276010 WNITE - CITY CLERK
PINK - FINANCE n COUIICII �t p/1}
CANARY - DEPARTMENT � G I TY O F SA I NT 1 A LT L / �/ �
BLUE - MAYOR �F`•lle N O.��! L1 F1 ��n
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- ncil 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. 1751 , giving preliminary approval to the issuance of a revenue bond issue
in the amount of approximately $12,000,000 to finance the construction of a health club,
recreational facilities, parking, landscaping, and ponding in St. Paul Energy Park by
the 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. 1751 , 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
Yeas Nays � Requestgd by Department of:
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Hunt
E�►�c [n Favor
Maddox
McMahon O B
snowa�ter __ Against Y
Tedesco
Wilson
��, 4 ,�� Form Approved by City Attorney
Adopted by Council: Date —
Certified Y• .sed by Counc� Secre ry BY '
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Approved b vor. Date �C � �� Approved by Mayor for Submission to Council
By _ �� BY ���.�/j'�� ��
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• � �`�`~"'�+ ' Resolution No. /7S�
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RESOLUTION OF _
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, t•iinnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
; nent Act_ (hereinafter called "Act") as found and determined by
the legisla�ure is to promote the ��elfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and commerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unersnloyraent and to aid in the development of existiny
areas of blight, marginal land and persistent unemployment; and
j,THEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such �'"
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from the Amherst H. Wilder
Foundation (hereinafter referred to �as "Company") a request
that the Authority issue its revenue bonds to finance the
acquisition, installation and construction of community
facilities (hereinafter collectively called the "Project"} to
. be located within Saint Paul Energy Park in the City of St.
Paul, all as is more fully described in the staff report on
f ile; and
WHEREAS, the Authority desires to facilitate the
selective development of the community, 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 between assessed
valuation and debt and enhance the image and reputation of the
City; and
� � , ,��7�)U1U
� WHEREAS, the Project to be financed by revenue bonds
will result in substantial employment opportunities in the
Project; �
� WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
financing to pay the capital cost of the Project is available
only on a limited basis and at such high costs of borrowing
that the econor�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 low borrowing cost, the Project is economically more
feasible; •
' WI3EREAS, Miller & Schroeder Municipals, Inc. (the
"Underwriter") has made a proposal in an agreenent (the
"Underwriting Ayreement") 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
ofPice of the Authority, of a public hearing on the proposal of
the Company that the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds; and
WHEREAS, the Authority did conduct a public hearing
pursuant to said notice, at which hearing the recommendations
contained in the Authority' s staff inemorandum to the -�-
Comr.�issioners 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 RESQLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows: •
1. On the basis of information available to the
� Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
business within the meaning of Subdivision la of Section 474.02
of the Act; that the Project furthers the purposes stated in
Section 474. 01 of the Act, that the availability of the
financing under the Act and willingness of the Authori.ty to
furnish such financiny c�ill be a substantial inducement to the
Company to undertake the Project, �nd that the effect of the
Project, if undertaken, will be to encouraye the development of
economically sound industry and commerce and assist in the
prevention of the emergence of blighted and narginal land, and
� . r:�:: �'t f��10
. .
� will help to prevent chronic unemployment, and will help th
� , �City to retain and improve its tax base and provide the range
of services and employment opportunities required by its
population, and will help to prevent the movement of talented
and educated persons out of the state and to areas within the
state where their services r►ay not be as effectively used and
will result in more intensive development and use of land
within the City and t�ill eventually result in an increase in
the City' s tax base; and that it is in the best interests of
the port district and the people of the City of Saint Paul and �
in furtherance of the general plan of development to assist the
Company in financing the Project.
2. Subject to the mutual agreement of the
� Authority, the Company and the Purchaser of the Bonds as to the
details of the .lease or other revenue agreement as defined in
the Act, and other documents necessary to evidence and effect
the financing of the Project and the issuance of the revenue
bonds, the Project is hereby approved and authorized and the
issuance of revenue bonds of the Authority in an amount not to
exceed approximately $12,000,000 (other than such additional
revenue bonds as are needed to coMplete the Project) is
authorized to finance the costs of the Project and the
recommendations of the Authority' s staff, as set forth in the
staff Memorandura to the Commissioners which was presented to
the Comr.iissioners, are incorporated herein by reference and
� approved.
3. In accordance with Subdivision 7a of Section
474.01, t�sinnesota Statutes, the Executive Vice-President of the --
, Authority is hereby authorized and directed to subrnit the �
proposal for the above described Project to the Commissioner of
Securities, requesting his approval, and other officers,
employees and agents of the Authority are hereby authorized to
provide the Corimissioner with such preliminary inforr.iation as
he may require.
4. There has heretofore been filed with the
Authority a form of Preliminary Agreement betWeen the Authority
and Company, relating to the proposed construction and
financiny of the Project and a form of the. Underwriting
Agreement. The form of said Ayreements have been examined by
the Commissioners. It is the purpose of said Ayreements to
evidence the commitment of the parties and their intentions
with respect to the proposed Project in order that the Company
may proceed without delay with the comr�encemer�t 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
. . :;. ������U
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, . . , � ,amended, to a1loW �or the issuance � of industrial revenue bondS�
. ( including, if deemed appropriate, any interim note or notes to
provide temporary financiny thereof) to finance the entire cost
of the Project upon agreement being reached as to the ultimate
details of the Project and its financing. Said Agreer�ents are
hereby approved, and the President and Secretary of the
Authority are hereby authorized and directed to execute said
Agreenents.
5. Upon execution of the Preliminary Agreement, 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 documents necessary to the adoptian 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
Authori�y, or if either of such officers (and his alternative)
are absent, the Treasurer of the Authority in lieu of such
absent o�ficers, are hereby authorized in accordance with the
provisions of 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 agreement 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 resolution to be adopted prior to the
delivery of said revenue bonds.
6. The revenue bonds tincluding any interim note or l�
notes) and interest thereon sha1L not constitute an
indebtedness of the Authority or the City of Saint Paul withiri
the meaning of any constitutional or statutory limitation and
shall not constitute or give rise to a pecuniary liability of
the Authority or the City or a charge against their general
credit or taxing powers and neither the full faith and credit
nor the taxing poNers 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
� requested to consent, Pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds ( including
any interim note or notes) herein c�ntemplated 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 �����o
the Executive Vice President of the Auttiority is hereby
authorized and directed to for��ard to the City Council copies
of this resolution and any additional available iniormation 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 Project and in preparing a draft of the proposed
application to the Commissioner of Securities, State of
Minnesota, for approval of the Project, which has been
available for inspection by the public at the office of the
, Authority from and after the publication of notice of the
hearing, are in all respects ratified and confirmed.
� / ,
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Adopted November 26, 1980 , �j , .��
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A�test � ���, � l� �L-Ct�,�_ .
�esi�n j
The�or;t Authority of the City
� of Sain�t Paul �
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Secretary
,
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;,�► � . � _ . , . ONI Dl • i2C19?5 �
. Y . Rev. : S/8/76
.
� fXPLANATION OF ADMINISTRATIVE ORDfRS,
RESOLUTIONS AP1D ORDINANCES - ����� �°:
.
.
Date: November 28, 19�0
T0: MAYOR ORGE LATIMER
FR: � E. A. t, t. Paul Por� IAu-�hority �
RE: WILDER DA ION �
�12,00 ,OQO REVENUE BOND ISSIlE - CONMUNITY FACILITIES
ST. PA L EIYERGY PARK
ACTION REQUESTED: � :
In accordance with the Laws of Minnesota, Chapter 234, it is requested tttat the Cfty �
Co�ncil,by Resolutian, a draft copy of �rhich is attached F�reta, approve the issuan�e of
a revenue bond issue in the amount of approximately $1�,000,000 to finance tk�e construction
of a health club, recreational facilittes, parking, landscaping, and ponding in St. Paul ;
Energy Park by the Wilder Foundation.
PURPOSE AMD RATIONALE FOR THIS ACTIOW: -
Tt� purpose of the revenue bond issue is to finance tMe construction of a health club,
recreational facilities, parking, landscaping, and ponding in St. Pau1 Energy Park by the
Wilder Foundat�on. Th�s issue would invoTve expend�tures both on the Mic�va�,y St.�dium site
and on the TOFC site. Authorization to issue housing bands in Minnesota is based o� per
capita ratio. St. Pau't's total limit is $180,000,000. In order to ke�#� �he total as low
as poss�ble to aiiow bonding for other housing projects, it is proposed tha� $12,�0,000 in
revenue bonds be issued for the comnunity facilities. A condition af the agreement is the
requirement that bonds be sold in order to confarm to the conditions af the Ui�ban DeYeiopment
:Acttan Grant f�y Dec�m�er. 31, 1980, unless an extens�ton is agreed to by all parties.
Ati'ACNMENTS:
Staff Memorand�nn .
Draft City Cauncil Resolution
Port Authority Resalution No. 1751
PORT . � ����10
A�VT� HORITY
OF THE CITY OF ST. P^UL
Memorandum
TO: Board of Comnissioners pq� November 25, 1980
Meeting November 26, 1980
FROM: E. A.
SUBJECT: WILDER FOUNDATION
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
SALE OF BONDS - HOUSING - $51 ,000,000 REVENUE BOND ISSUE - ST. PAUL ENERGY PARK
RESOLUTION N0. 1749
PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT
SALE OF BONDS - COMMUNITY FACILITIES - $12,000,000 REVENUE BOND ISSUE -
COMMUNITY FACILITIES
RESOLUTION N0. 1751
PUBLIC SALE HEARING - SALE QF LAND
RESOLUTION N0. 1750
PUBLIC SALE HEARING - SALE OF LAND
� RESOLUTION N0. 1752
RESOLUTION N0. 1749 - PRELIMINARY AGREEMENT - HOUSING
The housing element in Energy Park will be comprised of 250 units on the
Midway Stadium site and 700 units on the Trailer on Flat Car (TOFC) site.
The Midway Stadium housing will be all rental , whereas, the balance of the
housing will be rental and owner-occupied. Under the Negotiated Investment
Strategy agreement and the agreements with the neighborhood councils, it is
required that at least 20� of the units be Section 8 or equivalent and 40�
of the housing on the TOFC site be owner-occupied.
In development of the Energy Park Plan the concept was not only to create
a national demonstration project in energy conservation but to create a
development that combined a working and living environment. The Wilder
plans and the energy spine that connects the related facilities and the
covenants and requirements of the Master Plan will accomplish this end.
Staff recommends approval of Resolution No. 1749 relating to the preliminary
and underwriting agreement. �
RESOLUTION N0. 1751 - PRELIMINARY AGREEMENT - COMMUNITY FACILITIES
Authorization to issue housing bonds in the state of Minnesota is based on
per capita ratio. St. Paul 's total limit is $180,000,000 in bonds. In order
to keep the total as low as possible to allow bonding for other housing projects,
it is proposed that $12,000,000 in industrial revenue bonds be issued for the
Wilder project. Such funds to be utilized for the health club, recreational
facilities, parking, landscaping, and ponding. This issue would be $12,000,000
and would involve expenditures both on the Midway Stadium site and on the
TOFC site.
' ' � �tbu�.o
Board of Corr�nissioners
November 25, 1980
Page -2- '
The preliminary agreement will provide these bonds can either be issued on an
interim note or under Port Authority 876 Resolution with appropriate guarantees
from Wilder.
It is staff's recorrnnendation that Resolution No. 1751 be approved, In this
recommendation it should be pointed out that the two bond issues above
. ($51 ,000,000 and $12,000,000--total $63,000,000) are not separated by site
and should be applied jointly to the total Wilder housing development in
Energy Park.
UNDERWRITING
The 10-member underwriting syndication managed by Miller & Schroeder has
agreed to privately place the interim financing and to underwrite the
$12,000,000 ancillary facilities issue if Wilder opts to take the route
utilizing 876. In order to privately place this volume of bonds, it will be
necessary for t�ilder to provide security in the form of a letter of credit
or similar security.
Fiscal and administrative fees for the first four years will be $244,000,
or $61 ,000 per annum on the privately placed bonds, and 1/lOth of 1� of the
outstanding balance for that portion that is financed either long-term or
Resolution 876.
RESOLUTION N0. 1750 - SALE OF LAND
Seven hundred housing units are propased for the Energy Park Trailer on
• Flat Car (TOFC) site in the centrum area. At $1 ,312 per unit this represents a
land price of $918,400. Staff recommends approval of the sale or lease
with option to purchase this land. If Wilder elects to lease, the interest
charged against the $918,400 would be equal to 10% per annum. Staff recommends
adoption of Resolution N0. 1750.
Staff recommends approval of the sale of land and Resolution No. 1750,
conditioned on the ultimate acqui�sition of that property not now under the
control of the Port Authority.
RESOLUTION N0. 1752 - SALE OF LAND
Two hundred fifty housing units . are proposed for the Energy Park Midway
Stadium site in the centrum area. At $1 ,312 per unit this represents a
land price of $328,000. Staff recommends approval of the sale or lease with
option to purchase this land. If Wilder elects to lease, the interest charged
against the $328,000 would be equal to 10% per annum. Staff recommends
adoption of Resolution No. 1752.
-Z'� �° I '' �� � ;.
r ' ,.,
December 4, 1980
SAINT PAUL
AREA CHAY4�iBER
TO THE PRESIDENT AND MEMBERS OF THE SAINT PAUL CITY COUNCIL: OF COMMERCE
701 North CentralTor+er
The Saint Paul Area Chamber of Commerce�s Board of Directors �+45 Minnesota Street
adopted the attached resolution on November 25 regarding Saint Paul, Minneaota
the proposed Saint Paul Energy Park. 55101 PHONE: 222-5561
You will note from the resolution that our organization supports
the concept ot the proposed Saint Paul �ner�y Park to be located
in the Miclway area of the city. We recognize 1:he significant
economic development gains to our city through the creation of
new jobs, private investment and local property tax increases. We
also recognize the need for additional housing in our community
and the fact that this would be a most significant national demon-
stration on energy conservation and utilization.
As our resolution indicates, our support of the project is based on
the need for favorable decisions concerning the replacement of the
Midway Stadium with an adequate athletic facility for our community and
a satisfactory arrangement with Burlington Northern for the loca-
tion of their TOFC/COFC site.�
The Chamber views the problem of relocating the TOFC/COFC facility
as one that could have serious implications. It is not just a City
of Saint Paul/Burlington Northern issue, but one that affects many
l�usiness firms and consumers in Saint Paul and throughout the metro-
politan area.
The newly-constructed Burlington Northern TOFC/COFC facility (mid-1970's)
offers convenient, easily accessible and centrally located shipping
services to many area business and trucking firms. The relocation of
this facility out of the Midway area could have a serious impact on
these firms by increasing their personnel and fuel costs. Such in-
creased costs would, in turn, be passed on to local manufacturers,
distributors, wholesalers and retailers and ultimately to the consumer.
We have, this week, received a number of expressions of concern from
trucking companies and Saint Paul area business firms who have expressed
concern regarding the potential move of this important facility from
its present ideal location.
In conclusion, we would urge the City Council to exercise caution in making
any further decisions on the proposed Energy Park as it relates to the
TOFC/COFC facility. We believe that the City Council needs to have a
thorough understanding of all of the implications and costs involved in
the relocation of this facility in order t at the decision made �,s in the
best interest of the entire city.
/
Sincerely,
s
Executive Vice President
�� �� i � .
_ . ,�
Y
STATEMENT
SAINT PAUL
oN AREA CHAMBEk
SAINT PAUL ENERGY PARK OF COMMERCE
701 North CentralTower
445 Minnesota Street
Saint Paul, Minnesota
55101 PHONE: 222-5561
`l't,e Saint Paul Chainber o�' Comrnerce supports the concepts associ,�-
ted with the proposed Saint Paul Energy Park to be located
in the Ma.dway area of the ci,tyo
The Energy Park will provide a significant economic develop--
ment gain through the cxeati.on o� nearly 6 �000 jobs, pri-
vate investment of $175 million, and local px+opexty tax
i.ncreases of $.6. 7 million, The Energy Park, furthermore
and most significantly, will be a national demonstrati,on
project that utilizes for the entire development the most
advanced energy development, conservation, and management
techniques. It will include housing and energy related
businesses and light industrial facilities on its 250 acre
site.
Development activity for the Energy Park program has been
coordinated under the auspices of a Negotiated Investment
Strategy. This involves expedited planning and careful
coordination between neighborhoods , the private sectox�,
and local, state and federal levels of the public sectoro
In this effort , the City of Saint Paul and the Mayor� s
office have made great progress and should be commended
for the initiatives and progress that has been achieved to date.
To complete the City' s grant application process, property
in the .Midway area must be vacated by the City Council
and the Port Authority must take title and initiate the sale
of bonds for a new athletic facility and the Energy Park.
However, to complete these steps, additional negotiations
are required. Specifically, favorable decisions must yet
be made regarding:
1. ) the replacement of the Midway
stadium with an adequate athletic
facility for the entire community;
and
� - 2 -
2 . ) a satisfactory arrangement with
Burlington Northern for the location
of an alternative Trailer-on-Flat-Car
(TOFC)/Container-on-Flat-Car (COFC)
site that is of comparable size and
location for the company and is as
accessible and as convenient for
motor carriers and shippers as the
present interstate rail facility.
Because of the importance of the Energy Park to Saint Paul, the
Saint Paul Area Chamber of Commerce supports the Park proposal
provided that satisfactory agreements can be reached on the
ntt�letic :Cacility ancl tYie 13urlington Northern transfer site .
ADOPTED by the Board of Directors, November 25 , 1980 .
ATT T: - ���
���
, .
Fred Lanners , President mos Mart cutive
Vice President