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272746 �NHITE - CiTV CIERK 1 PINK - FINANCE GITY OF SAINT PAUL COI1flC11 �"�-�� CANAR� - DEPARTMENT JIJ,�� BLU.t - 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. 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 Str�et building, the Lowry garage, and the Wabasha building, con- taining a total square foot area of 423,354 square feet by the Lowry Development Company, a Minnesota partnership of Robert Keyes and Drs. Frank an� John Gaertner. 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 $6,840,000 and that the net interest cost applicable to said issue will not exceed 8%, now, 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. 1467 in the initial principal amount of $6,840,000 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 purposes for which the aforer�aid bonds are issued. COUNCILMEN Requested by Department of: Yeas Nay�s °�_"'°�, � �y�� In Favor H t �tunt � Le �ne I.�nlns __ Against BY �—��1 Ro ler 1�laddox . Sy ster �Aowafat A� � �g'T'� Form Approved by City At!orney Adopted by ouncil: Date — �'tiJ�./ Certi d Pa � y C ncil ecr.etar � BY Approved by ate 5 � Appr d y Mayor for Subm' s'on o C�tncil By BY �SN�D APR 141979 '£ ' � �i ' 3 i hs e^ ,��'4t .� �. '� "�� `< _ + ;. °t: �. T � �,_ � � ..�,� � t' �3.t�`��, �v i � : 1`'" rF . ''�x� ��':x � i � `S ;_ � �• �F k'LJ w t3� "•sy-"�T �t� �k r.� 1 f s`� F..a� '� ��.� �N> �: t a � � �.r �,- .,�, �ydr,�' ��,�' � � � y }� i �xrx x f � �{ `4 r j � � 5( � k � �,'¢{ t i k -' F ! S a -�'S 2i+" � -'E � ':R [ Y� tb iys' iY� �' qk'�� F -a 4 ��,°' '�� - � �` � �, � yY'i�� d a si�'n' ' kv,k�}' s av-� .� t r s�; :� a`�i�y 3.-t,.. -� ��k�� '��3"�� 4�<�` ; t.�lts' t 7� '� F t e �. 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F � F ��t �w x � �,�,€F S�,� • �� # �� ' c;�`-�a�,.��a�;��,��+�e r t , ' � � ` �,�u n ��'' a � ��tp��,w�" .., �r� � ,; �r Y- x �, � � �' F 7 $a> + � � v+ - }��t �a ! X� � t� � �F� � . a ��? b �#�4`�Fro f�P l�f�°"?�"t � 4 v-�.§� a.� k K t: �m :� �r �` > i� j,,,' � 3� g: i �'� �' �'�a t� �2 ��` �'��_� .��' �y,; �� ..� '�'�y r }»y�+� , � �. u� a -� .� � �u E ,a"c,�'t;�Tt :�r�s�� ,�`� ��,� fi.�c'�" � .� �9'�� '�zf�4t , x ;<��i � s ^*" "'' � � tvr , �e�� rc� � �s3�a }_ � �'°�,L � ,� � ��, �� `�° $ � � � z. ;:` t�: �` § 1; � �� .� ! t» ,��`�r &t 4�j�, v z#. `� 4 �}" : ��'��. '.�ef ��`�,; r, `�' + '� t� � �; � a '�` i� � ' � 3" �.= +r� t � g.��.#',as j �- �-� ,,, , .��- , �`� .w �?w.-w . .,f.: ...�.,, . .� . .. , _ , . ,.t ._ .�. .. , . ., .r . „ �„ ��,t5-��"�t, . � ; ."_��>, ... ±� ��•.�ss.��5cr,�fi��_��_ tt . , �,ouncu ,.;.. . BLUER� -. MA°ORTME�T ITY OF SAINT PALTL File. NO. , Council Resolution � ��'�� Presented By . Referred To Committee: Date Out of Committee By Date . , _ . WHEREAS: : . : l . On March 20, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1461, giving preliminary approval to the issuance of revenue bands in �the initial principal amount of approximately $6,840,000 to finance the acquisition from Lawry Medical Associates, an eastern syndicate, and remodeling of the buildings known as the Lowry Medfcal , Arts building, the 5th Street building, the Lowry garage, and the Wabasha building, con- taining a total square faot area of 423,354 square feet by the Lowry Development Company, a Minnesota partnership of Robert Keyes and Drs. Frank an� Jahn Gaertner. 2. Laws of Minnesota 7976, Chapter 234, provides that any issue af 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 ` _ wi th 1 aw; - ,�, .. = ,. . . . ,. :: , : .. - ; �,�w.t� _ : , .,. � _ , . : � �� ; ._ -�;�- 3. The Port Authority of the City of Saint Paul has requested that the CTty Couneil ` � give its requisite consent pursuant to said law to facilitate the issuance of said revet�ue. ` bonds by the Port Authority of the City of Saint Paul�, sub�ect 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 wi11 be approxi- ' mately $6,840,000 and that the net interest cost applicable to said issue wiTl not exceed 8�, now, 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 cansents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 1467 in the initial principal amount of $6,840,000 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 af additional bonds are to be de�ermined by the Port Authority, pursuant to resolutian adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additionai bonds� (including refunding bonds) by the Port Authority, found by the Port Authvrity to be necessary for carrying out the purposes for which the afore�raid bonds are issued. - : COUNCIL;�tEN _ 1'eas !�,{y5 Requested by Department af: Butler Hozza In Favor _ - Hunt - -: Levine _ ___ Against BY -- Roedler S ylvester Tedesco Form Approved by City At±omey • Adr�pted b}' C�uncil: Date Certified Passed b5• Council Secretary BY B,' ( Approved by Mayor for Submission to Couacil ilppru�-ed b}• 11a��or: Date — -- ` �y' — --- BY _ :. , r. . :�. .:., . ... ,,. .,� . �. �., . ..rF ,..,,.�.,�.•,.��.�,.K,,,a�,..w..�._. • �, � � � � : � - � � V � � o � � � II OF THE CITY OF ST. PAUL I�emorand�arn TO: Board of Commissioners� DATE: March 16, 1979 Meeting March 2�, 1979 FROM: E. A. � r SUB.IECT: LOWRY DEVELOPMENT COMPANY, A MINNESOTA PARTNERSHIP OF ROBERT KEYES - AND DRS. FRANK AND JOHN GAERTNER RESOLUTION 1466 � PUBLIC SALE HEARING, SALE OF PROFER7Y RESOLUTIO(� 1467 - PRELIMINARY AGREEMENT 1 . THE COMPANY The Lowry Development Company is comprised of Robert Keyes, Presfdent and owner of the Minnesata State Bank and owner of faur other area banks, and Drs. Frank and John Gaertner, physicians w#th offices in �he Lowry Medical Arts building. The company has been formed for the purpase of acquiring from Lowry Medical Associates, an eastern syndicate,. 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. __; 2. THE PROJECT The proposed project and the financing would incorporate acquisition of the facility and remodeling costs estimated at $2,128,000, which would result in a total acquisition and construction cost of $5,303;352 from� bond proceeds. Under the proposal the company would be responsible for contributing $296,000 in cash to the constructiorr fund as a part af the equity being required. The developer proposes the following cortstruction: Item Estimated Cost Construction of retail store arcades on $ 602,000 first and. second floors � New stand pipe in Lowry Building 100,000 Remodeling of 4labasha and Fifth Street Buildings 530,000 Repair toa�ry Garage 225,000 , Share of cost for. skyway bridge to St. Paul Hotel 150,000 SUBTOTAL . 1 ,607,000 Plus 20� allowance for contingencies and 321 ,000 miscellaneous costs - Plus potential added cost of escalators 2Q0,000 TOTAL DIRECT COSTS $2,128,Q00 ._. . . _ . . .. . _. _ _ _ _ . __ ..__... . __. _� ..., t.�, .�,�.,,: .,,,�..�..ti , ��..,�,-.�,�,ri,�:��,. . . � � C� � : Board of Corrmissioners March 16, 1979 � Page -2- These casts are further broken down an the attaehed list of improvements to be made. The appraisal attached hereto outltr�es the work to be per- _ formed and analyzes the value af the facility on a cost approach to • value, a market approach to value, and an income approacF� to value. The appraisal is evaluated based upon its present value, the above three . evaluations, and then summarized as to its value with market rate - ,:, financing, ar f}nancing by the Port Authority of the City of St. Paui . There is no work to be done under the agreement in the building known as the Lowry Medical Ar�ts facility. The primary work will be done in ' the retail areas, in the Fifth Street building, the Wabasha Street buildir�g, and the Lawry garage, aTl of which are �in need of subs�Cantial upgrading. The construction will include shopping arcades through these areas on both the first and second level , and in effeet, r�one of the proceeds of the bond issue or the equity participation from the partner- ship wi11 be usec! in the Lowry building. The construction wi11 incorporate exterior improvements to the Fifth Street building, including cleaning of exterior masonry and replacement af windaws and construction of new arcade floaring and new store fronts along the arcades on two floors. The only repairs to be made in the Lowry building will be below the _ second flaor which incorporates the new stand pipe, estimated at $100,OQ0, and remaval and construction of a new roof structure and skylight over the arcade. 3. FINANCING � Staff has negotiated an equity participation from the investors af $656,000, which is to be deposited in cash and a letter of credit with the Port Authority at closing and which is comprised of the follawing: Direct construction costs $ 296,000 Marketing 100,000 Loss of revenue during remadeling 185,000 Client 1ega1 and accounting expense 75,000 : TOTAL $ 65fi,000 . The bond issue v��ould be comprised of the fol1awing: � Acquisition and construction (net) $5,303,352 Debt Service Reserve Fund 576,880 C�pitalized interest--- 18 months 719,568 Issuance expenses 35,000 Underwriters discount - 3% 205,200 TOtAL �6,840,0�0 _ , _� _ .__ _ _<._�.v,, . � � ( � � Board of Commissioners March 16, 1979 . - Pa ge -3- The rental to service this debt would equal $47,752.65 per month or �573,031 .80 annually. The pro forma attached hereto reflects a debt service of $547,000. This, as indicated above, is approximately $26,000 higher due to the fact that the interest will be capitaliaed for a period of 18 months rather than T2 because of the Chapter 11 bankruptcy of Fie1d Schlick, Inc. , which creates some uncertainty as to when the remodeling can be accomplished in the area occupied by Field Schlick. 4. UNDERWRITING A6REEMENT Milter & Schraeder Municipa•ls has agree� to an underwriting of a revenue bond issue totaling $6,840,000 at an anticipated coupon rate of 7.20�. 5. TER�IS OF THE AGREEME.NT The terms of the agreement are a 3Q-year lease with an optian to purchase the facility for $1 ,00 when the bonds are amortized. The lease agreement contains the normal provisions under Resolution 876 financing by wh#ch the interest on the debt service reserve fund and the sinking funds inure to the benefit of the Port Authority. A fiscal and administrative charge of $300 per million per month for the first 10 years, $400 per million � � � per month for the second 10 years, and $500 per million per month for �- �- - - - - �-�he 7ast 10 years will be charged as additional rent. The ENS was mailed to the District Councils over 30 days ago and was � discussed by the Downtown District, No. 17. There has been no comments unfavorable to this action. The Building Owners and Managers :Association � has reviewed this project as we11 and has endorsed the proposal , tlnder the terms of the agreement this project will generate significant annua'E cash flow for �he Port Authority thraugh interest earn�ngs and fees. } 6. RECOMMENDATION The proposed project will accomplish substantial impravements to the buildings facing Wabasha and 5th Street and wi11 provide a mall-typ� shopping arcade atmosphere a� at�ractive rental rates. This block is a keystone in downtown St. Paul and it is vitalTy important to other retail and business operations in the immediate vicinity. Mr. James Cecil of Field Schlick has advised us that the Plan af . Reorganization contemplates cancellation. of their lease of fi0,000 square feet af space in this building and discontinuance of a.11 Field Schlick operations at this location. He has indicated that if the building were appropriately refurbished and their space could be eonsolidated that they cauld consider amending their reorganization plan, if appraved by the Court, which might enaple them to stay in downtown St. Pau7 . _ _ . . . . . .. .. . , _..... � ,r "ro...r ...n�:<F_"S^l�.+ir....x�� ..� Board of Commissioners March 16, 1979 Page -4- . In the absence of any development, the 60,000 square feet of space occupied by Fie1d Schlick will. be vacant within 90 days. The partnership represents men of substantial means wha have an interest in St. Paul , and who are desirous of making substantial improvements ta the facility. They have the means to carry the project through its rejuvenation in the event that the entire space occupied. by �ield Schlick . is vacated. The absentee ownership of the building if, it is not aequired in the near future may result in a substantial amount af unsightiy and vacant space. The interest of many individuais and businesses in seeing this block revitalized indicates substantial support for this proposal �. There has been concern expressed that the rehabi7itation of this b'[ack which incorporates the Lowry Medical Arts building might have a dele- terious effect on the leasing of the new medical building lacated atap the City's parking ramp on Block 7A across from St. Joseph`s Haspital . It is staff's opinion and the appraiser's opinion that since the medical building is not being rehab�iTitated in any manner, this development would have little �r no effect on the ability to lease space in the new facility. The appraisal indicates that remodzling will result in a building with a value in excess of the cost of purchase, rer�odeling and miscellaneous soft costs, and it is,therefore; staff's recommendation that revenue bonds be issued for the acquisitian and remodeling and that resolutions pertaining to this matter be adopted. EAK:jmo �' . , �,/�� ' �� . , � �:�. � �:' �.. . ' . ' ' - . . . , . . . . . .. ' . . . . ' ' . . _ . , • . _ , . n � ' -- , - _ � - � . , . - � . . � ��3: `.t+ � . _ . .. _ ... < 'o.:. .. . - .. . ( LO[JRY MEI7ICAL AI'.TS BLOCI: RFS____�----- 5 Janua�-, `i97 � , � EAK_`____---- _ �- - . � DGQ -- ' �.. _ . REMODELING COSTS. . JFF � /, ;`�tJ . CER r:�� I, . , j . - Repair existing parking ramp RAG L � � `t', � _,p 0 . : . Add topping on alI traffic ais es�vEM . Seal. al1 floor surfaces . ��3 _ � . .Repair concrete beams ROS._-=— ---- - ---- � DATE. -- -- --- . —_ _._�-� . - Remove existing roo�. structur.e over net� arcade along :r� � � Medical Arts Building; 4,000 SF x $8 . � 32,OOQ • - Constrt�ct new roof and skylight over arcade, 4,OQ0 SF x $30 120,OOQ - New ce�lings in arcades on lst & 2nd floor, 14,000 SF x $10 140,OU0 . � - New arcade flooring . First floor, 8000 SF x $6 (quarry tile) 48,000 Second floor, 6000 SF x $6 (quarry tile) 36,Q00 : - Monumental stairways (two) . . 70,QOQ _ , . - New store fronts along arcades (two floors) at $8/SF 156,000 - Remodel floors 2, 3 and 4 of 5th St.Bldg. 35,000 SF x $9 315,QQ0 - - Remodel floors 2 and 3 of Wabasha Bldg. 15,000 SF x $9 135,0�0 .;..- � .- --- - ; - InstaZl new 5tandpipe in riedical Arts Building ' . lOQ,OQQ , - Skyway bridge to St. Paul Hote.l (1/2 share) 150,000 , - Replace windows on 5th St. and tdabasha Buildings 70,OOQ ' � - Clean exterior masonry of 5th St. and Wabasha $uildings 10 L000 . Subtotal $1,607,000 � 20% fee & conting�ncy allowance 321,OOQ . - TOTAL ESTIM.�TED COST $1,928,Q00 . � Building Purchase Price - $3,100,000 . TOTAL $5,028,000 * ^'Add 12% to 15% for marketing, bor�d fees, interest durinb canstruction, revenue loss, etc. �� - $5,028,000 -t- 15% _ $5,782,000 . - �� _ ..: . .. . _ _ . . .�., �. ... ,. . ., _ ._ .�... . _ _. .. ...._ , .,<.,�.; � ....,.._. _. .., 2, �..,_. .,. .:..�. . . ... .... . . 'x a .7 .r...w.... .ie-+� .y�.,�y,++�e.er. - ., , „ �a s. . �_ � � � � . . LOWRY MEDICAL �ARTS BLOCK 22 Janaar�r I979 l . ` The following data itemizes costs for remodeling: 1. Wabasha Street Building, floors two and three. .... . . . IS,000 sq. ft.. 2. Fifth Street Building, floors two, three, and four. . . 35,000 sq. ft. An allowance of $9.00 per sqnare foot is budgeted for interior remodelYng of the above floor•,s . . a general breakdown is shown below. ` .(Please note that additional costs for replacement of exterior windows, ' cleaning of building exteriors, and new second floar arcade are budgeted elsewhere.) ITEM , SOUARE FOOT . , ALLOWANCE " 1. Trash out all fZoor space. Remove partitions, � , light fixtures, false ceilings, etc. $ 1.00 =$ 5Q,000 � 2. Upgrade stairways and elevator lobbies. .SO = ZS,Q00 ' 3. New suspended ceilings. .85 = 42,504 ` 4. New fluorescent lighting. 1.65 = 82,500 � . __5. New flooring (carpet) 1.75 = &7,500 6. Two new toilets f or tenants. .50 = 25,OQ0 ' 7. Improve electric system to meet code. 2.00 = I00,000 8. General improvements: painting, patching, trims, etc. .75 = ` 37,5U0 ` TOTAL ALLOWANCE per sq, ft. $ 9.00 =$450,OOQ $ 9.00 x 50,OG'0 square f eet = $ 450,OOQ remodeling allowance. � TYPe o� �F�indows Devac windows-anodized aluminum frar_�e ��ith Thermal-break. Insulating Therr.to-pane c,rlass or Dual-glazed glass. i � - , _ _ . _ . _ � . __._ _ _... . _,.,. . ,...._ x ...r.,�..r..._.. � � Resolutiot� IIo. 14b7 R�SOLUTIOr� OF � � THE PORT 1�UTHORITY OF THE CITY OF SAINT PAUL - ��THEFE�S, the purpose of Chapter 474, Minnesota- - Statutes, known as the riinnesota r�Iunicipal Industrial Develor�- � ment Act (hereina£ter called "Act"} as found and c�eterrtined by the le�islature is to prollote the ��elfare of the state by the : � active attraction and encouragement and development of ecano:�i- � cally sound industry arid connlerce to prevent � so far as possible � the eMergence of bl ighted and narg inal l.ands .anc3 areas _of chronic uner,►ployr.rent and to aid in the developr�ent of er,is�ing " areas of blight, marginal land and persistent unenploy�ent; and : Y�1FiEhEAS, factors necessitating the active promotion • � and development of econo�ically sound industry ancl co;:�merce are the increasing concentxation of populatzon in the m�tropoiitan areas and the rapidly rising increase zn the amount and cost o� : - gove�'ru:lental services required to meet the needs � of the � -� --�- --==i�cr�sed population and the neee3 for develo�:nent -of lancl use� _.__. �•�hich will provide an aciequate tax base to finance these increased costs an:� access to enployrient opportunities for such population; and ' �9HEREAS, The Port �uthority of the City of Saint Paui (the "�'iuthority") has rece ived frort the Lowry ll�velopr�,ent Company, a yiinnesota general partnership consisting of Robert . Keyes, Fr.ank Gaertner, and John Gaertner (hereiz�after referred to as "Co�tpar.y") a request that the Authority issue its revenue � _ : bonds to finance the acquisition and rer�odeiing of existing facilities loeatecl on Fifth Street and t�Tabasha �venue in the. City of S�. Paul , (hereinafter collec�ively called the � "Project" ) all as is more fully described in the staf� repnrt on f ile ; an� ' � �vlt�P.SAS, the Authority desires to fac il itate the ` � selective development of tl�e co:�r:iunity, to retain and impzove its ta� base anc� to help it provide the range of services and - er��lo1Ment opparttiniti�s rec�uired b�� its popula�ion, and said � Pro�ect will assist the City in actiieving that objectiv�. S�id � , Project will help to ii�crease the assessed valuation of the City and help maintain a positive relationship betG•reen assessed valuatian and debt arid enhance the imag° and reputation oL the " City; and � - t�7E�EREAS, ttie Project to be financed Uy revenue boncls � will result in suk�staritial employrn?nt opp�rtuniti�s in the - Proj ec t; � � - ��HEREAS, the Authority has been advised by repre— - � sentatives oF the Coripany that conventional, commercial. - financing to pay the. capital cost oi the Project is available � only on a 1 imi ted bas�.s and at such h ic�h costs of borroc,ring that the econornic feasibility of operating the Project would be � significantly reduced, but th� Company has also advised this . Authority Lhat with th� aid of xevenue bond financingr and i:ts resulting low borrowing cost, the Project is ecanomically more : feasible; and - _ � C1HF:REAS, Miller & Schroeder t�iunicipals, Inc. ( the _ "Underc�rri ter") has made a pror�osal in an agreer�ent (the � - "Under��riting Agreernent" ) relating to the purchase of the. revenue bonds to be• issued to finance the Project. NOVJ, TEIEREFORE, BE IT RESOLVED by the CoMmissione�s of the Port Authority of the Czty of Saitit Paul, iyIinnesota as � f o 11 o�•�s: ' - 1. On the basis of informatio� available to the - - -- . _._._, _ __ �_ �luthority it appears, and the Author_ity hereby finds, that said � � Projec-t canstitutes properties, used or useftll in connecti,on �•�ith one or nore revenue proc7uc?ng enterprises engaged in an� business ��ithin the meaning of Subdiv 'iszor� la of Section 474.02 of the Act; that the availability of the financing under the � Act and wi.11ingness o� the Authority to furnish such financing � will b� a substantial inducer.en� to the Company to under�ake _ the Projec�; ancl that the effect. of the Project, if unc�ertaken, ��ill be to encourage the developnent oz" econor.lically sound . industry and conmerce and assist in the prevention of the . eMergence of blic�hted and marginal land, and Gaill hel.p to . . prevent chronic unemployrient, and will help tne City to retain _ and iraprove its � tax l�ase and provide thz ran�e of services anc� emplo�m�ent apportunities required by its �opulation, and �•�z1I _ help :o �revent tl�e movenent of talented and educated pnrsons : . out of the state and to areas within the s�ate �ahere their servic�a r�ay not he as effectively usec� anci t•�ill result �.n �ore intensive develop�erit and use of land ��itnin the City. anc3 will eventually result in an i.ncrzas� in th� City' s tax bas�. . 2 . � � � . _. . ..�, .r-. _w, ,< . .,��..��.;�„�;�.� _ • , . . � `•` ;��'�� ' , 2. Subject to the nutual aqreenent of the Authority, • ` the Co;�ipany anc3 the purchaser o:E the revenue bonds as to the - detai].s of the lease and other docunents necessary to evi�ence and effect the financing of the Project and the a.ssuanee of the .� revenue botids, the Projec:t is hereby approved and authorized " and th.� .issuance of revenue bonds o� the Authority in an amount not to exceect ap�ro;:imately $7,UO�, 000 (otiier thun suc�i � . additional revenue bonds a5 are needed to comple�e the Projeet) is authorized to finance the costs of the Pr�jec t. 3. There has heretofore been filec3 Laith� the � - nuthority a forr,i of Prel imi��ary Agreer�ent bei.creen the Authority � : and Company, relating to th� prop�sed constr�ction anc� financi.ng of the Projeet an.d a forn of the Under��riting Agreement. The form of �said Agreer�ents have beer�. ex�z:�ined- by - the Commissioners. It is. the pu�cpose of said Aqreer,tents to . : evidence the cammitrnent of. the parties and their intentions �•�ith respect to the proposed Project in order that the Corapany � May proceed ��rithout delay �aith the cor:�encenent of the acquisition, installation and construction of the Project ��ith � the assurance that there has been sufficient "official. action" - under Section 103 (b) af the Internal Revenue Cod e of 1954, as . amen�ed, to allow for the issuance of industrial revenue bonds - to finance the entire cost of the Proje�t u�on agree:nent being reached as to the ultinate details of the Projec.t anc� its f inanc ing . Sa id Ag reemen ts� are hereby approvec�, and the� President ancl Secretary of the Authority are hereby authorized - . �-- - -- - anu-��irected to execute said hc�r.eenents. . - . 4. Upon execution. of the Prel ir:iznary Ayreement b� � the Company, the staff of. the Authority are authorized and _ directed to continue negotzations with the Company so as to resolve the remaining issues necessary to the preparatioc� of � the lease and othez docur�ents necessary to the . adoption b1 th� _ Authority of its iinal bond resolution and the issuance an� delivery of the revenue bonds; provided that tlie President {or Vice-President if the President is absent) and the Sec�retary (or As�istant Secretary if the Secretary is absent) of �he Authority, or if either of such officers (ancl his alternative}. are absent, the Treasurer of the Aurhority in Iieu of such , absent ofFicers, .a�e hereby autho.rized in accorUance �•�ith the� provisions of f•Iinnesota Statutes, Sectior 475.b0, Subdivision 1, to acce�t a final offer of the U�derarriters raa:�� by the � U;�derwriters to. purchase said bonds an� to execute an undert•�ritincJ agr�ement settzng iorth such affer on .behalf of the Authority. Such acceptazlce shall hinc� the Underc•rriters to said offer but shall be subject to approval and ra tification hy the Port Authority in a iornal sunplemer�t�1 bond resolu�zon to be adopted ��riar to the c�elivery of saic� rE�venu� bon�is. 3 - � . .� , . ��,��- - , � . - 5. The revenue boi:ds and interest thereon shall not ' constitute an indebtedness of the Authority or the City of • Saint Paul �oithin tnea�aasha�l�notnconstitutetopngiverrise to a -_ statutory lim�.tatio . pecuniary l�ability of the �Authority or the City or a charge aqainst their general cr�dit or taxS.ng powers and neither the fall faith and cr�dit nor the taxinq powers of thP Authorit� or the City is pl.edged for the pay�ent oF the bonds or interest thereon. . - : g, zn order �to faci].itate completion of the revent�e ` bond �inancing h�rein conte:api ated, the City Couriczl is her�by � � rec�uestec� to.. consent, pursuant to Laws of r�iinnesata, 1.97b, - _ Chapter 234, to the issuance of the rev�enue bonds herein _ contempla.ted and any additional bonds which the Authority nay prior to issuance or from tirie to time thereafter deer.� necessary to corlplete the Project or to refund such revenue bonc7s; and for such purpose th� Executive Vice President of the Authority is hereby authorized and directed ta forward to the . City Council copies of this resolution and said PreliMinary Agreement and any additional available infornation the Cit�r Council may request. - Adopted NIarch 20, 1979 � _ . - Attest -. _ . President� -- - _._--._ _ ____ ___,_--- � The Port Authority af the City of Saint Paul : Secr�tary � - � - � _,<.-.� ,«,�.;�,-� �..�:::.+�e��-��-_��.