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274695 `NNITE - C�TV CLERK COl1RC1I !.I �f■�S� ■ PINK - FINANCE G I TY O F SA I NT PA LT L � CANARV - DEPARTMEN7 .� �rv�✓ BLUE - MAVOR File NO• Co ,ncil Resolution Presented By � Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On March 25, 1980, the Port Authority of the City of Saint Paul adopted Resolution No. 1620, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $4,000,000 to finance the construction of up to a 400-car parking ramp to serve the commercial and residential needs of United Hospitals. The parking ramp will be part of the Austin/King Enterprises project to be located on West 7th and Sherman Streets. 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. 1620,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. COUNC[LMEN Yeas p�cMAHON Nays Requested by Department of: H� � [n Favor Hunt Levine __ Against BY Maddox Showalter Tedesco QP� 8 ,� Form Appr ved by City Attorney Adopted by ncil: Date � Certi d Pas-e Co ncil ,ecret ry , By � ' �/01��� _ ` !�p ro by Mavor: Date �APR 1 0 1980 Appr y Mayor for Su ss' n to Council By _ — B � �ust�a a P R 1 9 1980 ., ,- ~ ' � �����'� /6� � Resolution No. �.-Gi-9- RESOLUTION OF - THE PORT AUTHORITY OF THE CITY OF SAINT PAUL - ' WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the �Iinnesota Municipal Industrial Develop- ment Act (hereinafter called "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction anc3 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 unemployment and to aid in the development of existing areas of blight, marginal land and persistent unemployment; and I � WHEREAS, 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 ranidly rising increase in the amount and cost of gove�rnmental services required to meet the needs of the increased population and the need for development of land use which will proqide an adequate tax base to finance these � increased costs and access to employr.tent opportunities for such ponulation; and WHEREAS, The Port Authority of the City of Sairit Paul (the "Authority" ) has received from United Hospitals Incorporated (hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds to finance the acquisition, installation and construction of a 400 car public parking ramp (hereinafter collectively called the "Project" ) in the City of St. Paul for the purpose of providing additional parking for members of the general public including the _ occupants and users of the commercial and residential facilities to be constructed on property adjacent to the Project, all as is more fully described in the staff report on file; 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 assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the - City; and ' . ���� � . _ .+ WHEREAS, the Project to be financed by revenue bonds ' will result in substantial employment opportunities in the Project; , WHEREAS, the Authority has been advisec3 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 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 ?ow borrowing cost, the Project is economically more feasible; YIHEREAS, Miller & Schroeder Municipals, Inc. (the "Underwriter" ) has made a proposal in an agreement (the "Underwriting Agreement" ) relating to the purchase of the revenue bonds to be issued tci 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 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 Cpmmissioners 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 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 Authority to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce and assist in the prevention of the emergence of blighted and marginal land, and will help to prevent chronie unemployment, and will help the � City to retain and improve its tax base and provide the range of services'. and employment opportunities required by its population, and will help to prevent the movement o� 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 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 revenue bonds as to the x,� 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 $4,000,000 (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 �emorandum to the Commissioners which was presented to the Commissioners, are incorporated herein by reference and approved. 3. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Executive Vice-President of the AUTHORITY is hereby authorized and directed to submit 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 Commissioner with such preliminary information 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 financing of the Project and a form of the Underwriting� Agreement. The form of said Agreements have been examined by the Commissioners. It is the purpose of said Agreements to evidence the commitment of the parties and their inten�ions with �respect to the proposed Project in order that the Company may proceed without delay with the commencement 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 , � , ' � � 6� ��aJ�� provide temporary financing � 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 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 Assistar�t 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 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 formal supplemental bond resolution to be adopted prior to the delivery of said revenue bonds. � 6. The revenue bonds ( including any interim note or notes) and interest thereon shall not constitute an indebtedness of the Authority or the 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 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 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 contemplated and any additional bonds which the Authority may prior to issuance or from time to time thereafter deem necessary to complete the Project or to refund such revenue bonds; and for such purpose . . �j .. , . .� :F � ' /G������ � , the Executive Vice Presid�ent of the Authority is hereby authorized and directed to forward to the City Council copies of this resolution. anc] said Preliminary Agreement and any additional ��available information the City Courrcil may request. 8. The actions of the Executive Vice-Presiaent 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 tl;e Authority from and after the publication of notice of the� hearing, are in all respects ratified and coniirmed. Adopted: March 25, 1980 , " � i , . ` _ _�__ l-Z .� , l Attest Pre ' en � � The Por� Authority of the City of Sa�int Paul � {� ��1�� _ Se retary � � _ � � . �,_ _ < ,� '� . OM Ol: 12/19t5 � ' � . • ` Rev. : 9/8/16 < , 5 � EXPLANATION �OF ADMINISTRATIVE 4RDERS, . �L�s�� � RESOLUTIONS, AND ORDINANCES - � < �: . � x Date: March 26, 1980 . � T0: MAY 'GEORGE LATIMER � E C � � V E D � FR: � E. A. ra , St. P 1 Port Authority �IA� 2 � �9$0 � �AAILOR'S G�CR � ' � RE; WNITE S ITALS (AUSTIN/KING PROJECT) � $4,000 RE1fEN11E BOND ISSUE � � �� 1 ACTION REQUESTED• In accordance with the-Laws of Mlnnesota, Chapter 234, it is requested �hat the City Council , by Resolution, a draft capy of which is attached hereta, approve the issuance � of revenue bonds in the aano�nt of approximately $4,000,000 to finance the construction of up to a 400-car parking ramp to serve the comner�ial and residential rreeds of United Hospitals. • PURPOSE A1�D RATIONALE FOR THIS ACTION: � � The pu:rpose of the bond issue is to finance the issuance arf �4,��0,000 in industrial rev�nue bonds to finance the construction of up to a 400-car parking ramp to serve the comnercial and re�id�ntiai needs of United Hospitals. The parking ramp will be part of the Austin/` King Enteprises project� located on West 7th and Shernian Streets which w#ll contain 136 market rate apartments, up to 60,000 square feet of commercial, medical , library and health club space. The overall project is a coordinated development with other actions on West 7th Street (now Old Fort Road), which are a part of a substantia] program being undertaken by the West 7th Street Federation and the Department of Economic Development of the City of St. .Paul . ATTACHMENTS: Staff Menarandt�n Draft City Council Resolution Port Authority Resolution No. 1620 �"oR �� • N ������\Y . � � AUTHORITY OF THE CITY OF ST. PAUL � � ' Memorandum TO: Board of Commissioners DAT� March 21 , 1980 Meeting March 25, 1980 � � FROM: E. A. I�k���.� U" , SUBJEGT: UNITED HOSPITALS (AUSTIN/KING PROJECT) PUBLIC HEARING - OPTION AGREEMENT TO ACQUIRE THE PARKING RAMP PUBLIC HEARING - SALE OF BONDS - PRELIMINARY AND UNDERWRITING AGREEMENT $4,000,000 REVENUE BOND ISSUE - 400 CAR PARKING RAMP RESOLUTION NO'S 1619 AND 1620 THE PROJECfi The original plans of the �Austin/King project contemplated a plan to construct a 392-car parking ramp to serve the commercial and residential needs. This ramp was to be adjacent to and connected to a skyway to the present United Hospitals ramp on Smith Avenue. In the overall evaluation of the project the economics of the ramp itself, if supported only by the apartment complex, would have impacted the feasibility of the residential and medical facilities. Therefore, United Hospitals, who are supportive and anxious to see the resi- den�ial and additional medical space built, have agreed to assume the obli- gation for up to a 400-car parking ramp estimated to require a bond is�ue of $4,000,000. Staff has evaluated this development and United Hospitals need for additional parking regardless of the construction of the apartment complex, and has determined that the most appropriate means of financing the project is under Resolution No. 876. However, action by United Hospitals Executive Committee to undertake this project just occurred recently and additiona1 negotiations on the method of financing, i.e. , United Hospitals credit or Port Authority credit, must still be given additional review. RECOMMENDATION Because the parking facility is essential to meet the conditions in the UDAG application, it is staff's recommendation that the Commission authorize the issuance of approximately $4,000,000 for the construction of this ramp based upon the fact that negotiations of the final terms have not been completed but will be brought back to the Board for final approval before bond sale. We anticipate, however, that this financing would be for a term to run concurrent with the amortization of the bonds for the Austin/King project, and that the revenues produced by tenants of Austin/ King will contribute substantially toward amortization of those bonds, and that the guarantee of the debt service by United Hospitals is viable and ./. � • • t Board of Commissioners � NSarch 21 , 1980 Page -2- � . . provides adequate security, not only in the real estate but in their ability to repay the debt. Staff recommends approval of the resolutions concerning this project and the sale of the property after amortization of the bonds for $1 .00. EAK:jmo