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274113 WHITE - CITV CLERK PINK - FINANGE GITY OF SAINT PALTL Council CANqj2v - DEPARTMENT BLU� � - MqZ'OR . FIIe NO• -�� Co�ncil Resolution Presented� By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On March 20, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1467, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $6,840,000 to finance the acquisition from Lowry Medical Associates� an eastern syndicate� and remodeling of the buildings known as the Lowry Medical Arts building, the 5th Street building, the Lowry garage, and the Wabasha building, containing a total square foot area of 423,354 square feet, by the Lowry Development Company, a Minnesota partnership of Robert Keyes and Drs. Frank and John Gaertner. 2, The City Council of the City of Saint Paul adopted Resolution No. 272746 on April 3, 1979 giving preliminary approval to the issuance of revenue bonds in an amount of approximately $6,840,000 to finance the acquisition of the Lowry Medical building. 3. On November 27, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1575, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $790,000 to finance the installation of energy conserving windows in the Lowry Medical Arts building. 4. 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; 5. 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 Author�ty of the City of Saint Paul . RESOLVED, by the City Council of the City of Saint Paul, �hat 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. 1575, the exact details of which, including, but not limit�d to, provisions relating COUNCILMEN Yeas Nays Requested by Department of: Butler [n Favor Hozza Hunt Levine _ __ Against BY � Maddox Showalter Tedesco Form Approved by City Attorn� Adopted by Council: Date �� + � � l 7 Certified Yassed by Council Secretary BY By Approved by Mavor. Date _ Appr by Mayor fo ss n to Council Bv - _--- B WHITE - CITV CLERK � � 9 L{y�� COUrtCII ro � +�._� �v� PINK � - FINANCE GITY OF SAINT PAUL CANARV - OEPARTMENT BLUE ' - MAYOR File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 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. COUIVCILMEIV Requested by Department of: Yeas M��Q(� Nays / tiJ �& In Favor �� Hunt d Levine _ __ Against BY , --- Maddox Showalter Ted Form Approved by City Attorney Adopt y Coun 1: Date 1�7� rtified Y• � ed by c'rl Secre ry BY <` �� _ n[C �3 �91� Appr ve y Mayor for S ssi Co`uncil App ov`� by iVlavor: ��r gy _ BY ��sH�o oEC 2 � 1�7� ' • �'`��'� '�' � � . . S�Y9 :7 ' . ..�'� .. Resolution No. 1575 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 possibie 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 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 rapidl.y 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 Lowry Development Company, a Minnesota general partnership consisting of Robert Keyes, Frank Gaertner, and John Gaertner (hereinafter referred to as "Company") a request that the Authority issue its revenue bonds to finance the acquisition and installation of certain improvements to the commercial and office facility which is located in the City of St. Paul and is currently leased by the Company from the Port Authority, all as is more fully described in the staff report on file (which improvements are hereinaf ter called the "Project") ; and 4�1HEREAS, 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 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 Authority has been advised by repre- sentatives of the Company that conventional, commercial financing to pay the capital cost af the Project is available only. on a limited basis and at such high costs of borrowing that the economic feasibility of the Project would be significantly reduced, but the Company has also advised this Authority that with the aid af 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 iss.ued to finance the Project; WHEREAS, the Authority, pursuant to Minnesota Statutes, Section 474.Q1, 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 tY}e Port Authority of the City of Saint Paul , Minnesota as follows : l. 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 � / �`d��..� � Section 474.O1 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 effect,ively used and will result in more intensive development and use of land within the City and wili 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 amendment to the existing lease between the Company and the Authority 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 bo,nds, the Project is hereby approved and authorized and the issuance of revenue bonds of the Authority in an amount not to exceed approxir�ately $790, 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 . recor�mendations 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, request 'ing his approval , and other' officers, employees and agents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary inforr.lation as he may require. 4. There has heretofore been filed with the Authority a form of the Underwriting Agreement. The form of said Agreement has been examined by the Commissioners. It is : the purpose of said Agreement to evidence the commitment of the parties and their intentions with respect to the proposed - ` Project in order that the Company may proceed witho�t delay with the cor.uaencement of the acquisition, installation and construction of the Project with the assurance that there has � been sufficient "offieial action" under Section 103(b) of the Internal Revenue Code of 1954, as amended, to allow for the issuance of industrial revenue bonds to finance the entire cost of the Project upon agreement being reached as to the ultimate details of the Project and its financing. Said Agreement is hereby approved, and the President and Secretary of the Authority are hereby authorized and directed to execute said Agreement. - � , - � 5. 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 amendment to the existing 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 Sec.retary (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 affer 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 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 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 herein contemplated and any additional bonds which the Authority may prior to issuance or from time to time thereaft�r deem necessary to complete the Project or to re£und 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 inforr.iation 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 far 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: November 27, 1979 ,' / �� ' A�test � , �,t�� Presiden . 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E k',F'i � , � � n�� i 4 � � a,� �� t �`�3 i � � �� _ F ' J � �� ' � t ' �:,y�,, -� 3 e � k ) yr ��'� � . . . .��..,4 hy"�k k� 1 ./�y� $� �"� �$#�Y 7��!+� �� . 'I��t{!7♦ � E ��*3 a 4 � k � . ,.• a. �. ' � • �. �/' �� '�♦ �� h Y p t �k �*-y�� p f a: J�� L �y�� .� . � � 'r ' : ' �'. '.. �� k j s: ' - '�� ` �� '3 „, n,, ' `�f �` j � h � �: s,��'�� £ �� ' � a ' a,�� . . :. .. p'� er�,t` �2 � � '1�� _T1�.1'^,4 . .�e+.M�kaM1 �.f4ww`n��. � " �_ � _. ...v.�z_._ ...... :,k . ., .�. . . _ _ . . . . _ .s. . W�� _ � ORT . � - AVTHORITY �`��?�� :� OF THE CITY OF ST. PAUL � Memo�arndurr� � TO: Board of Commissioners DATE November 23, 1979 Meeting November 27, 1979 �; � FROM: E. A. N�� SUBJECT: LOWRY DEVELOPMENT COMPANY LEASE AMENDMENT COMPLETION BOND ISSUE--$790,000 RESOLUTION N0. 1575 We are in receipt of a letter from legal counsel for Lowry Development Company requesting that the Port Authority authorize the issuance of an additional $790,000 in bonds to install energy conserving windows in the Lowry Medical Arts building. Winsor-Faricy Architects estimate that installation of insulated windows will result in a fuel savings of $47,968 per year and at the same time represent a substantial aesthetic improvement to the exterior of the facility. Under the terms of the agreement with Lowry Development no expenditures are permitted above the third floor without the specific approval of the Board of Commissioners; therefore, approval of this additional bond issue for this purpose would also in essence be approving alterations to the building above the third floor by replacing the windows. Staff recomnends approval of the lease amendment and the issuance of the additional $790,000 in bonds to help conserve the energy needed to heat this facility. EAK:jmo � - -�� W � � � �CE� , 1 `., Nov�r , ��D ',� �979 M'°rOi�'s ��"�� l °� � { PORT AUTHORITY OF THE CITY OF SAINT PAUL �..� 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-56i56 November 29, 1979 RECEIVED NOV �� r�1979 Mr. Gary stout ��ry qTT�R�EY Di rector Department of Planning and Economic Development City of St. Paul 14th Floor, City Hall Annex St. Paul , Minnesota 55102 SUBJECT: LOWRY DEVELOPMENT COMPANY $790,000 COMPLETION BOND ISSUE Dear Gary: We submit herewith for your review and referral 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 installation of energy conserving windows in the Lowry Medical Arts building. 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. 1575 which authorized the sale of bonds in the amount of $790,000. ' Your expeditious handling of this matter will be appreciated. � `Yours truly, ,\ � � � ; � � _�: ;_. ._ � � fugene A. Kraut Assistant Executive Vice President EAK:jmo I �� cc: R. Broeker 1 ' :OBERT F.SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.LD. CLIFFORD E RAMSTED RONALD O S' ...-;i➢VE VICF PRESIDENT ASSiS7ANi EXECUIIVE VICE PRE5IDENT ' DIRECIOR.INDUSiRIA�DEVElOPtiltNi CHIEF ENGiNEEF :r,.r�u'C:'"_�'.I:�� COMMi:�_.�.;';�RS GEORGE W.WWTER RUBY HUNT ARTHUR N.GOODMAN G.RICHARD SIADE DAVID HOZZA �OUIS H. MEYERS Wi�LIAh1„ ' PRES�DENT ViCFPRf:SNENI ;I.CRi�ARV �i8%��.�?!«