275986 �
WHITE �" CITY CLERK ��'�(��(1
PINK - FINANCE v V
� C/�F.i7ARY - DEPARTMENT G I TY O F SA I NT PA U L COUflC1I
i BLUE� - MAYOR File NO.
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On April 19, 1977, the Port Authority of the City of Saint Paul adopted Resolution
No. 1174, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount not to exceed $3,500,000 to finance the acquisition and remodeling of the
Lowry Hotel ;
2. The City Council of the City of Saint Paul adopted Resolution No. 268995 on May 3,
1977 giving preliminary approval to the issuance of revenue bonds in an amount not to exceed
$3,500,000 to finance the acquisition and remodeling of the Lowry Hotel ;
3. On Ma�y 30, 1979, the Port Authority of the City of Saint Paul adopted Resolution
No. 1348, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount of approximately $620,000 to finance a completion bond issue for poerfler
Construction, Inc. for the remodeling of the Lowry Hotel ;
4. The City Council of the City of Saint Paul adopted Resolution No. 271268 on June 15,
1978 giving preliminary approval to the issuance of revenue bonds in an amount of approx-
imately $620,000 to finance a completion bond issue for poerfler Construction, Inc. for the
remodeling of the Lowry Hotel;
5. On August 21 , 1979, the Port Authority of the City of Saint Paul adopted Resolution
No. 1537, giving approval to the assignment of the lease with Doerfler Construction, Inc.
to Capitol Properties;
6. On September 25, 1979, the Port Authority of the City of Saint Paul adopted
Resolution No. 1553, giving preliminary approval to the issuance of revenue bonds in
the initial principal amount of approximately $430,000 to finance the remodeling of the
second and third floors in the Doerfler Square building by Capitol Properties for use by
the County Attorney's office.
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hu�t �� �
Levine � In Favor
Maddox
�Io1A�n B
Showalter � __ Against Y
� � �,GT 0
uwi
Form Appro d by City rney �
Adopt y Cou il: Date �
c �
C tified •.sed by oun .� Secret�ry BY
��
Approved by :14ayor. Date _ A ro by Ma r to Council
By _ BY
WHITE . r CITY CLERK "
PI1�C - FINANCE yyyaaa���,,,
CANARY - DEPARTMENT G I TY O F SA I NT ��u L COUIICll �����
BLUE - MAYOR
� � File N 0.
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
7. The City Council of the City of Saint Paul adopted Resolution No. 273846 on
October 9, 1979 giving preliminary approval to the issuance of revenue bonds in an amount
of approximately $430,000 to finance the remodeling of the second and third floors in the
Doerfler Square building by Capitol Properties for use by the County Attorney's office.
8. On October 28, 1980 the Port Authority of the City of Saint Paul adopted Resolution
No. 1717, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount of approximately $425,000 to finance the remodeling of the entrance,
hallways, elevator area as well as provide first floor restroom facilities for Mangini 's
and the other commercial tenants in the Lowry Hotel building by Capitol Properties;
9. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds
authorized by the Port Authority of the City of Saint Paul, shall be issued only with the
consent of the City Council of the City of Saint Paul , by resolution adopted in accordance
with law;
10. The Port Authority of the City of Saint Paul has requested that the City Council
give its requisite oonsent pursuant to said law to facilitate the issuance of said revenue
bonds by the Port Authority of the City of Saint Paul, subject to final approval of the
details of said issue by the Port Authority of the City of Saint Paul ;
RESOLVED, by the City Council of the City of Saint Paul, that in accordance with Laws
of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the
aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution
No. 1717, the exact details of which, including, but not limited to, provisions relating
to maturities, interest rates, discount, rederqption, and for the issuance of additional
bonds are to be determined by the Port Authoxity, pursuant to resolution adopted by the
Port Authority, and the City Council hereby authorizes the issuance of any additional bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
,
COUNCILMEN
Yeas Nays Requestgd by Department of:
Hunt
Levine � In Favor
Maddox
M�R
sr,o,,,,ei�� __ Against BY
�F.da.....
wlson
Adopted by Council: Date
NOV 2 5 �9$o Form Approved by City Attorney
Certified ss d by Counc[t Secre ry BY
�
A r by ;Vlayor: t� Approved by Mayor for Submission to Councii
B BY
D E C 6 196fl
P� ORT � .
� i� �UTHORITY 2�75��6
OF THE CITY OF ST. PAUL
Memoraadum
TO: gOARD OF COMMISSI�NERS �A� October 28, 1980
(Meeting October , 1980)
� ��v
�`4.�
FROM: Donal d G. Dunshee�'
SUBJECT: CAPITOL PROPERTIES
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
$425,000 REVENUE BOND ISSUE
LOWRY HOTEL BUILDING
RESOLUTION N0. 1717
1 . COMPANY
The Port Authority Commission on April 19, 1977 by Resolution No. 1174
approved the issuance of .$3,260,000 in industrial development revenue
bonds to finance the acquisition and remodeling of the Lowry Hotel .
On May 30, 1978 the Port Authority Commission approved the issuance of
an additional $620,000 in industrial development revenue bonds to finance
the completion of the Lowry Hotel Project. On September 25, 1979 the Port
Authority Commission approved the assignment of the Doerfler Construction,
Inc. lease to Capitol Properties. At the same time they approved by
Resolution No. 1553 the issuance of an additional $430,000 to remodel
space for the Ramsey County Attorney. Through the time of the assignment
to Capitol Properties the Port Authority Commission had approved a total
of $4,310,000 in industrial development revenue bonds.
Capitol Properties consists of the partnership made up of Larry Fransen,
Johan Larson, Robert Dunbar and Fred Lamb, who at the time of the assignment
had a net worth in excess of �5,450,000. At the present time the net worth
of the partnership is in excess of $7,423,800. Since the assignment the
partnership has invested approximately $100,000 in additional equity through
improvements to the building.
2. PROJECT
Capitol Properties has asked the Port Authority Commission to consider
issuing an additional $425,000 in industrial development revenue bonds to
finance the remodeling of the first floor entrance, new flooring in the
hallways, reconstruction of the elevator entrance area, provide first floor
restroom facilities for Mangini ' s ana remodel the stairway leading to the
Ramsey County Attorney's offices on the second floor. The proposed bond
issue cambined with the three previous issues would result in outstanding
bonds of $4,735,000. In the earlier bond issues Doerfler Construction
. ,� � � 2�598�
CAPITOL PROPERTIES
October 28, 1980
Page 2
Company was required to provide 10% equity and in this case Capitol
Properties will be providing approximately $44,000 in additional equity
into the building through the purchase of 40 air conditioning units,
television antennas and other items that are not normally financed by
the Authori ty.
Staff has discussed the project with the partnership and they indicated
' � since the time of the assigrment in order to obtain the County Attorney's
as a tenant they were required to assume the County Attorney's rent oblig-
ation in the Commerce Building and that space has not been fully subleased.
That obligation will terminate in June, 1981 . They also indicated that
at the time of the assignment they informed the Commission they wished to
upgrade the apartment renters in the building and because of their desire
to do this they have experienced a higher vacancy rate than originally
. projected, however they are now attracting young working persons who wish
to live in downtown St. Paul close to employment and other services and
they need to provide a safe and secure environment.
3. FINANCING
The proposed financing of the remodeling would be done under an 876 bond
issue. The bond issue would be comprised of the following costs:
Construction $321 ,472.67
Debt Service Reserve 51 ,500.00
. Capitalized Interest
(Seven Months) 24,791 .67
Discount 12,75Q.00
Expense 14,485.66
$425,000.00
In addition to the monthly rent the Company would be paying a fiscal and
administrative fee as follows:
First 10 Years .36 per million issued
Second 10 Years .48 per millian issued
Final 2 Years .60 per million issued
4. UN DEPWRITING
Miller 8 Schroeder Nunicipals has agreed to underwrite the bond issue
at an interest rate set ten days before closing.
5. TEP,h� OF THE AGREEMENT
The Yroposed lease would be for a term of 22 years cemmer,cing t�oveTber 1 ,
198G and terminate April 30, 2002.
6. RECOMMENDATION
Staff has reviewed the project in detai� , intervie�ved the officers of the
Corporation and recommends apFroval of Resolution No. 1717.
sjs
��� �Z��,���a
' S ` .
, � � ' Resolution No. 1717
2��5���
• RESOLUTIOtJ OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL ,
� - WHEREAS, the purpose oi Chapter 474, Minnesota
Statutes, known as the Minnesota t�',unicipal InQnatdeterDined�by
ment Act (hereiqafter called "Act" ) as found
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 fG� as pcssible
the eme�gence of blighted and marginal lands and areas of
� chronic Lnernployment and to aid in the development of existing
areas o� blight, narginal land and persistent unemployMent; a�d
t•;HEREAS , factors necessitating the active promotion
and develo.pment of econonically sound indus�ry and comnerce are
the increasing concentration of population in the metropolitan
areas anc 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 developrnent of land use
which will provide an adequate tax base to zo�tunitiessfor such
. increased costs and �access �o employment opp
population; and
WHEREAS, the Port Authority of the City ci ����� P��'�
(hereirafter the "Authority" ) ' has previously issued its rever.ue
bonds in the total amount of $4 , 310 , 000 for the �cquisit�on and
renovation of the Lowry Hotel (hereinafter the "Project" )
within the City of Saint Paul and is currentl�tnership the
Project to Capitol Properties, a Minnesota p'
(hereinafter the "Company" ) ; �nd .
47HEREAS, The Authority has received from the Company
a request that the Authority issue additional =evenue bonds to
�inance the completion of the renovation of the Project
inclucing �he remodeling of the en�rance, hallways and elevatcr
areas, all as is more fully described in the staff re�ort on
fiie ; and
��;a��F_.*.,s � the AUthori�'i.f' CE512"eS t0 izClll�c`i.e �r?e
��'ie CG�"^;?1ll1':1`�.vr t0 rEt.cll'i and :r,�prove
se?ec� ��'e development of .
1�5 i.cX .�"icSe cf1C'l �O help ��`- j��CV'iCP t,'�e �c�!Ce Oi S2`_"V10E5 �':C
E�;ni��--ent oppertunities required by its populatien, anc t, e
� � . . 2��59�6
, , ' completion of said Project will assist the City in achieving
that ohjective. The completion of 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
WHEREAS, the Project to be completed by the
additional revenue bonds will result in substantia'1 employment
opportunities in the City;
h'HEREAS , the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
• financing to pay the capital cost of completing the Project is
available only on a limited basis and at such high costs of
� borowing that the economic feasibility of completing and
operating the Project would be signiiicantly reduced, but the
Company has also advised this Authority that with the aid of
additional revenue bond financing, and its resulting low
borrowing .cost, completion and operation of the Project is
. economically more feasible;. �
' WHEREAS , rliller & Schroeder Municipals, Inc. (the
"Underwriter" ) has made a proposal in an agreement ( the
"Underwriting Acreement" ) relatina to the purchase of the
additional �.revenue bonds to be issued to finance the completion
of the Project;
WHEREAS , the Authority, pursuant to Minnesota
Sta�utes, Section 474 . 01, Subdivision 7b did publish a notice ,
a copy of whic3� ��ith proof of publication is on fil'e in the
office of�.the 'Authority, of a public hearing on the proposal of
the Company that the Authority finance the completion of the
Project hereinbefore described by the issuance oi additional
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
Commissi�ners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
' with respect to the proposal.
N06t', THER£FORE, BE IT R�,SOLVED by the Commissioners '
of the uort Authority of the City of Saint Paul, Minnesota as
f ol lows : �
'. � , 1. � On � the basis of inforrnation 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
busin�ss within the meaning of Subdivision 1( a) of Section
4'I4 . 02 0� the Act ; that the Project furthers the purposes
stated in 5ection 474 . 01 of the Ac�; that the availability of .
the financing under the Act and willingness of the Authori.ty to
furnish sUCh financi�ng has be:en a substantial -inducement to the
Company to undertake the Project, and th�t the effect of the
Project, if• comnleted, will be to encouraoe the development of ���
economically sound industry and comnerce and assist :�n the
prevention of the energence 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, �nd �-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 e=fectively used and
will result in more intensive development and use of land
. " within �he C_�y and will eventually result in an incre�se in .
the City ' s tax base; and that i� is in the best in�erests o`
the por` dis�rict and the people of the City of Saint Faul and
lIl fU��rlerance Oi the general plan Oi development �O 855i5� t}'ie
— Company in .iir,ancing �he completien of the Project. �
� 2 . Subject to the mutual acreemer.� of the
Authori �`.V� �;72 Com��ny afld the purchase� Oi �+l@ r2V2:llie JOI'lCS
as to �he de�ail= of the lease or other revenue ac_eenent as
defined in the Act, and o�her cocuments r.ecessary to evidence
• and ef`ec� the financing of the completion o� t�he Pro�ec� anc
•• the issuance of additional revenue bonas, the Project is i:ereby
cUDrOVEC cl"ld 'cU�i70riZ2Q cfld �r12 15�L'cT1C@ O� cQQ1LiO;ic� -evenLe
bOT']QS Oi the AL�hority ].Tl 'c]'1 ZfT10L'fli. T70t �O eXCE2Q aa�?"OX1Tic�@�V
$425, 000 (other th�n such iurther revenue boncs as are neeced .
to conplete the Project) is authorized �o fir.ance the co=ts o�
the conaletion oi the Project and the recom^��endations of the
Authori�y' s st�ff , as set forth in the st�if nemorandurn to the
Commissioners �°hich w�as presented to the Co,��m_ssioners, are
incorporated herein by reference and approved. .'
� 3 . �n accordance �tith Subdivision 7a• o= Section
474 . 01 , Minneso�a Statutes, the Executive V�ce-Presicent o' the
AUTi'O�IT� is hereby authorized and cirected �o sub���it �he
�L'O''�OSc� `ar the CO��i�let�on i0 :.�"i? above C25Cr11J2C ?iOjEC� �O
the COi':i''•11551oner O� S2CL'rlt.i85r YeGU8S�1T',a }'115 cUarCVcl� cflQ
Ct,^.ei C`i1C@rS� e;;i��G;'E@S cnd 'cGE;1�S Oi �}'i2 �.J�HO�_TlY c?"e
}-�erebv au��orzzed to provide the Cc:�rniss:o�:er �:ith such
�re� i�;��^a_v in�orr��ation as he :��ay require •
. � . ; � . . ��5���
� '.-: 4. There has heretofore been filed with the
Authority a form of the Underwriting Agreement. Ti�e form of
said Agreement has been examined by the Commissioners. It is
the purpose of said Agreement to evidence the commitment of the
parties and their •intentions with respect to the proposed
Project in order that the Company may continue with the �roject
• 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 cost of completing the �Project
upon �•agreement being reached as to the ultimate details of the
financing. Said Agreement is hereby approved, and the
. President and Secretary of the Authority �re hereby authorized
and direc�ed to execute said Agreement.
�5. Upon receipt of an undertaking by the Company to
reimburse the Authority ior costs and expenses incurred, 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
c3ocuments necesszry to the adoption by the Authority of its
final bond .resolution and �the issu�nce 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 oi such officers (and his alternative) are absent, the
Treasurer oi the Authority in liPU of such absent office�s, are
hereby �u�horized in accordance with the provisions. �of
Minnesota Statutes, Section 475 . 06, Subdivision 1, to accept a
final offer of the Underwriters made by the UndeYwriters to
purchase said bonds and to execute an underwriting agree���er,t
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 and interest thereon shall not
constitute an indebtedness of the Authority or the Ci�y of
� Saint Paul within the meaning of any constitutional or
s�atutory limitation and shall not constitute or aive rise to a �
pecuni�?-y liability of the Authority or the City or a charce
against their general credit or taxing powers and neit;��er the
. full faith and credit nor tne taxing powers of the Authori�y or
the Cit�� is pledged for the pay�ent of the bones or interest
thereon.
� . . . ��5���
. . .
� ` � 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 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 t� forward to the
City Council coaies of this resolution and any additional
available information the City Council may request.
• � 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 amount of bonds to be issued to
finance the completion of the Project and in preparing a draft
of the proposed application to the Commissioner of Securities,
State . of rsinnesota, for approval of the completion 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: October 28 , 1980 _
—�
,
. j .
_ ' . • � ' '
Attest `
' � Presigent ' •
The For� Authority of the City
bf Saint Paul
%, , . . � /' r_ .
, / �%-�" _�:"
�..3=i-�� Secretary ✓/ �
,=��- �- � �Z'I'-� �:i� ►�A31'v'T �AUL
�;'�"'� ,�t»�- OFFIC� OF THE �I•TY CC3UNCIL ��a_F(i�
�,�;�}'
•_ ��71i�3i�1.�}� ���s.
i�Y '�+sln__�d(' E`�,.
��.•:., '-.�,f:- " Da t e ; November 20, 1980
,
CO � �� ITT� � � � PC� ��
T O : Sain? Paut Ci�y Counci! .
F� � � � Comm�t�e� on FINANCE, MANAGEMENT & PERSONNEL
,
George McMahon , choirrnan, makes the following
report on C. F. � [] Ordinance
(7) XX Resolufion
� Other
TITC�E e
Flt its meeting of November 20, 1980, the Finance Committee recommended approval�
of the following:
_ _
4 - . _ ..
1 . Resolution transferring $E0,000 from Contingency Reserve to City=Wide Data
Processing. (11141-GP�I) _
\ 2. Resolution a rovin issuance of revenue bonds for a oroximate7 425 000
Pp 9 P, Y � �
to finance remodeling and reconstruction o.f Mangini 's and the Ramsey County
Attorney's Offices in the Lowry Hotel Building by Capitol Properties. (11503-GM)
3. Resolution approving issuance of revenue bonds by the Port Authority for
financing construction of manufacturing and office facilities for Sealy of
Minnesota, Inc. (11504-rn�)
4. Resolution approving hlemorandum of Understanding amending the effective dates
of the 1981 and 1982 arage increase memorandums applicable to employees holding
the title of Assistant Fire Chief. (11516-GM)
5. Resolution abolishing various CETA titles and class s�ecifications currently
listing in Section 3.L (Technical �roup) and Section 3.0 (Custodial Engineers)
of the Civil Service Rules. (11517-GP+I)
6. Resolution establishing various titles and class specifications in Section 3.B
(Clerical Group) of the Civil Service Rules. (11518-��1) -
7. Reso�ution establishing title and class specification for Physical Fitness
Coordinator in Section 3.J (Professional-Administrative Non-Supe�^visors) ,
Grade 16, of Civil Service Rules. (11456-GP1)
(CONTINUED . . . ) �
�'ITY N�1LL SEVE?VT�3 FLOOR SAINT i'AUL, biI?V�iESOs� SiIO2
4 ,
, F,� � �e. �.�d- ���::_ �
;r.,_--- , - .. QM 41: 12/197 �
. . Rev. : S/ /76
EXPLANATIQN �F A�tINISTRATYYE ORDERS, � ��
; RESOLUTIONS, AND ORDiI�ANCES_-, �,
- . �.
�:..
. � . : -
Q�►�e: o��or�:r 2s, �98o R E C E I V E p
T0: MAYOR ORGE lATIMER ��� 3 1 1980
�IAX�'; � :
FR: � E. A. K a
R�: CAPITO PROPERTIES
;426,000 REVENUE gOND ISSUE
RfS01.UTI0N NQ. 1717 .
ACTION REQUESTED: �
�z,
In accordance with the Laws of Minnesota, Chapter 234, i't is requesLed that the �
City Council, by Resfll�tion, a draft copy of which is attached heretQ,` a�prove ,;
the issuance of revenue bor�ds in the amount of approximately �425,000 to finance
the remodeling of the first floor entrance, new flooring in the hallv�a�s� reconstr-:
uction of the elevator en�trance area, provide first floor rastmom fac�liti�s for
� Ma�ini 's and remadel the stafrway leading tfl the Ramsey Caunty A�torney's affices
• on the secc�nd floor in the towry: Hote� Build�ing by Capitol Propertfes.
PURPOSE AN0 RA7IONALE `FOR THIS ACTION: � �
The purpose of the bond issue is to finance r�nc�delirrg in th� entrance, hallway�,
elevator area and pravide restroom facilities on the first flaar and t�l the
stairway 1ea�dtng to the second flaor in. the Lawry Motei Buildtng by Capftet Properties.
Ea�loyment wvuld be increased by approximately 5 persons. The term of tFEe bond issue
ts 22 years.
ATTACHM�NTS c
�,
Staff MemQrand�an �
Qraft Ci ty Co�ci 1 Resol ution
Port Authority Resolution No. 1717 -
� •