273846 � WHI�TE - CITV CLERK . �
� PINK - FINANCE C I TY OF SA I NT PA U L Council
- CAN�RV - pxEPARTMENT
BLUE - M:�oR � File �0. �4 � �
Co�ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
iJH�R�AS:
1 . On April 19, 1977, the Port Authority of the City of Saint Paul adopted Resolution
� I�o. 1174, givi�g preliminary approval to the issuance of revenue bonds in the initial
principal amount not to exceed $3,500,000 to finance the acquisition and remodeling of the
Lowry Hotel ;
2. The City Council of the City of Saint Paul adopted Resolution No. 268995 on May 3,
1977 giving preliminary approval to the issuance of revenue bonds in an amount not to exceed
$3,500,000 to finance the acquisition and remodeling of the Lowry Hotel ;
3. On May 30, 1979, the Port Authority of the City of Saint Paul adopted Resolution
No�.� 1348, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount of approximately $620,000 to finance a completion bond issue for poerfler
Cor�struction, Inc. for the remodeling of the Lowry Hotel .
�.�—
�. The City Council of the City of Saint Paul adopted Resolution No. 271268 on June 15,
1978 gi��ng pwo���i�nary approval to the issuance of revenue bonds in an amount of approxi-
m�tely $620,000 to finahce a completion bond issue for poerfler Construction, Inc. for the
remodeling of the Lowry Hotel .
5. On August 21 , 1979, the Port Authority of the City of Saint Paul adopted Resolution
No. 1537, giving approval to the assignment of the lease with Doerfler Construction, Inc.
to Capitol Properties; �
6. On September 25, 1979, the Port Authority of the City of Saint Paul adopted
REsolution No. 1553, giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of approximately $430,000 to finance the remodeling of the second
and third floors in the Doerfler Square building by Capitol Properties for use by the
County Attorney's office.
7. 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 Paal , by resolution adopted in accordance
with law;
COUNCILMEN
Yeas Nays Requested by Department of:
Butler [n Favor
Hozza
Hunt ,t�
,_ Levine __ Against BY
Maddox
� Showalter �
Tedesco Form Approved by City Attorney
Adopted by Council: Date � `��..�� l
Certified Yassed by Council Secretary BY �� �`"�/
By�
t�pproved by :Vlavor. Date _ Ap o by Mayor for b ' i no^t Council
BY - -- ��
WHITE - C� CLERK COUIICII �s���V
PINK - - FI NCE GITY OF SAINT PALTL �
CANISRV - p',f��ARTMENT File NO. "
BLUE = M�VOR
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
8. 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. 1553, 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 Nays Requested by Department of:
/
�� McMahon � [n Favor
Hozza
Hunt
� � Levine __ Against BY
�adde�
.Sho er
�CT 9 1979 Form App�ov d by City Attor
Adopt by Counc' : Date i����r7e _���
���f
C tified Pa• ed by C uncil ecr ary BY
Ap by fVlavor: D e
• A d by Mayor for Su m ssio?� to Council
By _
ptl8�.tsHED 0 CT 2 0 1979
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�etober 9, 1979 ' �
, - ,
, Mr� Rbbe�t 3pr�fka ,
. �e3zitive! S�crotarYs St. Pe►ul Port 'Authc�ity �
` Ftoo� i3�'3,: Ci�r �#nnex � . , ; , ,
St.�Paul,� i�innasota , � ' , �,
r
Dear Sir= , , `
' . Th� City'Cou�e3Z toda,y adapted a resalutioz� anthorixi�g the •
. laauanas �of $430,OOb �ort Authority R�venue Bonds fbr r4modeling
. ; of tbe �r�eaond and third f1c�r�s ir� fi�he'1)oer�'1�►r �qua� IIu1.3din� �
tnto ott�cie �pa�e for �e by t�e`t�►fity At�t.ort�y'� ofFice.
Prior ta a�dovtion, CEnxncilms� Lev�,ne expres�R� a rel�etance, to. , ' _
�$8:'ave �y addi,�lon�s to tl�e Dotrtler 8qusre �iilding Ltt�jtil
such ti.� es naw► managem�t me�tes �an affort to correct �i�ttenance .
, ; " aad seat�lty �prob3ams. �!'ter etdapti.dn af the resolut�.on, I
. �aa lnatz'ucted to comrey tl�eaa con�ments �c �t�o Po�t �uth�r�:ty � _
�taf'�. ,
t. ,
' �, V$ry tr�aly yours� .
,1 Rose Mix
, City Clerk . , .
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, ���,���
, � ' Resolution No. 1553 .
RESOLUTION OF
� THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, P!Iinnesota
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 developm2nt 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
��THEREaS, by an Assignment of Lease dated August 31,
1979 Doe�fler Construction Company ( "Doerfler") assigned its
interest in the lease between Doerfler and the Port Authority
dated as of t�tay 1, 1977 and amended as of June 1, I978 (the
"Lease" ) to Capitol Properties, Inc. { "Company" ) ; and
WHEREAS, the Authority has heretoiore issued
$3, 250, 000 of Industrial Development Revenue Bonds, Series L
and $620, 000 Industrial Development Revenue Boncis, Series U to
finance tYie acquisition and renovation of a building for use as
a residential apartment facility and as a comm2rcial and offic�
facility in the City St. Paul , ( hereinafter collectively called
the "Project") pursuant to Basic Resolution No. 876, as amended
and Supplemental Bond Resolutions �10. 1182 and 1353,
respectively; and
. • � _ .
� WHEREAS, The Port Authority of the City of Saint Paul
- (the "Authority") has received from the Company a request that .
the Authority issue additional revenue bonds to finance the
� completion of the the office facility contained in the Project,
all as is more fully described in the staff report on file; and
WHEREAS, Section 2. 06 of the Project Covenants to the :
Lease provides for the issuance of additional revenue bonds to � .. .
complete the Project; and
4�'HEREAS, 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
City; and
WHERFAS, completion of the Project 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 completing the Project is
available only on a limited basis and at such hign 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, completion of
the Project is economically more feasible;
P7HEREAS, 2-iiller & Schroeder riunicipals, Inc. (the
"Undenariter" ) has made a proposal in an agreement ( the .
"Underwriting Agreement" ) relating to the purchase of the
additional revenue bonds to be issued to finance the completion
°of the Project;
WHEREAS, the �Authority, pursuant to P4innesota
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 publi� nearing on the proposal of
the Company that the Authority finance completion of the
. Project hereinbefore dnscribed by tne issuance of additional
' 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 opnortunity 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, P�innesota as
follows:
l. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that said
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any -
business within the meaning of Subdivision, la of Section 474 . 02
of the Act; that the Project furthers the purposes stated in
Section 474.01 of the Act, that the availability of the
financing under the Act and willinqness of the Authority to
furnish such financing will be a substantial inducement to the
Company to co?�plete the Project, and that the effect of the �
Project, if completed, will be to encourage the development of
economically sound industry and commerce and assist in the
prevention of the emergence of blighted and marginal land, and
will help to prevent chronic unemployment, and will help the
. City to retain and improve its tax base and provide the range
of services and employment opportunities required by its
population, and wil�. help to prevent the movement of talented.
and educated persons out of the state and to areas within the
state where their services may not be as effectively used and
will resu�t .in more intensive development and use of land
witnin the City and will eventually result in an increase in
the City's tax base; and that it is in the best interests of
the port district and the people of the City of Saint Paul and .
in furtherance of the general plan of development to assist the
Company in financing the Project.
2. Subject to the mutual agreement of the Authority,
the Company and Lhe purchaser of the revenue bonds as to the
details of the amendment to the lease (the "Ar�endmer�t to
Lease" } and other documents necessary to evidence and effect
the financing of the Project and the issuance of the additional
revenue bonds, completion of the Project is hereby approved and
authorized and the issuance of additional revenue bonds oi the
Authority in an ar�ount not to exceed approximately $430 , 000 is
authorized to finance completion of the Project.
3 . In accordance with Subdivision 7a of Section
474 . 01, Minnesota Statutes, the Executive Vice-President of the �
hUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner of
Securities, requesting his approval , and other oiiicers,
� • � • • . • -
{ employees and agents of the AUTHORITY are hereby authorized to �
� provide the Commissioner with such preliminary infornation as :
" he 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 completion of the Project and a f orm of the - � , -
Underwriting Agreement. The form of said Agreements nave been
examined by the Commissioners. It is the purpose� of said
Agreements to evidence the commitment of the parties and their
, intentions with respect to the completion of the Project in
order that the Company may proceed without delay with com-
. pletion 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 additional revenue bonds upon agreement� being
reached as to the ultimate details of the completion o� 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 Prelininary Agreement by
the Company, the staff of the Authority are authorized and
directed to continue negotiations with the Company so as to
resolve the reriaining issues necessary to the preparation of
thz Ar�endment to Lease and other documents necessary to the
adoption by the Authority of its final bond resolution and the
issuance and delivery of the additional 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
Author?ty in lieu of such absent officers, are hereby
authorized in accordance with tne provisions of Minnesota
Statutes, Sec�ion 475. 06, Subdivision 1, to accept a final
offer of the Underwriters made by the Undercariters to purchase
said additional bonds and to execute an undercariting agreement
setting forth sucn 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 delive.ry of said revenue bonds.
6. The additional revenue bonds and interest tl-iereon
shall not constitu�e an indebtedness of the A�thority or tne
City of Saint Paul within the meaning of any constitutional or
statutory limitation and shall not co;zstitute or give �ise to a
pecuniary lia?�ility of the Authority or �he City or a c=?arge
against their general crzdit or �axing po;a�rs and neit:-:er the �
. - ^ � • • � _
��������
' - full faith and credit nor the taxing powers of the Authority or
� the City is pledged for the payment of the additional 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 additional revenue bonds
herein contemplated and any additional bonds which the
Authority may prior to issuance 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 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 o€ the Proje.ct and
estinating the principal amount oi additional bonds to be
issued to finance the completion of the Project and in
• preparing a draft of the proposed application to the
Commissioner of Securities, State of Minnesota, for approval of
the Project, wnich has been available for inspection by the
public at the cffice of the Authority from and after the
publication .of notice of the hearing, are in all respects
ra�i f ied and con i irmed.�
Ado�ted September 25, 1979 / /
C �" ,
,
.... - . ._ � .:��L- � �'��/ /�(� .
Attest v�
Pres � en
'` T e Por Authority of the City
� of Sa � nt Paul
, d.�
��cretary . '
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