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275987 WHITE - CITY CLERK PINK - FINANCE COl1flC11 �598'7 CANARY - DEPARTMENT -- G I T Y O F S A I�N T PA U L BLUE - MAYOR File N O. C ouncil Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On October 28, 1980, the Port Authority of the Cjty of Saint Paul adopted Resolution No. 1719, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $3,U00,000 to finance the construction of approx- imately 90,000 square feet of manufacturing and office facilities on a four-acre site in Midway Industrial Park for Sealy of Minnesota, Inc. 2 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 C�ty 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 Cjty of Saint Paul , subaect to fjnal approval of the details of said issue by the Port Authority of the City of Saint Paul . RESOLVED, by the City Councjl 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. 1719, 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 carry9ng out the purposes for which the aforesaid bonds are issued. COUNCILMEN Yeas Nays Requestgd by Department of: Hunt P� � Levine In FavOr Maddox � �� B showa�ter - __ Against Y � , --�eds.� w�iso 1980 NpV 2 5 Form Ap r ed by Ci t Ado d by Cou il: Date BY . �Dl�v �� ertified ssed by Council Secretary l' �► A d by :Vlayor. �i9�Q App v y Mayor fot sio _ _ By o�c s �980 R�`� � T � � �. AUTHORlTY �598�7 OF THE CITY OF ST. P/1UL `'`� Memorandum TO: BOARD OF COMMISSIONERS ��►f� Oct. 23, 1980 (Oct. 28, 1980 Regular Meeting) FROM: J.F. Faue SUBJEC7: SEALY MATTRESS COMPANY PUBLIC HEARING - PRELIMINARY & UNDERWRITING AGREEMENT SALE OF BONDS - $3,000,000 REVENUE BOND ISSUE RESOLUTION N0. ]119 PUBLIC SALE HEARING - SALE OF LAND MIDWAY INDUSTRIAL PARK RESOLUTION N0. 1720 1 . THE COMPANY Sealy of Minnesota, Inc. has been located in St. Paul for several - years and was incorporated as Sealy of Minnesota, Inc. in 1973. The company is presently located at LaSalle and Myrtle in the Midway District. They employ approximately 55 people. 2. THE PROJECT The company proposes to build approximately 90,000 square feet of manufacturing and office facilities on a four-acre site in Midway Industrial Park. The cost of the facility is estimated at $2 million. The company expects that it will add up to 20 employees in their ex- panded facility. Construction is expected to begin this fall with the building to be ready for occupancy by mid-1981 . 3. FINANCING Financing is proposed through the issuance of Port Authority industrial revenue bonds for a term of 30 years. Miller & Schroeder Municipals have agreed to underwrite the issue in an amount not to exceed $3 million to be distributed as follows: Construction $2,400,000 Legal , Printing & Misc. Expenses 30,000 Capitalized Interest - 6 Months 155,000 Debt Service Reserve 325,000 Underwriter's Discount 90,000 $3,000,000 - -- � � 2��598�7 BOARD OF COMMISSIONERS October 23, 1980 . � Page 's,�- The Port Authority would charge its normal fiscal and administrative fees per the above of $900 per month for the first 10 years, $1 ,200 per month for the second 10 years, and $1 ,500 per month for the re- . mainder of the term. The land will be leased by the company for the full term of the bonds based on a value of $1 .90 per square foot at 9� or �2,721 .39 per month. Purchase options will be orovided as follows: lOro of the principal amount of the bonds plus one-half price for the land in the 30th year. The company may opt to fund the debt reserve and otner soft costs with cash thereby reducing the amount of the bond issue. The personal financial statements of the partners and the consolidated financial statements for Sealy of Eastern New York, Inc. are attached. The lease will be entered into with two principals, E. Richard Yulman and his sister, Mrs. M.E. Oren, as a partnership. The sublease will be to Sealy of Minnesota, Inc. with a guarantee by Sealy of Eastern New York. 4. REC0�1MENDATIONS Early notice was sent to Districts 11 and 12 on August 15. No written or oral comments have been received regarding the project. The Port � Authority has published the required public notice for the sale of bonds and the notice of sale for the property. The project will provide facilities to retain an existing St. Paul company and opportunities for them to add to their employment in addi- tlon to adding to the tax base and new investment within the City. Staff recommends approval of Resolution Nos. 1719 and 1720. JFF:ca Attach. • �' • -'`=?`-�`-�j� , � � ����V� Resolution No. 1719 . . 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 Ac� (hereinafter called "Act" ) as found and determined by the legisl�ature is to promote the welfare of the state by the active Gttraction and encouragement and develo�ment o� 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 unenployment; and S,r�iEREAS , factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of pepulation in the metropolitan areas and the rapidly rising increase in the anount and cost oi governmental services required t� meet the needs of the increased_ population and the need for development o�f land use which will provide an adequate tax base to finance these inc�eased 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 Sealy of Minnesota, Inc. , a Minnesota corporation (hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds to finance the acqu�sition, installation and construction of an office and � manufacturing facility (hereinafter collectively called the "Project" ) in Midway Industrial ?�rkr the City of St . Paul, all � as is r�ore Lully described in the st�ff report on f ile; and ti'HEREAS , the P.uthority desires to facilitate the selective development of the com,;:unity� to retain and �inprove its tax base ar.d to help it prov:de the range of services and employment opportunities required by its population, and said . Project N�ill a=sist the City in achieving that objective . Said PYoject will help to increase the �sses=ed valuation of the Cl�y zfla help iTi21I'1tZ1Il �c POS1i.iVE �EIat10r1Srl1J .}�iE�'v;Ee�l cSSES:E� 'v�G�I:G� ��n Gnl.i �iE�t Gnd enhance t�'� Zii�GQe Gnd rE'��]t�����n CL l.l:e City' anQ � � , . � , �"`15��"7 . _ . 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 Proj�ct 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 ; ��'HEREAS, Miller & S�hroecier Municipals, Inc. ( the "Underwriter" ) h�.s made a proposal in an agreement ( the . "Underwriting Agreement" ) relating to the purchase of the revenue bonds to be issued to finance the Project; � � w"HEREAS , the Autfi ority, pursuant to Minnesota � Statutes, Section 474 . 01, Subdivision 7b did publish a notice, a copy of which Nith proof of publication is on file in the office of the Authority, o� 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 • Commissior�ers were reviewed, and all persons who. appeared at ' the hearing were given an opportunity to express their views with respect to the proposal. � � NOW, TY.EREFORE, 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 Subd?vision l nf Section 474 . Q2 of the Act ; that the Project furthers the purposes stated in Section �74 . 01 of the Act, that the av�ilability of the.. financing under the Act and w°illingness of the Au�hbrity �o - furnish such financing will be a sLbstantial inducement to the • Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encour�ge the develoDment .of� ecor,omicallv sound indLStry and ce,�„�erce and assist in the prevention of the emergence of blichted and narginal land, and • . . , ' will help to prevent chronic unemployment, and wi11 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 novement 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 Sain� 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 def ined ?n� the Act, and other documents necessary to evidence and e=fect the financing of the Project �nd 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 approxim�tely $3, 000, 000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs oi the Project and the recomnendations of the Authority ' s s�aii, as se� forth in the staff inemorandum to the Commissioners which ��as presen�ed to the Commissioners, are incorporated herein by reference and approved . � .3 . In accordance with Subcivision ia o�� Section e7g , 01 , !��innesota Statutes, the Executive Vice-Presider� of the AUT?'ORITY is hereby authorized and directed to subnit ;.he proposal �or the above described P=oject to the Commi==;oner of Securities, requesting his approval, .and other officers, employees and agents of the AUTHORITY are hereby authorized to provide the Com�nissioner with such preliminary :nformation as he may require. 4 . There has heretofore been iiled with the � Authority a form of Preliminary Aoreement between the r.u�hority . ailCj COTi:cn}'� relating t.0 the prope=ed COI'15�rL'CL.lOT� �'P.d �inancine o` the Project and a form of the Uncerwritinc A�reement. The form of said �oree�ents have been exa�ined by tne Commiss?one�s . It is the purpose or sa�:d :.creemen�s to evicence the commitment o� the �ar�ies and their inten�ior,s. • wit:� �e=pect to the propesed Projec� in order that tY:e Ccm�,any nay p_oceed ��ithout delay k°ith the cornr�encement of the � GCCL. _C1 � iOr;� �nctZllc�i01"1 z�1Ci CC,'�S�rUCt1C*1 Or "�2 P�oject W1�}? `he a=su=Gr1CA that there has �een su_`��cien�. "c�ficial ac�;en" ll:i�:Er �EC� 1G7 103 ( b) Oi the I.'l�e=,'cl '�EVenue CCC2 Oi 1%�'�'. r c5 c;�.c^:CEG�� �O c1�C'vr i0� �}'�B lSSi.'c:�:.E Gi 1�:Cli5`ric� '_"E��E�.�2 �O�iCS � , � . . ' . - 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 rlinnesota Statutes, Section 475. 06, Subdivision 1, to accept a final offer of the Underwriters made by the � Underwriters to purchase said bonds and to execute an underwriting agreement setting forth such offer on behali of the Authority. Such acceptance shall bind the Underwriters to said offer but shall be subject to approval and ratifica�ion by the Port� �uthority in a formal supplemental bond resolution to be adopted prior to the deliver.y cf said revenue bonds. 6. The revenue bonds �nd interest �thereon shall not constitute an indebtedness of the Authority or � the City of Saint Paul within the meaning of any constitutio��al or statutory limitation and shall not constitute or give rise to a pecuni�ry liability of the Authority or the City or a charge �gainst 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 reques�ed to consent, pursuant to Laws of Minnesota, ,1976, Ch�pter 234, to the issuance of the revenue bonds herein contemplated and any additional bonds which the Authority m�y � prior to issuance or from tir�e to time thereafter deem necessary to complete the Project or to re`und such revenue bo�ds ; and for such purpose the Executive Vice President of the r.uttiority is hereby authorized and directed to for��ard to the . City Ceuncil copies of this resolution and said Preliminary . ficreeT�ent cflC3 z'•�V additional GVC��cble iniorr�ation th@ Cl�y COL'i1C11 ;�1cV rGCL@St. � . . � � , 8. The actions of the Executive Vice-President of the Authority in causing public notice of the nubl.ic hearing and 'in describing the general nature of the Project and esti;�,�ting the principal amount of bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Commissioner of Securities, State of � t,linnesota, for approval of the Project, which .has been av�ilable for inspection by the public at the office o` the Authority from and after the publication of notice of the � hearing, are in all respects ratif�ed and confirmed. � Adoptec October 28, 1980 , ; i � , '��� , , i, Attest . . - . _ . Pres�dent " � The ?o�t Authority oF the City � of Saint Paul /, � . , , �; �'�,. .% %=�- �_��_� ' �eereta�y / . , r:w:''� i: �'jI�'� �O� 1�A3�'T ��1U�L �15�V ( �':`'�� ?={' Y, � OFFZC.� OF T�-3F CITY CflU�TCIL , `$ � . r , i� , � - ��'xy�_:� � �� �,• �y' - .y�' r�._ � . . . ��y `� Da t e ; November 20 1980 '�•.'.� :: , � `~�2 . G O �li !�'� 1 T T� � � � �' C7 �� Ta : Sc�in? Pau� City Council _. � F� � �r'I � Comrr�it�e� Ot1 FINANCE, MANAGEMENT & PERSONNEL � George McMahon , c�oirman, makes the f�llov�ling report on C. F. [� Ordinance (7) XX Resolution � Other . TITLE : . At its meeting of November 20, 1980, the Finance Committee recommended approval of the following: " 1 . Resolution transferring $50,000 from Contingency Reserv� to City=Wide Data Processing. (11141-G��) � 2. Resolution approving issuance of revenue bonds for ap�roximately $425,000 to finance remodeling and reconstruction o.f Mangini 's and the Ramsey County Attorney's Offices in the Lowry Hotel Building by Capitol Properties. (115�J3-GM� ` 3. Resolution approving issuance of revenue bonds by the Port Authority for financing construction of manufacturing and offiee facilities for Sealy of Minnesota, Inc. (11504-GM) 4. Resolution approving �1emorandum of Understanding amending the effective dates of the 1981 and 1982 wage increase memorandums applicable to employees holding the title of Assistant Fire Chief. (11516-GM) _ 5. Resolution abolishing various CETA titles and class specifications currently listing in Section 3.L (Technical Group) and Section 3.0 (Custodial Engineers) " of the Civil Service Rules. (11517-GP�1) 6. Resolution establishing various titles and class specifications in Section 3.B � (Clerical Group) af the Civil Service Rules. (11518-G�1) 7. Resolution establishing title and class specification for Physical Fitness Coordinator in Section 3.J (Professiona7-Administrative Non-Supervisors) , Grade 16, of Civil Service Rules. (11456-G�1) ' (CONTINUED . . .) � CIZ'Y HAI.L SEVEN�-I FLOOR S�iNT PAUL, :�1i_rT�iESOiA 55102 _ �, F� �¢ �� ��d_�� . . . . _ . � � . .. . . �� ... . " . . . ;� _ . . . . ... �W't V�♦. �: )��i'.���� .. . ... . , . � . . t..�.�..�_....��i . .. �� . .. .. . . ... � . . . �� . . � Rev. : ' 9I8{76 _ , . EXRLANATION �OF ADMIMISTRATIVE ORDERS, � � ������ RE�LUTIONS, AND Ol�DINA{�CES - . , ; Date: 4ctaber 28, 1980 , ' RECEIVEp _ - OCT 3 1 1980 T0: MAYOR GE LATIMER ��',� � - fR: � E.A. Kra St. Pau] Port Autharity RE: SEALY QF MTNNEgI�TA, TNC. . � PRELIMINARY AGREEM�NT - $3,OOQ,000 REVENUE BQNQ �SSUE R�SOLUTION N0. 1719 ' � � ACTION REQUESTED: � In accorda�nce w#th the l,aws vf Minnesota, Chapter 23�, it is requested ti�tt �he Cit�r Council , by R�s�luti�n, a draft copy of which 1s ntta�ched her�etQ, approva the lssuance of approxfimately �3,t�0,�0 in reVenue .bonds for th� pur�tose of financing the �ohstruction o�- a�pprox9mateiy 9�,t�0 square feet of manufactur�fng a�nd v�'ffce fac�llties on a four•acr� � s�te in Mtdway I�dustrial Park for Sealy of M9nnes€�ta�, Tr�c. Pt}RP05E AND RATIOMALE FOR TNIS:ACTIOI�: � � � The purpose of the bQnd issue is to finance the constructfsn of appr�x�m�tely �,�0 squ�re feet of nu�nufa�cturing and of��ce facili�ies on a four-acre site fin Mid�y Tn��tt�1a�'� P�rk fc�r Sea1y of Minrtesota, .�nc, for a ternn of 3Q years. The company prese�tly e�np'�Qys approx- im��ely�55 p�ple a�nd expects to add up to 20 employe�s in thelr new ��c1li►ty. ?he lease w111 be entered into with E. Ricf�ard Yulma�n and Mrs. M.E. Qren as a partner�hip. There w111 be a subl�ase to Sed1y of Mlnnesota, Tnc, wlth a gu�rarrt�e by Sea1y af Eastern N�w York. � � ArrAeHr�r�s: �" ; Staff M�n�ora�ndum _ ' Rra#t City Councl1 ResolutiQn J` Pvrt Authvrity Resolut#vn No. 1719 �.