276008 WNITE - CITY CLERK
PINK - RINANCE
CANARY - DEPARTMENT COU[ICII �,,.i., 1
BLUE - MAYOR I T Y O F S A I N T PA IT L File N O.__�� I It��_
u il 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. 1746 giving preliminary approval to the issuance of revenue bonds in the amount
of approximately $5,500,000 to finance the construction of a multiple tenancy building con-
forming to the energy requirements and all of the covenants of Energy Park adjacent to the
Control Data-Wilder Energy Technology Center by Energy Center Building Co., which is owned
by Sam Marfield and Charles P. Belgarde.
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
afore�aid revenue bonds for the purposes described in the aforesaid Port Authority Resolution
No. 1746, 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 , �.
E«� [n Favor
Maddox
McMahon
snowa�ter - � __ Against BY
Tedesco
Wilson
DEC 4 �� Form Approved by City Attoryey
Adopted by Council: Date — /
��
Certified s•e by Council Secretar BY
By
Approved b or. Date Q�C /� �� Approve Mayor for Submiss' to Council
By �-,�Z-�2 By
Pu�.ts�� D E C 1 3 1960
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_ Resolution No. �i � r0
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RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
; WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the t�iinnesota Municipal Industrial Develop-
r�ent Act (hereinafter called "Act") as found and determined by
the legislature is to promote the welfare of the state by the
active attraction and encourager,►ent and development of economi-
cally sound industry and comnerce to prevent so far as possible .
the emergence of blighted anc] marginal lands and areas of
chronic unemployment and to aid in the developnent of existing
areas of blight, marginal land and persistent uner�ployment; and
4THEREAS, factors necessitating the active promotion
and development of economically sound industry and cor,imerce are
the increasing concentration ot population in the metropolitan
areas and the rapidly rising increase in the ar�ount and cost of
goverrunental services requirec] to meet the needs of the
increased population and the need for developnent of land use '"`"
which will provide an adequate tax base to finance these
increased costs and access to employrient opportunities for such
population; and �
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from the Energy Center Building
Co. Ehereinafter referred to as "Company") a request that the
Authority issue its revenue bonds to finance the acquisition,
. installation and construction of energy efficient
office/warehouse facilities (hereinafter collectively called
the "Project" ) as part of Saint Paul Energy Park in the City ot
St. Paul, all as is more fully described in the staff report on
� file; and
WFiEREAS, the Authority desires to facilitate the
selective developMent of the comr.iunity, 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 assessec3 valuation of the
City and help maintain a positive relationship bet�veen assessed
valuation and debt and enhance the image and reputation of the
City; and �-
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� WHEREAS, the Project to be financed by revenue bonds
will result in substantial employr.ient opportunities in the
Project;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, cor,u:�►ercial
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 econo�ic 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 lo�� borrowing cost, the Project is economically more
feasible;
I�THEREAS, Miller & Schraeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreeMent (the
"Underwriting Agreer.►ent") relating to the purchase of the
revenue bonds to be issued to finance the Project;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 474.01, Subdivision 7b did publish a notice, �
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal of
the Cor�pany 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 recomr.lendations
contained in the Authority's staft mer�orandum to the
Comnissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Comr:iissioners
of the Port Authority of the City of Saint Paul, t�iinnesota as
follo��s:
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
business within the meaning of Subdivision ia 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 F�ill be a substantial inducenent to the
Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the developMent o��
economically sound industry and cor.unerce and assist in the
prevention of the er�ergence of blighted and narginal land, and
2 .
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s will help to prevent chronic unemployr�ent, and will help the
City to retain and improve its tax base and provide the range
of services and employr�ent opportunities required by its
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 r.►ay not be as effectively used and
will result in more intensive developr�ent 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 developr.►ent to assist the
Company in financing the Project.
2. Subject to rtutual agreer.ient of the Authority,
�he Co�pany and the Purchaser of the revenue bonds as to the
details of the lease or other revenue agree^�ent as defined in
the Act, and other docunents necessary to evic3ence 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 in an amount not to
exceed approxinately $5,500,000 (other than such adciitional
revenue bonds as are needed to complete the Project) is
authorized to finance the costs of the Project and the
recorimendations of the Authority's staff, as set forth in the
staff r:iemorandur.t to the Commissioners which was presented to �-°
the Cor.unissioners, are incorporated herein by reference and �
approved.
3. In accordance with Subdivision 7a of Section
474.01, t�Iinnesota Statutes, the Executive Vice-President of the
AUTHORITY is hereby authorized and directed to subnit the
proposal for the above described Project to the Comriissioner of
Securities, requesting his approval, and other officers,
er.►ployees and agents of the AUTHORITY are hereby authorized to
provide the Comr�issioner with such preliminary information as
he nay require.
4. There has heretofore been filed with the
Authority a form of Prelir�inary Agreer�ent between the Authority
and Company, relating to the proposed construction and
financing of the Project and a form of the Underwriting
Agreenent. The forn of said Agreements have been examined by
the Comr.iissioners. It is the purpose of said Agreer�ents to
evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Company
r�ay proceed without delay with the comnencenent 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, if deeMed appropriate, any interim note. or notes to
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- provide ter,►porary financing thereof) to f inance the entire cost
of the Project upon agreenent being reached as to the ultimate
details of the Project and its financing. Said Agreements are
h 5. Upon execution of the Prelir�inary Agreenent by
the Company, the staff of the Authority are authorized and
directed to complete negotiations with the Company so as to
resolve the remaining issues necessary to the preparation of
the revenue agreement and other docunents necessary to 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
accorc3ance with the provisions of Minnesota Statutes, Section
475.06, Subdivision 1, to accept a final offer of the �
Underwriters r.iade by the Underwriters to purchase saic3 bonds
and to execute an underwriting agreer�ent setting forth such
offer on behal£ 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 resolution to be
adopted prior to the delivery of said revenue bonds.
� 6. The revenue bonds ( including any interim note o --
notes) and interest thereon shall not constitute an -"�
indebtedness of the Authority or the City of Saint Paul within
the r�eaning 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 taxinq powers of the Authority or the City is pledged
for the payr�ent 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
requested to consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds ( including
any interir,t note or notes) herein contemplatec3 and any
additional bonds which the Authority nay prior to issuance or
from time to tir.►e 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 any additional available information the
City Council r�ay 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
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. finance the Project and in preparing a draft of the proposed
application to the Cor�r*iissioner 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 confirr.ied.
. Adoptecl November 26, 1980
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Attest �
- - ��,�—
esi n
The or Authority of the City
of Saint Paul
�iL,�
Secreta
S
`� • :
. , . OM Ol : 12/1975
, . • Rev. : 9/8/76
EXPLANtATION 0F ADMINISTRATIVE ORQERS, '��.�� �
RESOLUTTQt�S, AND ORDINRNCES
i3ate: Mov�ber 28, 198Q
`T0: MAYOR � L TIM R
fR: E. A. Kr u , S . Paul Port Authority '
�� ENERGY CENTER BUItDING C0.
$5,500,000 REVENUE BOND ISSUE - ST. PAUL ENERGY PARK
ACTION REQUESTED: • � �
In accordance wtth the Laws of Minnes�_ta, Chapter 234, it is requested �hat the City
Councilf by Resolution, a draft copy of which is attached hereto,: approv� the issuar�ce of
revenue bonds in the amount .of approximately $5,5QQ,OOO to firranEe the construc�ion of a
multiple tenancy b�fldfng to be located ad�acent to the Controi �ata-Wilder Eceergy Technolc>gy
C�nter in St. PauT Energy Park. by Energy Center Building Co., which is owned by .Sam
Marfield and Charles P. Belgarde.
PURP05E AND RATIONALE fOR THIS ACTION: -
The purpose of the revenue bond fssue is to fjnance the canstruction of a rrwltfplg ten��cy
building conforming to the energy requirerr�ents and all of the cavenants af��nergy Park
act�acent to the Co-r�trol Data-Wilder Energy Techaalogy Cent�r. The facility will contain 1�
75,000 square fQOt bu�ldings and will be designed for companies related tn en�rgy prcrduction
and other �ype facilities which may augment the energy technology space and'wil'� act as an
ineubator;facility for other energy park developn�en�s. When completed, .it is exp�ct�i that
the facility will employ 500 persons. Real estate taxes are estimated at $200,000 per year.
AT'!'ACHN�NTS:
Staff Memorandwn
Draft City Councii Resolution
Port Authority Reso]ution No. 1746