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
.
� �. �� /��
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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
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- ;�' Dafie : September 14, 1981
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�', � #�� 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
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` � 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