276007 WHITE - CITY CLERK ('�` ���yyy
PINK - FItiANCE COUIICII ���,i�' /
CANARY - DEPARTMENT � G I T Y O F S A I N T �PA IT L V �
BLUE - MAYOR File N O.
uncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On November 26, 1980, the Port Authority of the City of Saint Paul adopted
Resolution No. 1744 giving preliminary approval to the issuance of revenue bonds in the
amount of approximately $17,500,000 to finance the construction of an Energy Technology
Center on a 6.628 acre site in St. Paul Energy Park by a partnership comprised of Control
Data Properties, Inc. , a wholly-owned subsidiary of Control Data Corporation, and the AHW
Corporation, a nonprofit corporation of the Amherst H. Wilder Foundation.
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. 1744, 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 uestgd by Department of:
Yeas Nays , , � �
Hunt
�wwe- [n Favor
Maddox
McMahon
Showalter � __ Against BY
Tedesco
wlwn
�`` 4 ��O Form Approv City At�ney
Adopted by Council: Date —
Certified sse by Counci ecret�{y BY �
By. v .1,��
Approved b . or: Date �C 5 19� Approved by Mayor for Submission to Co ncil
By _ G�,/ _ _ l2�rz, BY ''
P�SKfD D E C 1 3 1980
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• Resolution No. / 7yy
- RESOLUTION OF
THE PORT AUTHORITY OF THE CI'i'Y OF SAINT PAUL
. . WHEREAS, the purpose of Chapter 474, Minnesota -
Statutes, known as the Minnesota Municipal Industrial Develop-
nent 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 conr.►erce to prevent so far as possible
the emergence of blighted and marginal lands and� areas of
chronic une�ployr�ent and to aid in the developnent of existing
areas of bliyht, marginal land and persistent unemployr.tent; and
t,THEREAS, factors necessitatiny ttie active pronotion �
and developnent of economically sound industry and co� :erce are
the increasiny conceiitration of population in the netronolitan
� areas and the rapidly rising increase in the ar.iount and cost of
yovern,-�ental services required to rneet the needs of the
increased population anc] the need for development of lan3 ase
which c�ill provide an adequate tax base to finance these .--�
increased costs and access to employnent opportunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul
{the "Authority" ) has received fron Control Data Properties,
Inc. and AHW Corporation a request that tlze Authority issue its
revenue bonds to a partnership to be forr.►ed by those entities
(which partnerstiip is hereinafter referred to as "Company") to
finance the acquisition, installation and construction of an
office and energy technology center (hereinafter collectively
called the "Project") in Saint Paul Energy Park in the City of
St. Paul, all as is more fully described in the staff report on
file; �and
WHEREAS, the Authority �esires to facilitate the
selective development of the comr.iunity, to retain and irnprove
its tax base and to help it provide the range of services and
employnent opportunities required by its population, and said
Project ��ill assist tlze City in achieviny that objective. Said
Project will help to increase the assessed valuation of the
City and help r�aintain a positive relationship between assesse�
valuation and debt and enhance the image and renutation of the ._
City; and . .
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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 Control Data Properties; Inc. and AHW Corporation .
that conventional, commercial financing to pay the capital cost
of the Project is available only on a limited basis and at such
high costs ot �orrowiny that the economic feasibility of
operating the Project would be significantly reduced, but the •
Authority has also been advised that with the aid of revenue
, bond financing, and its resulting loN �orrowing cost, the �
Project is econonically more feasible;
WHEREAS, Miller & Schroeder Municipals, Inc. (the �
"Under�ariter") has made a proposal in an a�reer�ent (the
"Underwriting Agreement") relating to the purchase of the
revenue bonds to be issued to finance the Project;
' �9HEREAS� the Authority, pursuant to tdinnesota
Statutes, Section 474.01, Subdivision 7b did publish a notice,
a copy of whicb 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 hereinbei-ore
• 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 reco.nunendations ---
contained in the Authority's staff inemorandum to the ���
. � Commissioners caere reviewed, and all persons c�ho appeared at
the hearing Were given an opportunity to express their views ,
��ith respect to the proposal. .
NOW, THEREFORE, BE IT RESOLVED by tt�e Commissioners
of the Port Authority of the City of Saint Paul, t+Iinnesota 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 connectian
with one or more revenue producing enterprises engaged in any .
business t�ithin tlie meaniny oi 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 ttiat the effect of the
Project, if undertaken, will be to encourac�e the development of
economically sound industry and cor.u;�erce and assist in the .
prevention of the emergence of blighted and margi�lal land, and _
' �` � ' . � . . . � . �a • . .
.. w � . . , . . . .. . . -
, Nill help to prevent chronic unenployment, and will help the
City to retain and improve its tax base and provide the range
of service$ and enployment opportunities required by its
population, and will help to prevent the movenent of talented
and educated persons out of the state and to areas c�ithin the
state where their serv ices may not be as effectively used anc3
: 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 furt�ierance of the general plan of development to assist the
. Company in financing the Project.
2. Subject to the nutual agreer�ent to the
Authority, the Company and the purchasers 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 o� the Authority in an amount
not to exceed approximately $17,000,000 (ottier than such
additional revenue bonds as are nee�ed to conplete tlie Project)
. is authorized to iinance the costs of the Project. At the
request of the Cor�pany, such financiny may initially be
' provided throuyh the issuance of interim notes. The
reconmendations of the Authority' s staff, as set forth in the
staff r�emorandun to the Commissioners ��hich Nas presented to
the Connissioners, are incorporated herein i�y reierence and ,_- -
approved.
� 3. There has heretofore been filed with the
Autliority a fonn of Preliminary Agreement bet��een the .Autllority
and Company, relatiny to tlle proposed construction an�
financing of the Project and a form of the Underwriting
Agreement. The forra of said Agreements have been examined by
the Comr,iissioners. It is the purpose of said Ayreements to
. evidence the coms:iitment of the parties and their intentions
with respect to the proposed Project in order that the Conpany
may proceed Nithout delay with the comr.iencement 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 al1oW for the issuance of industrial revenue bonds
( including, if deemed appropriate, any interin note or notes to
provide temporary financing thereof) to finance tl�e ent.ire cost
of th.e Project upon agreement being reaclied as to the ultimate
details of the Project and its financing. � Said Agreenents are .
hereby approved, and the President and Secretary of ttle •
Authority are liereby authorized and directed to execute said
Agreements.
� • `S� � .
' • . ��'��U�J�
. , . . . . .
. 4. Upon execution of the Preliminary Agreer�ent the � �
staff of the Authority are authorized and directed to complete
negotiations ��ith the Company so as to resolve the remaining
� issues nece�ssary 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
Autl�ority, or if either of such officers (and his alternative)
are absent, the Treasurer of tlie Authority in lieu of such
absent officers, are hereby authorized in accordance with the
' provisions oi Minnesota 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 agreer�ent setting iorth such oiier on behalf of
the Authority. Such acceptance shall bind the Underwrit�rs to
said oifer but shall be subject to approval and ratification by
tlie Port Authority in a resolution to be adopted prior to the
. delivery of saic revenue b�nds.
�. The revenue bonds ( including any interim note or
notes) and interest tliereon shall not constitute an
indebtedness of the Autho�ity or tt�e City of Saint Paul within
the meaning of any constitutional or statutory limitation and
shall not consti�ute 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 ttie full faith and credit
nor the taxiny pocrers of the Authority or the City is pledgec3 �'°
for the paynent of the bonds (and interir� note or notes) or
interest� thereon.
6. In order to facilitate completion of th�e revenue
bond financing herein contemplated, �the City Council is tiereb,�
requested to consent, pursuant to La��s of P•iinnesota, 1976,
Chapter 234, to the issuance of the revenue bonds ( including
any interim note or notes) herein contemplated and any
" additional bonds which the Authority may prior to issuance or
from time to time the.reafter dee,.i 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 for��ard to the City Council conies
of this resolution, tl�e Preliminary Agreenent and any
additional available information the City Council r�ay request.
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7. The actions of the Executive Vice-President of
the Authority in causing public notice of the public hearing
� and in describing tlie general nature of the Project- and
estimatiny the principal araount of bonds to be issued to
finance the Project and in prepariny 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 confirned.
��
� / �
Adopted November 26, 1980 �� �/•
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Attest (� �1�7 , r�✓ °`�'-
P es � ent
� The Po�t Authority of the City
�
of Saint Paul
� -
� .
Secretary � �
."
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PORT AUTHORITY OF THE CITY OF SAINT PAUL
.�.�.�i 25 WEST FOURTH STREET • SUITE 1305 • ST, PAUL, MINN. 55102 • PHONE (612) 224-5686
November 28, 1980
Mr. James Bellus
Di rector
Planning and Economic Development Department
City of St. Paul
14th Floor, City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: CONTROL DATA CORPORATION - ENERGY TECHNOLOGY CENTER
$17,500,000 REVENUE BOND ISSUE - ST. PAUL ENERGY PARK
Dear Jim:
We submit herewith for your review and referral to the office of the r
Mayor, City Council and the City Attorney's office details pertaining
to the issuance of a revenue bond issue in the amount of approximately
$17,500,000 to finance the construction of an Energy Technology Center
in St. Paul Energy Park by Control Data Properties, Inc.
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. 1744 which authorized the sale of bonds in the amount
of $17,500,000.
Your expeditious handling of this matter will be appreciated.
''�,Yours truly,
` ��
�
Eugene A. Kraut
Assistant Executive
Vice President
EAK:jmo
cc: R. Broeker
2pBERT F.SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CLIFFORD E.RAMSTED RONALD O.SCHETTLE
:XECUfNE V10E PRESIDEM qS515fAM EXECIl�NE VICE PRESIDEM DIRECTOR,INDUSTRWI pE��E�pRv1EM CHiEF ENGINEER - Ch+tEF qCCOUMAM
�OMMISSIONERS GEORGE W.WINTER RUBY HUM ARTHUR N.GOODMAN G.RICHARD SLADE DAVID HOZZA LOUIS H. MEVERS WILLIAM J. SEIFERT
PRE9DEM ViCE PRESIDEM SECRETARV � TREASURER
�,t
� C.I.D. Certified Industrial Developer
` . OM Ol : l2/1975
, . • • Rev. : 9/8/76
� EXPLANATION OF ADMINISTRATIVE ORDERS,
RESOLUTIONS, AND ORDINANCES � ���t���r
� • .
Date: November 28, 1980
T0: MAYOR GEORGE LATIMER .
FR: � E.
RE:
CONT L DATA CORPORATION - ENERGY TECHNOLOGY CENTER
$17,500,000 REVENUE BOND ISSUE - ST. PAUL ENERGY PARK
ACTION REQUESTED:
In accordance with the Caws 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 revenue bond issue in the amount of approximately $17,500,000 to finance the construction.
of an Energy Technology Center on a 6.628 acre site in St. Paul Energy Park by a partner-
ship comprised of Control Data Properties, Inc. , a wholly-owned subsidiary of Control
. Data Corporation, and the AHW Corporation, a nonprofit corporation of the Amherst H.
. Wilder Foundation. �-�
� PURPOSE AND RATIONALE FOR THIS ACTION: �
The purpose of the revenue bond issue is to finance the construction of an Energy Technology
Center on a 6.628 acre site in St. Paul Energy Park. When completed, the facility is
expected to employ 1 ,OQ0 persons and contain 300,000 square feet of space. Real estate
taxes are estimated at $500,000 per year. A condition of the agreement is the requirement
that bonds be sold in order to conform to the conditions of the Urban Development Action
Grant by December 31 , 1980, unless an extension is agreed to by all parties.
ATTACHMENTS:
Staff Memorandum _
Draft City Council Resolution
Port Authority Resolution No. 1744
PORT
AUTHORITY �����1
OF THE CITY OF ST. PAUL
1 Memo�andum
TO: Board of Commissioners pq� November 25, 1980
November 26, 1980 Meeting
,
FR01A: E. A. a
;
SUBJEGT: CONTROL DATA CORPORATION - ENERGY TECHNOLOGY CENTER
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
SALE OF BONDS - $17,500,000 REVENUE BOND ISSUE
RESOLUTION N0. 1744
PUBLIC SALE HEARING - SALE OF LAND
RESOLUTION N0. 1745
Control Data Properties, Inc. , a wholly-owned subsidiary of Control Data
Corporation and the AHW Corporation, a nonprofit corporation of the Amherst
H. Wilder Foundation, are proposing to create a partnership to construct an
Energy Technology Center on a 6.628 acre site as shown. Said Center is
expected to cost $17,500,000 and the preliminary agreement provides for
financing by the issuance of revenue bonds either in the form of interim �
notes or in the form of Port Authority 876 bonds.
Terms of the agreement are the sale of land or the lease of the site at
$1 .50 per square foot plus 10% interest thereon and an option to purchase
the land at $1 .50 per square foot if so e]ected.
This facility will be required to meet all of th.e covenants in Energy Park
and will be a cornerstone project of the centrum area. A condition of the
agreement is the requirement that bonds be sold in order to conform to the
conditions of the Urban Development Action Grant by December 31 , 1980,
unless an extension is agreed to by all parties.
Subject to the method of financing elected, either long-term or interim,
Miller & Schroeder have agreed to underwrite or place the issue.
Staff recomends approval of Resolution 1744 relating to the preliminary and
underwriting agreement and also recommends approval of Resolution 1745
which is a public hearing pertaining to the sale of land.
The agreemet will contain an option to purchase the land for $1 .00 per
square foot and the facilities, if financed with 876 bonds, for 10� of
the face amount of the bonds. The Center is expected to employ 1 ,000
persons and contain 300,000 square feet of space. Real estate taxes are
estimated at $500,000 per year.
EAK:jmo
WMiTE� - �CITY CLC.RK
� PINK - FINANCE � � COUTICII . �����
BLU[RY - MAYOR M ENT � G I T Y O F S A I N T �PA IT L File N O. �r
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On November 26, 1980, the Port Authority of the City of Saint Paul adopted
� Resolution No. 1744 giving preliminary approval to the issuance of revenue bonds in the
amount of approximately $17,500,000 to finance the construction of an Energy Technology
Center on a 6.628 acre site in St. Paul Energy Park by a partnership comprised of Control
Data Properties, Inc. , a wholly-owned subsidiary of Control Data Corporation, and the AHW
Corporation, a nonprofit corporation of the Amherst H. Wilder Foundation.
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 Autharity of the City of Saint Paul .
RESOLVED, by the City Council of the City of Saint Paul , that in accordance with �aws
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. 1744, 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 A ainst By
Showalter g
Tedesco �
wlson -
Form Approved by City Attorney
Adopted by Council: Date
Certified Yassed by Council Secretary By
By
Approved by ;Nayor: Date Approved by Mayor for Submission to Council
Bv By .
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.t. _ - , � •
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� • Resolution No. / 7�/y
�60�l
i �� . �
' - RESOLUTION OF
THE POKT AUTHORITY OF THE CI'i'Y OF SAINT PAUL
. . WHEREAS, the purpose of Chapter 474, Minnesota -
Statutes, known as the Minnesota Municipal Industrial Develop-
' nent Act (hereinafter called "Act") as found and determined by
the legislature is to promote the welfare of the state by ttie
active attraction and encouragement and development of economi-
cally sound industry and corunerce to prevent so far as possible
the emergence of biighted and marginal lands and� areas of
chronic une::�ploy�ent and to aid in the develonnent of existing
areas of bliyht, marginal land and persistent unemployr.tent; and
t,1IiEREAS, factors necessitating ttie active promotion
and developnent of economically sound industry and corulerce are
the increasiny conceiitration of population in the r►etroPolitan
areas and the rapidly rising increase in the a?�ount and cost of
yovernnental services required to meet the nee3s of the
increased population and the need for developnent of land nse
which c�ill provide an adequate tax base to finance these� ,�,
increased costs and access to employnent opportunities for such
� population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received fro;a .Control Data Properties,
Inc. and AHW Corporation a request that the Authority issue its
revenue bonds to a partnership to be formed by those entities
(Nhich partnerstlip is hereinafter referred to as "Company") to
finance the acquisition, installation and construction of an
office and energy technology center {hereinafter collectively
called the "Project") in Saint Paul Energy Park in the City of
St. Paul, all as is more fully describec3 in tile staff report on
file; �and
WHEREAS, the Authority desires to facilitate the
select ive development of the comraunity, to reta in and irnprove
its tax base and to help it provide the range of services and
em�loyment opportunities required by its population, and said
Project c�ill assist tl�e City in achieviny that objective. Said
Project will help to increase the assessed valuation of the
City and help Maintain a positive relationship between assesse�
valuation and debt and enhance the image and renutation of the .._
City; and .
� . . _ _. . . �4� _ � . . .
_;ti. . - '. ' .' . . ' . . � . � . • � . ., . r -
t; . � : i ����� �.
� 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 Control Data Properties; Inc. and AHW Corporation .
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 Uorrowiny that the economic feasibility of
operating the Project would be significantly reduced, but the •
Authority has also been advised that with the aid of revenue
, bond financing, and its resulting low �orrowing cost, the �
Project is econonically more feasible;
r; .
WHEREAS, Miller & Schroeder riunicipals, Inc. (the �
"UnderWriter"} has made a proposal in an agreement (the
"Underwriting Agreement"} relatiny to the purchase of the
revenue bonds to be issued to finance the Project;
' 61HEREAS� the Authority, pursuant to T�innesota
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 heariny 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 inemorandun to the_ _
� Commissioners Uere reviewed, and all persons c�ho appeared at
�he hearing Nere given an oppartunity to express their views
��ith respect to the proposal. - -_
_ NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, t4innesota as
� follows:
� 1. On the basis of information available to the
Authority it appears, and the Authority l�ereby finds, _ that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
business c�itliin tlie meaning of Subdivision la of Section 474.02
of the Act; that the Project furthers the purposes stated in
Section 474.01 ot the Act, that the availability oi 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 ttiat the effect of the
Project, if undertaken, will be to encourage the development of
economically sound industry and cor,vnerce and assist in the
prevention of the emergence of blighted and r�arginal land, and _
' � . . � . . . - � L.j�' .
, f� . r . . . . , xC J � . � .
� � _� . � . � .. � .y•.. . � � .. • ����IJI� � .
. Will help to prevent chronic uner.►ployment, and will help the
City to retain and improve its tax base and provide the range
of service$ and eriployment opportunities requirec3 by its
i population, and will help to prevent the movenent of talented
and educated persons out of the state and to areas within the
state where their services rnay not be as effectively used anc3
Will result in more intensive development and use of land �
Nithin 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 furt2ierance of the general plan of development to assist the
. Company in financing the Project.
`- 2. Subject to the nutual agreenent to the
Authority, the Company and the purchasers of the revenue bonds
as to the details of tize lease or other revenue agreenent as �
defined in the Act, and other documents necessary to evidence
and effect t2ie 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 in an amount
not to exceed approximately $17, 000,000 (otY�er than such
additional revenue bonds as are needed to conplete tlie Project)
is authorized to finance the costs of the Project. At the
request of the Co:�pany, such financiny r.►ay initially be
provided throuyh the issuance of interim notes. The
reconnendations of the Authority' s staff, as set forth in the
staff r.►emorandun to the Commissioners which was presented to
the Co< < issioners, are incorporated t�erein by reierence and -.- _ -
approved.
�� 3. There has heretofore been filed with the
Auttiority a form of Preliminary Agreement bet��een the .Authority
and . Company, relatiny to the proposed construction and
financing of the Project and a form of the Underwriting
Agreement. The forra of said �greements have been exanined by
the Comr.iissioners. It is the purpose of said Ayreements to
. evidence the co�.�itment of t��e parties and their intentions
with respect to the proposed Project in order that the Conpany
may proceed Hithout delay with the comr.iencement 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 a11oW for the issuance of industrial revenue bonds
( including, if deemed appropriate, any interin note or notes to
provide temporary financing thereof) to finance the entire cost
of the Project upon agreement being reached as to the ultimate
details of the Pr�ject and its financing. Said Agreenents are .
hereby approved, and the President and Secretary of the •
Authority are }iereby authorized and directed to execute said
Agreeraents.
�, � < < �{. , �
� �� �' . , . ,
. 4. Upon execution of the Preliminarl Agreement the � �
staff of the Authority are authorized and directed to complete
negotiations ��ith the Company so as to resolve the remaining
issues nece�ssary 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 tt�e Authority in lieu of such
absent ofiicers, are hereby authorized in accordance with the
' provisions ot Minnesota Statutes, Section 475.06, Subdivision
l, to accept a final offer of the Underwriters made by the
Underwriters to purchase said bonds and to execute an
underwriting ayreernent setting forth such offer on behalf of
the Authority. Such acceptance shall bind the Underwrit�rs to
said offer but shall be subject to approval and ratification by
tlle Port Authority in a resolution to be adopted prior to the
. delivery of said revenue bonds.
�. The revenue bonds ( including any inter im note or
notes) and interest ttiereon shall not constitute an
indebtedness of the Autho�ity or tl�e 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 taxiny pouers of the Authority or the City is pledged ---
for the paynent of the bonds (and interiM note or notes) or
interest• thereon.
6. In order to facilitate conpletion of tlre revenue
bond financing herein contemplated, the City Council is liereb;�
requested to consent, pursuant to La��s of r•iinnesota, 1976,
Chapter 234, to the issuance of the revenue bonds ( including
any interin note or notes) herein contemplated and any
� additional bonds which the Authority may prior to issuance or
from time to time thereafter dee;� necessary to complete the
Project or to refunc3 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 conies
of this resolution, tl�e Preliminary Agreenent and any
additional available information the City Council r�ay request.
1 R ` �r
s' � , � . . . .- .. ' . .
. � . � � . , . , � .
7. 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 prepariny 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 fron and after the publication of notice of the
hearing, are in all respects ratified and confirned.
/' .
Adopted yovember 26, 1980 /;, �, .
v` i/. /
/;' �
Attest �" 1 � V�'��`�-
P es ' ent
� � The Po,�t Authority of the City
�
of Saint Paul
� -
� .
Secretary '
�
� '.
i/ , . . � . . OM Ol : 13j19T5
� • . • Rev. : 9/8/76
� EXPLANATION �OF ADMINISTRATIVE ORQERS, �rl���
RESOLUTIONS, AND ORDINANCES �
^
Date: November 28, 198U
,
T0: MAYOR GEORGE LATIMER
FR: � E. ' �
RE:
. CONT L DATA CORPORATION - ENERGY TECHNOLOGY CENTER
$17,500,000 REVENUE BOND ISSUE - ST. PAUL ENfRGY PARK �
ACTION REQUESTED:
. In accordance with the Laws of Minnesota, Chapter 234, it is requested that the City
Council , by Resolution, a draft capy of which is attached hereta, approve the issuance of
a revenue bond issu� in the amount of approximately $17,500,Q00 to finance the construction.
of an Energy Technology Center on a 6.628 acre site in St. Pau1 Energy Park by a partner-
ship comprised vf Control Data .Properties, Inc., a wholly-owned subsidiary of Control �
. Data Corporation, and the AHW Corporation, a nonprofit corporation of th� Amherst H.
. Wil:der Foundation.
� PURPOSE AND RATIONALE FQR THIS ACTION: � �
The purpose of tMe revenue bond issue is to finance the construction of an Energy Technol�gy
Center on a 6.628 acre site in St. Paul Energy Park. When completed, the facfility is
expected to c�p�oy 1,QQQ persons and contain 300,000 sguare feet. of space. Rea'� estate
taxes are estimated at $500,000 per year. A condition of the agreement is the requirerr�nt
that borcds be sold in order to conform to the conditions of the Urban Developm�nt Actian
Grant by December 31 , 1980, unless an extension is agreed to by all parties.
RTTACNMENTS:
Sta€f Memorandum
�raft Cfty Council Resolution
Port Authority Resolut.ion No. 1744 :
� RT ,
AUTHORITY
OF THE CITY OF ST. PAUL
Memorandum
TO: Board of Commissioners pq� November 25, 1980
November 26, 1980 Meeting
FROM: E. A. a
;
� i
SUBJECt: CONTROL OATA CORPORATION - ENERGY TECHNOLOGY CENTER
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
SALE OF BONDS - $17,500,000 REVENUE BOND ISSUE
RESOLUTION N0. 1744
PUBLIC SALE HEARIIYG - SALE OF LAND
RESOLUTION N0. 1745
Control Data Properties, Inc. , a wholly-owned subsidiary of Control Data
Corporation and the AHW Corporation, a nonprofit corporation of the Amherst
� H. Wilder Foundation, are proposing to create a partnership to construct an
Energy Technology Center on a 6.628 acre site as shown. Said Center is
expected to cost $17,500,000 and the preliminary agreement provides for
financing by the issuance of revenue bonds either in the form of interim .
notes or in the form of Port Authority 876 bonds.
Terms of the agreement are the sale of land or the lease of the site at
$1 .50 per square foot plus 10% interest thereon and an option to purchase
the land at $1 .50 per square foot if so elected.
This facility will be required to meet all of the covenants in Energy Park
and will be a cornerstone project of the centrum area. A condition of the
agreement is the requirement that bonds be sold in order to conform to the
conditions of the Urban Development Action Grant by December 31 , 1980,
unless an extension is agreed to by all parties.
Subject to the method of financing elected, either long-term or interim,
Miller & Schroeder have agreed to underwrite or place the issue.
Staff recomends approval of Resolution 1744 relating to the preliminary and
underwriting agreement and also recommends - approval of Resolution 1745
which is a public hearing pertaining to the sale of land.
The agreemet wi11 contain an option to purchase the land for $1 .00 per
square foot and the facilities, if financed with 876 bonds , for 10� of
the face amount of the bonds. The Center is expected to employ 1 ,000
persons and contain 300,000 square feet of space. Real estate taxes are
estimated at $500,000 per year. �
EAK:jmo
P O R T ������
AUTHORITY
OF THE CITY OF ST. PAUL '
� Memocandum �
TO: James Bellus , DAT� November 26, 1980
FRO�A: E. A � � :.. .
�.;�•_'�.: _.. .
SUBJEG?: EXPEDI'TIOUS HANDLING OF ENERGY PARK BOND ISSUE RATIFICATIONS
Councilman McMahon informed me today that he would hand carry the resolutions
approving the four issues for revenue bonding on Energy Park projects to the
Council at the Thursday, December 4, meeting.
Under the present policy these customarily go through the Finance Committee
which would preclude any actions prior to December 9.
It is extremely important from a marketing point of view that the City
ratification take place whether or not the court's action does not occur until
the 9th.
We would appreciate very much your expeditious handling of this matter and
the processing so that Councilman McMahon has these in his hand and they can
be placed on the agenda in time for the December 4 meeting. '
EAK:jmo
cc: Councilman McMahon
James Ha rt
Richard Broeker