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273984 WHITE - CITV CLERK COV�C1� 2�'39�� PINK - FINANCE G I TY O F SA I NT PA LT L CANARV - DEPARTMENT File NO. BLUE - MAVOR . Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On October 23, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1565, giving preliminary approval to the issuance of a tax exempt mortgage note in the initial principal amount of approximately $5,500,000 to finance the addition of 150 rooms to the Ramada Inns Highland Inn located at I-94 and White Bear 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 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. 1565, 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 Na� � Requested by Department of: s�t�e�-Mc�V( v� [n Favor � � � Hunt Levine �__ Against BY Maddox Showal�er°"�"`°. Ted'esco �� 6 �� Form Approved by City Attorney Adopt,�by Council: Date ��y�^ . � �� rtified Pas e Counci ret y BY tapp by 1+lavor: D t `'�_ Nnv Ap ro by Mayor for ssio t4fCo ncil By ��ts�Et� N OV 1 � �g79 .. � __ ,_ , : , : , , ,: � � F � : , - _ - ' � `Do not detach this m ,J orandturt frvrn tkt�i , � • . � . y „ � t�e�otwtl4n so tha# tfiis 1 + ma�tlon ;wt1� b�! _ ' ,� �:,. at�ilahle to the �l�y C+oU {i. ` , . ��; . . ' : � : $XPLANA�ION ,OF ADltIN � '�I�E 4RA8RS , . , LUTI NS , CE$' � �;: , ��_. _...r.. ,r,: y� p� ��r�i��l� . F q , � � Dat�: Octc;l�� l�, 1979 '�` ,� � ��:�� ,� 0�� .�' �� TO s MAYbx Gi�O�GE LA�T.I�ER ; . : r ��`�� -`FR: p,�rsouue� Of f ice � , RE; �ti�n for s�b�qi�sloa to Citp CPV�tc#, ' 1►�:'�IO�i �1R�1!R�i�'EI? , . . ,+�wlYri �4�+ Wq T�i, ' . . ' . . . � . . . .,. � . � . - � , . We r�c�mead yatir app�cn►a,1'amd subm�.saion of t' s &�olutioe�► ta: the City C�aux�il. ,.� . IONA�►S:;FQS TA�S ION: � , PU�tP�S� � � _.._.,.�..,.�,�.��....:,�T,.._.-- +w..�rrr��w - . . . � , _ . � , . . . . .. . . � � �. . .�, � . . . - . . . . . � . - , Thia��l.esolutic� apg�oves.an. amendme t to the 1979 �greem�nt l�e'�'ee� .� ,;, . � the C.�i�y and l3�e E�ect�icaaas' Locaa. 11`, � � � s r' 'Phi$ ame�dmeat ad�ds thg new title of , i�h�3�ng M�a%aise 8aace Wo�ke,r�.to, , � # �he csntraet as well a s the rate�of pay� i�is Yt aleo amends the�section dealing with friage benet"��s� �he :�c�aaage . , provide a that new erriplagee s hired r��e �ew �#le w�Y� be��t,�:;'sd ;, ' ' by th� �s;�}oin fr�age benefits rah�ter th the City's frisge ben,efifi�w: . �. � , _ `� . , ;: � , .: ', � ° . , _ ' . . � : � : � � � ;# �^; 9 �., , , , ' , ,,, A3"ChCI�M�I`,i`St ..r..�..��.. � , ; ,� : Resolution aad cogY fa� C�ty Clerk. so, �aPY+c►f-�lae�dm�nt. � ,E�. . . . . . . .. . . � . ' .. .. � � .. � . , � . . . . . . . . . - .. `f�. .. . �. .. . � � . .. , .. � . � � ,. . " . ' . . . . . .. �. � t` : �� . � . . . . � �� . . � . . � . . .. , . . . . . .. '..'r' . " , . . _ . . . . � � � � . . �� . � .. . . ' ' � ` ` � . • - , � � .��l��+..4'�°� � ltesolution P1o. 1565 RESOLUTION OF -- THE PORT AUTHORITY OF THE CITY OF SAINT PAUL � � • = . . , .� tdHEREAS, the purpose of t�iinnesota Statutes, Chapter . 458, (hereinafter called "Act" ) as found and deternined by the . leyislature is to promote the means by 4ahich marginal area properties may be developed or redeveloped to help cure the probler�s incident to the existence of such properties as set � forth in i��linnesota Statutes, Section 458.191, Subdivision 3; and • ' WHEREAS, a sound developnent of the economic security of the. peoples of the City of. Saint Paul is dependent upon proper development and redevelopnent of marginal properties, . and the general ��elfare of th� inhabitants of the Port District requires the remedying of such injurious conditions to which � narginal properties are now subject; and �9HEREAS, the development and redevelopnent of such marc�inal area properties cannot be accomplished by private enterprise alone without public participation and assistance in the acquisition of land :and . planning and in the financing of land assembly in the ��ork of clearance, development and redevelopment, and in the making of iraprovements necessary therefor; and . WHEREAS, to protect and promote sound development and redevelopment of marginal land and the general welfare of the inhabitants of the Port District, it is necessary to remedy - such injurious conditions through the employment of all appropriate means; and - WHEREAS, whenever the development or redevelopnent of such maryinal lands cannot be accor:iplished by private , enterprise alone, ��ithout public participation and assistance _ in the acquisition of land and planning and in financing of developnent and redevelopment, it is in the public interest to � advance and expend public noneys for those purposes and to provide for means by �ahich such narginal lands may be developed � or redeveloped; and � ;c��,�1 � ' , ' , . ��:�'�3'[�� ' � ��IiEREAS, the development or redevelopment of such marginal . lands and the provision of appropriate continuing land . use constitute public uses and purposes for which public r�oneys may be advanced or expended and private property acquired, and are governmental functions and are of state concern in the interest of health, safety and welfare of the peoples� of the . state of Minnesota and of the City of Saint Paul; and - WHEREAS, The Port Authority of the City of Saint Paul ' (the "Authority" ) has received from Ramada Inns, Inc. (hereinaf ter referred to as "Company" ) a request that the Authority issue its revenue bonds (which may be in the form of � a single note) to finance the acquisition, .' installation and construction of a motel and related facilities (hereinafter collectively called the "Project" ) in •the City of St. Paul in � an economic development district established in accordance with Section 458. 191 of_ the Act and Laws of I��innesota, 1971, Extra ' Session, Chapter 35, Section 9 , all as is more fully described in the staff report on file; and - , `�HEUEAS, . the Authority desires to aid in the development of narginal land, to facilitate the selective development of the community, to retain and iniprove its, tax � base and to help it provide the range of servicPS and er�ployment opportunities required by its population, and said Project �aill assist the City in achieving that objective. Said Project wi,ll help to increase the assessed valuation of the City and help raaintain a positve relationship bet��reen assessed valuation and debt and enhance the image and reput.ation of the City; and . � ti9HEkEAS, the Project to be financed by revenue bonds will result in substantialtemployment opportunities in the City of Saint Paul; and � ��HER�AS, the Authority has been advised by repre- sentatives of .the Co�npany that conventional, cor.unercial tinanciny 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 siynificantly reduced, but the Company has also advised the � Authority that with the aid of revenue bond financing, and its • resul.ting low borro�aing cost, the Project is economically more feasible; and " LJFIEREAS, P�tiller & Schroeder T�unicipals, Inc. ( the • "Placenent Hgent" ) has made a proposal in an agreement ( the . °Placement Agreement" ) relating to the sale of the revenue boncls to be issued �o finance the Project; . 2 . . . _� . . , �'; �4�?�� IJO�d, THEREFORE, BE IT RESOLVED by the Commissioners of the 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 the � prenises on which said Project is to be located constitute marginal land within the nleaning of Section 458.191, Subdivision 4 of the Act;. that the availability_ of the - financing under the Act and willingness of the Authority to � turnish 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 econo;:�ically sound industry and commerce an•d will help to prevent chronic unemployment, and will help the City to retain and inprove its� tax base and provide the range of services and emplo �� ent opportunities required by its population, and ��ill � result in more intensive develop�ent and use of land within the City and c�ill eventually result in an increase in the City's tax base. � 2. Subject to the mutual agreement of the Authority, • the Company and the purchaser of the revenue _bonds as to the details of a revenue agreement and other documents necessary to . evidence and effect the f.inanciny 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 (which may be in the form of a single note) in an amount not to exceed approximately $5, 500,000 (other than such� additional revenue bonds as are needed to complete the Project) is autnorized to finance the costs or the Project. 3. In accordance with Subdivision 7a of Section 474. 01, P4innesota Statutes, the Executive Vice-President of the AUiHORITY is hereby authorized and directed to subnit the � proposal for the above described Project to the Co . � issioner oi Securities, requesting his approval, and other officers, . ei�ployees and ayents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary information as he raay require. , - • 4. There has heretofore been filed with the Authority a forn of Preliminary Agreernent between the Authority and Conpany, relating to the proposed construction and financing of the Project and a form of the Placement Agreement. ihe rorm of said Agreements have been examined by the Coruaissioners. It is the purpose of said AgreeMents to �evidence the cor�mitment of the parties and their intentions 3 - �� with respect to the proposed Project in order that the Co�pany nay 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 anended, to allow for the issuance of industrial revenue bonc�s � to finance the entire cost of the Project upon agreement being � . reached as to the ultimate details of the Project and its � financing. Said Preliminary Agreement is hereby approved, and � � the President and Secretary of the Authority are hereby - authorized and directed to execute the same. � 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 Revenue Agreenent and other documents necessary to the adoption by the �Authority of its final bond resolution. and the issuance and delivery of the revenue �onds; provided that the President (or Vice-President if the President is absent) • and the Secretary (or Assistant Secretary if the 5ecretary is absent) of th� 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 f�iinnesota Statutes, Section 475. 06, Subdivision l, to accept a final offer of the purchaser to purchase said bonds and to execute a purchase agreement setting forth such offer on behalf of the Authority. Such acceptance shall bind the purchaser to said offer but shall be sub�ect to approval and ratification by the Port Authority in a formal supplemental bond resolution to be adopted prior to the � cielivery of said revenue bonds. , � . 6. Tne revenue bonds and interest thereon shall not • • const�itute an indebtedness of the Authority or the City of Saint Paul within the meaniny of any constitutional or , statutor� linitation and shall not constitute or give rise to a �ecuniary liability of the Authority or the City or a charge against their general credit or taxing po�aers and neither the tull faitn 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 cor�pletion of the revenue bond financiny nerein conternplated, the City Council is hereby requested to consent, pursuant to La�as of Alinnesota, 1976, Chapter 234, to the issuance of the revenue bonds herein contemplated, �ahich may be in the form of a single note, and any additional bonds which the Authority may prior to issuance 4 - � .` � � ;��a�.� - . � . or from time to time thereafter deem necessary to- complete the � Project or to refund 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 said Preliminary Agreement and any . additional available inforrnation the City Council may request.� � 8. The actions of the Executive Vice-President of � tl��e Authority in causiny public notice of the public hearing and in describing the general nature of the Project and estiiaating the principal amount of bonds "to be issued to finance the Project and in preparing a draft of the proposed application to the Comnissioner of Securitites, State of _ I�Iinnesota, for approval of the Project, which has been available for inspection. by the public. at the office of the Authority from and aft�r the publicatio of notice of the heariny, are in all respects ratified/ nd confirmed. Adopted October 23, 1979 l� �" ' � ' � Attest � �� ` �� l�� n �'' �i'he Por Authority of the City of Sa ' t Paul . l:�� , l� � S cretary � 5 �' I �,`��-� � � � 1 � PORT AUTHORITY OF THE CITY OF SAINT PAUL L,.�.�.� 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN, 55102 • PHONE (612) 224-5686 October 24, 1979 rr._�:."`._� �: v . �' < �� . . , - . .l Mr. Gary Stout Di rector P�'^„ � .. Department of Planning and ��` � ` �'f Economic Development City of St. Paul 14th Floor, Lowry Annex St. Paul , Minnesota 55102 � SUBJECT: RAMADA INNS, INC. TAX EXEMPT MORTGAGE NOTE--$5,500,000 � Dear Gary: � t • 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 a tax exemp t mortgage note to finance the expansion of the Ramada Highland Inn located at I-94 and White Bear 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. 1565 which authorized the tax exempt mortgage note in the amount of $5,500,000. Your expeditious handling of this matter will be appreciated. `�. Yours truly, � , �� Eugene A. Kraut Assistant Executive Vice President EAK:jmo � cc: R. Broeker ROBERT F.SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CUFFORD E.RAMSTED RONALD O.S EXECUTIVFVICERRESIDENT ASSIST/W�EXECUfNEViCEFf7E51DENT DiRECTOR.INWSTRL4LDEVELOPMEN� CHIEFENGINEER CHIFFACCWN�r� COMMISSIONERS GC-0RGE W.W�NTER RUBY HUNT ARTHUR N.GOODMAN G R�ICE ARD SLA�E DAVID HOZZA LOUIS H. MEYERS WILLIAM_ PRES�DENT VICE PRESIOENT SECREfARV . � i f�� ', .��. , , , - -i . � ..-, r�r �o � �r � � � �� ` AUTHORITY OF THE CITY OF ST. P^UL � Memorandum TO: Board of Commissioners DATE: October 18, 1979 Meeting October 23, 1979 . .. FROM: E. A, ....a,� ��\ . SUBJECT: ' RAMADA INNS, INC. TAX EXEMPT MORTGAGE NOTE--$5,500,000 RESOLUTION N0. 1565 1 . THE COMPANY Ramada Inns is an international hotel/motel chain based in Phoenix, Arizona, who currently owns two facilities in the Twin Cities, including the Ramada Highland Inn at I-94 and White Bear Avenue. For a number of years the Port Authority staff has been encouraging Ramada Inns to expand their .East Side facility to create additional hotel rooms, not only for the St. Paul area as a whole but specifically to help satisfy the large demand for rooms by 3M Company. 2. THE PROJECT � . The project involves construction of 150 rooms on the existing site to be connected with the section built about twelve years ago. The company has razed the old Highland Inn section and will construct this facility on that section of the site. . 3. FINANCING The financing of $5,500,000 is proposed to be accomplished by the issuance of a tax exempt mortgage note privately placed with Northwestern National Life Insurance Company of Minneapolis. The Port Authority, in its efforts to encourage Ramada to proceed with this project in the face of spiraling interest rates, has suggested this financing medium which will enable the project to proceed this year. The financing would be a ballooned mortgage note with a 15-year term at a rate of 9.5%. On September 24 District 1 was notified of the project and as of this date we have received no oral or written communication concerning the project. �'v. ' ' ce� w ii ;� � �� t �x,k .a /'" k �': �'�, � ��, � �, t � `: �� e �a �e+m . 2 � r � �, * � . �� ti� �" �1�'�` •I ' S,� � �� f r� t 'Y.�d ��. ( � L�"° .� � �!�i X y�'` {� �. A i a � k�, ' ♦ t 3'�.+ ::1°� C �`" F"`"�S- 3e� pI e'.i ',, . ' ,� X r a,�r�e��,�,,. �'T�4 a ib�,. fi � � �:, �.�'7,�i �j �'� .T C* ^� f r,p ��: r� , ; i . . , �. . ..v ' � � � t.. �.`'� t ' � � .;' `�`.1 _ " ; �s .; �� unp�� .i t rs .5 t '+ g � �d i "r3$?'yz�.�,�} c �1 t t � s � : f i �" r �k��G,f •3 !�. t 3 '�� x y�� }{ ) :e 1; Y '� � �� `� y�',�.g,�*t'� �" F " �? ,.k�� , }. 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