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272745 WHITE - CITY GLERK COUIICII j..�� PINK - FINANCE CANA�RV - DEPARTMENT G I TY OF SA I NT PALT L �� BLUE - MAVOR File NO. - Council 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. 1470, giving preliminary approval to the issuance of revenue bonds in the initial principal amount of approximately $960,000 to finance the construction of a 32,000 square foot addition to th� H. M. Smyth Company, Inc. facility located at 1085 Snelling Avenue North. The facility wowld be leased to W. J. Hickey Properties, Inc. and subleased to H. M. Smyth Company, Inc. 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 . 4. It is estimated that the initial principal amount of said bonds will be approxi- mately $960,000 and that the net interest cost applicable to said issue will not exceed 8�, r�ow, therefore, be-it 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. 1410 in the initial principal amount of $960,000 at a net interest cost of not to exceed 8%, 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 purpuses for which the aforesaid bonds are issued. COUNCILMEN Yeas Na}�s Requested by Department of: ,�,y� In Favor H —Me�.'� �" Le ' e ►IuMt __ Against By �� zl Ro dler t+�M� Syl ster lrl�l�OK � ,� �� Form Approved by City Attorney Adopted by C ci . ate Certifi assed b• uncil Secretary . BY - Appro��ed : a Date APR 5� � App o by Mayor for � sio`R to Council gy BY l�i�ED APR 141979 X° �,, � � � #` �� s � f r� 1 ) � ;' '� � �� r �s,5�a i ��'��'5�;��' ` r'�.� ys��' ��r`,�>:,. �`��,s�'' :1 .` f _ .:. z'�`r,�. T 1 .. n a j � `° a \ pw �.�}��- "�er�, �. �1 �j.c�k�. �§;''4 5E � 1 r .iS.�"`a"� 3 � � . �� ^ '*s, ;-"'� 3-g �Q,^t � z t � t' c J� �3 x. � ,z a a +* i "� . � �� '�"�a� � ":. 5 ��" � j` F :� ; V' � 'a .{,. . h v � y� � � �,. . �"'�� 'i 3 . i i , .� � �y. .i� t�>h .�' "�`,��h �f�'�t ,�: s � -n-ra � � �c ��. � . � x� �' e.p 3+�•; �q� � � '� � ��: �`�1i�°,< �}.� � � � �� c! z'�^� � 5' .e� >� .�`' *��x�5�k s�� y`ya a�'� ��"�x �� 'v��'��"' . �� s r � � � i � � ,a� ,. 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E .; J� :}�'��e` ,��"(�:�' < .0.��v1µ �- t �#�g '�• "�r `� ' ' '� a ��' � �.�'�r�'. � *'aa z � '��:�.��` . � � c ' r � �� :!a"* � �r t�#�`'�' T e � � � � ��a ' � '� i- � - +' � i ��S b x' ' �" ::!'� '9^s�y :.`r*`,e�e��R°k�`�@" '��. 3��k'` r� *`. :� M ' t ° '. �� s.�� ?� �`�z �� r � �� a : � �' !k� � z`�r°5-� '` � �'�"�� # .� s y � t � �� ' �� z�.p � ��' ^+��r'�'` '�'��'�.ry"y�;F q�"� � ��"''"' .' � d � *. F ,2�� A� s�-`,� .i�' 1 i : ,�3 „En �r ��k�.P't+°"�TC '�.'�� ` ,r � � �. �F ��:� !'i _� X��# , � �r1F"�' �'r�� 4 � �� ; : � t�. :¢ �d"i yR.�' °`��„��k�:�� ...�� ,� �,�Y{ ki r. _ . . . . _ .- -.a# , ��. � . � . _ _... . �#�£ � 4�� .. _�_ �` ➢�� r�i j ��',a� '`�". .<a° :�.��'s.��F�^�'l, 'C,'�ni'+6� ...,,.� � . ,.��n.. . . , . "' � � — FINAIVCE • +:`` . , ' COUIICII , ' r P�NK GITY OF SAINT PAUL . C4NLRV'— DEPARTMENT ' �BLUE —MAYOR � . :� . . ..,.� - . . . :.:. �..FIlE �..�NO. , .^ ,: '; �;,�. :'. ,. . . ... ' ' . ... . .,. .. . ..� �.:, � ,". .. ^ . 1 . .� "_. . Council Resolut�on � ` � . aA � . _�. Presented By . _ . ;. < _ . . � .: . : . ��:, .., , _ . .. ,: Referred To �' ` � ' Committee; Date � �" . ,. . . . , . .. � :.�. . . ; _ . . ,:. ��,,,, Out of Committee By `Date __ .: _ ., . .._ $ .. WHEREAS: � � � - � � �; � �" �� _ . � _ , �. ::3�� W �,,`��' : 1 . On March 20, 1979,?:the Port Authority of the�City of Saint Paul adopted Resolutian��R�� No. 1470, giving preliminary approval to the issuance of revenue bonds in the initial � " '� principal .amount of approximately $960,000 to finance the construction of.a 32,00Q square �' foot addition to the H. M. Smyth Company, Inc. facility located at 1085 Snelling Avenue North. The facility would be leased to W. J. Hickey Properties, Inc, and�.subleased to H. M. Smyth Company, Inc.. � , �s:�_�, � °�,�k� � � � Y..� .��k ��' . . .� . q'. � . tf'x 3';y, r �'[}` : � 2. �:�Laws of Minnesota 1976, <Chapter 234�, provides that any issue�of �revenue bonds , _f�� ;�� authorized: by the Port Authority �of:the City of Saint Paul , , shall be issued only.with the .i��- consent of the City Council .of �the;.City of Saint_Paul , by resolution: adopted .in accordance .:��` .�t with iaw, � n £ - ki 'S�r�i i 'k M�, f,� �r._ '� �>r.F' � �'��.�f�� ^a `? �''�° �+� - z z �A r 'S ' Y,��,+r ' + ?�. > 1- �'".t7 f -+�`��`{/�� _ , •,� ��. ` � I .. T :�� a«�� - ': .'�� , ' i . a.aY"n': ; �S .+k ,�"'�.r°:'S:'q X-"R . i. . d ,.; _; . .:.: ..-' :: .-.. ' '� �� .�� . �` >�1' � *51:'�+u� `' , 3. . °:The Port�Authority of the City af Saint Paul has reqdested ;that the'City �CouncTl � give its requisite consent pursuant to said law to facilitate the �issuance of said .revenue °•�= .f"': bonds by the Port Authority of,the City of Saint Paul , subject to final :approval of the t �� ` detafls of;said issue by the Port Authority of the City of Saint Paul . �`` �"� � ` - _ _. . . , , _z.-. -.� ,��,"`�� :. . . ,: . , _- ,.:. ., . �. , •.:: - � _ .. ,, , . ,_ ' ,. � . ' , . , _ .. . , ., t•.�� ;�� ,� . . ... , . _,. b� + ° 4. 'It is estimated that the initial principal amount of said bonds will be approx� -�"� mat�ly $960,000 and that the net interest cost applicable to said issue will not exceed 8%,`� �; now, therefore, be it ' � s. � ' _ ,�: � . , : , : _ , , _. ___ __--- - .. �: � _ . _ . , . . .___ -. .: , ; .,. . . � - - : �,, , , _ . . . , RESOLVED, by the City Council of- the City of'Saint Paul , that in accordance with Laws ` oT Minnesota 1976,'-Chapter 234, the City Council hereby consents to the issuance of the -� = `� aforesaid revenue bonds for the-purposes described in the afioresaid Port Authority .Resolution No. 1470 in the initial principal arr�unt of $960,000 at a net interest cost of not"to' exc�pd 8%, the exact details of which, including,; but not limited to, provisians relating � to maturities, interest rates,: discount, redemption;�.and for the issuance of additional i�vnds are to be 'determined by� the Port�Authority, pursuant to resaTution adopted by the � � Part Authority, and the City Council hereby authorizes the issuance of any additional bonds : z ,�. �„,� (including refunding bonds) :by� the' Port Authority, found by the Port Authority to� be � n�cessary for carrying out the purposes for which the aforesaid bonds are issued. ' � " � � .<-` . � , . , , , _ , .�.: _ - .�.; COUNCIL31EtY Requested by Department of: , ��" � Yeas tiays • Butter . - Hozza ` In Favor - �iunt • - Levine _ _ Against BY - Koedler - Syi�ester Teclesco Form Approved by City Attorney :1d��pted b� Cuuncil: ' Date ---. Certi£ied Passed b}• Council_Secretary By ` S�: Approved by �Nayor for Su6mission to Council f�ppro�ed bt� �Iavnr: bate �l' ----- -- BY --- 1 . � . I t �n�L� � ' � . f�C, � �� O � � � � . . . OE THE CITY QF ST. PAUL Memorandum '�o: BOARD �F COMMISSIONERS DATE: March 9, 1979 (March 20, 197 ��Regular Meeting� .-�` � � FROM: D.G. Dunshee `� � SUSJECf: W.3. HICKEY PROPERTIES, INC. (SUBLEASE TO H.M. SMYTH COMPANY, INC.) PUBLIC F�EARING - SALE OF LAND - RESOLUTION N0. T469 PRELIMINARY AGREEMENT - $960,000 REVENLIE BOND ISSUE RESOLUTION N0. 1470 - 1 . THE COMPANY H.M. Srr�yth Company, Inc. is a major St. Paul printing firm located at 1085 Sneliing Avenue North. . The company is selling their products � on a local , regional and national level , and business has increased in ��-� - -- recent years �to the point they nv langer have adequate space far pro- duction and storage of materials: � At the present time, the company employs 145 people and projects that expansion of the facility will permit tfiem to add an additional 10 ta their payro1l . 2. THE PROJEET I�.J. Hickey Properties, Tnc. owns the present land and building that is subleased to N.M. Srr�yth Company, Znc. We propose a lease with Hickey Properties`and a sublease for the term of the issue to N.M. Smyth Campany, Inc. The company proposes to construct a 32,000 square �'oot addition to their present facility on a parcel of 1and fro�ting on Sne1ling Avenue. The property is owned by S�yth, and the site, which contains approximately 51 ,107 square feet, would be deeded to the Port Authority for the life � of the bond issue and sold back to Hickey Properties at the end af the bond issue for $1 . Qistr9�ts 10 and 12 were notified of the proposed expansion on February 12, and v�e have not received any written or oral communication about the expansion. � � �' . � . . ;- � . _ . F• 1 � BOARD OF COi�MISSZONERS . March 9, 1979 Fage -2- . 3. FINANCING � � ' . � . . . �" �Y�:'� On the basis of staff �review of the project, we prapose that r�venue - bonds in the amount of $960,000 be issued with the proceeds to be - �: used as fol l ows: - � T�{. - �>. � Constructi on � $799,:080 � � � �� -��t �� .` � Lega] Expenses 18,000 . �� Capitaiized Interest Dur.ing Construction � 6 Months 31 ,68Q Debt Service Reserve 82,440 Di sco�ant � 28,800 TOTAL $960,000 F � � � , •�_ 4. UNDERWRITING AGREEMENT �" Miller & Schroeder Municipals have agreed to underwrit� a revenue band issue Qf $960,000 for a term of 30 years. The interest rate for the bond issue will be determined within 10 days af bond closing. 5. TERMS OF THE IEASE The terms artd conditions of the lease would be simila'r to customary Port Authorjty revenue bond leases. The lease would be dane under Resolution No. 876, and the agreement contains a provision far fisca1 and administratjve fees based on $300 per manth or $3,600 annually for the fjrst 10 years �ncreasing to $400 per month, ar $4,800 annually, for the second lQ years, and $500 per month, or $6,000 annually, for the last 10 years. The interest on the sinki�g. fund and debt service reser�re fund wfll inure to the benefit of the Pvrt Authorlty. The company will have an option to purchase the land at the end of the lease for �1 and the �uilding for-- 1Q% of the bond issue�cost or $96,000. Public sale notice was pubiish�d March 10, 1979. ,' It is estimated the total annual real estate taxes for the project ` will be .$3Q,OQQ per year or $9OO,OQO ovet^ the term. 6. RECOMMEN�ATIOPaS Staff has r�viewed �he financial statements af W.J. Hickey Properties, Inc. and H.M. Srrtyth Company, Znc. , interviewed officers of the company, and recommends approval of the Preliminary and Underwriting Agreements, the lssuanc� af. $960,QOO in reven�e bonds, and Resolution Nos. 1469 and 1470. pGD:ca � s-� , - �'.i , . . . .. a Resolution No. 1470 RESOLUTION OF - THE POR`i' AUTHORITY OF THE CITY OF SAINT PAUL 6��HEREAS, the purpose of Chapter 474, Niinnesota � : - Statutes, known as the Aiinnesota i�unicipal Industrial Devel.op- ment Act (hereinafter called "Act") as found and deterrciinecl by ' � the legislature is to pronote the welfare of the state by the active attraction and encourageMent and development of economi- cally sound industry and co� . erce to prevent so far as possible the emergence of blighted and marginal lands and areas of � chronic unempl.oyment 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 ot econonically sound industry arid commerce are the increasing concentration of population in the metropolitan � areas anc� 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 Iand use which will provide an adequate tax base to finance these . increased costs and access to employrlent opportunities for such population; and WHEREA5, The Port Authority of the City of �aint Paul (the "Authority") has rece ived from 6�1. J. Hickey Properties, � . Inc. ( hereinafter referred to as "Company" ) a request that the Authority issue its revenue bonds to finance the acquisition, � instal.lation and construction of a �aarehouse facility containing 32,000 square fee� to be subleased to H. M. Snyth : Company, Inc. ( hereinafter collectively calleci the "Project" ) in the City of St. Paul, all as is. nore fully described in the staff report on file; and � . WHEREAS, the Authority des�res to facilitate the selective develapment of the community, ta retain and improve its tax base and to help it provide the range of services and � en�Ioynent opportunities rec�uired by its population, and said . Project will assist the City in achieving that objective. Said Project WlZl help to increase the assessed valuation of the � City and help �aintain a positive relationship bet�aeen assessed valua�ion and debt and enhance tr�e image an� reputatian o� the ' : City; and 1�7fiEP.EAS, the Project to be finariced by revenue bonds � will result in substantial er:lployrnent opportunities in the . Project; . 4�HEREAS, the Authority has been advised t�y repre�- sentatives of the Company that conventional, commercial � financing to pay the capital cost of the Projec� is available only on a linited basis and at such high costs of borrowing ; tk�at the economic feasibility of aperating 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 borrocaing �ost, the Project is econor.►ically More �feasible; and � WHEREAS, Miller & Schroeder Municipals, Inc. ( the "Underwriter") has Mad.e a praposal in an aqreenent ( the . . "Unden•�riting Agreement" ) relating to the purchase of the � revenue bonds to be issued to finance the Project. N06•�, �HFREI'ORE, BF IT RESOLVED by the Gomnissioners of the Port Authority of the City of Saint Paul, Minnesota as follows: __.---- _.. _.___ ------_ 1. On the basis of inforr;iation available to the Authority it appears, anc� the Authority herel�y finds, that said � Project constitutes properties, used or useful in connection - witl� one or r�ore revenue producing enterprises engaged in any business within the neaniny of Subc�ivision 1 of Section 474.02 � of the P.ct; that the availability of tk�e financing under the. F�ct and wiTlingness of the Authority to furnish such financing will be a substantial inc]ucement to the CoMpany to undertake the Project, and that the effe.ct of the Project, if undertaken, will be to encourage the developnent of economically sourid industry and coMmerce and assist in the prevention of the er.lergence of bl ighted and marg inal land, and will help to prevent chronic unemploycnent, and will help the Czty to retain and improve its tax base and provide the range of services and employnent opportunities required by it5 population, and will help to prevent the moveMent of talented and educated persons out of the state and to areas within tne state where their services may not be as effective].y used and wi11 result in more intensive developnent and use of land within the City and will � eventually result in an increase in the City' s tax base. . `r _ F . � � , 2. Subject to the mutual agreement af the - Authority, the Cornpany 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 authorized and the issuance of revenue bonds of the � Authority in an amount not to exceed approxinately $960,OU0 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Project. 3. There has heretofore been filed with the � Authority a form of PreliMinary Agreement between the Authority _ and Company, relating to the proposed construction and financing of the Project and a form of ttie Underwriting Agreement. The form of said Agreements have been examined by : the Commissioners. It is the �purpose of said Agreements to evidence the cor:imitment of the parties and their intentions with respect to the proposed Project i.n 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 suffiGient "official action" under Seetion 10�3( b) of the Internal Revenue Code of 1954, as amended, to allow for the issuance of industrial revenue bor►ds to finance the entire cost of the Project upon agreenent being reached as to the ultinate details of the Project and its _ � - financing. Said Agreements are hereby approved, and the President and Secretary of the Authority are here6y authorized and directed to execute said Agreenents. � 4. Upon execution of the Preliminary Agreement by the Conpany, the staff of the Authority are authorized and � directed to continue negotiations with the Cor�pany so as to - resolve the remaining issues necessary to the preparation Qf the lease and other documents necessary to the adoption by �he Authority of its final bond resolution and the issuance and • delivery of the revenue bonds; provided that the President (or Vice-President it the President is absent� and the Secretary (or Assistant Secretary if the Secretary is absent) of the Authority, or if either of such o.fficers (and his alternative) are absent, the Treas�rer of the Authority in lieu vf such absent officers, are hereb� authorized in accordance with the provisions of Minnesota St�tutes, Section 475. 60, Subdivision l, to accept a final offer of the Undercariters mad� by the UnderF�riters to purchase said bands and to execute an underwriting agree,�ent setting forth such offer on behalf of . the Authority. Such acceptance shall }aind the Underwriters to � r � � . �_. �_ .. `{ � � . . � said offer but shall be subject to approval and ratification by - the Port Authority in a fornal supplemental bond resolutiQn to � � k�e adopted prior to the delivery of said revetiue bonds. 5. The revenue bonds and interest thereon sh�ll not constitute an indebtedness of the Authority or .the City of Saint Paul within the rieaning o� any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liability of the Authority or. the City o� a charge . against their general credit or taxing pocaers and neither the full faith and credit nor the taxing powers of the Authority or the City is pledged for the pa �, ent of the bonds or interest thereon. 6. 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, 1g76, Chapter 234, to the issuance of the revenue bands herein contemplated and any additional bonds which the Authority may prior to issuance or from tir;le to time thereafter deera necessary to complete the Project or to refund such revenue bonds; and for such purpose the Executive Vice President of the Authority is hereUy authorized and directed to for��aard to the City Council copies of this resoluti.on and said Preliminary . Agreemen� and any additional available inforniatian the City Council may request. Adopted March 20, 1979 � Attest President � ^ihe Port Authority of the City of Saint Paul Secretary ;.