ppM[iJf CMIEF EN('sINEER CMIEF.4CCOlF�1ANT
COMMISSIONERS GEORGE W.WIMER GEORGE R. McMAHON ARTHUR N.GOODMAN VICTOR P. REIM JEAN M.WEST WILLIAM WILSON WILUAM J. SEIFER'
PRE9DEM VICE W7ESDEM SECREIARV TREASURER
"�1
C.I.D. Certified Industrial Developer
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��Q � � C O��1'1��'�e'� O 1�1 FINANCE, MANAGEMENT & PERSONNEL
George McMahon � c�oifman, mn�es the foli-owing �
report on G.F. �. ._[� Ordinance
(17) �x Resolution
[� Other '
Tt1'L� ::
. At its meeting of September 10, 1981, the Finance Committee recommended approval
of the following. � � __-µ� � - � --- --
1. Resolution approving settlement of an appeal of an assessment for tree removal.
(12208-GM)
2. Resolution approving mortgages pledged by Midwest Federal Savings and Loan
Association to protect city funds held by Association. (12559-GM)
3. Resolution changing grade of Police Dispatcher in Section 3.B from nresent .
Grade 19 to Grade 23. .
. 4. Resolutions for renewal of life and he�lth insurance contracts for City and
School District employees from October 1, 1981 to September 30, 1982.
� (12227 through 12236=GM) -
5. Resolution approving issuance of revenue bonds by Port Authority to finance '
construction of manufacturing & warehousing facility for EMC Corporation.
(12223-GM) . -
6. Resolution approving issuance of tax exempt mortgage note by Port Authority to '
finance pollution control equipment at Knappen Molasses facility. (12224-GM)
7. Resolution approving issuance of revenue bonds by Port Authority to finance
construction �of manufacturing facility for Viking Drill and Tool, Inc. on
' Parcel E-5 in Riverview Industrial Park. (12225-GM)
8. Resolution approving issuance of tax exempt mortgage note by Port Authority
to finance construction of inedical office building attached to Midway Hospital
. for the University Park Building Limited Partnership. (12226-GM)
�n-y �,L SEVE�iTH FLOOR SAINT PAUI., ti�il`�ESOTa 55103
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EXPLANATION OF ADMINISTRATIYE ORF�ERS, J�i����
RESOLUTIONS, AND ORDINANCES
REGEIVED
. . AUG �4 �1981
Date: August 18 1981
, C�I�►�OR� +���!��
TQ: MAYOR GEO E LAT MER
FR� E. A. Kra �, Por� Authority �
RE: EMC COF�PORATION
$1 ,240,000 REVENUE BOND ISSUE �
ACTION REQUESTED: • � � .
In accordance with the Laws of Minnesota, Chapter 234, �it is requested th�t the
City Couneil , by Resolution, a draft copy of whi�ch is attached hereto, approve
the issuance of revenue bonds in the amount of approximately $1 ,240,OOt1 to fir�ai�e ,
the construction of a 30,000 Sq. Ft. office, manufacturing and warehousing f�cil�ty
on a site located near the intersection of York �venue and the East Int�rstate 35-E
Frontage Road. The site contains 213,721 Sq. Ft. which will provide the Con�any
with space for expansion.
PURPQSE AND RATIQNALE FOR THIS ACTION: -
The purpose of the bond issue is to finance the construction of a facility for
ENIC Carporatian. cansisting of 8,000 Sq. Ft. for office, 10,000 Sq. Ft. for
� manufacturing and 12,000 $q. Ft. for warehousing. EMC Corporation operates one
of the eountry's largest tape and cas�ette duplication services for educ�tional :
publishers, industry and government. Their present buildfng is being �take�n as
part of the B1ock 40 pro�ect and they will be forced to relocate by Febrt�ry l,
1982. Approximately 25 new jobs will be created as a result of this pro��t.
`
ATTACNMENTS:
Staff Menarandum
Draft City Coancil Resalution '
Port Authority Resolution Ne. 1864