272059 :
WHITE - CITV CLERK ��v�� �1��
PINK - FINANCE / ✓
CANARV - DEPARTMENT COURCIl � �`���,
BLUE - MAVOR GITY OF SAINT PAUL File� NO.
�i�At�y�'�. Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED by the Council of the City of Saint Paul, that in
connection with the proposed below market home mortgage program
(BMIR) funded by sale of City issue tax exempt revenue bonds,
the Mayor or his designee is hereby authorized to negotiate a
contract with Piper, Jaffrey & Hopwood Incorporated and Dain,
Kalman & Quail Incorporated in joint venture substantially in
accordance with the Letter of Understanding submitted by the
venturers and considered at this meeting respecting provision of
consulting services to the City in the preparation of program
parameters and guidelines and to underwrite the proposed bond
sale, with fees as quoted in the October 31, 1978 letter from
Piper, Jaffrey & Hopv�ood to the Department of Planning and
Economic Development.
RESOLVED FURTHER that the Mayor shall prepare a definitive
Program Proposal detailing program parameters , guidelines and
eligibility requirements and submit the same to the Council for
its consideration and approval in connection with the bond sale
authorization.
COUNCILMEN
Yeas Nays Requested by Department of:
�r � In Favor �'�-nt of Plannin d E
�e�ea- �
Hunt
Levine _ � __ Against BY � � �
Maddox
Showalter
Ted " NOY 1 6 1878 Form Approved by City.Attor y
Adopte � Council: Date —
tified Pass y Counc� , cretary BY �
B �
�1ppr i4lavor: at � Z'4 � Appr v y Mayor for Sub � Council
By — BY
PUBLISNED Q�e Z 1978
r�
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.. :•�°.v:l
800 Multifoods Building
733 Marquette Avenue
Minneapolis,MN 55402
Area 612 371-6111
��
4 °� .� � Piper,Ja�Fray&Hopwood
INCORPORATED
Estnb[ished 1895•Member New York Stock Exchange,/nc.
Letter of Understanding
Mayor George Latimer
City Hall & Court House
St. Paul, Minnesota 55102
Re: City of St. Paul Below Market
Interest Rate Mortgage Program
Dear Mayor Latimer:
Piper, Jaffray & Hopwood Incorporated and Dain, Kalman and Quail Incorporated
welcome the opportunity to represent the City of St. Paul and the St. Pau1
Housing and Redevelopment Authority, as investment bankers, for the City's
Be1ow Market Interest Rate mortgage program. Pursuant to C. F.
we are prepared to work with you, your staff, your legal counsel, and such
other advisors or consultants as you may choose to employ, to structure and
market a bond issue on your behalf for this proRram.
Our relations t St. P: ` � t banker/
client relati �/ ���,�y ;tood list
of duties. T'. i / ..�%�� Loped by
representativ� � _ ( '_ of our
duties in acc� , G�� :stment
bankers, we e� , � ' id any
others which n � 'inancing
program. Anti .. , - principals;
we will: '
����L - _, :_.._„
1. Attend me � , ��6�� committees,
[�
including � � , ` ,_..__ � " id Federal
officials , ` ��" �ups or
individua: �
;��� ... �
2. Advise anc ' . ` .--- _ ;.akers
in the de� . r/ �� f� s
involved i �
,�'
3. Work close ���. ,, y legal
staff in t, ing of
your bond ind other
necessary � :ions as
to desired :rust
,
indenture <
, ,,;�;.
'; , ,�r, ,:��
�;` �-. _ _..! _ .
� �
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4. Draft, subject your approval, Seller and Servicer Guides for your
program. These documents will detail origination and servicing
policies and procedures to be followed by participating lenders.
5. Coordinate and assume final responsibility in the preparation of
an Official Statement (prospectus) to be used in connection with
the sale of bonds.
6. Submit the bond issue for consideration by the rating agencies and
make presentations to such agencies in order to obtain the highest
possible credit rating.
7. Conduct information meetings for institutional and other investors
at appropriate times in appropriate places.
8. Make, at the appropriate time, a firm proposal to you, wherein we will
agree to place or purchase all of the bond issue. Such proposal,
in the form of a contract of purchase, wi11 name an interest rate or
rates, the purchase price, and the prices at which we will make bona
fide offerings of such issue to the public. If our proposal is accepted
by you, we wi11 purchase or place the bond issue at the agreed terms.
It is understood that this "Agreement" will be in effect until revoked by
either party upon thirty days notice. It is further understood that in
the event the underwriters do not extend an acceptable offer to purchase
or place the bond, the City of St. Paul is not responsible for any fees or
charges associated with any proposed financing.
Respectfully submitted,
PIPER, JAFFRAY & HOPWOOD INCORPORATED
By
Steven W. Oxberry, Vice President
DAIN, KALMAN & QUAIL INCORPORATED
sy
Francis X. Fallon, Vice President
This proposal is hereby accepted by
Mayor George Latimer on behalf of
the City of St. Paul on this
day of , 1978.
Mayor George Latimer
�� ' �� ��—
8U0 Multifoi�ds Builciin�
� 733 Marquctte Avcnuc;-
� Mi��n�:api�Its, 1't,'� ;i�}02_ �
Arer. F�l 2 371-6 t I 1 �. �j{`r-���'�
--;�
Q�1� ) Piper,J�-a.y�lH[o�r�oocl
INCARPORATED
Established/89.5.Mernber A'ew York Stock E'xcl�ange,lr,c_
October 31, 1978
M�. Terry McNellis, Project Manager
Citv uf Saint Paul
r�ep�:�r..:f_nt of Economic De•�Tel.opr:ent
55 '- �._�t Fif th Stree t �
Saint Paul, Minnesota 55101
R.ec City of Saint Paul
Iielow Market Interest Rate
Home Martgage Laan Program
Dear lerry:
Ir r�sp�nse to our con;rersation today relating to the "gross underwriting
st�read", t.he 2.0 point spread which can be accomplzshed in today's markPt
is all inclusive of costs. It includes the follo�ving:
- Sa?�s commissi�ns;
- ?'��a�e�nen t Fee; and
- EYger.ses (i.e, cost of Jssuance including bond printing,
bond counsel, underwr.itF_>rs counsel, travel, out-of-pocket,
etc.)
If you require any additional information, please call at yosr convenlence.
31i-8280 - Office
377-4294 — Hor�e
rizank you.
Cordi. 1 yours,
f� �~� ���, . . .
` .���1�:.� �en W. �xberry
r C`,t�.��'
�1�=" �t� Vice Presi_dent
:, �;,;i�} PubJ_ic Finance Department �
.� ' �. e
S�,�J�h ' � ;���````' �
;,` `. '�.'� ,�
:�� � _ �
/ _ . , . . - � .
� ' ��TY o- . • , CITY OF SAINT PAUL
"°� = D�PARTMENT OF PLANNING AND ECONOMtC DEV�LOPMENT
� �L::� � .
� .=:�'r ,
"'r ,�� GARY E.STOUT,DIRECTOR
— 55 East Fifth Street,Saint Paul,Minnesota.,55101
612-298-5775
George Latimer ' �
��''��A �
Mayor F_ �`yw.
November 2, 1978
Mayor George Latimer
347 City Hall '
Saint Paul, Minnesofa
Dzar Mayor Latimer_ .
�ursuant to your dec�s�on to furtner explore the possibility of the
: sale of tax exempt revenue bo�ds �o establish a Below Market R3te
Home riortgage Frogram for the City of Saint Paul, Mr. Terry McNellis
of the Renewal Division assembled a staff task force to solicit and
review proposals. This task force was r_omprised of Mr. Bernard
Carlson, Department o� Finance and Managemtr.� Servi.ces; Mr. James
Hart, City Attorney's office; Mr. R�c��a_d Beeson, Renewal Division;
Nix-. Ken Ford, Planning Division; ��; �" S���e �tiellington, Mayor' s _
O�z"ice. At the end o� Septemb�r, i�=�e�� �,�erz sent to those f irms � _
w'_^_i��! had contactea the city of S=_„� ?�•�� �x�r�ssing an interest
ir_ assisting u� in dzveloping suc'n an iss�e, inviti.ng th em to submit
a formal propasal_ In addition, an advertis�^ent lvas placed in the
Legal Ledger indicating that firr:�s interested in assisting the city
. in preparing such an issue were invited to sL�mit a proposal_
;,et�ers of invitation were sei�t to Piper, Ja�fray & Hopwood, I�7c. ;
Juran & Pdoady, Inc. ; Dain, Kalman & Quail, Ir_c. ; and Mille�- Schroeder
Municipals, Inc. Subsequently, E. F. Hutton & Campany and Kidder,
Peabody & Correpany also contacted the city. On Thursday, October 19,
and Monday, October 23, ?ntervie;as �r;ere cond�cted with tne above
firms with the exception of �:idde�-, Peabody & Company, whose proposal
was received after the advertising deadline_ However, staff did �
review their proposal and rated it with the other offerers_
During the presentatior_ by the offerers, they were rated on the
follot,ring general overall criteria: Proposal detail, Management
structure, Fees, Adaptive uses of program, Bo�d rati:ng expectation,
and the Rater' s overall opi:nion and co.*nments on the offerer ' s presen-
tatioii_ This presented only trie overall broad categories and not
the sub-categories under each heading. Based upon staff ' s initial
review, the field of potential offerers was reduced to twoc (1) Juran
& Moody, Inc. ; (2) a joint proposal by Piper, Jaffray & Hopwood, Inc.
and Dain, KaZman & Quail. T'hese two firms V;ere then requested to
provide additional information in the follo�•�ing areas: fees� ongaing
.-���.�..
µ ,
: . .►. , . � _ .
. . �
� Mayor George Latimer �-� 2.
���' �;`�""'�'�
-����..
management, f irm personnel corr�-ni�ted to the issue, consideratxon for
co-management p�sition, marketing, and the capital positian that the
offerer was prepared to take an this issue.
On Tuesday, October 31, both firms were then allowed to make a final
presentation on the above items to the staff task force. While both
firms submitted impressive responses ta the questions, staff is
recommending the joint proposal of Piper, Jaffray, Hopwood, Inc. ,
and Dain, Kalman & Quai1., Tnc. for the following reasonsc The fee -
structure would allow the city to realize a substantial cost savings
which increases the total amount of the issue available for mortgage
lending; Their marY.eting capabilit�r seems to be much stronger; They
evidence a great deal m�re experience nationally and locally in
issues of this sort; Z'.hey offered rnore services on the part of their
firm in the actual prepara�ion o= the issue.
At this point, staff would encourage you to recommend to tlze Ci-tg
Coun�il authorization to negotiate a contract �aith the f irms of Piper
Jaffray, Hopwood, Tnc. , and Dain, Kalman & Quail, Tnc. , to assist
the city in the preparation of a Below riarke� Rate znterest Program
f inanced through the sale of tax exempt revenue bonds. The terms
and conditions of this agreement will include: scopes of se�vices,
and fees and compensation_ �
�cd��ional i.nformation on th� sp�ci��.,^. C?'1L°'"=? as well as the rating
resu3�s of the entire process are availzb�e frc� Mr_ Terry ricNellis o:E
the Renekal Diva.sion.
Sincerely,
���
Gary E. Stout
D.irector -
GES:j m '
cc: R. Beeson � •
B. Carlson
D. Ford
K. Ford
J. Hart
T. McNel],is �
S. Wellington
- ��J i + '
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Cz2�� o�� 5.�1.�_r P��r}1�
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Gl:ORGS l..\"F'1?Il:lt S<1I\*T 1':1L'7:,�II\\L•'SOTA :�51(J"
9IA1()I. �(Sl"i S_'.f)ti—.1.:3°3
fJovember 6, 1978
T0: COU�CIL PRESIDEPdT DAVID HOZZA
MEMBERS OF CITY COUNCIL
FR: M�lYOR GEORGE LATIMER �
RE: BELOW MARKET RATE HOME MORTGAGE PROGRAM
Several months ago, investment bankers began contacting my office indicating a desire
to assist the City in establishing a Below Market Rate Home Mortgage Program for the
City of Saint Paul . As you are probably avrare, Chicago and several other cities have
recently established such programs, and the City of Minneapolis is in the process of
going to market with their fourth issue of tax exempt revenue bonds to finance a
similar program.
I am forwarding to you a recommendation from the Task Force which was established
to advertise, interview and recommend to this office, a firm to undertake a similar
task for Saint Paul . I would like to commend staff for the time and effort they have
put into this process. I believe that the process used was a thorough one and assures
the City of retaining the most competent assistance in structuring and marketing this
program.
I request that Council approve the Staff Task Force recommendation authorizing the
proper City officials to negotiate the terms and conditions of an agreement with
the firms of Piper, Jaffray, & Nop�NOOd and Dain, Kalman & Quai1 . Once this contract
is negotiated, it will be submitted to you for your review and approval . Additionally,
staff will nour begin working on drafting the actual details of the program and as the
program is drafted, I will communicate and confer with the Council as to the final
program content.
Attachments
GC: Rose Mix
Terry McNellis
Gary Stout
Bernie Carlson
Greg Blees
GL:ejt
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WHITE - GTV CLERK �
PINK - FINANCE G I TY OF SA I NT PAU L Council
CANARV - DEPARTMENT
BLUE - MAYOR File � NO.
Council Resolution
Presented By
Referre To '�
Committee: Date
Out of Co ittee By ` Date
RESOL D by the Council of t�e City of Saint Paul, Minnesota,
that in con ection with the propos$d below market home mortgage
program (BMI ) funded by sale of Ci issued tax exempt revenue
bonds, the Ma or or his designee is ereby authorized to enter
negotiations r a contract with Pipe , Jaffray & Hopwood Incor-
porated and Da , Kalman & Quail Incor orated in joint venture
to provide servi ces to the City in the $reparation of program
guidelines and f e structures, solicita on of participation of
mortgage lenders, and underwriting of t� bond issue.
,
\
COUNCILMEN R uested by Department of:
Yeas Nays
Butler In Favor
Hozza
I I�nt �" _
L.evine _ __ Against BY
Maddox
Showalter
Tede Form App City Attorn y
Adopte Council: Date' �
C ified Pa_ • y Cou cil Secretary BY �
�
t#pproved by \+lavor: Date _ Appr y Mayor for b is�ion to Council
By _ By