277435 WHITE - CITY CLERK � /�//
PINK - FINANCE COUIICII �� / 4���
CANARY - DEPARTMENT G I T Y O F S A I N T PA U L
BLUE - MAYOR File N O.
il Resolution
Presented
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. 1870, giving preliminary approval to the issuance of a tax exempt
mortgage note in the initial principal amount of approximately $4,500,000 to finance
the construction of an 80,000 square foot medical office building which will be
attached to Midway Hospital . Mr. 0. Larry Lee of Yorkton, Ltd. will be the general
partner with the Baptist Hospital Fund and the doctors occupying the facility as
limited partners.
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 tax exempt
mortgage note 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. 1870 the exact details of which, including, but not limited to, provisions relating
to maturities, interest rates, discount, redemption, aad 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 Favo[
Maddox
McMahon
� __ Against BY
Tedesco
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SEP 17 ° Form Approve y City rney
Adopted by Council: Date — .-- -
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Certified a-s by Co ncil cr ry B
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Appro Mavor: Date SEP 1 O � O� E1pp y Mayor for S. iss Council
— '
BY - – — B
UBLISHED S E P 2 61981
� �PQRT �����
AUTHORITY
OF THE CfTY OF ST. PAUL
� Memorandum
TO: BOARD OF COMMISSIOI�ERS DAT� Aug. 13, 1981
(Aug. 18, 1981 R lar Meeting)
FROM: B.A. Maus (
SUBJECT: UNIVERSITY PARK MEDICAL OFFICE BUILDING
1700 UNIVERSITY AVENUE
PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT
SALE OF $4,500,000 LOAN AGREEMENT
RESOLUTION N0. 1870
1 . THE-COMPANY & THE PROJECT
Mr. 0. Larry Lee of Yorkton, Ltd. has requested approval from the Port
Authority to issue a tax exempt mortgage note to finance the construction
of an 80,Q00 square foot medical office building which will be attached
to Midway Hospital . The total�- project cost is estimated to be �5.7
million; the mortgage amount will be for �4.5 million. Mr. Lee will
be the general partner with the Baptist Hospital Fund and the doctors
occupying the facility as limited partners.
This medical office building is being constructed simultaneously with
a major remodeling and expansion program of the Hospital which includes
a parking ramp. The Hospital expansion program is currently estimated
to cost $18.5 million. This portion of the project, which is interrelated
with the office building, will be considered on August 20 by the St. Pau1
Housing & Redevelopment Authority Board. Mr. Lee has commitments for an
estimated 75% of the space in the office building. A number of those com-
mitments are from doctors' groups coming from outside the Twin City metro-
politan area. Mr. Lee has agreed not to solicit doctors from any Port
Authority projects or the Downtown area.
2. FINANCING
The project will be financed with a $4.5 million tax exempt mortgage note.
The Preliminary Agreement currently states that the permanent financing
will be in place prior to entering into any construction agreements.
The Port Authority will collect its normal fiscal and administrative fees
during the term of the bond issue in addition to the sinking funds.
Although the security of the Port Authority is not pledged in this issue,
the financial statements of Mr. Lee and the Baptist Hospital Fund are
attached.
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��4. V
BOARD OF COMMISSIONERS
August 13, 1987
Page -2-
4. RECOMMENDATIONS
Staff has provided the proper legal notices and early notice to the
District Council on this project. No written objections or approvals
have been received from the District.
This project will add 160 new employees and significantly add to the
tax base of the City of St. Paul .
Staff recommends approval of Resolution tJo. 1870. .
BAM:ca
Attach. �
- � , < < �'�'7���
� � ,
� Resolution No. 187U
RESOLUTIflN OF
_ TH� PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Munici»al 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 industry and commerce 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 the University Park '
Building Limited Partnership (hereinafter referred to as
"Company") a request that the Authority issue its revenue bonds
(which may be in the form of a single note) to finance the
acquisition, installation and construction of a medical office
building (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 corununity, 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
,. �� ( . r �''����
. .
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
"Placement Agent") has made a proposal in an agreement (the
- - "Placement Agreement") rel.ating to the purchase of the revenue �
bonds to be issued to finance the Project;
WHEREAS, the Authority, pursuant to Mi�nnesota
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 wYlich hearing the recommendations
contained in the 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 propos�l.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota 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 la 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 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
. .. r, . ; �'����
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 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 (which may be in the
form of a single note) to provide financing (which may be in
the fonn of an interim note or notes) 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
recommendations of the Authority' s staff, as set forth in the
staff inemorandum to the Commissioners 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 and a form of the Placement 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 except as provided below, 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 any interim
note or notes to provide temporary financing thereof) to
finance the entire cost of the Project upon agreement being
reached as to the ultimate detail� 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 revenue agreement 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 Placement
made by the Placement Agent to purchase said bonds and to
execute a Placement Agreement setting forth such offer on
beYialf of the Authority. Such acceptance shall bind the
Placement Agent 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. Notwithstanding the "official action" evidenced
by this resolution the Company shall not enter into any �
construction contracts for any portion of the Project until a
written commitment for the long term financing of the Project
has been received by the Company and submitted to the Port
Authority.
7. The revenue bonds (including any interim note or
notes) and interest thereon shall not constitute an
indeUtedness 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.
. � '• � (
, ' 8. !n 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 Authori,ty 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 forward to the City Council copies
of this resolution and said Preliminary Agreement and any �
additional available information the City Council may request.
. 9. 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 amount of bonds to be issued to
finance�the Project and_ in p�eparing._.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, 19£31 •
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Attest / � � ��� �
,
�� Pre ' t
. The Port thority of the City
of Saint aul
r
i
�
� Secretary
,
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(�1' . � �. �G�L��i�K/�`'�
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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 & Economic Development Department
City of Saint Paul
14th Floor City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: UNIVERSITY PARK MEDICAL OFFICE BUILDING
$4,5000,000 TAX EXEMPT MORTGAGE NOTE
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 a tax exempt mortgage note in the amount of $4,500,000
to finance the construction of an 80,000 square foot medical office
building which will be attached to Midway Hospital . Mr. 0. Larry Lee
of Yorkton, Ltd. will be the general partner with the Baptist Hospital
Fund and the doctors occupying the facility as limited partners.
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. 1870 which authorized the sale of the tax exempt note
in the amount of $4,500,000.
Your expeditious handling of this matter will be appreciated.
Yours truly,
ugene A. Kraut
Assistant Executive
Vice President
EAK:ca
cc. R. Broeker
OBERT F.SPRAFKA EUGENE A.KRAUT,C.I.D. DONALD G.DUNSHff,C.I.D. CLiFFORD E RAMSTED RONALD O.SCHEITLE
cECVTNE vKE PItES�DEM ASSISfnM EXECUfME v�CE PRESIDEM � qRECTOR.INDUSiRV�pEV�pvi,�EM CMIEF ENGwEER p+iEF qCCOUNiNJf
:OMMISSIONERS GEORGE W.WINTER GEORC'E R.McMAHON Af2THUR N.GOODMAN VICTOR P.REIM JEAN M.WEST WIWAM WILSON WILLIAM J.SEIFERT
aRE5�0ENi VK:E PRESIDEM SECREl,4RV iREhAJRE.R
, e�t
C.I.D. Certified Industrial Developer
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�' (����'`*;:. O��FICE OF THI� CITY COTNCIL
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' . -- � ;�- Date ; September 14, 1981
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. Tp : Sdin� Paul Ci�P� Counci! ..
F J�O i'/I � C O R�R1 I���� O n FINANCE, MANAGEMENT & PERSONNEL
Geo rge McMahon � G h(f 1 F t'R C1 t1, m a�c e s� t h e f o I l�o v�i r�g �
reporY on G.F. ^ -�
Ordinance
(1�) x�x Resolutian .
- � Other �
Ti�'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 assessment for t�ee rer.eoval.
(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.� �rom present .
Grade 19 to Grade 23. .
� 4. Resolutions for renewal of life and health 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 ta 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. (1222�-G�1)
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)
Cn-y �.�,L SEVE�iTH FLOOR SAI�iT PAUL, tifI`1ES(�T� �SI03
-:-T�,'�
. Fi /� ,`-�� �. �� .�/- /�� ,
� A^ . .. � OM Ol : 12/1975
. ' Rev. : 9�����''7435
EXRLANATION OF ADMINISTRATIVE ORDERS,
RESOLUTIONS, AND ORDINANCES
Date: August 18, 1981
�`T0: PM1AY EORGE LATIMER RE��.I���l�
FR: E.A. t, �, Pau� Port Autnor;ty � AUG 2 4�1981
`�.�
RE: UNIV I Y PARK MEDICAL OFFICE BUILDING ������ �'�`�`���
$4,5 0,000 TAX EXEMPT MORTGAGE NOTE
ACTION REQUESTED: • �
In accordance with the Laws of Minnesota, Ghapter 234, it is requested that the City
Council , by Resoluti_on, a draft copy of which is attached hereto, approve the issuance
of a $4,500,000 tax exempt mortgage note to finance the construction of an 80,000 square.
foot medical office building which will be attached to Midway Hospital �for the University
Park Building Limited Partnership.
PURROSE AND RATIONALE FOR THIS ACTION: �
The purpose of the tax exempt mortgage note is to finance the construction of an 80,000
square foot medical offiee building for the University Park Building Limited Partnership.
Mr. O. Larry Lee of Yorkton, Ltd. will be the general partner with the Baptist Haspital
Fund and the doctors occupying the facility as limited partners. . • '
This project will add 160 new employees and significantly add to the tax base of the City
of St. Paul . The security of the Port Authority is not pledged in this issue.
ATTACHMENTS:
Staff Memorandum
_ braft City Council Resolution
Port Authority Resolution No. 1870