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277433 WHITE - CITY CLERK �y PINK - FINANCE � /A�^� CANARY - DEPARTMENT G I T Y O F S A I N T PA IT L COl1tIC1I - -- /L�..s-S BLU6 - MAYOR � �b�V File N 0. cil Resolution ' Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On August 18, 1981 , the Port Authority of the City of Saint Paul adopted Resolution No. 1869, giving preliminary approval to the issuance of a tax exempt mortgage note in the initial principal amount of approximately $685,000 to finance new pollution control equipment for Pacific Molasses at the Knappen Molasses facility in Barge Terminal No. 1 . Knappen Molasses is a division of Pacific Molasses Company of San Francisco. 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. 1869 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 Levine In Favor Maddox McMahon �„�„� � _ Against BY Tedesco Wilson ��P Form Approv d by 'ty Adopted by Council: Date � � �� t Certified a s by Council , re B By � App y 19ayor: Date — SEP 18 �g�� App v d y Mayor for Su is on to Council gy _ B PUBLISHED SEP 2 61981 � P � R T � � ��'7�3� AUTHORITY OF THE CiTY OF ST. PAUL Memorandum TO: BOARD OF COMMISSIO ERS DATE Aug. 13, 198; (Aug. 18, 19 - egular Meeting) � � , %i' j I � FROM: B.A. Maus � � � ` � � SUBJECT: KNAPPEN MOLASSES (PACIFIC MOLASSES) PUBLIC HEARING - SALE OF BONDS - PRELIMINARY & UNDERWRITING AGREEMENT $685,000 TAX EXEMPT MORTGAGE NOTE RESOLUTION No. 1869 1 . THE COMPANY AND THE PROJECT The project is for the addition of $685,000 in pollution control � equipment at Knappen Molasses, a long term tenant of the Port Authority at Barge Terminal #1 . Knappen Molasses is a division of Pacific Molasses Comapny a:f Sar� Francisco, California. Pacific Molasses is a wholly owned subsidiary of Tate and Lyle, a British holding company. Knappen Molasses currently manufactures and blends feed supplements using molasses and fish by-products as a base. The addition of this new pollution control equipment is in compliance with standards set by the Pollution Control Agency and will automatically function whenever the manufacturing process is underway. The addition of this new equipment will increase the production of the plant by 30% and is also projected to add three new jobs over the next year. The staff has met with District 1 to review the project. The District Council has endorsed the project and recommended approval . 2. FINANCING: The financing will be in the form of a tax exempt mortgage note placed with the primary depository of Pacific Molasses which is the Union Bank of San Francisco. This is a non-876 project not involving the security of the Port Authority. The Port Authority will collect its normal fiscal and administrative fees. The term of the mortgage will be 10 years. Pacific Molasses shows a current net worth of $16,000,000. 3. RECOMMENDATIONS: - Staff has reviewed this project with the company, Miller & Schroeder and the District Council and recorr�nends approval of Resolution No. 1869. . BAM:ca Attach. � y < < 2����� r .+.- Resolution No. 1869 . RESOLUTION OF THE PORT AUTHORITY OF THE CZTY 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-�industrywand- commerce--ta-prevent�--so�far`�ars'"'�s'�ible 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 the Pacific Molasses Company, a California Corporation (hereinafter referred to as "Company") a request that the Authority issue its revenue note to finance the acquisition, installation and construction of pollution control equipment to be installed in the Knappen Molasses 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 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 maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; and � . . � • , � � � � � 77�.3� ., - 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 law borraving cost, the Project is economically more feasible; � 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 WHEREAS, the Authority did conduct a public hearing pursuant to said notice, at which hearing the recommendations contained in th'e 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: , 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 1 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 th� 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 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 movement of talented •' � � 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 ,�s 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 note as to the details of the revenue agreement and other documents necessary to evidence and effect the financing of the Project and the issuance of the revenue note, the Project is hereby . approved and authorized arid the issuance of a revenue note of . the Authority in an amount not to exceed approximately $685,000 ..----.--. - - . --..=(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 Commiss'ioners 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 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 Preliminary Agreement between the Authority and Company, relating to the proposed construction and financing of the Project. 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 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 Y►ereby � approved, and the President and Secretary of the Authority are hereby authorized and directed to execute said Agreements. � , � • v � � � ' •�� � �� �i ��� `" � � • 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 tlze adoption by the Authority of its final note resolution and the issuance and delivexy of the revenue note. 6. The revenue note 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 Author'ity or ,_.�__ _______�.. ___.._t�ie.. City is.__pledged ,for the payment of the note or interest _ _...w.. --- � tYiereon. __ � . _ . 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 note herein contemplated and any additional bonds which the Authority may prior to issuance or from tirne to time thereafter deem necessary to complete the Project or to refund such revenue note; and for such purpose the Executive Vice President of the Authority is hereby authorized and directed to fozward to the City Council copies ot-this resolution and said Preliminary Agreement and any additional available information the City � Council may request. 8. The actions o� the Executive Vice-President of the Authority in causing public notice of the public hearing and in describing the general nature of tY►e Project and estimating the principal amount of the note to be issued to finance the Project and in preparing 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 �Jf notice of the hearing, are in all respects ratified an /confi ed. � � ` � Adopted August 1�3, 1981 Attest % Pre ' ent �, The Port uthority of the City � ;� of Saint Paul � cretary . � �. �� /�� ;�, , � � 7 �� � ' PORT AUTHORITY OF THE CITY OF SAtNT PAUL 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN, 55102 • PHONE (61�'j 2�4-5686 August 18, 1981 Mr. James Bellus Director Planning & Economic Development Department City of Saint Paul 14th Floor City Hall Annex St. Pau1 , Minnesota 55102 SUBJECT: PACIFIC MOLASSES COMPANY (KNAPPEN MOLASSES) $685,000 TAX EXEMPT MORTGAGE NOTE Dear Jim: We submit herewith for your, reuiew and referral to the office of the Mayor, City Council and the City Attorney's Office details pertaining to the issuance of a tax exempt mortgage note in the amount of $685,000 to finance new pollution control equipment at the Knappen Molasses facility in Barge Terminal No. 1 . 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. 1869 which authorized the sale of the tax exempt note in the amount of $685,000. Your expeditious handling of this matter will be appreciated. Yours truly, ugene A. raut Assistant Executive Vice President EAK:ca cc. R. Broeker !OBERT F.SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CUFFORD E.RAMSTED RONALD O.SCHE7TLE KECUiNE wCE PRESIDEM F5951AM EXECUINE V10E PRESIDEM - qRECTOR.INDlSfRlh DEV20R.eEM CNiEF ENG+NEER CN�EF ACCOVN7ANf ;OMMISSIONERS GEORGE W.WIMER GEORGE R. MCMAHON ARTHUR N.GOODMAN VICTOR P. REIM JFAN M.WEST WILUAM WII.SpN y�ryWAM J,$EIFERT PRESIDEM VICE PRES�DEM SECRElW7v TREiS�ER `�i C.I.D. Certified Indust�ial Developer . . • CI�'�Y' . C��' 5.�..Is7'I' �PAUL r_� _ � - :�' � �`�.. O�'FYCE OF THi. CITY GOTIiYGIL ` +����� ,x,�• ���.� ,. +.�;:: ,.: ��. �Tf�y+�f� s .. jf. - ;�' Dafie : September 14, 1981 �..> �', � #�� 1`�f� � 9 I i s.�.. ' � � � � �� . TQ : Sain� Paut Cit� Counc�l F R fl �s1 • C O J�l�Y11'��'�� ��1 FINANCE, MANAGEMENT & PERSONNEL George McMahon � chairman, md�ces the foll-ov�ing � repo�r4 on C.F. [� Ordinance (1�) 'xL�x Resolution . � Other ' Tt�'LE :� . At its meeting of September 10, 1981, the Finance Committee recommended approval of the following. � � --��`��- � 1. Resolution approving settlement of an appeal of an assessr„ent 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.� from present . Grade 19 to Gra3e 23. 4. Resolutions for renewal of life and health insurance contracts for City and School District employees from.Octpber 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. \ C12223-GM) � . • 6. Resolution approving issuance of tax exempt mortgage note by Port Authority to finance pollution control eq�xipment at Knappen Molasses facility. (12224-G�i) 7. Resolution approving issuance of revenue bonds by Port Authority to finance construction of manufacturing facility for Viking Drill end 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. (T2226-GM) CiZY Fi�_L SEVE�iTH FLOOR SAI►�TT PA[iL, ti1lti`ESOTA SSI03 '-�-7�:.y F; in -�- � �,°�--��l i�-7 � r,,.__._: � . . . . .� � � . . ` � OM Ols ��119T5 . - ' "Rev. : 918/76 � EXPLANATION OF ADMINISTRATIVE OROERS, �i� l�,� RESOLUTIONS, AND OROINANCES � . R��1�1'��'D oa�te: August 18, t 9s� AUG 2 4 9981 . T0: .GEORGE. LATIMER ; �iflAlf01��{!���t;F FR: � E. . � St. Paul Port Authority ' RE: PA IFIC MOLASSES (KNAPPEN MOLASSES) $685,000 TAX EXEMPT MORTGAGE NOTE � ACTION REQUESTED: • In accordance with the Laws of Minnesota, Chapter 234, it is. requested that the City Council, by Resolution, a draft copy of which is attached hereto, approve the issuance of a $685,000 tax exempt mortgage note .to finance new pollution cont�ol equipment at the , Knapp�n Molasses facili�y in Barge Terminal No. 1 . . PU�tPOSE AND RATIONALE FOR THIS ACTION: � � The purpose of the tax exempt mortgage is to finance new pollution control equipment at Knappen Molasses in Barge Terminal No. 1 . The term of the mortgage wi11 be l0 years. The addition of this new equipment will increase production of the p�ant by 30� and is : pr,o;�ected .to add three new jobs over the next year. � This is a non-Resolution 876 project not involving the security of the Port Authority. ATTAGHMEIVTS: �• Staff Memorandum Draft City Council Resolution PQrt Authority Resolution No. 1869