274209 WHITE - CITV CLERK �� y��,�
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CANARV - OEPARTMENT G I TY OF SA I NT 1 AU L COUflCIl +
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File N 0.
Council 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. 1582, giving preliminary approval to the issuance of revenue bonds in the
initial principal amount of approximately $1 ,000,000 to finance a loan' agreement for Oxford
Development Minnesota, Inc. for their contribution to the cost of the skybridge between
Saint Paul Town Square over Cedar Street to the Dayton's Department Store and the Saint
Paul Town Square Galleria.
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 1aw;
3. The Port Authority of the City of Saint Paul has requested that the City Council
give itssrequisite 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 approral 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 a976* 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. 1582, the exact details of which, includir�g, but not limited to, provisions relating
to mat�irities, interest rates, discount, redemption, and for the issuance of additionai
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 additio�al bonds
(including refunding bonds) by the Port Authority, found by the Port Authority to be
necessary for carrying out the purposes ofor which the afor�said bond� are issued.
F
COUNCILMEN -
Yeas McMAHON Nays + � Requested by Department of;
--'Bsrtitr
�� In Favor
Hunt
Levine _ � __ Against �Y -�
Maddox
Showalter
Tedesco �y Form Appr ved by Cit Attorney
Adopted by Council: Date —�7� �i/�f,�
Ce ied P• _ed ouncil Sec tary By ��� �� a
. �
Ap by :Vlavor: _ �H� 7 ^��� Ap d by Mayor fo u ission to Council
By — B �
rlJSIISN€D !,4,�`d 1 � ?980 .
Resoluta.on No. .5��-
� �����
R�SOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
' the legislature is to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and commerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unemployment and to aid in the development of existing
areas of blight, marginal land and persistent unemployment; and
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly ra.sing increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority" ) has received from Oxford Development
Minnesota, Inc. (hereinafter referred to as "Company" ) a
request that the Authority issue its revenue bonds to fa.nance
the installation and construction of improvements (hereinafter
collectively called the "Project" ) to certain commercial
facilities located in the City of St. Paul, all as is more
fully described in the staff report on file; and
WHEREAS, the Authority desires to faca.litate the
selective development of the community, to retain and improve
its tax base and to help it provide the range of services and ,
employment opportuni.ties required by i.ts populati.on, and saa.d
Project will assist the City a.n 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
Ci.ty; and
1
WHEREAS, the Project �o be financed by revenue bonds
w�ll result in substantial employmen� oppor�unities in the
Project;
WHEREAS, the Authority has been advised by repre-
sentatives of the Company that conventional, commercial
financ�ng to pay �he capital cost of the Project �s available
only on a limited basis and at such high costs of borrowing
that the economic feasibility of operating the Project would be
significantly reduced, bu� the Company has also advised this
Authority that with the aid of revenue bond financing, and its
resulting low borrowing cost, the Project is economically more
feasible;
WHEREAS, Miller & Schroeder Municipals, Inc. (the
"Placement Agent" ) has made a proposal in an agreement (the
"Placement Agreement" ) relating to �he purchase of �he revenue
bonds to be issued to finance the Project;
WHEREAS, the Authority, pursuant to Minnesota
Statutes, Section 474. 01, Subdivision 7b did publish a notice ,
a copy of which with proof of publication is on file in the
office of the Authority, of a public hearing on the proposal of
the Company_ that the Authority finance the Project hereinbefore
described by the issuance of its industrial revenue bonds ; and
WHEREAS, the Authority did conduct a public hearing
pursuant to said notice, at wh�ch hearing the recommendations
contained in the Authority's staff inemorandum to the
Commissioners were reviewed, and all persons who appeared at
the hearing were given an opportunity to express their views
with respect to the proposal.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the Ca.ty of Sain� Paul, Pdinnesota as
follows:
� 1. On the basis of information available to the
Authority it appears, and the Authorzty 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 47�. 02
of the Act; that the Project furthers the purposes stated in
Section 474. 01 of the Act, that the availability of the
fi.nancing under the Act and willingness of the Authority to
furnish such financing will be a substani:ial �nducement to the
Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the development of
economically sound indus�ry and commerce and assist in the
prevention of the emergence of blighted and marginal land, and
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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 requi.red by its
population,� and will help to prevent the movement of talented
and educated persons ou� of the state and to areas within khe
sf:ai:e where their services may not be as effec�ively used and
will result in more in�ensive development and use of land
within 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 Ci.ty of Saint Paul and
in furtherance of the general plan of development to assist the
Company in fa.nancing the Project. .
2. Subject to the mutual agreement of the Authority,
the Company and the purchaser of the revenue � bonds as to the
details of the loan agreement as def ined in the Act, and other
documents necessary to evS.dence and effect �he fi.nanci.ng of the
Project and the issuance of the revenue bonds, the Project is
hereby approved and authorized and the issuance of revenue
bonds of the Authority in an amount not to exceed approximately
$1,000,000 is authorized to fi.nance the costs of the Praject
and the recommendations of the Authority's staff, as set forth
in the staff inemorandum to the Commissioners which was
presented to the Commissioners, are incorporated herein by
reference and approved.
3. In accordance with Subdivisi.on 7a of Section
474. 01, Minnesota Statutes, the Executive Va.ce-President of the
AUTHORITY is hereby authorized and directed to submit the
proposal for the above described Project to the Commissioner of
Securities, requesti_ng his approval, and other officers,
employees and .agents of the AUTHORITY are hereby aui:horized to
provide the Commissioner with such preliminary information as
he may require.
4. There has heretofore been filed with the -
Au�khority a form of the Placement Agreement. The form of said
Agreement has been examined by the Commissioners; said
Agreemen�k is hereby approved; and, the Presi.dent and Secretary
of the Authority are hereby authorized and directed to execute
the same.
5. Upon adoption of this Resolution the staff of the
Authority are authorized and directed to conti.nue negotiations
with the Company so as to resolve the remaini.ng issues
necessary to the preparation of the loan agreement and other
documents necessary to the adoption by the Authority of its
final bond resolution and the issuance and delivery of the
revenue bonds. -
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' 6. The revenue bonds and interest thereon shall not
constitute an indebtedness of the Author9.ty or the City of
Saa.nt Paul within the meaning of any constitutional or
statutory Timi.tation and shall not constitute or give rise to a
pecuniary liability of the Authority or the City or a charge
against their general cred�t or taxing powers and neither the
f ull faith and credir nor the taxing powers of the Authority or
the City is pledged for the payment of the bonds or interest
thereon.
7. In order to facilitate completion of the revenue
bond financing herein contemplated, the Ci.ty Council is hereby
requested to consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds herein
contemplated; arid for such purpose the Executive V9.ce President
of �he Authority is hereby authorized and directed to forward
to the City Council copies of this resolution and any
additional avai.lable information the City Counci.l. may request.
8. The acti.ons of the Executive Vice-President of
the Authority in causing public notice of the public hearing
and in descri.bing the general nature of the Project and
esti.mating the principal amount of bonds to be issued to
finance the Project and in preparing a draft of the proposed
application to the Commissioner of Securities, State of
Minnesota, for approval of the Project, which has been
available for inspection by the public at the offi.ce of the
Authority from and after the publication of notice of the
hearing, are in all respects ratified and confirmed.
. ,
Adopted December 18, 1979 %
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Attest � ��� ° �� � ��� ��
Pres ' e �
�' Po t Authority of the City
,� of Sai.nt Paul
i' '
ecretary �
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� PORT AUTHORITY OF THE CITY OF SAINT PAUL
L��� 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686
�
R���ec�m� 18, 1979
� E :. v.,�t� �
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C��Y �+T��'°°i�EY ,-,. . _ .
;,�
Mr. Gary Stout
Di rector r�.� : ;; . . ,
Planning and Economic Development Department �;_,, ; , � � '�'
City of St. Paul
14th Floor, City Hall Annex
St. Paul , Minnesota 55102
SUBJECT: OXFORD DEVELOPMENT MINNESOTA, INC.
$1 ,000,000 REVENUE BOND ISSUE
Dear Gary:
We submit herewith for your review and referral to the office of the
Mayor, City Council and the City Attorney's office details pertaining
to the issuance of revenue bonds to finance a loan agreement for
Oxford Development Minnesota, Inc. for their contribution to the cost
of the skybridge between Saint Paul Town Square over Cedar Street to the
� Dayton's Department Store and the Sain t Paul Town Square Galleria.
In addition to the staff inemorandum, we are attaching a draft copy
of the proposed City Council Resolution and a copy of Port Authority
Resolution No. 1582 which authorized the sale of bonds in the amount of
$1 ,000,000.
Your expeditious handling of this matter will be appreciated.
� Yours truly,
� � ! �.�t.,��
�
Eugene A. Kraut
Assistant Executive
- Vice President
EAK:jmo
cc: R. Broeker
ROBERT F.SPRAFKA EUGENE A.KRAUT,C.I.D. DONALD G.DUNSHEE,C.I.D. CLIFFORD E.RAMSTED RONALD O.SC
�tE�U➢VEVICEPRESiDENT ASSISTANTE%ECUTIVEVICEPRESIDENi DIRECiOR.INDUSTRIALDEVELOPMENi CHIEFENGINEeR CH�FF:.CCOUN'Af�'
�:OMMISSIONERS GEORGE W.WINTER RUBY HUNT ARTHUR N.GOODMAN G.RICHARD SLADE DAVID HOZZA LOUIS H MEVERS WILLIAM J :,:.
PRESIDENi� VICEPRESIDENi S[CRE�IA(iV rREASURER
„r
C.I,D Certified Industrial Developer
. poRT - �
AUTHORITY �"�� '�����"��
;���`�;�x��
OF THE CtTY OF ST. P^UL
� Memorondum '
TO: Board of Commissioners DATE Oec. 14, 1979
Meeting Dec. 18, 1979
1
FROM: E.
SUBJECf: OXFORD DEVELOPMENT MINNESOTA, INC. �
$1 ,000,000 REVENUE BOND ISSUE
RESOLUTION N0. 1582
Oxford Development has requested a loan of $1 ,000,000 to provide additional
funds which will be used as follows:
A. $700,000 will be applied to Oxford's contribution to the capital
cost of a skybridge between Saint Paul Town Square over Cedar Street
to the Dayton's Department Store.
B. $300,000 wi11 be applied to Oxford's contribution to the Saint Paul
Town Square Galleria.
The transaction will be a loan agreement either amortized on a 30-year
basis or based upon interest only with a balloon payment due either at the
end of the term or any time during the term. The actual private placement
will take place� early in 1980 and the specific terms and conditions will be
deterntined by market conditions at the time of placement.
The agreement will include provisions for the expenses of issuance to be
deducted from the principal amount of the loan with fiscal and administrative
fees of:$3,600 per year for the first 10 years, $4,800 per year for the
second 10 years, and $6,000 per year for the final 10 years. Fees to the
Port Authority during the term will total $144,000.
A Public Hearing Notice has been published in compliance with Minnesota
Statutes Chapter 474. Subject to public hearing staff recommends approval
of Resolution No. 1582.
EAK:jmo