275772 WHITE - G�TV CLERK COUIICII �5 ���
PINK - FINANCE G I TY OF SA I NT �ALT L
CANARV - DEPARTMENT
BLUE - MAVpR File NO.
ouncil Resolution
Presented B
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On September 16, 1980, the Port Authority of the City of Saint Paul
adopted Resolution No. 1699 giving preliminary approval to the issuance of revenue
bonds in the initial principal amount of approximately $680,000 to finance the
construction of a 12,000 Sq. Ft., two-story office building for Owen Ayres &
Associates, Inc. in Midway Industrial Park.
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 Autho rity 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. 1699, 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 Part 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 � Requested by Department of:
$ tler Hunt
H z`a �P�,�n [n Favor i�/,'
Hu t Maddox �
M�Manon - __ A gainst BY
dd walter
owa Ted co
co O�,'T 7 �� Form A p oved by Ci A ney
Adopt by Council: SO�ate �
C ified Pa d by C nci ecretary B� �
t�p b Nlavor CT g 19g� Approv ayor for Submis ' Council
By — By
PORT �
� AUTHORITY �'1����
OF THE CITY OF ST. PAUL
Memo�andum
Tp; BOARD OF COMMISSIONERS pA�E September 12, 1980
(Meeting September 6, 1980)
�� �
FROM: Donal d G. Dunshe
SUBJEGT: OWEN AYRES & ASSOCIATES, INC.
PUBLIC HEARING - SALE OF LAND
RESOLUTION N0. 1698
MIDWAY INDUSTRIAL PARK
PUBLIC HEARING - SALE OF BONDS
� PRELIMINARY AND UNDERWRITING AGREEMENTS
$680,000 REVENUE BOND ISSUE
RESOLUTION N0. 1699
l . COMPANY
Owen Ayres & Associates, Inc. is an architectural and engineering
firm based in Eau Claire, Wisconsin with four other offices in
Wisconsin plus offices in California, Michigan, South Carolina,
Texas and St. Paul . In 1978 Owen Ayres acquired the consulting
engineers firm of Ellison-Pihlstrom-/�yres, Inc. who has operated
in the City since 1950. At the present time they employ approx-
imately 25 to 30 engineers and architectsand plan to significantly
increase the size of their staff in the future.
2. PROJECT
The Company proposes to construct a 12,000 Sq. Ft. , two-story office
building on a site containing 28,037 Sq. Ft. in Midway Industrial
Park. The site contains space for adequate off-street parking and
the exterior building would be brick. The building is estimated to
cost $542,538 and would require a bond issue of $680,000. Since the
Company proposes to have 3,000 to 4,000 Sq. Ft. of office space that
would not be immediately utilized and would be leased, that would be
contributing the required Port Auth�rity equity of 10% in the form
of architectural plans, specifications and construction supervision.
It is estimated that would amount to $60,000.
" � � ������
OWEN AYRES & ASSOCIATES, INC.
September 12, 1980
Page 2
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 Fund $542,538.00
Underwriting 20,400.00
Capitalized Interest 30,362.00
Debt Service Reserve 71 ,700.00
Expenses 15,000.00
680,000.00
. In addition to amortization of the bond issue the Company will be leasing
the land based on a rate of $2.50 per Sq. Ft. plus interest of 8 3/4%.
This would amount to a monthly rental of $566.28 or $6,795.36 annually.
The Company will also be paying fiscal and administrative fees based on
a rate of $300, $400 and $500 per month for the term of the lease. The
Company would have an option to purchase the building at the end of the
lease for 10% of the original bond issue cost and the land at one-half
of the original land cost.
4. UNDERWRITING
Miller & Schroeder Municipals has agreed to underwrite a bond issue for
a term of 30 years in the amount of $680,000.00. The interest rate for
the bonds would be set at the time the bond issue is sold:
5. RECOMMENDATION
The Port Authority has published the required notice for sale of the
bonds and the Early Notification was sent on August 15 to Districts 11
and 12. We have not had any oral or written communication against the
project. Staff has reviewed the project in detail along with the
financial statements and has interviewed officers of the Company and
recommends approval of Resolutions 1698 and 1699.
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P.esolution No. 1699
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RESOLUTION OF
THE PORT AUTHORITY OF THE CIiY OF SAINT PAUL
ti�'HE:�tEAS j the purpose of Chapter �74, t4innesota
Statutes, Y.no��n as� the i�Sinnesota i•iunicipal Industrial Develo�-
nent Act (hereina�ter called "Act" ) as found and deterr,iined by
the l��T�s�a���re is �o prc;note the ��elfare oi the state by the
acti�,�e a"rac�ion a;:d er.couragement and development of econor�i-
cally s��.::�d i7cus=rj ard cor:,merce to prevent so far as vossible
the e.::er5�nce c= ��ic�?:�ed and marginal lands and areas of
chrc;��c �;:�,::�lc��-��nt ai:<: to aid in che develo�o:ien� of existiny
areas or ;�'iy?�t, :_�argir.al lar.d and persisten� urie�ployr:ient; and �
'►�:u_.:����, factors necessitating the active proMOtion
and d�ve'*�p,�er:�. o� =cc�::��:aicaily sound industr_� ar.d co:u-�erc2 are
the i:�cY°�s�ry c��^c�ntration oi population in tl�e r�etropolitan
areas a:�d the ra��dly risina increase in the anount and cost oi
gove�r:.;�_r.t�? _.__"��ices :-e:�uired to meet the r.eeds af the
incr�aaec po:,u�aLian a;�c thz need for develop::�ent of land use
- ��hict: ��il� prov=u� an adequatz taa base to �ir.ance these
increas�ci costs anc ac�ess to employr�ent onpoY�unities for such
POptliat_�ri� �?�iG
�°��i�K�:��s T�:e P�rt Authority of �h2 City ;of Saint Paul
(the "�:uthozi���" } liGs received f ro:n the O��en =.yres & ,
Associ�;.esj Ir,c. , � �:yisconsin corporation (hereinaiter referred
to as "Cempany" ) a reqaest that the Authority issue its revenue
bonds to finance th� acquisition, installation and construction
of a 12, Q00 sq�ar� fcot office building (hereinaiter .
collectively call�d the "Project" ) in the Ci�y oi St. Paul, all
as is more full� cESCribed in the staff repor�. on file; and
�-��?ER�AS, t':e Authority desires to facilitate the �
selective cieve?c�:-�ent of the com�unity, to re`ain and ir�lprove
its tax b:�se and �o help it �rovide the ranye of services and
enUloyilent opportunities� requi-red by its po�ulation, anci said _
Project w�l' assist �he Ci�y in ach?eving that objective. Said
Project ��ill help to increase the assess�d va'uation of the
City aizd h�lp �;ntain a positive relationshiu between assess2d
valuation and deUt and enhance the inaye and reputation of the
City; and
^ ` � ,
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�������
WHEREAS, the Project to be financed by revenue bonds .
. will result in substantial er�ployr.ient opportunities in the '
Pro3ect; �
�
��HEREAS, the Authority has been advised by repre-
sentatives of tne Company that conventional, commercial
financiny to pay the capital cost of the Project is available_ _ �
only on a limite� basis and at such high costs of borrowing �
� that t'r.e econo:aic feasibility of operating the Project would be i _ _
siynifican�ly reduced, but the Cor�pany has also advised this ;
Authority ti�at with the aid of revenue bond financing, and its �
resulting low borro�aing cost, the Project is economically more �
feas•iUle; ;
r
jvHEREr�, ��tiller & Schro2der Municipals, Inc. (the
��UriC�°"':-:'L"2'L2���� 11�5 :laG'? a' proposal lIl an agreement ( tl'1@
"Under��r?�ir,g ��r�e:.�e::t" ) relating to the purchase of the
rev�n�:� bonas to ce iss�ed Lo finance the Project;
ry��RE�S, thz �.uthority, pursuant to Minnesota
Statut?�; Sec�i�� 474. a1, Subdivision 7b did publish a notice,
a copy oi F��:ic: with proof of nualication i:� on file in the
offic� �i �f:? �u�:�ori�y, of a public hearing on the proposal of
the Ce_:��anv tha� thz Au�i�ority finance the Project hereinbefore
describ�d by the issuance of its industrial revenue bonds; and
���:�=��:�5, t;� tiu�hority did conduct a public hearing
- _ pursuant to sa�� nctice, at �•�hich hearing the recoru�endations
conta:r.:d in ti�� 'r_j1i.i.oYity's staff inemorandum to tlle
Con-�issiore�s :,�r�= r�view�d, and all persons wha appeared at
the h��rin� cae�� ��ven an o�portur.ity to express their vie4�s
with r�so�c� �o �:.� p=op�sal.
LVGCY� '�:,��L�CRE, BE IT �SOLVED by the Co�nissioners . �
of the Port Authcrity of the City of Saint Paul, Minneso�a as
follows:
1 . On the basis of information available to the
Authority it ap�ears, and the Authority hereby iinds, that said .
Project constitutes properties, used or useful iri connection
��ith o,^.e cr �ore revenue produciny enterprises engaged in any
busi,^.�ss �•7ithin �he �:eaning of Su�division la of Section 474 .02
of tl�e Act; tha� the Project furthers the purposes stated in
Sec�ion 474 . 01 of the Act, that th� availability of the
financinU u;�d�r t��e Act and willingness oi the Authority to
furnish such fir.ancing will be a substantial inducement to the
Conpar.y to unde�take the Project, and that the effect oi the
P?-oject, if und�rta}:en', c�ill be to encourage the developnent of
econonically sound industry and cor,u.^.erce and assist in the
preventien of the er�ergence of blighted and naryinal land, and
� � ��ill hel to reven't chronic unen lo nent, and will hel the `� '�� ra;
^ P P P Y P � �t� ���
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
an�-; educated persons out of the state and to areas within the
state �ahere their services may not be as effectiveiy used and
will result in more . in�ensive developnent and use of land
within the City and ��ill eventually result in an increase in
the Citv's tax base; and that it is in the best interests af �
the port district and the peoPle of the City of Saint Paul and �
�. in furtherance of th2 general plan of development to assist the ' ,
•.Company in financing the Project. �
;
2. S�;bjec` to �he r.lutual ayreenent of. the �
. Authorit� the Ccm an and the � -
, 1, p y purchaser of the revenue bonds �
as to ti12 details of the lease or other revenue agreer�ent as
defin�d i:� the A ct, and other docuMents necessary to evidence .
and e��ecL the F�n�r�c�ng of the Project and the issuance of the
.reve��:e }'JJr'i��Sr �r� �ro-jact is tlereby approv�d and authorizPd
and the i�suanc� �� r2venue bonds of the Authority in an anount
not to �xc�e� ��oro{i„�a'��ly $630, 000 (other than such
addit�cr.al rc:�F^�:e Uon�is as are needed to conplete the Project)
is a;�thorized �� �inanc? the costs oi the Project and the
reca�.�:enc:a�ic..s o� L?�z :��a�.hority's staff, as set forth in the
stai` ::._�cra!:c':�::.� �o t'r.� C�.^unissior.ers wnich ��as presented to
tl:e CUT:.�:S jS�C�:�p�J j a�e ir.corporated herein by reference and
appro�ec.
3. �� acccrdance ��ith Subdivision 7a of Section
� 474 . 01, i•�?nnes��a S�atL'�eS� t:�e Executive Vice-President of the
AUT�ORI•�, is �-��reby �u�horized ar.d directed to subnit tre
pro�osa� �or t�:e a^ove described Project to the Co::u:�issioner of
Securi�i�s, req;�e��i�y his approval, and other of f icers,
emplo��es anc ag�^'=_s c�= the AUTHORITY are hereb� authorized to
pro�ide rhe C�:���.ssioner ��ith sucz prelininary infornation as
he ndy requiYe.
• 4 . ��AY? has heretoiore been filed t�ith the
Authori�y a for::^, o= Preliminary Agreer�ent between the Authority
and Company, relatir.0 to the proposed construction and
financing of th� Pro�ect and a forr,i of the Underwriting
Agree�ent. Tre ior:� o� said Agreenents have been exanin�d by
the Cor.�-��ssion�rs . It is the pur�ose of said Agreer�ents to
evidence �he ccr:.:lit::�ent of the pa�ties and tr.eir intentions
with respect to t?7e �roposed Project in order that the Cer.i�any .
may proceed �:i�}�out �elay i.�ith the commencenent of the _
aca,uisition, installation ar.d construction of the Projec� ���ith
the assurance that there has been sufficient "official action"
under Section '03(u) of the Internal Revenue Code of 1954, as
ar�et�de;3, to allo�a for the issuanc� of industrial revenue bonds
( includiny, if dee:^ed appropriate, any interin note or notes to �
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provide tenporary financiny thereof) to finance t�ie entire cost �
of the Project upon agreer►ent being reached as to the ultimate
�. details of the Project and its financing. Said Agreer�ents are
heYeby approved, and the Presiden� and Secretary of the
Authori�y are hereby authorized and directed to eaecute said
Agreenents. •
5. Upon execution of the Prelininary �greeMent by' � 1
. the CcMpany, the staif of. the Authority are authorized anc� � .
� direct�ed to co;itinue negotiations ��ith the Conpany so as to i '
resolve ttie rera?n?r� issues necessary to the preparation of �
trie ?ease and o`i�er Gocunents necessary. to the adoption by the '
Authority of its final bonJ resolu�ion and the issuance and �
deli'very of the �revenue k�onds; provided that the President (or , '
Vic2-���si�ent if �he �resident is absent) and the Secretary
(or Hss_stant Secr�'�ary if the Secr�tary is abserit) of the
AuthoY:.�1, o� ir ?_tr�er ef such ofticers (and his alternative)
are �:ser:�, t:,� _��as�.:r�r of the Authority in lieu of such '
absen� �f�ice_s; are :?e_eby authorized in accordance ��ith the
provisic:.� c� �:;::n�sc�a Statutzs, Section L75. 06, Subdivision
1, to ac�ep= a __nal o`�er of the U�derwriters made by the
Under.��i��rs �o ��rcr:as� said bonds and to e�ecute an
un3erti�ri:.iny �5��en�r.t se�ting forth such oifer on behalf of �
the ����:�cri+���. �uch :Lc��tance s.iall bind the Under�ariters to
said o��er bu� shal� be subject to approval and ratification by
�Y:e Per'� A�jt�:o=�tj� =n a fornal sunplemental bond resolution to �
bz aCC:�i�� ��:�_ ", t�e delivery c� said revenue bonds.
� o. �?�,? reven»e bonds (including any interim note or �
notes� and -i:a*eY=s� t�ereon shall not constitute an
indebtedne�s o= +,:.;:e As�hority or the City of Saint Paul within
the r.ieai-:�ng c-f �r.y constitutional or statutory liniLa�ion and
s?zall no� co:zs��t�:t� cr give rise to a pecunia?-y liability of
the Aut�ority or tr,� City or a charge against their general
. credit or tarir.g powexs and neither the full faith and credit
nor ttle taxing poners oi the Authority or the City is pledged .
� for the paymenL of the bonds (and interi;, note or notes) or
interest therecr,. �
7. ��n order to facilitate conpletion of the revenue
bond financing nerein contemnlated, the City Council is hereby
recjuestcd to cc:.sent, p�,�rsuatit to Laws of i�iinnesota, 1976,
�hapter 23�, to �ne issuance of the revenue bonds ( including
any interim note or notes) herein contemplated and any
additional bonds t�hicn the Authority raay prior to issuance or �
from tine to ti;:�e thereafter deem necessary to conplete the
Project or to re�und such revenue bonds; and for such purpose
t11e Ea�cutive Vice President of the Authority is hereby
autharized and directed to forward to the Ci�y Council copies
of tnis resolution ai:d said Prelir�inary Agree�en� and any
adc�itiona� available inforrnation the City Council r�ay request.
� , . � . � • . � +g� .t��fj' f�
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8. Ttie actions of the Executive Vice-President of
tYie Authority in causing public notice of t�ie public hearing
and in describing the yeneral nature o� the Project and
est•i;nating the principal amount o� bonds to be issued to
finance the Project and in preparing a draf t of the proposed
application to th� Commissioner o� Securities, State of
Diinnesota, for a�proval of the Project, which Yias been �
available for inspection by the pub�ic at the office of the - ;
Authori'�y irom and after the publication of notice of the '
� hearing, are in all respects ratified and confir;.ied. ' • -
!
Adopted Septer�ber 15, 1980 /� -
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Attest ���/tG . �i ri✓,.v.
• P siden`
� The Port r thority oi the Ci�y
of Saint �aul
�
i
��.-Z, Secr•��a=y / "
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�; � , Date : October 3, 1980
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co � s� ��� � � � � � a �-�
"� O : Saint P�u� City Cv�n�i� �
FRC) �A � C0171i'tii��QE �f� FINANCE, �MA��AGEMEP�T & PERSONNEL
George McMahon , chairma�, makes the fottov�ring
report on C.F. � Ordinance
(4j (�X�, Resofutivn
�. Ot h er
TiTLE : �. � -
At its meeting of October 2, 1980, the Finance Committee recorr�nended approval af
_ the following: "
15. Resolution approving the issuance of approximately �$500,000 in. revenue bonds
by the Port Authority for financing construction .of office. and production �
facilities in Riverview Industrial Park for. Century Circuits. �& Electronics, Inc.
. (11397-Gf1) _ : � :_ . :
'16. Resolution approving the issuance of approximateTy $680,00� in revenue bonds
by the Port Authority for financing constructi�n vf two-story► office building
in Midway Industrial Park for Owen Ayres & Associates, Inc. (11396-GM�
17. Resolution approving application of Robert J. E1lis for abater�en�, submitted �
on behalf of the Public Housing Ageney. (11402-GM)
18. Resolution concurring in the reappointments by the �1ayor of` Mary Ann Sudeith �
and Winnie Estrada to the Public Housing Agency.
}
CiTY H.AL.L SEVENTH FLOOR SAIi�T PAUL, 14IF�NESOT�L �5102
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° �5 [�� OM 0�:' 12/19t5 , ;
� . • Rev. : 9/8176 . , '
EXPLANATION OF ADMIN�STRATiY£ ORDERS,
. �so�.uTior�s, �rro o�Q�r��nc�s � �t E C E 1 V E D:
' S��'2 2 1980
: � . MAY_C�� �
Date: September 16, 1980
,
T0: MAYOR GEORGE LATIMER
FR: � R. F. �Sprafka �i` �' �
RE: OWEN AYRES � ASSOCIATES, INC.
$680,000 REVENUE BOND ISSUE
RESOLUTION N0. 1699
ACTI�+I REQUESTED:
In accordance with the Laws of Minnesota, Chapter 234, it is requested that tl�
City Gouncfl, by Resolution, a draft copy of which is attached hereto, approve
the issuance of revenue bonds in the anrount af appraximately �680,000 to financ�
the construction of a 12,000 Sq. Ft., two-story office building on a site c�- .
taining 28,037 Sq. Ft� in Midway Industrial Park for Owen qyres 6 Assocfates, Inc.
� Owen �jrres & Associates, Inc. is an architectural anc� engineering firm based in
• Eau Clafre, Wisconsin.
PU�POS� AND RATIONALE FOR THIS ACTIO�: � '
.
The purpose of the bond issue �Es to f�nance the cortstr�uctfon of a 12,t)Ofl Sq. Ft.
tw�o-story office building for Owen �j+res & Associates, Inc. in Midway industrial
Par-k. The Comparty pr�poses to have 3,000 to 4,000 Sq. Ft. of affice �pace that �
wauld not be inmediately uti'tized and would be leased. They pm�ect employment
to t� about 50 persons. The term of the bond issue is 3Q years.
ATTACHMENTS:
Staff Memorandum
Draft City Counci1 Resolution
Port Autfiority Resolution Na. 1699
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