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274162 WHITE - CITV CLERK _J����pJ PINK - - FIN�N�E ' G TY O F SA I NT PA LT L Council � i;� CANAF�A!- DEVARTMEN BLUE - MAVOR File NO• - o � cil Resolution Presented By � Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On December 18, 1979, the Port Authority of the City of Saint Paul adopted Resolution No. 1584, giving preliminary approval to the issuance of an industrial park revenue bond issue in the initial principal amount of approximately $1 ,000,000 to finance a portion of the local share of the development costs of St. Paul Energy Park to comply with the conditions of the Negotiated Investment Strategy agreement. 2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul , shall be issued only with the consent of the City Council of the City of Saint Paul , by resolution adopted in accordance with law; 3. The Port Authority of the City of Saint Paul has requested that the City Council give its requisite consent pursuant to said law to facilitate the issuance of said revenue bonds by the Port Authority of the City of Saint Paul , subject to final approval of the details of said issue by the Port Authority of the City of Saint Paul . RESOLVED, by the City Council of the City of Saint Paul , that in accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the a�oresaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution � No. 1584, 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: �� � � � [n Favor Hozza� �� �- Levine _ � __ Against BY Maddox Showalter DEC 2 Tedesco �} ���� Form Approved by City Attorney Adopted by Council: Date �G , c !f ���� r Certified by Council S eta By ' B y T--T. �. .�' �►- DEC 2 0 1979 Approved b ayor for Submissio to Council l�ppr�ved by r:"°�t — B C��"�'�/���r BY - - — Y �' '"` �PU�3usr{E� p�� 2 9 1979 . ..t , . �������� RESOLUTION NO. 158a SUPPLENLENTAZ BOND RESOLUTION NO. 1584 $1, 000 ,000 ITJDUSTRIAL PARK BOND A�TICIPATION NOTE, SERIES 1 PORT AUTHORITY OF THE CITY OF SAIi�1T PAUL Adopted : Decembzr 18 , 1979 � � . . SUPPLEMENTAL BOND RESOLUTION BE IT RESOLVED by the Port Authority of the City of Saint Paul that 5pecial Resolution No. 1270 is supple- • mented to read as follows : ARTICLE ONE DEFINiTIONS, LEGAL AUTHORIZATIQN AND FINDINGS �-1. Defini,tions . Any terms defined in Special Resolution No. 1270 shall have the same meanings when used �erein as assigned them in Special Resolution No. 127Q unless the context or use thereof shall require otherwise. In ad- d�tion, the terms hereinafter set forth, unless the context or use thereof shall require otherwise, shall have the following meanings; Acquisition and Construction Fund: the fund created by Section 3-1 of this Bond Resolution to which the proceeds of the Notes, except far any� accrued interest and capitalized interest, are appropriated; Act: the relevant provisions of A�iinnesota Statutes , Chapters 458 , 474 , 475 and all amendments and supplements thereto; AUTHORITY: the Port Authority of the City of Saint Paul, and any successor public corporation; Bond Counsel : the firm of Briggs arid Morgan, Pro- fessional Association, of St. Paul, Minnesota, or any other attorney designated by the AUTHORITY, duly admitted to practice law before the highest court of any State and nationally recognized in the field of municipal finance , and any opinion of Bond Counsel shall be a written opinion of such Counsel; Bond Fund: the fund established under Special Resolution No. 1270 from which the princinal of and interest on the Note and Bonds and other Revenue Bonds are payablE; Bond Resolution: this resolution of the AUTHORITY adopted December 18 , 1979 , as a supplement to Special Resolu- tion No. 1270 , as amended, pursuant to which the Bonds are authorized to be issued; and all references in this instrument to designate "Articles , ° "S�ections" and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed, and the words "herein, " "hereof" and "hereunder" and other words of similar import refer to this rESOlution as a whole and not to any particular Article , Section or subdivision; Bonds : the Port Authority of the City of Saint Paul Revenue Bonds , in anticipation of Tr�hich the Note is to be issued by the AliTHORITY pursuant to the Bond Resolution; City : the City of Saint Paul ; Cost: any of the cost items payable from Note proceeds (including interest thereon} as provided in Section 3-1 , sometimes collectively referred to herein as Cost of the Project; Energy Park Project: the lar_d and any other ease- ments and rights described in Exhibit A attached hereto, and the street improvements , utilities and clearance and other site improvements to be constructed anc installed thereon and therein by the AUTHORITY , the City of Saint Paul or any other person; Note ; the Port Authority of the City of Saint Paul Bond Industrial Park Anticipation Note, Series l, dated December 15 , 1979 , issued by the AUTHORITY pursuant to the Bond Resalution; Note Closing: the date on wr,ich there is delivery � of and payment for the Note; Notes : the Note and any other notes issuea in anticipation of the Bonds; Placement Agreement : an agreement between the AUTH- ORITY and Miller & Schroeder Municipals , Inc. , providing for placement of the Note; Project: that portion of the Energy Park Project that is payable from the proceeds of t�e Note (including interest thereon) under Section 3-l; Purchase Agreement: the Agreement between .the AUTHORITY and the Purchaser providing ror the purchase of the Note from the AUTHORITY; ► Purchaser: The First National Bank of Saint Paul; Revenue Bonds : the Bands, and all other revenue bonds and notes heretofore or hereafter issued pursuant to Special Resolution No. 1270 and made payable from the Bond Fund; 2 Special Resolution No. 1270 : Resolution No. 1270 of the AUTHORITY ado�ted November 1, 1977 , as amended by Resolution Nos . 1276 , 1304 and 1583 of the AUTHORITY adopted respectively on November 22 , 1977 , February 14 , 1978 and December 18 , 1979 , and all other amendments thereto, pursuant to which a Bond Fund has been established and basic authority has been �rovided for the issuance of the Revenue Bonds , including the Notes and the Bonds ; 1-2 . Le�al Authorization , The AUTHORITY is a �odV corporate and poli�ic organized and eYisting under Minnesota� Statutes, Chapter ��3 , as amended, and is a redevelopmen� agency within the meaning of t�Iinnesota Statutes, Chapter 474 , as amended, and is entitled under Laws of Minnesota, 1971, Extra Session, Chapter 35 , Section 9 , to exercise any of the powers granted in C��a�ter 474 in order� �o further the puzposes and objects of Chaater 458 , and is authorized under said laws to initiate the Preject herein referred to, and to issue and sell bonds for that purpose in the manner and upon the terms and conditions set forth in the said Cnapters 474 and 458 , Basic Resolution No. 876 and this Bond Resolution, in ord�r to redevelop margir.al land and help accomplish all of the other purposes and objects of Chapter 458 without regard to any limitation on projects set forth in Cha�ter 474 . 1-3 . Findings . The AUTHORITY has heretofore deter- mined, and does hereby detexmine, as Tollows : l. the purpose of Minnesota Statutes , Chapter 458 as found and determined by the legislatu-re is to provide the means by which marginal area properties may be developed or redeveloped to help cure the problems incident to the exis- tence of such properties as set forth in Minnesota Statutes, Section 458.191, Sup.division 3; 2 . a sound development of the economic security of the peoples of the City of Saint Paul is dependent upon proper development and redevelopment of marginal properties, and the general wel�are of the inhabitants of the port district require the remedyi�g of such injurious conditions to which marginal properties are now subject; 3 . the develop�ent and redevelopment of such marginal area properties cannot be accomnlished by private enterprise alone without public �arti�ipation and assistance in the acquisition of land and planning and in the financing of land assembly in the �aork of clearance, development and re- development� and in the making of improvements necessary therefor; 3 4. to protect and promote sound development and re�evelop- ment ot marginal land and the general welfare of the inhabitants of the port district, it is necessary to remedy such injuriaus conditians through the employment of all appropriate means; 5. whenever the devel.opment or redevelopment of such � marginal lands cannot be accomplished by private enterprise alone, without public participation and assistance in the acquisi�ion of land and planning and in financing of develop- ment and r�development, it is in the public interest to ad- vance and expend public moneys for those purposes and to � provide for means by which such marginal lands may be developed or redeveloped; 6 . the development or redevelopment of such marginal lands and the provision of appropriate continuing land use constitute public uses and purposes for which public moneys may be advanced or. expended and private property acquired, and are governmental functions and are af state concern in the interest of health, safety and welfare of the peoples of the State of Minnesota and of the City of Saint Paul; 7 . an economic develo�ment district (the "District") has heretofore been establ.i�hed in accordance with Section 458. 191 of the Act to include that part of the Energy Park Project that may be financed from the praceeds of the Note, and it has accordingly been determined, and it is hereby determined that said land constitutes marginal land within the meaning of Section 458 . 191, Subdivision 4 , of the Act; 8 . the AUTHORITY is authorized by the Act to acquire said marginal land and improve and finan ce the same for the public purposes expressed in the Act; 9 . the AUTHORITY has made the necessary arrangements for the establishment within the District of that part of the Energy Park Project that may be financed from the proceeds of the Note, consisting of certain property to be used in con- nection with the operation of revenue-producing enterprises. cantemplated by Minnesota Statutes , Chapter 458 , which property will be of the character and accomplish the purposes provided by the Act, as hereinabove stated, incl.uding but not limited to the redevelopment of marr,inal land; and the AUTHORITY has by this Bond Resolution authorized the issuance of Bonds in the amount of $6 , 000,000 in anticipation of which the Note herein has been authorized �and additional notes ar� to be authorized in subseauent supplemental resolutions,� 4 10 . in authorizing the Energy Park Project the AUTHORITY' s purpose is, and in its judgement the effect thereof will be, � to promote the public wel�are by: the attraction, encourage- ment and development of economically sound commerce and indus- try so as to redevelop marginal land and prevent, so far as possible, additional blighted and marginal lands and areas or chronic unemployment and the emergence of such lands and - areas; the development of commerce and industry to use the available resources of the corununity in order ta retazn the benefit of the community's existing investment in educatiana� and public service facilities and to halt the movement of talented, educated personnel of mature age to other areas, thus preserving the economic and human resources needed as � a base for providing governmental services and facilities; the provision of accessible employment opportunities -or residents in the area; and the expansion of an adequa�e tax base of Ramsey County and the City of Saint Paul �o finance the increase in the amount and cost of govern�ental services, including educational services for the School District of the City; 11. the amount estimated to be necessary at this time to finance the Cost of Lhe Project, including the costs and estimated costs permitted by the Act, will require the is- suance, sale and delivery of the N6te in the principal amount of $1,00� ,000 as hereinafter provided, together with addi- tional Notes not exceeding in the aggregate $S ,OQ0 ,000 . 12 . it is desirable, feasible and consistent with the objects and purposes of the Act and Special Resolution No. 1270 to issue the Tdote for the purpose of providing i�unediate funds for acquiring and improving the Project and, on or be- fore the maturity of the Note , to issue the Bonds in the amount required to discharge the r�ote; 13. the Sonds shall ba Special Revenue Bonds within the meaning of Special Resolution No. 1270 and shall be payable from Special Net Revenues derived from various revenue producing facilities of the AUTHORITY on a parity of lien with all other Revenue Bonds ��hich may hereaf�er be issued by the AUTHORITY and made payable from the Bond Fund to the extent and in the manner provided in Special Resolution No. 1270 ; 14 , the Note and Bonds and the interest thereon do not constitute an indebtedness of the AUTHORITY or the City of 5aint Paul within the m�aning of any constitutional ar statutory limitation and do not constitute nor 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 AUTHORTTY or the City is pledged for the paym�nt of the Bonds or interest thereon; � 5 15 . the acquisition of ��d improvement to the Project, the issuance and sale of the '�ote, the execution and deli- very of the Purchase Agreem.er.�, and the performance of all covenants and agreements of ��e AUTHORITY contained in the Purchase Agreement, Special �solution No. 1270 and the Bond Resolution and of all ot~er acts and things required under the Constitution and la•,�rs of the State of Minnesota . to make the Note a valid and �indinq obligation of the AUTHORITY in accordance with -ts terms , are authorized by the Act, Special Resolution �:o. 1270 and this Bond Resolu- tion; . 16 . if the Note is an _n�ustrial development bond within the meaning of Section 103 (b) of the Tnternal Revenue Code, it qualifies �:i_hin the exemption provided under Section 103 (b) (5) of �.'r:� Code with respect to an industrial park; provided t'r.a� the AUTHORITY also reserves the right to qualify the No�z under subparagraph (A) of Section 103 (b) (6) of the Coce with respect to the $1,000 ,000 small issue exemption; and �rovided further that nothing herein shall prevent the r�liir?�RITY from hereafter qualifying the Note under a different �x��ption if, and to the extent, such exemption is permitted b_• law and consistent with the objec�s and purposes of the ��t; 17 . the Purchaser has o-=ered to purchase said Bonds in accordance with th� terms and conditions of the Purchase Agreement and this Bond Resol��tion. 1-4. Authorizatio:� of Bonds. The AUTHORITY hereby authorizes pursuant �.o �Zinnesota Statutes , Section 458.194 , and other relevant partions of the Act, $6 ,000 ,000 in Bonds to be issued and solc in one or more series pur- suant to Resolution No. 1270 and, upon determination of the details thereof, one or more �upplemental resolutions , for delivery on or before the ma��4:.rities of the Notes for the purpose of discharging the s:�-� and providing permanent � financing for the Energy PaY:c Project; provided that nothing herein shall be con�trued as =equiring the issuance of $6 , 000 , 000 in Bonds so lona �� any lesser principal amount is sufficient to full� disc^�~-ge the Notes . . 6 ARTI CLE 'IR+TO THE PdOTE 2-1. Special Resolution P1o. 1270 . The Note shall � be issued, secured, executed and authenticated under the provisions of Special Resolution i1o.. 1270, ex�ept as otner- w ise provided in this sond Resolution, and all applicable terms, covenants and conditions contained in Special ResoTu- tion No. 1270 are hereby incornorated into and made a part of this Bond Rzsolution the sa�e as iL said terms, covenants � and conditions were set out herein in their entirety. 2-2 . Authorized Amount and Form of Note. The Note issued gursuant to this Bond Resolution shall be in substantially the form set forth herein, with such appropriate variations, omissions and insertions as are permitted or required by this Bond Resolution, and in accordance with the further provisions of this Article, and the applicable pro- visions of Special Resolution No. 1270 , and the total princi- pal amount of the Note that may �e outstanding hereunder is expressly limited to $1, 000 , 000 . Said Note shall be in substantially the folloc•ring form: . 7 LNITED STATES OF AMERICA STATE OF �SINNESOTA COL�TTY OF RAMa�Y PORT AUTF:ORITY OF THE CITY OF. SAINT PAUL $1,OOQ,000 .00 INDUSTRIAL PARK BOND �1TICIPATIO'3 �:OTE, SERIES 1 ICNOi� ALL ,'•iE� BY T�iESE PRESEZ�:TS that the Port Authority of the City of Saint Paul (herein called "Port Authority") , Ramsey County, �Iinnesota, a body corporate and politic, for value receivec. hereby promises to pay to the order of The First ?lational Bank of Sa?nt Paul , in St. Paul, :�iinnesota (the "Bank") , or its assign, but solely from the proceeds of Special Revenue Bonds (the "Bonds") in antici- p ation of which the Note is issued or rrom other sums held in the Port Authority ' s Special Revenue Bond Fund, the prin- cipal sum of OVE r4ILLION DG�L�R5 on the fifteenth day of Dece�rrber, 1980 , or if this :voze is required to be prepaid as stated belo�a, on a prior date on whicn it shall have beer� duly called for redem�tion, and to �ay interest on said principal sum solely T�om said fund at the rate of seven and twenty-five hundredths �ercent (7 .2�0) per 'annum from the date hereof until the principal sum is paid or until this Note is duly discharc�ed, ir_terest being payable on June 15 , I9£30 and Decei�..her 15 , 1980 . Both principal and interest are payable at the principal office of the Bank (or its assiqn) or. such other place as the Bank (or its assign) may designate in writing, i~� any coin or currency of the United States of America which on the respective dates of payment is legal tender for public and private debts . This Note is iss�:�d by the Port Authority to pro- vide immediate funds for t�e purposes for which the Bonds are authorized, in anticipa�ion of pe rnanent financing by the Bonds, in accordance with Special Resolution No. 1270 , as amended, and Supplemental Resolution No. 1584, duly adopted by the Port Authority, setting torth the terms and conditions upon which the `:ote is issue� and describing the security therefor. ► The Note, in whole but not in part, is su}�ject to mandatory redemption anG prior payment at par and accrued interest at any time in the event that the Port Authority 8 should determine, upon advice of its bond counsel, that such prepayment is required in order to prevent the interest on the Note or any other notes or revenue bonds of the Port Auth- ority from becoming subject to federal income taxation . At least 15 days prior to the date on �ahich the Note is redeemed in advance of maturity, the Port Authority will cause notice of the call thereof for redemption to be mailed to the Bank (or its assign) . The P1ote upon being so called for redemption will cease to bear interest an the specified redemption date , provided funds for its redemption have been duly de�osited. This Note is issued pursuant to and in full com- pliance with the Constitution and laws of the State of Minne- sota, particularly Chapters 458 , 474 and 475 , Minnesota Statutes, and pursuant to resolutions adopted and approved by the Port Authority, which resolutions authorize the is- suance, execution and delivery of this Note as special obliga- tions payable solely from the proceeds of the Bonds and other sums held in the Port Authori�y ' s Special Revenue Bond� Bond Fund,. as hereinafter more fully set forth. The Port Authority has covenanted to exercise its best efforts to issue the Bonds pursuant to Special Resolu- tion No. 1240 , as amended, in such amount as is required to fully discharge the Note and any other Notes hereafter issued in anticipation of said Bonds ; and the net proceeds of the Bonds are pledged exclusively for the payment of the Note and such other notes . In addition, the Note tagether with certain Revenue Bonds of the Port Authority which may from time to time hereafter be issued by the Port Authority, are secured by and payable from the balance of periodic payments (said balance hereinafter called Special Net Revenues) which the Port Authority is entitled to receive on account of cer- tain revenue producing facilities owned and leased or operated or otherwise financed by the Port Authority, after appropriat�ng that portion of said payments which constitute Available Net Revenues to (a) a bond fund established for other Port Authority revenue bonds which are entitled to a prior lien on said payments and (b) thereafter to the payment of any unfunded operating expenses of the Port Authority. The estimated collection of said Special Net Revenues , together with the proceeds of the Bonds , exceeds the amount required to pay when due the principal of and interest on the Note. The Note, together with any other Special Revenue Bonds which may hereafter be issued and made payable from the Bond Fund, is further secu�ed by and payable from other funds held in the Accumulated Net Revenues Fund pledged ta the payment thereof in the manner and to the extent provided in Special Resolution No. 1270 , as amended. Reference is made to said Special Resolution and to the Supplemental � Resolution authorizing the issuance of the Note and Port Authority Resolution No. 876 , as amended for a complete 9 statement of (a) the terms and conditions upon which the Note has been issued, (b) the provisions made for its security and for the issuance of any additional Revenue Bonds payable from the Bond Fund, (c) the riqhts , duties and obligations of the Port Authority and the Bank (or its assign) from time to time, and (d) the prior lien and appropriation ta which the Note is subject with respect ta said Available Net Revenues . The Note and interest thereon does not canstitute an indebtedness of the Port Authority or the City of St. Paul within the meaning of any constitutional or statutory limitation and does not constitute or give rise to a pecuniary liability of the Port Authority or the City or , to the extent permitted by law, the officers , agents and employees of the Port Authority or the City , or a charge against the general credit and taxing powers of the Port Authority or the City ; and neither the full faith and credit nor the taxing powers of the Port Authority or the City is pledged to the payment of the Note or interest thereon. Remedies of the �ank (or �ts a�5�gn) sha�l be eumula- tive and concurrent and rzay be pursued singl��, or successively or together, a-� �he sole discretion of the Bank (or its assign) , . � and may be exercised as often as occasion therefor shall occur; and �he failure to exercise any such right or remedy snall in no event be construed as a waiver or release thereof. The Bank (or its assign) shall not be deemea, by an act of omission or commission, to have waived any of its rights or rem�dies hereunder unless such waiver is in writing and signed by the Bank (or its assign) , and then only to the extent specifically set forth in the writing. A �aaiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. As provided in the Supplemental Resolution and sub- � ject to cer�ain limitations set for�h therein, this Note is transferable upon the books of the Port Authority at the office of the Secretary of tne Port Authority, by the Bank (or its assign) in person or .by its attorney duly authorized in writing, at the Bank' s (or its assign) expense, upon surrender hereof together with a written instrument of transfer satisfactory to the Secretary of the Port Authority duly executed by the Bank (or its assign) or its duly auth- orized attorney. Upon such transfer the Secretary of the Port Authority will note the date of registration and the name and addrESS of the new registered holder in the regis- tration blank appearing be�.ow. Alternatively, the Port Authority will at the request of the Bank (or its assign) and the Bank's (or its assign) expense issue new notes in aggregate principal amount equal to the tace amount of this I1ote, and of like tenor except as to num}�er and prin- cipal amount, and registered in the na;ne of the Bank (or its assign) or such transferee as may be designed by the 10 Bank (or its assign) . The Port Authority may deem and treat th� person on whose naMe the Note is last registered upon the books of the Port Authority, with such registration noted on the Note, as the absolute o�mer hereof, whether or not overdue, for the purpose of receiving payment of or on account of the principal due thereunder, interest and for . all other purposes, and all suc�z �aynents so made -co the �ank (or i.ts assign} or up�n its order shall be valid and effectual to satisfy and discharge the liability upon the Note to the extent of the sum or sums so paid, and the Port Authority shal� not �e affected by any notice to th� contrarX. IT IS HEREBY C�RTIFIED, FECITED AND DECLARED that the Port Authority has duly authorized the Note and Bonds and created said Bond Fund and has pledged and appropriated thereto in such amount as is required to make current debt service payment Bond proceeds and Special Net Revenues derived by the Port Authority from various revenue praducing facilities owned and leased or operated or otherwise financed by the Port Authority; that it will promptly give all notices and do all other acts and things required under the terms of all applicable leases and agreements relating to its facilities for the performance of it� obligations and for the enforce- ment of all obligations of all other parties there�o and for the collection of all rentals, payments, rates and charges when due to the extent and in the manner provided in Special Resolution No. 1270, as amended, and the Supplemental Resolution authorizing tnis issue; that this Note is secured by a pledge of and lien upon said Bond proceeds and Special Net Revenues; that the Note toge�her with any other Revenue Bonds hereafter issued and made payable fron the Bond Fund are entitled to the same parity of lien on said Special Net Revenues, all as more fully provided in said resolu- tions; that no additional Revenue Bonds or other obligations will be issued and made payable from such Special Net � Revenues on a parity �aith this No�e except as specifically provided in the said resolutions; that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed in order to make this Note a valid and binding special obligation of the Port Authority according to its terms have been done, do exist, have nappened and have been performed in regular and due form, time and manner as so required; and that the issuance of this Note does not cause the special or general indebtedness of the Port Au�h- ority or the City of St. Paul to exceed any constitutional or statutory limitation. IN WITNESS ��HER�OF, the Port Authority of the City of Saint Paul has caused this Note to be executed in its 11 behalf by the manual signature of its President and the manual signature of its Secretary, and sealed with the cornorate seal, and has caused this Note to be dated as of December 15 , 1979 . (SEAL) Secretary President . PROVISIQNS AS TO REGISTRATION The ownership of this Note and the interest payable thereon is registered on the books of the Port Authority of the City of Saint Paul in the name of t�e holder last noted below. Signature of Date of Name Secretary of Registration Registered Owner _Authority The First National Sank of Saint Paul ► � 12 2-3 . Note Terms . The terms and conditions of the Note sale shall be as follows : (1) The Note issued in the principal amount of $1,000,000 shall be dated December 15 , 1979 , and shall mature on December 15 , 1980 , and shall bear interest from � December 15 , 1979 , until paid or discharged at the rate of seven and twenty-five hundredths percent (7 .?_50) per annum. (2) The interest on each Note shall be payable on June 15 , 1980 and on December 15 , 1980 . The principal of . and interest on the No�e shall be payable at the principal office of the Purchaser or its assign under the Nate, o� such other place as the Purchaser (or its assign) may desig� nate in writing. (3) In the event that the AUTHORITY should determine, upon advice of Bond Counsel, that the Tdote should be pre- paid in order to prevent the interest thereon or on any other notes or revenue bonds of the AUTHORITY from becoming sub- ject to the federal income tax, the ilote shall be promptly redeemed by the AUTHORITY, in whole and not in part at 1000 of the principal amount to be redeemed plus accrued interest to the redemption date; provided that mailed notice of redemption shall be given to the Purchaser (or its assign) . at least 15 days p�ior to the redemption date. � (4) Except as provided in this Section 2-3 (3) the Note shall not be subject to redemption prior to its stated maturity date. 2-4. Execution. The Note shall be executed on behalf of the AUTHO�ITY by the manual signature of the President of the AUTriORITY and the manual signature of the Secretary of the AUTHORITY. In the event of the disability or resignation or other absence of either such officer, the Note may be signed �y t:ne manual signature of that officer who under the bylaws of the AUTHORITY may act in behalf of such absent or disabled officer. The Note may be sealed with the seal of the AUTHORITY. In case any officer whose signature shall appear on the Note shall cease to be such officer before delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until .delivery. � 2-5 . P�liscellaneous vote Provisions . (1) Subject to the provisions of subsection (4) below, the AUTHORITY shall, at the request and expense of the Pur- chaser (or its assign) issue new notes, in aqgregate out- standing principal amount equal to the face amount of the 13 Note surrendered, and of like tenor except as to number and principal amount and registered in the _.ame of the Purchaser (or its assign) or such transferee as �ay be designated by the Purchaser (or its assign) . (2) The AUTHORITY will cause to be kept at the office of the AUTHORITY a �ote register in :�rhich, subject to such reasonable regulations as it may prescribe, the AUTHORITY shall provide for the registration of transfers of ownership of the Note. Said Note shall be transferable upon the Note register by the Purchaser (or its assig�) in person or by its attoxney duly authorized in wri�i�c, at the Purchaser 's (or its assign) expense, upon surrender of the Note togethe� w ith a written instrument of transfer satisfactory to the Secretary of the AUTHORITY, duly executed by the Purchaser (or its assign) or its duly authorized attorney. Upon such transfer the Secretary shall note the date of registration and the name and address of the new holder in the Note regis- ter and in the registration blank appearing on the Note. (3) The AUTHORITY may deem and �reat the person in whose name each Note is last� registered in the Note register and by notation on the No�e whether or not such Note shall be overdue, as the absolute owner o` such Note for the pur- pose of receiving payment of or on account of the principal b alance, redemption price or interest a�d for all other pur- poses whatsoever, and the AUTHORITY szall not be affected by any notice to the contrary. (4) The Note is to be issued without registration under state or other securities laws, pursuan� to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor. may a participation interest in the Note be given pursuant �o any participation agreement, except in accordance with ap�licable registra= tion requirements (which the AUTHORITY, at the request and expense of the Purchaser (or its assign) may but is not required . to meet) or pursuant to an exe�ption for such transfer under the applicable securities laws. � 14 ARTICL� THREE ADDITYONAL GEVEP.AL COVENANTS AND FUNDS 3-1. Acquisition and Construction Fund. At Note elosing, the proceeds of the Note (except the sums required to be deposited in the Bond Fund pursuant to Section 3-2) shall be deposited in a separate special Acquisition and ' Construction Fund for this issue and shall be disbursed from said Fund by the AUTHO:RITY for the payment or reimbursement for the payment of all costs of the Energy Park Project payable from the proceeds of revenue bonds under the Act and incurred by the AUTHORITY or, ��:i�.h the permission of the AUTHORZTY, or � its duly designate� agent, by any other person; provided that no Note proceeds, including interest thereon, may be used for any portion of the Er_ergy Park Project not then included in a development district under the provisions of 5ection 458 ,191 of the Act; and provided further that no Note proceeds , in- cluding interest thereon, aggregating in excess of $50 ,000 may be used to pay any costs allocable to any portion of the Energy Park Project �•rhich does not constitute the acquisition of an "industrial park" or the "development of land" within the meaning of Section 1 . 103-9 (b) and (c) of the Federal Income Tax Regulations; except and to the extent that the AUTHORITY re- ceives a written opinion from Bond Counsel to the effect that use of Note proceeds , including interest thereon, for such ex- cess costs will not cause the interest on the Note to become subject to federal incorie taxation . Any surplus sums in the Acquisition and Cons�ruction Fund after completion of the Pro-� ject and payMent of all Project Costs shall be deemed Aceumulated Net Revenues and cred?�ed to the Accumulated Net Revenue Fund. 3-2 . Special Revenue Bond Fund. In addition to � the sums otherwise pledged and appropriated to the Bond Fund under Special P,esolution No. 1270 , the AUTHORITY shall at Note Closing deposit in �he Bond Fund (i) the interest acczued on the Note =rom its nominal date to the date of delivery of the Pdote to the Purchaser, and (ii) Note pro- ceeds which , together �oith accrued interest, equal interest to become due on the �ote on or before December 15 , 1980 . 3-3 . Possession, Use and Release of Property. The . AUTHORITY may from time to time, in its sole discretion and with or without notice to and consent of any Holders of Revenue Bonds , grant such consent or make such conveyance with respect to the Energy Park Project or release all or any portion of the Energy Park Project from the terms of any Project Agreement as tiie AUTHORITY deems appropriate so long as such ac�io�? is not inconsistent with any of the covenants made by the AUTHORITY in Special Resolution No. 1270 and the Bond Resolution. 15 3-4 . Covenant to Issue Defi�itive Bonds . The Notes are to be issued in antieipatio� of permanent financing by the issuance of the Bonds , and accordingly, the AUTHORITY � hereby covenants that it shall exercisa its best efforts to issue the Bonds in one or more series pursuant to Special Resolution No. 1270 and one or more su�plemental resolutions . thereto in such amount as is necessary to assure payment, when due, of the principal and interest on the Notes , if and to the extent that other sums in the Bonc Fund are insufficient therefor; and all proceeds received bi- the AUTHORITY from issuance of such Bonds , less any portion thereof required under the aupplemental resolution to ;a) pay the costs of issuance of the Bonds , (b) provide ca�italized interest, and (c) fund the Reserve Fund, shall be ar_d are hereby irrevocably pledged and appropriated to a separate subaccount in the Bond Fund for the sole purpose of pay_ng principal of and interest on the Notes . 3-5. Industrial Park Exemp�ion. Tne AUTHORITY presently intends and reasonably expec�s that substantially all of the proceeds of the Note shall be used for the acquisition or development of land as the site for an in- dustrial park within the meaning of Section 103 (b) (5) of the Internal Revenue Code and covenants that substantially a11 of the proceeds of the Note (includinc interest thereon} will not be used for any other purpose uniess the AUTHORITY first receives from its Bond Counsel a written opinion that such use will not cause the interest on the �vote to become sub- ject to federal income taxation. The AUTHORITY fu�ther covenants that that portion of the Energy Park Project financed in whole or part from substar_tially all of the pro- ceeds of the Note (including interest �erived from the in- vestment thereof) shall be limited to the acquisition or development of land as a site for an �ndustrial park within the meaning of Section 103 (b) (5) of t'r.e Internal Revenue Code, and that accordingly: (1) such "industrial park" sha1l comprise a tract of land, other than a tract of land inter.ded for use by a single enterprise, suitable primarily for use as building sites by a group of enterprises engaged in industrial, distribution, or wholesale business and that either the control and administration of the tract shall be vested in the AUTHORITY or the City of Saint Paul or any other "exempt person" or the uses of the tract shall, on or berore the acquisition thereof, be such a5 are normally (i) regulated by �rotective minimum restrictions, ordinarily inclu�ing. the size of indi- vidual sites, parking and loading regulations, and building set-back lines, and (ii) designed ta be compatible , under a comprehensive plan, with the commun�ty in which the indus- trial park is located and with the uses of the surrounding land; 16 (2) the term "developnent of land" as used above shall include only improvements to the industrial park site that are incidental to the use of the land as an industrial park and shall not include provision for structures ar � buildings of any kind, exce�� for thase structures or buildinqs which are necessary in connection with the incidental improve- , ments encompassed by the ter�n, such as , �or example, a water pump house and storage tank :�eeded in connection caith the incidental provision of water facilities in an industrial park; all within the meaninc of Section 1 . 103-9 (b) and (c) of tne Federal Ir.co�e Tax Regulations; �rovided that the AUTHORITY may be relieved o= this coven�.t in whole or in � - part if, and only if, the ACTHORITY first secures a wzitten opinion of its Bond Counsel to the effec� that such release wi11 not cause the interes� on the tlote to become subject to federal income taxation. � 17 ARTICLE FOUR SUPPLEMENTAL A�'QD A��iENDATORY RESOLUTIOrdS 4-1. Supplemental and Amenda��ry Resolutions Not Requiring Consent of Bondholders . The AUTHORITY may, from � time to time, without the consent of or notice to any of the Holders of any Revenue Bonds , and °,�:�en so required by this Bond Resolution shall adopt a reso�ution or resolutions supplemental to or amendatory of this Bond Resolution as shall not be inconsistent with the te_*�� and provisions ot Special Resolution :30. 1270 so as to :h?reby (1) permit the issuance of additional Revenue Bonds as provided in Sec- tions 2-2, 2-4 and 2-6 of Special Resolution No. 1270, (2) cure any ambiguity or iormal defect o= omission in this Bond Resolution or in any supplemental Yesolution, (3) grant for the benefit of the Holders of any Revenue Bon.ds or any Holders of the Bonds herein authorized any additional rights, remedies, poc•;ers, authority or security that may lawfully be granted to or conferred upo~� such holders, (4) substitute or add additional equipment, machinery or land or to release land or property as pro:�ided herein or ta more precisely identify any equipment or maczinery forming a part of the Energy Park Project, (5) modiflT, eliminate and/or add to the provisions of the Bond Resolution to such extent as shall be necessary to prevent any in�erest on the Bonds from becoming taxable under the Federal income tax . laws or. . to allow for the Bonds to be qualifiec under a different exemption under Section 103 (b) of the I:�ternal Revenue Code, (6) make any other change deemed by tne AUTHORITY necessary to reconcile the Bond Resolution with S�ecial Resolution No. 1270 or any amendment thereto, or (7) make any other change to the Bond Resolution which in the reasonable judgment of the AUTFIORITY is not to the prejudice o- any Holders of Revenue Bonds. 4-2 . Supnlemental and Amen�aLory Resolutions Requiring Consent of Purchaser or Noteholders . Exclusive of supplemental and amendatory resolutions covered by Sec- tion 4-1 hereof and su�ject to the te�.s and provisions contained in this Sec�ion, and not othe=-�aise, the AUTHORITY, upan receipt of an instrument evidencing the consent to the below mentioned supplemental or amendatory resolution by the Purchaser .or, in the alternative , any assigns of not less than fifty-one percent (510) of t�e aggregate principal amount of the Note outstanding, secure� in accordance with . the provisions of 5-1 and 5-2 , may a�o�� such other r`solution or resolutions supplemental or amenda�c-� thernto as the �,UTHORITY shall deem necessary or desi=able for th� ?�urpose oi modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in 18 this Bond Resolution or in any supplemental or amendatory resolution thereto; provided, ho�ve�er, that nothing herein contained shall permit or be construed as permitting, (1) any amendment which is inconsistent with the terms and con- ditions of Special Resolution �o . 1270 , (2) an extension of the maturity of the principal of or the interest on any . Pdote not held by a consenting Holder, or (3) a reduction in the principal amount of any .7ote or the rate of interest due on any Note not held by a consenting Holder, (4) a reduc- tion in the aggregate principal amaunt of the Note required for consent to such supnlemental or amendatory resolution, without tize conserit of the Holders of one hundred percent ' (1000) of the principal amount of the I1ote ( "100% Noteholder Consent") , or, in the case of an amendment described in clause (1) , all Revenue Bonds then outstanding ( "100o Bond- holder Consen.t") , secured in accordance with Section 5-1. � . 19 ARTICLE FIVE I�IISCELLANEOUS 5-1 . Consent of Bondholders . Any consent, request, direction, approval , objection or other instrument required by this Bond Resolution to be signed and executed by any Holders of Revenue Bonds may lae in any number of coneurrent �aritings of similar tenor and must be signed and in writing. Proof of the execution of an� such consent, request, direc- tion, approval , objection or other instrument or of the writing appointing any agent and of the ownership of Revenue Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Resolution, and shall be conclusive in favor of the AUTHORITY with regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any person of any such writing may be proved by the certificate of any officer in any jurisdiction who by law has power to take acknowledgements within said jurisdiction that the person signing such writing acknowledged beofre him the execution thereof, or by an affidavit of any witness to such execution. (2) The fact of the holding by any person of Revenue Bonds and/or coupons and the amounts and numbers of such . Revenue Bonds, and the date of the holding of the same , may be proved by a certificate executed by any trust company, bank or banker, wherever situated, stating that at the date thereof the party named therein did exhibit to an officer of such trust company or bank or to such banker, as the property of such party, the Revenue Bonds and/or coupons therein mentioned if such certificate shall be deemed by the AUTHORITY to be satisfactory. The AUTHORITY may, in its discretion, require evidence that such P.evenue Bonds have been deposited with a bank, banker or trust company, before taking any action based on such ownership. 5-2 . Notice of Amendments . If at any time the AUTHORITY desires to adopt any supplemental or amendatory resolution without 100% Noteholder Consent or 100o Bondholder Consent, as the case may be, unless consent of and notice to any of the Bondholders is not required, the AUTHORITY shall cause notice of the proposed resolution or amendment to be published at least once�in a financial periodical or newspaper of general circulation published in a Minnesota City of the first class or its metropolitan area. Such notice shall briefly set forth the nature of the proposed resolution or amendment and shall state that copies thereo� are on file at the prineipal office of the AUTHORITY for 20 � • y inspection by all Holders. The AUTHORITY shall not, however, be subject to any liability to any Holder by reason of its failure to publish such notice, and any such failure shall not affect the validity of such resolutian or amendment when consented to and approved as herein provided. If the Holders of not less than the requisite percentaqe in aggregate prin- cipal amount of Revenue Bonds outstanding at the time have consented to and approved the adoption thereof as provided in this Bond Resolution, no holders of any Revenue Bond shall have any right to object to ar.y of the terms and provisions contained therein, or the opeYation thereof or in any manner • question the propriety of tne adoption thereof, or to enjoin or restrain the AUTHORITY fro���. adopting or execu�ing the same or from taking any actior. pursuant to the provisions thereof. 5-3 . Severability . If any provision of this Bond Resolution shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in any juris- dictions or in all cases because it conflicts with any pro- visions of any constitution or statute or rule or public pol�cy, or for any other reason, such circumstances shall not have the effect of rend2ring the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein con- tained invalid, inoperative or unenforceable to any extent whatsoever and shall not affect the remaining portions of this Bond Resolution or any part thereof . 5-4 . Authenticatior_ of Transcript . The officers of the AUTHORITY are directed to furnish to the attorneys approving the legality thereoT, certified copies of this Bond Resolution and all documents referred to herein, and affidavits or certificates as to all other matters which are reasonably neces�ary to evidence the validity and market- ability of the Bonds. All sucn certified copies, certifi- cates and affidavits , including any here�ofore furnished, shall constitute recitals of the AUTYORITY as to the cor- rectness of all statements cor.tained therein . 5-5 . Registration of Bond Resoluiton . The Secre- tary of the AUTHORITY is authorized and directed to cause a . copy of this Bond Resolution to be filed with the County Auditor of Ramsey County, and to obtain from said County Audi- to� a certificate that the �.Jote hereunder has been duly en�ered upon his bond register. 5-6. Purchase of Bonds . The proposal of The First National Bank of Saint Paul to purchase $1 ,000 ,000 Port Authority of the City of Saint Paul Industrial Park Bond Anticipation Note, Series 1 , authorized pursuant to this Bond Resolution at 21 a price of $985 ,000 plus accrued interest on the par value thereof from the date of said Note to the date of delivery at the interest rate specified in this Bond Resolution is hereby accepted. 5-7 . Authorization to Purchase Burlington Northern Property and Execute Incidental Documents . The Purchase Agreement, Placement Agreement and deed of conveyance of that portion ot the Energy Park Project described in Exhibit B attached hereto and incorporated herein by reference (the "Burlington Northern Property") , are rereby approved in sub- stantially the form now on file in the office of the AUTHORITY; and the President and Secretary of the AUTHORITY are authorized to execute in the name of and on behalf of the AUTHORITY the Purchase Agreement, Placement Agreement and such other agree- ments relating to acquisition and construction of the Energy Park Project and documents, as Bond Counsel or Independent Counsel consider appropriate for delivery of and payment for the Note; and prior to delivery of and payment for the Note the Treasurer of the AUTHORITY is hereby authorized to appro- �riate from the Accumulated Net Revenues Fund or other ap- propriate fund such sum as is required to pay for the Burling- ton Northern Property and to reimburse said fund for said sum upon receipt of the Note proceeds . In the event of the dis- ability or the resignation or other absence of the President or Secretary of the AUTHORITY, such other officers of the AUTHORITY who may act in their behalf shall without further act or authorization of the AUTHORITY do all things and ex- ecute all instruments and documents required to be done or to be executed by such ab�ent or disabled officials. 5-8. Effective Date. Notwithstanding any other provisions herein to the contrary, (1) the provisions of this Band Resolution shall not be effective until the City Council has, pursuant to Laws of Minnesata 1976 , Chapter 234 , consented to the issuance of the Notes in an aggregate prin- cipal amount not to exceed $6 ,000, 000 and the Bonds in anti- cipation of which the Notes are to be issued and any additional notes or bonds which the AUTHORITY may from time to time deem necessary to complete the Energy Park Project or to refund such notes or revenue bonds; and far 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 any additional available information the City Council may request; and (�) if the Note is issued prior to the effective date of Resolution No. 1583 amending Special Resolution No. 1270, the Note shall not until such effective date be secured by the provisions of Speeial Resolution No. 1270; and accordingly during such period the Pdote shall be 22 t , ~ and is hereby made paya�le solely fro�: (a) the �Iote pro- ceeds despoited in the �ond Fund, (b) 3a�d proceeds, and (c) Accumulated Net Rever_ues hereby iY--evocably pledged for such purpose as a lien thereon subord-_�ate only to the rights of holders of revenue bonds secured b�: 3asic Resolution �o. 876 or Special Resolution �10. 1270 - or ?esolution No. 1465 of the AUTHORITY. 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T �' �' �[ �' 3 � +.�' '� .. r �� t � �� 1 '" ��r � � �� t x� t t '� � � � �� � ���"��` � � � � f � . c � t � � ' � � r � �ti 4 �� �����P�, �t t{ . ��r�i ,,�F�'" .� r �.. � � �'�'� . z c x �� ��" x �, „< � - s':""-� +,� . � . �`� ,�� ,� r��`�- �[�� x` i� �r�' " r� � # �i � �.� t .���,. �'+��&¢`,' � � �` i• t� �� � �,� r ;. y�, �} ., z. .s.� �, �, L �p Fl y. �' g y �dk q $ k �F> �' ����Y � �-q. r t � � n � �, � a ��� at t s t � a . < z _ � ; a x> , � � � ' � - , . , ,r t.��.e�..,.,_..,..,_ .a__,�.._, , ., .. _ �- . . . .�_�.h w. . ... . �r. �., .._ . , ... . .. . -. . . . .r._7.,.�1.; v" �_ .�. , , ... „Y'.�v., o_srQa ,_..��? , ,� ORT � �A�UTHORITY �,����.� OF THE CITY OF 5T. PAUL � Memorondunt ' TO: Board of Commissioners DAT� Dec. 14, 1979 Meeting Dec. 18, 1979 FROM: E. A. SUeJECr: ST. PAUL ENERGY PARK � $1 ,000,000 INDUSTRIAL PARK REVENUE BOND ISSUE RESOLUTION N0. 1584 Under the terms of the agreement reached through the Negotiated Investment Strategy, the Port Authority will finance the local share of the development costs currently estimated at $5,544,000. We are, therefore, recommending that the Port Authority approve the periodic issuance of bonds in an amount not to exceed $6,000,000 to comply with the conditions of the N.I.S. agree- ment. It is, therefore, proposed that authorization be given at this time to issue $1 ,000,000 in industrial park revenue bonds to be guaranteed by the Accumulated Net Revenue .fund. The proceeds of the bond issue will be used to: A. Pay the cost of the previously approved acquisition of the Burlington- Northern property fronting on Decourcy and Rosen Roads for $743,700, B, Repay the Accumulated Net Revenue fund $100,000 previously deposited as earnest money for acquisition of the Koppers site, C, Pay the costs incurred to date as deferred bond issue expenses, and D. Provide capital for developing the plans and specifications needed to ask for bids and file funding applications for the Federal grants. It is our intention to periodically issue additional bonds as needed. We are attaching the analysis sheet of our new computerized cash flow model which indicates in the right hand column the net cash flow to the Accumulated Net Revenue Fund through year 2009. It is these funds which will be used to retire the obligation incurred by the issuance of St. Paul Energy Park ' Industrial Park Revenue Bonds. � Once the development begins to produce revenues on sales and leases those funds will be applied to deb� retirement. 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