275034 WHIYE - C�TV CLERK 2�5Q34
PINK - FINANCE GITY OF SAINT PAITL Council
CANARV - DEPARTMENT File NO.
BLUE - MAVOR
Co�ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On May 20, 1980, the Port Authority of the City of Saint Paul adopted Resolution
No.1647 , giving preliminary approval to the issuance of revenue bonds in the initial
principal amount of approximately $6,320,000.00 to finance the construction of an 80,000
Sq. Ft. regional distribution facility with expansion room for an additional 40,000 Sq. Ft.
for Univar Corporation (Van Waters and Rogers Division) near the intersection of Westminster
Street and York Avenue.
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 Autho rity 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.1647 , 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 Autho rity, found by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas ��,5 Requested by Department of:
B t r Levine [n Favoc
H za Maddox
H t McMahon ��
Le 'ne __ Against BY
M ox �►owa�ter
S o alter Tedesco
ede co Wilson ,uN C, 1980 Form Approv d by City Attorney
Adopted y Council: Date `
Certified P .sed by C unci ecr r BY �
By
� 1 �. �980 Approved by Mayor for Submission to Council
l#�proved by r. ate _
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BY -- - — -- BY
l.i�l�iEp ,;iJ N 2 � 1980
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. � Rev.: 9/8/�6 _
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EXPL RESOLUTIONSD AND ORDIINANCESDERS, ���t�A `
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�� �ate; May 20, 1980 _ MA`t 2 ?1980
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TOt MIAYQR GEQRGE LATIMER -
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�; UM�VAR GORPORATIQN (YAN WATERS AND ROGERS QIVISION)
$6,320,000 RE�(fNUE BOND ISSUE
ACTIOW REQUE�TED: -
In accordaace Mith tt� Laws of Minnesota, Chapter 234, it is requested that the �
City Council, by Resolution, a draft copy of wirich is attached hereto, approve
the issuance of approximately �6,320,OQ0.00 in revenue bonds for the purpose of
financing the construction of an :80,000 Sq. Ft. regional distribwtion facility
with expansion room for an additional 40,000 Sq. Ft. The building would be �
constructed near the intersECtion of Westminster 5treet and York Avenwe.
`PURPOSE Al�iD RATI�NA�E FOR THIS ACTION: �
The purpcse of the bond issue is to finance the construction of an 80,000 Sq. Ft.
, regivnal distribution facility with expansion room� for an additional 40,040 Sq. Ft.
lMivar Corporation would lease 9.5835 acres with an additional parcel of 5.198 acres ,�
available for fature development by Uni.var or for sale or l�ease to another industry.
E�loyment from the project shoul.d increase by 15 peaple once the new� farcility is
opened next year. :
ATTACHMfNTS:
Staff inemorandum �
Draft City Council Resolutjon
Port Authority Resolution No. 1647'
' . � _
P � RT
'AUTHORITY � ��'���'�
OF THE CITY OF ST. PI'1UL
Memorandum �
TO: Board of Commiss n s DAT� May 13, 1980
Meeting May 20r 1 \0
FROM: Donald G. Dunshee
SUBJEC7: UNIVAR CORPORATION
$6,320,000.00 REVENUE BOND ISSUE
PUBLIC SALE HEARING - RESOLUTION N0. 1646
PRELIMINARY AND UNDERWRITING AGREEMENTS - RESOLUTION N0. 1647
1 . THE COMPANY
Univar Corporation is based in Seattle, Washington and operates
manufacturing and distribution facilities throughout the western
one-half of the United States and Canada. Their major division
is Van Waters and Rogers which presently has a facility at 2313
Wycliff Street in the Midway. That facility has operated in St.
Paul for over 70 years and they wish to consolidate their operations
into a single building. They presently operate out of several
buildings that are divided by streets and railroad tracks and this
has limited their ability to expand. In 1979 the corporate sales
for Univar were $713,089,237 with a net worth of $75,103,598. Of
the tota� 1980 corporate sales, the Van Waters and Rogers division
accounts for 47.2% or $337,112,000
2. THE PROJECT
The Company proposes to build an 80,000 Sq. Ft. regional distribution
facility with expansion room for an additional 40,000 Sq. Ft. They
propose to construct the building near the intersectaon of Westminster
Street and York Avenue. The site contains 16. 7628 acres and is owned
by the Burlington Northern Railroad.
. In order to utilize the site for the Univar Project it is necessary to
construct a road from York Avenue for truck access and extend utilities.
Univar Corporation would lease 9.5835 acres with an additional parcel
of 5.198 acres available for future development by Univar or for sale
or lease to another industry. The remaining acreage would be used to
provide a public street which would be dedicated to the City of St. Paul
as well as provide a storm sewer ponding area which would be turned
over and be rraintained by the City. The storm sewer ponding area is
a requirement of� the City Public Works Department in order to develop
the site.
Under amendments to Chapter 474 the Port Authority published notices
in the Legal Ledger and St. Paul Disptach-Pioneer Press on May 3 and 5
respectively that the proposed project would be considered by the Port
Authority Commission on Tuesday, May 20. If the project is approved by
the Commission on Tuesday, May 20, a formal application w�ll be sub-
Board of Commissioners
Univar Corporation •
May 13, 1980
Page 2
mitted to the Commissioner of Securities before the bond issue
is closed.
On February 22 the Port Authority notified Districts 5 and 6 of
the proposed Univar project. Staff inet with the full District 5
Council on March 18 to review the Univar project and on Wednesday,
April 30 met with the South of Case neighborhood which is part of
District 5 to also review the project and answer their questions.
Both the neighborhood and the district have supported the project.
At the present time Univar employs approximately 65 to 70 people
at their Wycliff facility and they have projected an increase in
employment of 10 to 15 once the new facility is opened next year.
The present plan calls fior road and utility construction to start
this year with construction of the new facility to commence in the
Spring of 1981 and be completed by late summer.
3. FINANCING
� The proposed financing of the facility would be done under Resolution
No. 876. Proceeds from the bond issue would be as follows:
Construction �4,000,000.00
Site 664,472.00
Development Cost 271 ,651 .00
Bond Issue Expense 32,902.00
Capitalized Interest 553,Q00.00
Debt Service Reserve 608,375.00
� Discount 189,600.00
6,320,000.00
In addition to the monthly• rent, the Company will pay a fiscal and
administrative fee as follows:
- First 10 Years �300 per month per million issued
Second 10 Y.ears �400 per month per million issued
Final 10 Years �500 per month per million issued
4. UNDERWRITING
Miller & Schroeder Municipals has agreed to underwrite a bond issue
for a term of 3Q years commencing October l , 1980 and terminating
September 30, 2010. The interest rate for the bond issue will be
set ten days prior to closing.
� �������
Board of Commissioners
Univar Corporation '
May 13, 1980
Page 3
5. TERMS OF THE LEASE
The proposed lease is for a term of 30 years and provides an
option to purchase at the end of the lease for 10% of the bond
issue cost. In addition to the option to purchase at the end
of the lease, the Company would have an option at the end of
the tenth and twentieth year for 10% plus discharging the out-
standing bonds.
Univar would utilize approximately two-thirds of the land to
be developed with the remaining one-third or 5. 198 acres to
be available for lease or sale to another company.. Under the
ter•ms of the proposed lease the Port Authority would use its
income from interest earnings on the debt service reserve, sinking
fund and fiscal and administrative fees to service the debt on
the portion of the bond issue applicable to the available site.
l�'hen either the Port Authority or Univar locate another industrq
on the property, the Port Authority' s obligation to continue to
serve that portion of the debt would cease and the new owner or
developer of the property would assume the obligation as part of
the purchase contract or bond issue. The entire site is being
purchased from the Burlington Northern Railroad at a cost of $.91
per Sq. Ft. Toltz, King, Duva11 and Anderson has estimated that
the development cost to extend the road, construct the storm sewer
pond and extend water service would be approximately �.46 per Sq.
Ft. This would bring the total development cost of the property
� to �1 .37 per Sq. Ft. which is equal to present market conditions
for sites in the area.
Staff has reviewed the financial statements of Univar Corporation
and interviewed officers of the Company regarding the project.
6. RECOMf�IENDATION
Staff has reviewed the project in detail , the financial statements
of the Corporation and discussed the project with the District Council
and recommends approval of RQSOlutions 1646 and 1647 authorizing the
issuance of �6,320,000.00.
sjs �
, � .
: �"������
Resolution No. 1647
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota 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 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 unemployment and to aid in the development of existing
areas of blight, marginal land a-�d persistent unemployment; and
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 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 Univar Corporation
(hereinafter referred to as "Company" ) a request that the
Authority issue its revenue bonds _to finance the acquisition,
installation and construction of a regional office and
distribution facility (hereinafter collectively called the
"Project") in the City of St. Paul, 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 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 economic feasibility of operating the Project would be
significantly reduced, but the Company has also advised this
Authority that with the aid of revenue bond financing, and its
resulting low borrowing coSt, the Project is economically more
feasible;
WHEREAS, 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 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 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
Commissioners 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 1 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 chronic 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 of talented _
. and educated persons out of the state and to areas within the
state where their services may not be as effectively used and
will result in more intensive development and use of land
within the City and will eventually result in an increase in
the City's tax base; and that it is in the best interests of
the port district and the people of the City of 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
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 $6,320,000 (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 inemorandum 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 officecs,
. 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 Agreemerits 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 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
.
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 Assistant Secretary if the Secretary is absent) of the
Authority, or if either of such officers (and his alternative)
are absent, the Treasurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with the
provisions of 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 Authozity 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
. � , .
; � �����x�
the Executive Vice President of the Authority is hereby
authorized and directed to forward to the City Council copies
of this resolution and said Preliminary Agreement and any _
additional available information 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.
Adopted May 20, 1980 -
Attest
v�+ Pres '
� � Th rt Authority of the City
, /� o Saint Paul
� � .
Secretar�
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PORT AtlTHORITY OF THE .CITY OF SAINT PAUL
M-----� 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
May 20, 1980
Mr. Gary Stout
Di rector
Department of Planning &
Economic Develapment
City of St. Paul
14th Floor, City Hall Annex
St. Paul , Minnesota : 55102
SUBJECT: UNIVAR CORPORATION (VAN WATERS AND ROGERS DIVISION)
$6,320,000 REVENUE BOND ISSUE
Dear Gary:
We submit herewith for your review and r�ferral to the office of the -
Mayor, City Council and the City Attorney's office details pertaining
to the issuance of revenue bonds to finance the construction of: an
80,000 Sq. Ft. regional distribution facility for Univar Corporation
(Van Waters and Rogers Division) near the intersection of Westminster
Street and York Avenue.
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. 1647, which authorized the sale of bonds in the amaunt
of $b,320,000.
Your expeditious handling of this matter will be appreciated.
� Yours truly,
,
,
.� -�,� �
�� �`-"��'s.'
� Euge�A. Kraut
Assistant Executive
Vice President
EAK:sjs
cc: Re Broeker
i�OBERT F.SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSFfEE,C.i.D. CLIFFORD E.RAMSTED RONALD O.SCHEfTLE
-.�-�iITIVE�10E PRESIDENT qS$ISfqryf F�([CUIME y10E pREypENT DIRECTOR,INOU$TRIAL DEVELOPMENT CH�EF ENGWEER -CHIEF P,CCOIMVTAIYI
�OMMISSIONER$ GEORGE W.WIMER RUBY HUNT ARTHUR N.GOODMAN G.RICHARD SIADE DAV1D HOZZA LOUIS H.MEYERS WILLWM J.SEIFERT
PRESiDENT V�CE PRESIDEM SECRE�ARV TRFARN2Ht �
.�Ir t
C.I.D. Certified Industrial Developer
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