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273319 M�H17E - CITV CLERK COURCII r"' l'-'�� PINK - FINANCE � �' CANARV - DEPARTMENT GITY OF SAINT PAUL BLUE - MAVOR File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On June 26, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1510, giving preliminary approval to the issuance of revenue bonds in the initial princlpal amount of approximately $1 ,805,000 to finance the construction of a 100,000 square foot warehouse/distribution facility for C, C & B (Terminal Warehouse Co. , Inc.) to be located at Arlington and Jackson Streets. C, C & B is a partnership comprised of Brent Coatney, Donald Coatney, and Burdette Boyd. 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 Sa9nt 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 Cjty of Saint Pau1 , that in accordance with Laws of Minnesota 1��6, 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. 1510, the exact details of wh9ch, 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 resolu�tion 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 Nay�s Requested by Department of: $erE�er Hozza In Favor /,i,/ Hunt Levine _ � __ Against BY —,� Roedler Sylvester J,UL � 2 19,9 Tedesc _ Form Approv City A !orn y Adopted Coun il: Date — � Cer ied P�_sed b}• Council Secreta y By � I App v y ;Vlavor: Da e ' Approved by Mayor for S b<V` to Co ncil BY — -- BY " RuB�ts�+En J U L 21 1979 , . 1 _ � � �vr �q.+et �. '� . t r - t �.. i� � � � 1 1+ : :3 ?i: ,� e� ��a' °� ''��'"y+ti ��` j � ��' K �� y � v��Pigj' � �# X.� ! 1� �;i 42 �. t fi T'± �Z �:i I � �.< k � � �j-� - } ° ��X� ' 2 � F . . . . � ,.-. . � � 4�� ' � .. .. ' d � ... .. . ' � '. �� F t �}� } li M #rL r�'� �'4� i _ y .��Yk4 � �� .� � '.� . �� i, � i � , : �;��i�F� � .. _ ,.' ##��+ r '�.�ri . . ,- . �'}� .., .� . ... ��. 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J� � PORT AUTHORITY OF THE CITY OF SAINT FAUL � 25 WEST FOURTH STREE� _UITE 13u5 � 1�� f� ST PAUL, MINNESOTA 55'J2 (612) 224-,�,u:� �� i�+��;�� June 26, 1979 J UN 2 91979 CI 1 Y H� � u�i�tY Mr. Gary Stout Director Department of Planning & Economic Development Lowry Annex St. Pau1 , Minnesota 55102 SUBJECT: C, C & B (TERP1INAL WAREHOUSE CO. , INC. ) $1 ,805,000 REVENUE BOND FINANCING 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 construction of a 100,000 square foot warehouse/distribution facility for C, C & B (Terminal Warehouse Co. , Inc. ) to be located at Arlington and Jackson Streets. 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. 1487 whjch authorized the sale of bonds in the amount of $1 ,805,000. Your expeditious handling of this matter will be appreciated. Yo rs truly, C,��Z�f�'' E�gene A. Kraut Assistant Executive Vice President EAK:ca cc. R. Broeker ��ERT F.SPRAFKA EUGENE A.KRAUT,C.I.D. DONA�D G.DUNSHEE,C.I.D. CLIFFORD E.RAMSTED RCNALD O SC�. �UiIVE VICE PRE516ENT ASSISiANT EXECUTNE ViCE PRESIDENT DIRECrORJNDUSTRIAL DEVELOPMENi CHIEF ENGWEER CHiEFnCCOUfaT4N JMMISSIONERS GEORGE W.WINTER ROSAUE L.BUTLER ARTHUR N.GOODMAN G.RICHARD SLADE RUBY HUNT �OUIS H. MEVERS WIILIAM ; aaes�ENr wctPaesi�eNt si-caFrnr+v r+Ensuiiea - P^Q i� T AUTH ��ORITY OF THE CITY OF ST. PAUL Memorandum TO: BOARD OF COMMISSIONERS OATE: June 19, 1979 (June 26, 1979 Special Meeting) � FROM: J.F. Faue � SUBJECT: C, C & B (TERMINAL WAREHOUSE CO. , INC. ) PUBLIC SALE HEARIN � RESOLUTION N0. 1512 PRELIMINARY AGREEMENT - $1 ,805,000 REVENUE BOND ISSUE RESOLUTION N0. 1510 1 . THE COMPANY The project would be leased to a partnership made up of Brent Coatney, Donald Coatney, and Burdette Boyd with a sublease and guarantee by Terminal Warehouse Co. , Inc. Terminal Warehouse Co. , Inc. is engaged in the business of operating public warehousing for a variety of companjes. Their headquarters is located at 1851 Rad�ison Road N.E, in Blaine, Minnesota. The company does not have any facilities located within St. Paul at the present time. Several years ago Terminal Warehouse was located in St. Paul prior to the time 1t was purchased by the present owners. Approval of this project would effect the return of operations and facilities to the City. 2. THE PROJECT The project calls for the construction of 100,000 square feet to be located on a site of approximately 4.1 acres at Arlington and Jackson. The company stores and dlstributes products such as bottling and packaging materials and other related items for the local breweries, household appliances for a major discount store, industrial supplies for a local manufacturer, insulation, and other industrial products. Users of the proposed facility incorporate several Port Authority tenants such as National Can, Olympia Brewing, and Schmidt Brewery. The facility will employ 10-15 people. The construction of the project is required to meet the growing demand in the company's business for a centralized location. The present customers w111 fi11 the 100,000 square foot facility when it is com- pleted. At the present time, the company is leasing space in a variety of locations to meet customer demand. BOARD OF COMMISSIONERS June 19, 1979 Page -2- 3. FINANCING Port Authority revenue bond financing is proposed for the project including the acquisition of the land and the construction of the facility. The partnership will sign the lease with a sublease and guarantee by Terminal Warehouse Co. , Inc. Financial statements of the individual partners and Terminal Warehouse are attached. The partnership will be required to provide $200,000 cash which will be used for construction of the facility. Allocation of the bond proceeds is as follows: Land Acquisition $ 182,000 Estimated Construction Cost 1 ,500,000 Total ,682,000 Less Participation by Partners 200,000 $T�� Legal , Printing & Misc. Expenses 30,000 Capitalized Interest - 6 Months 70,000 Debt Service Reserve 166,000 Underwriting 57,000 Total Estimated Bond Issue , , The Port Authority will also receive a fiscal and administrative fee based on the estimated bond issue as follows: First 10 Years - $541.50/month (or) $ 6,498/year Second 10 Years - $722.00Jmonth (or) $ 8,664/year Last 10 Years - $902.50/month (or) $10,830/year The term will be for 30 years and include a purchase option of $180,500. It is estimated the project wi11 generate approximately $60,000 per year in real estate taxes. The land has been appraised for the owner by William Muske. The land acquisition is at a value of $1 per square foot. The appraisal indicates a value of $1.30 per square foot. 4. UNDERWRZTING Miller & Schroeder Municipals will underwrite the proposed bond issue. 5. RECOMMENDATIONS District 6 was notified through the early notice process on April 13, 1979, and staff and representatives of the company met with District 6 on May 10, 1979. District 6 has ra1sed some questions regarding truck traffic �n the area. District 6 members have met with Public works of the City of St. Paul regarding their concerns. The project is estimated to generate 10-15 truck trips per day. At the present time, Jackson Street handles 4,975 aYerdge daily vehicle trips. , � r ♦ BOARD OF COMMISSIONERS June 19, 1979 Page -3- The Port Authority published notice in the Legal Ledger and St. Paul Dispatch-Pioneer Press on June 9 and 11 respectively as required under the amendment of Chapter 474 stating that the project would be considered by the Port Authority Commission on Tuesday, June 26. If the project is approved by the CommissiQn, a formal application will be submitted to the Commissioner of Securities. Staff has interviewed principals of the company and reviewed their financial statements. Development of this project wi11 provide new employment and investment on the site presently vacant and under utilized. Staff recommends approval . JFF:ca Attach. .. • Resolution No. 1510 � RESOLUTION OF � THE FORT AUTHORITY OF TIiE 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 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 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 the C, C & B, a Minnesota general partnership consisting of Brent M. Coatney, Donald � Coatney, and Burdette R. Boyd, (hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds to finance the acquisition, installation and construction of facilities located at Arlington and Jackson Streets in the City of S.t. Paul, which facilities, following completion of construction will be subleased to Terminal Warehouse Co. , Inc. for use� in public warehouse storing and distribution, 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 C i ty ; and ' � WHEREAS, the Project to be financed by revenue bonds will result in substantial employment opportunities in the Proj ec t; ' 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 place 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 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 bus 'iness 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 f urnish such financing will be a substantial inducement to the Company to undertake the Project;. 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 oppo rtunities required by its population, and will help to prevent the movement of t�alented 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 res ul t 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 pl an 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 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 authori2ed 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 $1,805,000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Project. 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 her approval , and other officers, ' employees and agents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary information as she 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 fo rm 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 c�nmitment of the parties and their intentions with respec t to the proposed Projec t in order that the Company may proceed wi thout delay wi th 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 � � 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 capit'al 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 place a notice, a copy of which wi th proof of publ ication 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 all persons who appeared at the hearing were given an opportunity to express their views with respect to the proposal. � NOW, TFiEREFORE, 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 A�sthority to furnish such financing will be a substantial inducement to the Company to undertake the Project; 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 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. 60, 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 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 fu11 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 thereaf ter 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 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 June 26, 1979 � / Attest �'� ' �%�-� .�- � °� - � Pre s The Port� A hority of the City ,. - i of Saint �Paul ' cre tary PINK� — FINANCE G I TY OF SA I NT PAU L �-ouncii CANARV — DEPARTMENT BLUE — MAYOR File N Council Resolution Presented By " '"°'" s �, � y t. Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On June 26, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1510, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $1 ,805,000 to finance the construction of a 100,000 square foot warehouse/distribution facility for C, C & B (Terminal Warehouse . Co. , Inc.) to be located at Arlington and Jackson Streets. C, C & B is a partnership comprised of Brent Coatney, Donald Coatney, and Burdette Boyd. 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 Councii hereby consents to the issuance of � the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 1510, 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 Requested by Department of: Yeas N a}�s Butler Hozza [n Favor . Hunt Levine Against By Roedler Sylvester TedesCO Form Approved by City At*.orney Adopted b�� Council: Date Certified Passed by Council Secretary BY B;� Approved by Mayor for Submission to Council Approved by 1layor: Date BY By POitT �� AU. THORITY OF THE CITY OF ST. PAUL Memoraedum TO: BOARD OF COMMISSIONERS DATE: June 19, 1979 (June 26, 1979 Special Meeting) � FROM: �,F. Faue � SUBJECT: �, C & B (TERMINAL WAREHOUSE CO. , INC.) PUBLIC SALE HEARIN � RESOLUTION N0. 1512 PRELIMINARY AGREEMENT - $1 ,805,000 REVENUE BOND ISSUE RESOLUTION N0. 1510 1 . THE COMPANY The project would be leased to a partnership made up of Brent Coatney, Donald Coatney, and Burdette Boyd with a sublease and guarantee by Terminal Warehouse Co. , Inc. Terminal Warehouse Co. , Inc. Zs engaged in the business of operating public warehousing for a variety of companies. Their headquarters is located at 1851 Raddison Road N.E, in Blaine, Minnesota. The company does not have any facilities located within St. Paul at the present time. Several years ago Terminal Warehouse was located in St. Paul prior to the time it was purchased by the present owners. Approval of this project would effect the return of operations and facilities to the City. 2. THE PROJECT The project calls for the construction of 100,000 square feet to be located on a site of approximately 4.1 acres at Arlington and Jackson. The company stqres and distributes products such as bottling and packaging materials and other related items for the local breweries, household appliances for a major discount store, industrial supplies for a local manufacturer, insulation, and other industrial products. Users of the proposed facility incorporate several Port Authority tenants such as National Can, Olympia Brewing, and Schmidt Brewery. The facility w111 employ 10-15 people. The construction of the project is required to meet the growing demand 1n the company`s business for a centralized location. The present customers will fill the 100,000 square foot facility when it is com- pleted. At the present time, the company is leasing space in a variety of locations to meet customer demand. v � A' ,BOARD OF COMMISSIONERS , June 19, 1979 Page -2- 3. FINANCING Port Authority revenue bond financing is proposed for the project including the acquis�tion of the land and the construction of the facility. The partnership will sign the lease with a sublease and guarantee by Terminal Warehouse Co. , Inc. Financial statements of the individual partners and Terminal Warehouse are attached. The partnership will be required to provide $200,000 cash which will be used for construction of the facility. Allocation of the bond proceeds is as follows: Land Acquisition $ 182,000 Estimated Construction Cost 1 ,500,000 Total ,682,000 Less Participation by Partners 200,000 $1�'$�,0�6 Legal , Printing & Misc. Expenses 30,000 Capitalized Interest - 6 Months 70,000 Debt Service Reserve 166,000 Underwriting 57,000 Total Estimated Bond Issue , , The Port Authority will also receive a fiscal and administrative fee based on the estimated bond issue as follows: First 10 Years - $541 .50/month (or) $ 6,498/year Second 10 Years - $722,00/month (or) $ 8,664/year Last 10 Years - $902.50/month (or) $10,830/year The term will be for 30 years and include a purchase option of $180,500. It is estimated the project will generate approximately $60,OOQ per year in real estate taxes. The land has been appraised for the owner by William Muske. The land acquisition is at a value of $1 per square foot. The appraisal indicates a �talue of $1 .30 per square foot. 4. UNDERWRITING Miller & Schroeder Municipals will underwrite the proposed bond issue. 5. RECOMMENDATIONS District 6 was notified through the early notice process on April 13, 1979, and staff and representati.ves of the company met with District 6 on May 10, 1979. District 6 has ralsed some questions regarding truck traffic in the area. District 6 members have met with Public works of the City of St. Paul regarding their concerns. The project is estimated to generate 10-15 truck trips per day. At the present time, Jackson Street handles 4,975 average daily vehicle trips. . • "`' BOARD OF COMMISSIONERS , �June 19, 1979 Page -3- The Port Authority published notice in the Legal Ledger and St. Paul Dispatch-Pioneer Press on June 9 and 11 respectively as required under the amendment of Chapter 474 stating that the project would be considered by the Port Authority Commission on Tuesday, June 26. If the project is approved by the Commission, a formal application will be submitted to the Commissioner of Securities. Staff has interviewed principals of the company and reviewed their financial statements. Development of this project will provide new employment and investment on the site presently vacant and under utilized. Staff recommends approval . JFF:ca Attach. .. • � • . .. , Resolution No. 1510 � RESOLUTION OF • THE P'ORT AUTHORITY OF TSE CITY OF SAINT PAUL WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Develop- ment Act (hereinaf ter 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 vf 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 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 the C, C & B, a Minnesota general partnership consisting of Brent M. Coatney, Donald �� Coatney, and Burdette R. Boyd, (hereinafter referred to as "Company" ) a reguest that the Authority issue its revenue bonds to finance the acquisition, installation and construction of facilities located at Arlington and Jackson Streets in the City of St. Paul, which facilities, following completion of construction will be subleased to Terminal Warehouse Co. , Inc. for use� in public warehouse storing and distribution, 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 3nd 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 Proj ec t; ' . 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 place 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 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 f urnish such financing will be a substantial inducement to the Company to undertake the Project;. 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 unempl oyment, and will help the City to retain and improve its tax base and provide the range of services and empl oyment opportunities required by its population, and will help to prevent the movement of t•alented ' 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 res ul t 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 and other doctm►ents 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, which may be in the form of a single note, in an amount not to exceed approximately $1,805,000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Project. 3. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Executive Vice-President of the AUTHORITY is hereby a uthorized and directed to submit the proposal for the above described Project to the Commissioner of , Securities, requesting her approval, and other officers, � employees and agents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary information as she 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 construc tion and financing of the Project and a fo rm 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 intentions with respec t to the proposed Projec t 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 � � 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 place 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 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; 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 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. 60, 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 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 Auth�rity 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 thereaf ter 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 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 June 26, 1979 � , � Attest j � ��%�... ,�- � Pre s The Port` A hority of the City ,% � of Saint Paul �` cre tary