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270669 WHI7E - CITV CLERK � �/} � � PINK - FINANG�E ,y TT COUIZC11 f:.�� .� BLUERY - MAVORTMENT GITY OF SL�INT PAVL File NO• Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1. On February 2l , 1978, the Port Authority of the City of Saint Paul , adopted � Resolution No. 1313, giving preliminary approval to the issuance of revenue bonds in the ' initial principal amount of approximately $8,250,000 to finance construction of the Fountain Towers Apartments to be located on Block 7A. , i 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 i bonds by the Port Authority of the City of Saint Paul , subject to final approval of the details of said issue by the Port Authority of the City of Saint Paul . 4. It is estimated that the initial principal amount of said bonds will be approx�- mately $8,250,000 and that the net interest cost applicable to said issue will not exceed 8�, now, therefore, be it ' ' RESOLVED, by the City Council of the City of Saint Paul , that in accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolutinn No. 1313 in the initial principal amount of $8,250,000 at a net interest cost of not to exceed 8%, the exact details of which, including, but not limited to, provisions relating to maturities, interest rates, discount, redemption, and for the issuance of additional bonds, are to be determined by the Port Authority, pursuant to resolution adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority, found by the Port Authority to be necessary for carrying out the purposes for which the aforesaid bonds are issued. ; COU[VCILMEN Requested by Department of: Yeas Nays ' Butler Gerald IsaacG Hozza [n Favor Hunt �'� __ Against BY Roedler Sylvester � Tedesco p�Q� 7 �978 Form A v by City Attorney Adopted by ncil: Date — ` � Cer ied Pa�se y� Co cil �ecre ry B;� � �p,ft � Q 1978 Appr ved by M for Sub sion to ouncil Appr d by !�layor: Dat — gy BY Xu;��.►SNE� MAP� 1 8 197� ` - � ORT � . AUTH4RITY � �� `� yy, � " ,�.y 'tiI N��!�� OF THE CITY OF ST. PAUL Memorondum To: Board of Commissioners DAT� February 21, 1978 FROM: E. A. �r � � SUBJE�T: FOUNTAIN TOWERS APARTMENTS, A PART�fERSHIP OF SNEEHY PROPERTIES, INC. AND SHERMAN IPIVESTMENT CORPORATION PRELIMINARY AND UNDERWRITING AGREEMENTS REVENUE BOND FINANCING $8,250,000 1 . THE COMPANY Block 7A on which the proposed project is planned to be built is a de.velop- ment undertaken initially by the City of St. Paul with construction of a 57T=car municipal parking ramp. Five different projects have been proposed for development on Block 7A bounded by t�Jabasha, Exchange, St. Peter and Tenth Streets in downtwon St. Paul as seen by the map on the facing page. These include the Fountain Towers Apartments, 571-car underground parking ramp, medical office complex, Science Museum and the Galleria shopping mall . All projects with the exception of the Apartments are currently under construction. The parking ramp is owned by the�City of St. Paul . Monthly rental rates will be available to the �partment tenants. The eight story medical complex consists of six floors with 11 ,200 square feet of inedical office space and two lower floors devoted to commercial/ retail space surrounding the enclosed mall of the Galleria. The medical office building will be connected to St. Joseph's Hospital by a propo�ed skyway. The Science Museum will contain a planetarium, 300-seat theatre and 30,000 square feet of exhibit space. The Galleria is a two-story enclosed shopping mall which connects the Apartm�nts, medical office building and the Science Museum. Proposed ' tenants of the Galleria include a restaurant, delicatessen, liquor store and pharmacy in addition to other retail outlets. The Galleria is expected to eventually be part of the Skyway System which interconnects much of the St. Paul Central Business District. The partners are also the developers and builders of the eight-s�ory medical complex on which financing has been obtained and preliminary Board of Co�missioners February 21 , 1978 Page -2- � � � � constructi�n work is underr,tay. It is expected that acceterated construction � � will commence on March 1 , 1978. Sheehy Construction will be the builder of the medfcal complex and is atso to be the cantractor on the 186-unit Fountain Towers Apartments. Bath Sheehy and Qutzick are involved in numerous prajec�s in St. Paui and elsewhere and have substantial assets in their various r�al estate holdings and/or devetopments. 2. THE P�OJECT The 185-unit a�artment complex �vill alsa contain a commercial Galleria of ap�roximately 18,300 square feet covering tti�o floors and connecting to the apartmen�s, the medical office building and the Science Museum. The apartment building w;?: c�.>;'rtain 186 units as follows : iVu�:�ber and Typz _,.� Unit Apartment Rents 26 efficiency units $260 - $270 - . 112 one bedroom units 320 - 345 42 two bedroom units 400 - 430 6 three bedroom uni�s $490 _ 125 apartment units FToors tnree and four of the building will contain recreational facilities � for te�ants` use. This inclu�+es a swimming pool , whirlpool , saunas, exercisz rooms and handball courts, Tn order to ascertain the market feasibility for residential housing in downtown St. Paul the Port Authority, in June of 1977, commissioned Laventhol & Horwath to do a market evaluatian. This was done to provide market evaluation not only for luxury housing but for the Lowry Hotel and Capri rehab projects. This study, presented in August 1977, indicated an overall market of some 44,273 units of w�ich 30,6I7 were indicated as potential demand for the Fountain Towers rent structure. Number of Apartment Units Demanded by C8D Employees an� Elderly for Rental Ranges Greater tnan $250 per Month � 1977 1978 1979 1980 1981 1982 1983 Potential demand for doVm to;�rn residenc� 44,278 44,677 45,079 45,484 45,894 46,307 46,723 Number of downtown apartm�nts demanded (15%) 6,642 6,702 6,762 6,823 6,884 6,94b 7,008 Projected dowritown demanc+ far Fountain Tawers`rent structure $250 - $330 2,583 2,606 2,630 2,653 2,677 2,701 2,725 Greater than $330 2,009 2 ,027 2,045 2,064 2,082 2,101 2,12Q 4,592 4,633 4,675 4,717 4,559 4,802 4,845 �.w , Board of Commissioners ,�- �� February 2l , 1978 ' - Page -3- On Oct�ober 14, 1977 the Port Authority alang with the partnership approved a feasibility study of Fountain Towers by Laventhol & Norwath, which was . to be directed to the economics of financing this project with revenue bonds. That report, dated February 1978, is now available. In its apart- ment demand projections it outlines that the supply of apartments in excess �of tF�e $250 per month range in 1981 will be 940 units with no additional � units in sight at this time. The corresponding demand for these apart- ments in 1981 is projected to be 4,759 units and expand to 4,845 by 1983. 3. FINAIVCING On the basis �of staff review of this project and the feasibility study, we are proposing that revenue bonds in the amount of $8,250,000 be issued with t�e proceeds to be used as follows: Construction � $7,028,601 Cash at closing (syndication) 408,000 ' SUBTOTAL 6,620,500 Reserve Fund 665,000 Capitalized Interest (net required) 683,750 Constructiqn Fund earnings (estimated) - $347,000 � Bond issue expense 33,250 Underwriter's discount 247,500 TOTAL $8,250,000 The Laventhol & Horwath report represents that the project is feasibTe if the projections are attained ,as suoported by the market data evaluation and ay review of the cash flow during construction and rent-up. It is staff's opinion that the praject is a vTable one and that b�cause it is an integrat part of a major downtown dev�lopment, financing with revenue bonds would not only make the project possible but significantly contribute to downtown developro2nt and expansion of the real estate tax base. The feasibility study in Exhibits 1 through 6 detaiis the statement of pro- � jected net loss for the beginning operation and construction periad and indicates in the cash flow projections that adequate cash will be an hand for operations out through 1984. Careful evaluation of th� Statement of Projected P�et Loss (Exhibit 1) wili indicate what the net loss after canstruction completion is after allowance for depreciation which is not a cash item. Exhibits 1 through 6 are incorporated herein. Exhibit 2, the seven-year projected cash flow, outlines the partnership contribution on syndication and letters of credit as follows: 197t3 � $219,Q50 1979 435,400 1980 280,200 1981 280,20J . Beard of Co�missioners � February 21 , 1978 Page -4- In addition, we have required and the partnership has agreed that there will be available at closing cash and a letter of credit in the amount � . of $408,000 and at least $392,GC� on October 1 , 1979. While this was not deemed necessary from a cash flow point of view as originally pro- jected by Laventhol & Horwath, staff felt that this added requirement arould enhance the cash flow and reduce the possibility of cash flow shortag�s during r2nt-up. The feasibility study noYv reflects this increased input althoug� the total syndication remains at $j ,215,00Q minimum. In addition, w2 arz reguiring that the partnership execute a master lease guaranty for the 18,500 square feet of commerciai space at $9.50 per square foot. This is a guaranty equivalent to $157,000 per year. We propose that this guaranty be for not less than thr2e years but that it contain a provision that leasing for a three-year period ar longer wouid permit the equivalent amount of reduction in the guarantx, so that if in th� initial year space v�ras leased that paid $100,�00 a year the guaranty for the ensuing year would be reduced to $57,000. The occupancy projection from the feasibility report indicates rent-up to 95� occupancy by late 1980 or early 1981 . The project break-even point is ap�roximately a8� occupancy. The syndication will be k�anCled by Kenneth Rice & Associa•tes. 4. UNDER'�',�I i ING AGREEP4�NT P�Iilter & Schroeder Municipals has agreed to an underwriting whereby the bonds will be privately placed. Tha net interest cost is estimated to be 6.393� under th� present market conditions. The issue is a housing issue w`�ich is exempt from the $5,000,000 industrial revenue bond limita�ian and the private placement is necessitated by the fact that an S.E.C. registration would b� necessary because the issue exceeds $5,000,000. 5. TER��1S OF TNE LEASE . The lease is for 3C years and will provide for an option to purchase at the end of the amortization o� the bonds for $1 .00. The tenant will pay a fiscal and administrative fee to the Port Authroity based on our normal formula of $20Q per month per million, which equals $1 ,650 per month, or $19,800 per year. In addition, the interest on the debt service reserve of $665,000 will inure to the benefit of the Port Authority as well as the interest on th� sinking funds which will accrue through monthly rent�l payments. Under the bond amortization schedule principal payme.nts for bond retireme�t wi11 comm2nce in 1984 and terminate in the year 2008. The Port Authority`s estimated earnings over the terms of the lease based upon fiscal and administrative fee, debt service reserve and sinking fund earnings, is $2,��7,000. .' Board of Commissioners February 21 , 1978 - Page -5- This project wi11 pay the normal real estate taxes payable on apartments . � of fireproof construction and wili not be taxed under the redevelo.pment company tax structure which is approximately one half of normal real .estate taxes. The taxes to be paid based on the present assessment of this project during the initial terms of this lease are estimated at $5,Q70,000. The Port �luthority will acquire the air rights from the City of St. Pau1 �for $65,776 and will also reimburse thz City of St. Paul for $52,000 in extra foundation costs which were incorporated in the ramp to support this project. These costs ��rill be paid from bond proceeds and the air rights will be leased to Fountain Towers Apartments .until the bonds are retired and the options exercised. 6. RECOMMENDATION Staff has reviewed the feas,ibility study and the partnership with Laventhol & Horwath and withthe underwriters, and has discussed the rentals to be chargzd for the commerciaT and apartment space, and is of the opinlon that the project is a vaiable one. and that adequate cash. . flaw is available to sustain the debt service payments and operating costs through rent-up, and recommends that the Authority approve the preliminary agreement and Resolution Pdo. 1313 authorizing the issuance of bonds in _ the amount of �8,250,000. EAK:jmo _- -+ , � . BR.+1iCCFi OFFICES: � ��'�� l.alolla.Califurnia 92037 � �A - , 1200 Prospect Streel.Suite ISO . � . � . (713)�54-?661 � Chicago.l{linois 60604 . . . ?Oy South La Salle Stre�t.Suite 709 ' � (JL19�1ti-ysio . . � � N�iller & Schro�cler 1"��Iiunicipa�s, Inc. NORTH�VESTERN FINANCIAL CENTER, 7900 XERXES AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55431 TOLL FREE�l(�NESOTA 800.862-W02 TEL.61?-831•1500 " -" - ---- •---TOL4FREE 07'HER STkTE5 800�32&6 February 21,� 1978 r . . - • i '.. . ---__._.;_ 1` _. , � ; �v(� � � `. . . ,�_.._._.��_. { '_✓ u _, �.J� 1 . Honorable Board of Commissioners, ; , '' Port Authority of the City of i ;. _ -: �� ^� ' C�i'TS- Saint Paul ��"�"�"` '`` � 1130 Minnesota Building ' -- ��" Saint Paul, Minnesota 55101 � +� � , -�- . � -,..---- -.._..__ Ladies and Gentlemen: ^� You have advised us that it has been proposed that the Port Authority of the Gity of Saint Paul (the "Issuer") issue its Industrial Development Revenue Bonds (the "Bonds") under the provisions of Chapters 458 and 474 Minnesota Revised Statutes and Bond Resolution No. 876 of the Port Authority of the City of Saint Paul to finance a project with Fountain Towers, a limited partnership (the "Company") . On the basis of information furnished us to date with respect to the project � to be financed by the issuance of the Bonds, and upon the terms and conditions as generally set forth in this letter and more specitically describ.ed in the Addendum attached hereto and fully �nade a part hereof by reference thereto, we hereby agree, as your exclusive agent, to use our best efforts to privately place $8,250,Q00 principal amount of the Bonds on the foll.owing basis: A. The Bonds shall bear a date of April 1, 1978, and shall mature approximately 30 years from and after the date thereot, �rith amortization of the Bonds to be . provided for on a level basis whereby the sum of prirt- cipal and interest payments due in eaeh year is essentially constant over the term of the Bonds. The Bonds shall � mature in the years beginning April 1, 1984, through � April 1, 2008. The first interest coupon shall be payable October l, 1978. B. The Bonds shall be subject to redemption and pre- payment in whole or in part upon terms mutually acceptable to the parties hereto. . r ; � � i Port AuthQrit� ot the City of Saint Faul � February 21, 1978 Page , Two . C. The interest rate with respect to the Bonds shall be based upon the mutual agreement of the parties hereto. D. Our fee for this placement is to be $247,500, . which amount shall be payable to us upan receipt of Bond proceeds in the amount of $8,250, 000 by the Issuer at the closing and the deposit of such funds in the Construction Fund and the Bond Fund. E. Notwithstanding anything herein contained to the . contrary, all of the terms, covenants and conditions of the Addendum attached hereto and made a part hereof shall be fully applicable to the issuance of the Bonds as if such terms, covenants and conditions were fully . -- set forth herein, and to the extent of any confl.ict between the terms, covenants and conditions vf said Addendum and the general description of the transactian as contained in this letter, the provisions of said Addendum. shall be controlling and binding upon all parties hereto. If the foregoing proposal is acceptable to both of you, please indic�te by endorsing a copy hereof, with the copy so endorsed to be returned to us. Very truly yours, MILLER & SCHROEDER MUNICIPALS, INC. By Accepted by the Port Authority of the City of Saint Paul this day of February, 1978. By And v � / . • ADDENDUM THIS ADDENDUM shall be and is hereby made a part of that certain lett�r dated the 21st day of February, 1978, addressed by Miller & Schroeder Municipals, Inc, to Port Authority of the. City of Saint Paul (the "Issuer") , and relates to the proposed issuance of $8, 250, 000 Industrial Development Revenue Bonds (the "Bonds° j to be i�sued by the � Issuer to finanee a project (the "�Project") under a Lease • with the Company. � 1. To the extent applicable, the Company agrees to fully comply with and assume all expenses incurred in fully complying with all regulatory requirements imposed by the Securities Division of the Minnesota Department of Commerce or such other regulatory authority as may have jurisdiction herein arising out of or incurred in conjunction with the issuance of the Bonds. 2. The Bonds are to be accompanied by the unqualified approving opinion of Briggs and Morgan, Professional Association, . whase opinion shall state in substance that the Bonds are valic� and binding special obligations of the Issuer under the Lease payable �rom revenues pledged to the Common Revenue � Bond Fund and stating that interest payable on the Bonds in the hands of a person not a user of, the Project is on the date of their issuance exempt from Federal income taxes under then existing laws, regulations, decisions and rulings. You agree to cooperate in obtaining this opinion and will also furnish an opinion of your counsel as to your authority to enter into this transaction. � 3. You agree to cooperate with us, our counsel, Bond counsel and such others as may be appropriate in the preparatior� of documents and groceedings reasonably necessary to the � co�pletion of this transaction, and the Company shall make available to us such information and documents with respect to its financial affairs and operations as requested. 4. Prior to the placement of the Bonds, appropriate officers of the Issuer shall have reviewed the Confidential Offering Memarandum prepared to offer the Bonds for sale so that they will be prepared to certify that the information . furnished by _them contained therein as of the date thereof is true and correct and does not contain any untrue statement or misleading statement of a material fact nor omit to state . any material fact required to be stated therein or �necessary to make the statements therein not misleading, and autho- rizing use of the Confidential Offering Memorandum by us. 5. Between the date hereof and the date of delivery of the Bonds, there shall not have been .any material adverse . � _ 1 _ . � . �� change in the business, properties, financial position or results of operation of the. Company, nor shall there be pending or threatened on such date any legal proceedings to which the Issuer or the Company is a party and which will have a material adverse effect on the transactions contem- plated by th�: Lease and Bond Resolution, except any such action of which we shall have been advised prior to the date hereof. 6. The Company agrees to indemnify and hold us harmless from and against any and all claims, demands, actions, causes of action, damages, liabilities and judgments (including attorneys' fees and expenses) arising from or in any way connect�d with any statement or information contained in the Confidential Offeri�g Memorandum concerning or related to the Company, the Project and/or the use of Bond proceeds. 7. The Company will pay all expenses in connection with the proposed offering, including, among others, fees and expenses of Company counsel, counsel for the Issuer, Bond counsel, Blue Sky counsel, Blue Sky fees, Accountants, and Investment Rating Agency fees, together with all costs and expenses incurred in conjunction with the preparation and grinting of all documents req�ired to consummate this offering, including, but not limited to, the Confidential Offering Memorandum, all of the same to be paid by the Company without regard to whether the Bonds as contemplated herein are issued. The Company and ths Underwriter acknowledge that they ha��e estimates of �he fees and expenses of (a) Bond counsel, (b) Blue Sky counsel, (c) Blue Sky fees, (d) . Investment Rating Agency fees, (e) auditors, (f� the normal costs and expenses incurred in conjunction with the preparation ��f and printing of all documents required to consummate the offering, inc],uding jl) the Confidential Offering Memorandum, and (2) the printing of the Bonds. The fees of Underw�iter's counsel shall be paid by the Underwriter. � 8. The Port Authority of the City of Sain� �Paul and the City Council of the City of Saint Paul agree to do such things and to take such action as may be required to discharge all obligations and honor all covenants made or entered into by the Port Authority with the Company in connection with the issuance, by the Port Autharity of its revenue bonds to finance a project for the Company, including but not limited to: (a) supervision of the covenants relating to rents, insurance, repairs, maintenance and taxes; (b) management of separate accounts as required by the �ond authorizing resolutions; and (c) auditing of Port Authority accounts by a qualified Certified Public Accountant. �.. - 2 - .. . -�� ' ♦ �?��'�� F� : . � Resolution No. 1313 � RESOLUTION OF � THE PORT AUTHORTTY OF THE CITY OF SAINT PAUL . WHEREAS, the purpose of Chapter 474, P�innesota Statutes, known as the Minnesota Municipal Tndustrial Develop- ment Act (hereinafter called "Act") as found and determined by the legislature is to promote the ��elfare of the state by the active attraction and encouragement and development af economi� cally sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of cl�.ronic unemployment and to aid in the development of existing areas . of blight, marginal l.and and persistent unemployment; and WHEREAS, factors necessitating the active promoti.on and development o� econamicall.y sound industry and commerce are the increasing concentration of population in the metrapolitan 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 wi.11 provide an adequate tax base to finance these increas- : ed costs and access to employment opportunities for such popu- lation; and WHEREAS, The Port Authority of the City of Saint Pau1 (the "Authority") has received from Sheehy Properties, Inc. and Sherman Investment Corporation (hereinafter collective�.y referred to as "Company") a request that the Authority a.ssue its revenue bonds to finance the acquisition, installatian and const�uc- tion of an apartment buil.ding and certain incidental commer- cial facilities (hereinafter collectively called the "Project"a in the City of St. Paul, all as is more fully described a.n the staff report on file; and WHEREAS, the Authority desires to facilitate the selective developnent of the community, to assist in meeting the demand for housing in the downtown area, to retain and improve its tax base and to help it provide the range of services and employment opportunities required by its popu- lation, 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 � .. , .� t WHEREAS, the Project to be financea by revenue bonds will result a.n 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 the Project is not reasonably available but that with the aid of revenue bond financing, and its resulting low borrawing cost, the Project is economically feasible and a feasibility report in support of these conclusions has been secured by the Authority; and WHEREAS, Miller & Schroeder Municipals, Inc. (the "Underwriter") has made a proposal in an agreement (the "Underwriting Agreement") relating to the purchase of the revenue bonds to be issued to finance the �roject. NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Part Authority of the City of Saint Pau1, Minnesota as follows: 1. 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 buszness within the meaning of Subdivision la of Section 474. 02 of the Act; that the availability of the financing under the Act and willingness of the Authority to � furnish such financing wi11 be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the develap- ment of economically sound industry and comanerce and assist in meeting the demands for housing in the downtown area and in preventing the emergence o� blighted -and marginal land, and wil]. help to prevent chronic unemployment, and will help the City to retaa.n and iinprove its tax base and provide the range of services and employment apportunities required by its population, and wi11 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 result in more intensive development and use of land within the City and wi11 eventually result in an increase in the City' s tax base. 2. Subject to the mutual agreement of the Authority, the Company and the Under4�riter to the details of the lease and other documents necessary to eva.dence and effect the financing of the Project and the issuance of the revenue bonds, t�.e Project is hereby approved and authorized and the issuance of revenue bonds of the Authority „ ,. . �r in an amount not to exceed approximately $8 ,250,000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Pzoject. 3. 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 Proj ect and a form of the Underwriti�g Agreement. The form of said Agreements have been examined by the Commissioners. It is �the purpose of said Agreements to evidence the commitment of the parties and their intenti.ons with respect to the proposed Project in order that the Campany may proceed without delay with the comomencement of the acquisition, installation and construetion of the Project w�th the assurance that there has been sufficient "of�i.cial action” under Section 103 (b) of the Internal Revenue Code of 1954, as amended, to allow for the issuance of industrial- revenue bonds (including, , if deemed appropriate, any interim note or notes to provide temporary financing thereof) to f�inance the entire cost of the Project upon agreement being reached as to the ultimate details of 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 Agree- ments. 4. Upon execution of the Preliminary Agreement by the Company, the staff of the Authority are authorized and directed to continue negotiations with the Company so as to resolve the remaining issues necessary to the preparation of the lease and other documents necessary to the adoption by the Authority of its final bond resolution and the issuance and delivery of the 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 AuthQrity, or if either of such officers (and his alternative} are absent, the Treasurer of the Authority in lieu of such absent officers, are hereby authorized in accordance with the provisions of Minnesota Statutes, Section 475.60, Subdivision 1, to accept a final. offer of the Under- wr3.ters to purchase the revenue bonds at such time as such offer is made by the Underwriters to purchase said bonds and to execute a uformal underwriti,ng agreement setting forth � such offer on behalf of the Authority. Such acceptance shall ' � .. , �. � bind the Underwriters to .said offer but shall be subject to approva.l and ratification by the Port Authority in a forma�. supplemelntal band resolution to be adopted prior to the delivery o� said revenue bonds. 5. The revenue bonds (including any interim note or notes) and interest thereon shall not constitute an indebtedness of the Authority or the City of Saint Paul within the meaning of any constitutional or statutary � limitation and sha11 not constitute or 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 �u11 faith and credit nor the taxing powers of the Authority or the City is pledged for the payment of the bonds (and interim note or notes) or interest thereon. 6. In order to facilitate completion of the reVenue bond financing herein contemplated, the City Cauncil is hezeby requested to consent, pursuant to Laws of Minnesota, 1976, Chapter 234, to the issuance of the revenue bonds (including any interim note or notes) 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 authorizec� and directed to forward to the City Council copies of this resolution and said Pxeliminary Agreement and any additional available information the Gity Council may request. . Adopted February 21, 1 78 � �/ �. �� , Attes� pr de t � /� / � Th�Po t Authority of the City , =i��> , f Saint Pau1 . Secr tary � � � � � ��*r �.� CITY OF SAINT PAUL " '�. DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT ! -� - +� ` �c DIVISION OF ECONOMIC DEVELOPMENT ... 55 East Fifth Street,Saint Paul,Minnesota,55101 612-298-4218 Gew6e Latimer - Mayor February 23, 1978 „ ,� R � �:. _ _ �s" � D FEB 1 ? ��7� M''��'� � Mr. Richard Broeker � Executive Assistant Office of the Mayor St. Paul, MN 55102 Dear Dick; I have examined the revenue bond financing for Padco, Inc. and the revenue bond financing for the Fountain Towers Apartments. I am in a�reement with these projects and look forward to an early construction start. Sincerely, � � Gerald Isaacs, Administrator Division of Economic Development LC/vl O 7d�i � ; * � ��z� �,`�'�� '7 i :{Y'�'r r �` � �:��`�,�:y� �� d�x$ y.:k.�p�� °� ,° '�� lv�, � s� �'1 �-�'�a � t '� d' f .� � �, ° � �$k� i� � �.< ��"� -� � i . k� "§.r �� +� � ��,�, � . ,�. t x $r� `� x� .r`n-�' .�;>S�'�Y "_.� ��1�` � �Y 7..�?:�S :�: � � � f�, ` d �,: a ,�:� � s 5-r�z A� �� tr�- �� #. � .§ � z�. `�-.. � �,a.' 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