271268 WH17E� - CITV CLERK r
PINK - FINANCE GITY, OF SAINT PAUL Council 1� ���'
CANARY - DEPARTMENT
BLUE - MAV�R File NO.
� Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On April 19, 1977, the Port Authority of the City of Saint Paul , adopted Resolution
No. 1174, giving preliminary approval to the issuance of revenue bonds in the initial
principal amount not to exceed $3,500,000 to finance the acquisition and remodeling of the
Lowry Hotel,;
2. The City Council of the City of Saint Paul adopted Resolution No. 268995 on
May 3, 1977 giving preliminary approval to the issuance of revenue bonds in an amount not
to exceed $3,500,000 to finance the acquisition and remodeling of the Lowry Hotel ;
3. On May 30, 1978, the Port Authority of the City of Saint Paul , adopted Resolution
No. 1348, giving preliminary approval to the issuance of revenue bonds in the initial prin-
cipal amount of approximately $620,000 to finance a completion bond issue for poerfler
Construction, Inc. for the remodeling of the Lowry Hotel .
4. 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;
5. The Port Authority of�the City of Saint Paul has requested_that the City Council
give its requisite consent pursuant to said law to facilita�e 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 .
6. It is estimated that the initial principal amount of said bonds will be approxi-
mately $620,000 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 Resolution
No. 1348 in the initial principal amount of $620,000 at a net interest cost of not to
COUNCILMEN Requested by Department of:
Yeas Nays �
Butler
Hozza [n Favor L�^
Hunt
Levine � __ Against By —
Roedler
Sylvester
Tedesco Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY �
Bv
Appro��ed by :Nayor: Date Appr d by Mayor for Sub ss og to Council
By - BY
WHITE - CITV CLERK COIlI1C11 �/�` ���
PINK - FINANCE � "
BLUER==M�EPb�JMENT GITY OF SAINT PAUL'� File NO. ' �
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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.
COUNCILMEN
Yeas Nays Requested by Department of:
Butler � In Favor
Hozza
�m�t—
�-bei�rte � __ Against BY
� Ma.ddox
X� Showalter
e esco
��x � ,5 �'�' Form Approved by City Attorney
Adopted by Council: Date —
Certifie a� d by ou . ,e r BY
g.,
JUN 1 6 Approved by Mayor for Submission to Council
Ap o by iNayor.
r
BY ��,,,��_ � BY
PUBUSNED �U N 2 4 �9�a
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. ���.��,�4�
� Resolution No. 13�a
• RESOLUTION Ok'
THE PORT AUTHORITX OF THE CITY OF SAINT PAUL
�4HEREAS, the purpose of Chapter �"T4, P�tinnesota
Statutes, known as the Minnesota Municipal Industria� Deve3op-
ment Act (hereinafter called "Act") as found and deter�na_ned by
the legislature is to promote the welfare o� the state by �he
active attraction and encouragement and d�velopment o� ecanomi�-
cally sound industry and commerce to prevent so far a5 possible
the emergence of blighted and marginal lands and areas o� chroni�
unemployment and to aid in the development oi existzny areas
of blight, marginal land and persistent un�m�loymen�:; ancl
WHEREAS, factors necessitating the active promotion
and development of economically sound industry and comrnerce are
. the �ncreasing concentration of population a.n �:he metropoli.tan
- areas a�d thz rapidly rising increase in the amount and co�t
of governmenfia� services required to meet 'Lhe needs o� the
increGszd popui ation and tkie need for development of :�.an.d use
which will provide an adequate tax base ta finance thLSe �.nareas--
ed costs and access to employment opportur��_�ies for sur.h popu-
lation; and
WHEREAS, the Port Authority of the City af Saint Pau1
(the "Authority") has received from Doerf�er CO]i1S'�rUC�1011
Company (hereinafter referred to as "Company") a request
that the Authority issue additional revenue bonds to finance
the completion of the acquisition and renovation of a bui�.ding
for use as a residenti.al apartment facility and as a com-
mercial and office facility (hereinafter called �Lhe "Pzaject" )
in the City of St. Paul, all as is more fully described in the
staff report on file; and
WHEREAS, the Authority has heretofore issued $3;260,000
of Industrial Development Revenue Bonds, Series L, to finance
said Project pursuant to Basic Resolution No. 876, as amended,
and Supplemental Bond Resolution No. 11$2; and Section 2. 06 of
the "Project Covenants" to the lease (the "Lease" ) of i:he Project
by the Authority to the Company provides for the i.ssuance of
additional revenue bonds to complete the Project; and
��HERE�S, the Authority desir.es to facilitate the
� selective development of the community, to retaa.n and improve
its tax base and to help it provide 'the range ot services and
employment opportunities required by its populati�n, and sa�d
Project will assist the City in achieva_ng that objective. Said
Project will help ta increase the assessed valuation of the Czty
and help mainta3_n a positive relationship between assessed va].ua-
tion and debt and enhance the image and reputa�ion oi the City;
. and �
WHEREAS, completion of the Project to be financed
by said additional revenue bonds wi11 resu�.t a.n subst.antial
employment opportunities in the Project;
WHEREAS, the Authority has been advised by repre-
sentatives af the Company that conventional, commercial
financing to pay the capital cost of the Pr�ject is available
only on a limited basis and � at such high costs of borrowi.ng
that the economic feasibility of operatinq the Project wauld
be significantZy reduced, but the Company has also advised
this Authority that with the aid of revenue bond financing,
and its resulting low borrowing cost, completion o� the
Project is economically more feasible; and
WHEREAS, Miller & Schroeder Mt�nicipals, Inc. (the
"Underwriter") has made a proposal in an ag.r.eement (the
"Underwriting Agreement") relating to �he purchase o� the
additional revez�ue bonds to be issued to fa.nance comple-
tion of the Project.
NOW, THEREFORE, BE IT RESOLVED by the Commissionezs
of the Port Authority of the City of Saint Pau1, r4innesata
as follows: � -
1. On the basis of information available to the
Authority it appears, and the Authority h�reby finds, that
said Project constitutes properties, used or useful in
connection with one or more revenue producing enterpri�ses
engaged in any business within the meaning of Subdivisa.on la
of Section 474.02 of the Act; that the avai�ability of the
financing under the Act and willingness of the Authority to
furnish such financing will b� a substantial a.nc�ucement to
the CQmpany to complete the Project, and that the effect �of
the Project, if completed, will be to enr.ourage the develop-
ment of economically sound industry and commerce and assist
in the prevention of the emergence of blighted and marginal
land, and will help to prevent chronic unemployment, and
will help the City to retain and improve a.ts tax base and
provide the range of services and employment opportunities
,���.,!'���
required by its populati,on, and wi11 help to prevent the
movement o� talented and educated persons out of the si:ate
and to areas with'in the state where their servi.ces may not
be as effectively used and cai],1 result i.n more intensive
� development and use of land F�ithin the City and wi11
eventually result in an increase in the City' s tax base.
. 2. Subject to the mutual agreement of the
A,uthority, the Company and the purchaser of the additional
� revenue boz�ds as to the details of the amendneni� to the
Lease ("the "Ameridment to� Lease") and other docur:�ents
necessary to evidence and effect financing completion
of the Project and the issuance of the additional revenue
bonds, completion of the Project is hereby approved and
authorized and the issuance of additional revenue bonds of
the Authority in an amount not to exceed approximat�ly
$620,000 is authorized to finance completion of the Praject.
3. There has heretofore been fa.led with the
Authoritx a form of Preliminary Agreement between the
Authority and Company, relating to the proposed comple-
tion of the Project and a"form of the Underc•iriting 7�greement.
The form of said Agreements have been examined by the
Commissioners. It is the purpose of said Agreements
to evidence the corru-nitment of the part�.es and their intentions
�rith respect to the proposed Project in order that the
Cortpany may proceed without delay with completion of the
__ Projec� with �h� assurance that there has been suffieient
"official action" under Section 103 (b} o� the Tnternat
• Revenue Code of 1954, as amended, to a11ow for the issuance
of the additional revenue bonds upon agreement }�eing xeachec�
as to the ultimate details of completing the Project and
its financing. Said Agreements are hereby approved, and
� the President and Secretary of the Authority are hereby
authorized and directed to execute said Agreements.
4. Upon execution of the Prelimir�ary Agre�ment
by the Company, the sta�f of the Authority are au�horzzed
and directed to continue negotiati.ons �aith the Company so as
to resolve the remaining issues necessary to the preparation
of the Amendment To Lease and other documents necessary to
the adoption by the Authority of its final bond resolution
and the issuance and delivery of the additional revenue
� bonds; provided that the President (or Vice-President if
the President is absent) and the SecretarX (or Assistant
Secretary if the Secretary is absent} Qf the Authority, or
if either of such officers (and his alterna�ive) are -
absent, the Treasurer of the Authority in lieu of such
absent officers, are hereby authorized in accordance with
, .
the provisions o� 1`�innesota Statutes, Section �75. 60,
Subdivis,ion l, .to accept a final of�er of the Underwra.ters
to purchase the reyenue bonds at such 'time as such offer is
made by� the Underwriters to purchase saic� bonds ' and to execute
an underwriting agreement setting forth such offer on behalf
of the Authority. Such acceptance shall bind the Underwr_i.tErs
said offer but shall be subject to approval and ratification
by. the Port Authority in a formal supplemental bond resol,u-
tion to be adopted prior to the delivery oi said rev�nue
bonds.
5. The additional revenue bonds and i.nter.est
thereon shall not constitute an indebtedr�ess of the Authora.ty�
or the City of Saint Paul within the meaning of any
constitutional or statutory 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 po�,rers and ne'ither the full faith and
credit nor the taxing powers of the Authority or the City
is pledged for the payment of the bonds or inter_es-t thereon.
Adopted Diay 30, 1978 . �
A �
- � \
t�tteSt . , . �t c �(��2t �-� �
Presi t
The Port uthor�ty of the Ci�ty
: � of Saint Paul
Secretary
C. The parties hereto intend, subject ta the
, terms, covenants and conditions herein con�
tained, to enter into an amer�d��ent to th�
� Lease (the "Am°ndment to Lease") in the
. form and tenor customary with respect
. to industrial revenue bond �inax�c9.ng
in the State of Minnesota and to fS.nance
completion of the Project throagh the
issuance by the Port Authority of
Industrial Development Revenue Bonds (her.e--
inafter called Bonds} pursuant to
Minnesota Statutes, Chapters 458 and
474. �
_ NOW THEREFORE, in consideration of tre mutua�. covenants
herein contained, it is hereby agreed by and bet�•azen the pari:ies
hereto as follows:
l. The Company and the Port Authority agree to n�go-
tiate the Amendment to Lease in a� form and tenor customary wa.th
respect to industrial revenue bond financi.ng in the State of
Minnesota, including without limitation the provision for the
following:
(a) The Lease term shall extend through
the final maturity date of the Bands.
(b) The Company shall make additional
monthly payments in the amounts and at such
times as are set out in said negotiated
/ .
. ��� ����
PRELIMIN�RY AGREEr1ENT
' THIS AGREEMENT, made and entered i.nto as of this
� day of � � � � � � , 1978, by and between the PQRT
AUTHORITY OF THE CITX OF SAINT PAUL, a public corporatian
organized and existing under the provisions of Minnesota Sta�,utc.s,
Chapter 458, and a redevelopment agency within the meaning o�
Minnesota Statutes, Chapter 474, hereinafter called "Port
Authority° , and Doerfler Construction Company, a corporatipn
organized under the laws of Minnesota, hereinafter ealled
"Company" ; •-
�1ITNESSETH:
WHEREAS : '
A. The Port Authority has heretofore �
issued $3,260, 000 Industrial Develop-
ment Revenue Bonds to finance a Projeet
as defined in a certain lease, as .
amended, (the "Lease") , dated P4ay 1,
1977, bet��rzen the Company and the Port
Authority;
B. The Company and Port Authority intend that;
additional revenue bonds be used to fa.nance
completion of said Projeet as pxovided in
Section 2. 06 of the "Project Covenants"
to said Lease;
. A,mendment to Lease,� but in any event sui�
ficient to pay when due debt service on
� the Bonds. •
(c) Interest on earni�gs derived fram the
investment of the additional monthly payments
and other monies in the Bond Fund and the �
Reserve (including Bond proceeds used to
fund the Reserve) shall inure to the benetit
of the Port Authority.
(d) The Company shall agree to continue
to be bound by all the �rovisions in the
"Project Covenants" to the Lease with respect
_ to completion of the Project, eycept as modi-
fied in the Amendment to Lease. '
2. Upon negotiation of the details of_ sazd Amendment
to Lease and final determination of the terms of the
Bonds, the Port Authority shall thereafter issue said Bonds
in accordance with the terms and conditions set forth in an
underwriting agreement and the Lease, as amen�ed by the Amend-
ment to Lease; provided that:
(a) Details of the sale and issuance of the
Bonds to be issued by the Port Authority sha11 be
subject to final approval by the Company and the
Port Authority.
� • . •
(b.) Issuance o� said Bonds shall be subject ta
. the issuance of the approving olainion of Briggs and
Morgan, Professiona2 Assoeiat7.an, Bond Counsel for the
Port Authority and for the City of Saint Paul, and
the furnishing of all documeni:s� resolutions, agree-
ments, financial information, cextifications, and
representations necessarX to th� sale and delivery of
the Bonds, including those wha.ch are customarily used .
and those which arE customary and necessary to comply
with all state and federal laws, regulations, rulings
and decisions.
3. Regardless of whether or �ot for any reason the
Bonds are issued, the Company shall upo� demand nevertheless
-� promptly pay or reimburse the Yort Authority for the payment of
all out-of-pocket expenses incurred by •L-he �ort Authority in
connection with the Project including w�thout limitation a11
Bond Counsel and other legal fees incuried in the preparation.
of this Preliminary Agreement, the negotiated Amendment �to Lease,
the underwriting agreement, other relatea documents, and all
costs incident to any environmental studies required to be
hereafter made in connection with the Project. �
TN WITNESS WFIEREOF, the parta.es hereto have caused
these presents to be executed as af the day and year first
above written.
In the Presence of; PORT AUTHOP.TTX �F THE CITY
OF SA �NT PAUL
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By . . . . . . . . . . . _ . . .
Its �
(Corporate Seal)
In the Presence of: " DOERFLER CONSTRUCTION COMPANY
By
Its
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zts
(Corporate Seal)
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<, . , . .. :. - x: � OM 01 : t2/1975
• _ Rev. : 9/8/76
' EXPLANATION OF ADMIN�ISTRATTVE ORDERS, y
RESOLUTIONS AND OROINANCES � ����
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T0: MAYOR GEOR � L T MER - '
_ .
. . _ - -.
FR: ._ E.� A. Krau , t. . rt_Authori ty ._ -_ ., . _ : : .
__ ._ . ,
�E; LEASf AMENDMENT - DOERFLER CONSTRUCTION; INC. (LOWRY HOTEL) � �
ADDITIONAL REVENUE BONDS FOR PROJECT COMPLETION - $620,000
RESOLUTION N0. 1348 :: ,
.
.... i�.�'-4': , �.:_-. .:�::.a. . .-.�� :,:. ., d (r .� ,' �. _ _ _
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ACTION REQUESTED: . .' ,. � . : , _. � .;
In accordance with the Laws of Minnesota, Chapter 234, it is .requested that the City
Council by Resolution, a draft copy of which is attached hereto, approve the issuance of
approximately $620,000 in revenue bonds for the purpose of financing a:comp1etion bond��
issue for poerfter Construction, Inc. for the remodeling of the Lawry Hotel .
PllRPOSE AND RATIONALE FOR THIS ACTION: _
The purpose of the bond issue is to finance a completion bond issue for Daerfler Construction
for the remodeling of the Lowry Hotel . Under the Port Authority's pres.ent agreemen.t with
Doerfler, the construction funds were provided for remodeling the building from the third floor
up, including expenditures to bring the entire area up to code. In conjunction with the recan-
struction of the u�per floors, Doerfler has undertaken extensive work to bring the lower floors
up to standards and repare the building for several eiccellent tenants. A part of the additiona
cost, approximately �90,000, was brought about by changes required when the utilities had to be
relocated to serve the building separately rather than from the Lowry Annex bt�ilding where.
service has been obtained since the building was first constructed; therefore, ti�ese additional
costs involved water connections, stand pipe, new power service, and certain by-pass wfring far
the electric pumps. In addition, the City required the maintenance of a freight elevator �n
addition to the two new express passenger elevators which were originally incorparated in the
plan. . �
A7TACHMENTS: �
Staff Memorandum
Draft City Council Resolution �
Port Authority Resalution No. 1348
Preliminary Agreement
-_---_--_�-�-�---�_..�...�_..._.,_._... -
. PC? RT � .
. AUTH �IRITY
OF THE CITY OF ST. PAUL � ��� ��"
Memorandum
TO: BOARD OF COMMISSIONERS DA7E May 26, 1978
May 30, 1978 Special Meeting
�
FROM: E.A. a �.�
��
SUBJECT: LEASE AMENDMENT - DOERFLER CONSTRUCTION, INC. (LOWRY HOTEL)
ADDITONAL REVENUE BONDS FOR PROJECT COMPLETION - $62Q,000
RESOLUTION N0. 1348
Doerfler Construction Company has completed the construction for which
funds were provided by the initial Port Authority revenue bond issue
of $3,260,000. The initial bond issue incorporated the acquisition
price of $1 ,250,000 and was structured as follows:
Construction Fund . $2,651 ,450.00
Capitalized Interest During Construction 193,162.00
Debt Service Reserve 259,988.00
_ Legal & t3�nd Issue Expense 25,000.00
Underwriter' s Discount � � �130;400:Q0
����6
Under the terms of the Port Authority's agreement with Doerfler on this
phase of the project, the construction funds were provided for remodeling
the building from the third floor up, including expenditures to bring the
entir� area up to code. The staff and the Port Authority's consulting
engineers have monitored the expenditure of the funds for the remodeling
project and are favorably inpressed with the method in which it was handled
and the way the work was performed.
In conjunction with the reconstruction of the upper floors, Doerfler has
undertaken extensive work needed to bring the lower floors up to standards
and to prepare the building for several excellent tenants. A part of the
additional cost, approximately $90,000, was brought about by changes re-
quired when the utilities had to be relocated to serve the building
separately rather than serve it from the Lowry Annex building next door
where service has been obtained since the building was first constructed;
therefore, these additional costs involved water connections, stand pipe,
new power service, and certain by-pass wiring for the electric pumps. In
addition, the City required the maintenance of a freight elevator in addition
to the two new express passenger elevators which were originally incorporated
in the plan.
- MOyR260F1908�1ISSI0NERS ��'j� ����
d
Page -2-
Additional costs far completing the facility, which includes work indexed
on Exhibit A attached hereto, is $625,494. This work is broken down as
follows:
Work Completed $388,267.00
� Work to be Completed 237,227.00
Work Completed and Already Paid for by Doerfler 156,129.00
Owen Beatty of TKDA and Clifford Ramsted, Port Authority Chief Engineer,
have thoroughly analyzed the attached work list and have obtained copies
of all contracts, lien waivers , and canceled checks to verify each of
the above figures.
In addition to this work, additional expenditures of $400,000 by Horatio
Hornblowers, $125,000 by Mangini 's Restaurant, and an estimated $30Q,000
by the sti11 to be constructed discotheque adds ap�roximately $850,000 in
expenditures made by others to the facility. The staff has evaivated the
Doerfler proposal and the overall facility and is proposing that the
Authority approve the issuance of a �completion bond issue totaling $620,000
with �he proceeds to be allocated as follows:
Construction $501 ,800.00
Capitalized Interest During Construction 15,500.00
Debt Service Reserve 69,100.00
- Lega1 & Bond Issue Expense 15,000.00
Under►��riter's Discount 18,600.00
�`6_ , 00.0
Most of these improvempnts, hotivever, are trade fixtures and other tangible
property which do not constitute properties of the Autharity.
In the initial agreement with Doerfler, the Port Authority required payment
by Doerfler of $200,000 in cash as equity participation. In this instance,
it is proposed that of the $625,494 of work, that bond proceeds of $501 ,800
� be used to pay construction costs allocable to the entire facility and that
Doerfler be responsible for the balance, which is $123,694. On this basis ,
Doer.fler`s equity partici�ation, exclusive of any additional leasehaid
improvements made by others, would be $323,594.
We further propose that this second bond issue be for a shorter term, and
the above $620,000 bond issue is structured for retirement on A�ril 1 , 1993,
or a;��roximately 15 years.
Following the approval of the Port Authority to finance the remadeling of
the Lowry, the building yvas appraised by Joseph Be�tendorf, MAT , and William
Muske, P1AI. It had a value on that appraisal , dated May 6, �977, with Port
Authority financing of $2,600,000. The appraisal was based on an income
approach to value.
BOARD OF CO�MiSSIONEP.S
May 26, 1978 �
Page -3-
On May 12, the building was reappraised by William Muske, MAI, at
$4,035,000. P�rusal of the appraisal will indicate that using the
i�ncome approach to value, fhe Port Authority' s financing enhances the
valu� of the huilding on the current appraisal basis by approximately
$500,000. This is due to the generally longer term and to the lower
interest ra�es applicable to the financing. The customary market approach
to value of thQ initial appraisal without Port Authority financing showed
a Value of $2,300,000 as compared to the current appraisal value estimate
of $3,500,000.
�n addition to the basic appraised value, the combined debt service reserve
funds result in a cash r�serve of $329,088, which permits additional
flexibility in tne valuation.
'It should be noted, however, that these values on the income approach to
value do vary with the amount of taxes that are to bz paid on the facility.
The ass�ssme�t for 1978 is $39,000 whereas th� above valuations are
predicated upon an estimated $100,000.
Based on these figures and including the additional bond issue, the project
is bas�� on t�e minimum rentals projected and creates a postive cash flow
wi�h��t provlsl�ns for escalation of re�ts or higher income$ from bar or
N�sta�r;�� s�'es�
The con��t�c��s c� ��� security agreement whereby the Port Authority holds
a s�con� �a��gage o�� certdln Doerfler properties would remain the same.
Thi� provides tha� the security in�erest sha11 be r2leased by resolution
of the Board of Co�missioners of th° Port Autnority at any time after one
year follo�;iing t�� completion dat� and wh°n the net income from operations
of th� said facility befare debt s2rvice is equal to the max�mum debt
s�rvlce required.
In the appraisal , r°fer�nce is made to a tenant lease to the Waterbed
Warehouse Corporation. �e have been advised that th4 ground floor space
w11? instead 'ae leased to WCCQ under sirnilar terms fior a 5-year perlod.
In addition to the incorn� to be earned firom the debt service reserve fund,
the Port Authority �i11 deriv� revenues from interest on the sinking funds
and the fiscal and administrativ� fee, w�ich collectively wil] amount to
1n excess of �6,800. per year or $►02,000 during the 15-y2ar term of the
addi tio�aT bor�ds. �
The proj�ct und�rtalcen to remod�l th� Lowry hotel witi� Port Auth�rity
financing has result�d in converting an unoccupied facility to a healthy,
economic generato� and r�sulted in a substantial neig�borhood improver�nt
to �he Faur�h and l�labasha area. Th� remo�Jeling program throughout has
been performed in a sup�rior n�nr�er, and th� t�nants w�to have located
in the building as commPrcial occupants arQ outstandi�g in operating
BOARD OF CQh1MISSIONERS
May 26, 1978
Page -4-
histories and in their credit worthiness. In the remodeling program,
some changes were made from the original project by reducing the r.umber
of single room units to more 2 and 3 room apartments. Of 154 units,
96 apartments have been rented as of May 25, and it appears that the
" balance will rent in short order. �
EVe are attaching a pro forma based upon projections prepared by Doerfler
Company which detail anticipated income and expenses for a 5-year period.
Subject to the initial preparation of this merio DQerfler has agreed to
additional equity input of $30,000 for air conditioners, title to which
will be transferred to the Port Authority, and the additional remodeling
cost to be incurred in preparaing the WCCO space. This is estimated to
be in excess of $15,000 which, in effect, increases Doerfler's equity
position by a minimum of $45,000 additional .
Staff has carefully reviewed the project, has reviewed the appraisal ,
and consid�rs the additional investment im�ortant and substantially
beneficial to the property and recommends approval of the sale of
additional bonds.
EAK:ca
. ,r. .��--
�' � , EXHIBIT A
. May 24, 1978
OOERFLER BUSINESS OFFICE
DOERFIER SQUARE
345 WABASHA•SAINT PAUL,MINNESOTA 55102
(612)222-6856
' WORK DONE IN DOERFLER SQUAFE
LOCATIO\ WORK AND SUBCONTRACTORS AMrfOUNT
MAIN C�ILINGS
work done in restaurant
ST. PAUL LINOLEUM, contract $ 15, 100.00
work done in tobacco shop
ST. PAUL LINOLEUI�, contract 840.00
woric done in corridors,
ST. PAUL LINOLEUM, contract 2,745.00
work done in liquor store
ST. PAUL LINOLEUM,invoice 1,046.00
work done in kitchen and waitress stati.on
ST. PAUL LINOLEUM , contract 1,577.00
OUTSIDE LJINDOW AND BANNER WORK DOiJE �
HARMON GLASS, contract 32,993.00
Harmon Glass, estras, contract 4,063.00
P1AIN DRYWALL �
all sheet rock work in restaurant, kitchen,
waitress station, corridors, tobacco sliop,
mailroom, two offices
- DAGAN CONSTRUCTIOI� COMPANY, lien waver 31,Q28.00*
MAIN,2�ID
FLOOR ELECTRICAL
all wiring in restaurant, kitchen, corridors, --
tobacco shop, liquor store, 2nd floor, air
conditioner units from main panel, new service,
fixtures in kitchen, tobacco shop, liquor store,
corridors
TRI-CITY ELECTRIC CO. , contract and lien waver
53,700.00
(48,OOQ.00)*
LOWEP. LEVEL ELECTRICAL
wiring of lower level, material, labor
TRI-CITY PROPOSAL (not done) 40,000.00**
MAIN PLUMBING AND HEATING
work done in restaurant and kitchen
M�CARTY PLUMBING A:v'D HEATING, contract 22,558.00
heating work done in tobacco shop
PicCARTY PLUMBING A�� HEATING, contract 2,E5�.00
heating work done in liquor store
McCARTY PLUMBING A�1D HEATING, contract 5,120.04
LO�dER LEV�L PLUAiBING AND HEATING
McCARTY PLUMBING AND HEATING PROPOSAI.
(not done) 11,h5�.00**
* Paid by Doerfler �
** Work to be done
� ?, .- .
�,
DOERFLER BUSINESS OFFICE
�OERFIER SQUARE
345 WABASHA•SAINT PAUL,IdINNESOTA 55102
(612)222-6856
I.00ATIO�I WORK AND SUBCONTREICTOR APiM�UNT
1�iAIN CONCRETE
� concrete poured in kitchen and restaurant
to level floor
TARTAN CONSTRUCTION CO,�iPANY, bid and lienwaver
$ 4,00�.00*
concrete poured in corner stone
TARTAN CONSTRliCTION COriPANY, invoice 3,000.00
LOWI:P. LEVEL CONCRFTE
pouring of concrete to level floor and
repair steps
TARTAN CONSTRUCTION COMPANY, proposal 18,000.�0��
MAIN SPRINKLER .
sprinklers installed in main (Wabasha)
entrance
NORTHSTAR FIRE PROTECTION CO. , invoice 2,490.00
L04��ER LEVEL SPRINKLERS
�aet pipe sprinkler system proposed for
lower Ievel
NORTHSTAR FIRE PROTF.CTION, CO. , proposal 35,500.00**
OL'F:STDE STL'CCO
material and labor for stucco
� FROGNER DRYWALL INC. , contract 5,960.00
i•T�1Ii•1 DEMOLITION AND LABOR
demolition of old restaurant, kitchen,
shops and lobby
DAGEN CONSTRUCTION, lienwaver 31,000.00*
LOk1ER LEVEL DEMOLITION AND LABOR
demolition and removal of old workshop,
storage area for restaurant, bathroom5, etc.
DAGEN CONSTRUCTION COMPANY, lieneraver 18,000.00�
MAIN CARPENTER WORK
carpentry in restaurant;all walls framed,
carpent�ry in ,�hllways, liquor store, tobacco
� rcr.
_, shop, , two office,
DAGAN CONSTRUCTION COMPANY, contract 34,500.00
(1,772.0�)*
LOWEP. LEVEL CARPENTER [dORK
carpentry work in lo�oer level cons�iting of
bathrooms, locker rooms, storage areas,
framing walls and stage platform
DAGAN CONSTRUCTION COMPANY, proposal 18,000.00**
,- 3.
DOERFLER BUSINESS OFFICE
345 WABASHAO SAINTEPAUQUM NNESOTA 55102 ���,���
(612)222�6856
LOCATION ' �JORK AND SUBCONTRACTOR �tMOUNT
MAIN VENTILATION
air condiotioning and ventilation in
kitchen, restaurant, liquor store,
' tobacco shope; make up air unit in ,
kitchen
DAR.ROW SHEET METAL contract $ 43,000.00
LOWER LEVEL VENTILATION
- air conditioning and ventilation of
lower level with air exchange unit
DARROW SHEET METAL proposal 32,400.00**
STANDPIPF.S
two new standpipes, one in existing
stairway and one in new stairway connected to
city water, one fire pump,
NORTHSTAR FIRE PROTECTION proposal 29,400.00**
underground connection (CITY) 10,975.00**
wiring of fire pump (BYPASS) 6,000.00**
painting of pipes 625.00*%�
FREIGHT FLEVATOR
bring freight elevator up to code 4�ith
new doors,etc.
WESTINGHOUSE ELEVATOR C0. pro�osal . 13,677.OQ**
MAIN AND LUMBER
OUTSIDE fire treating lumber and plywood for
restaurant, kitchen, bathroom, liquor
store, tobacco shop, t�ao office, mailroom
outside of building, under stucco and
banners
BuMAT COMPANY invoice 28,O�O.UO
LOBI3Y CARPET
Carpet in lobby and tile in three
entrances
MID CONTINENT INTERIORS proposal $,500.�0**
MAIN P�ASOI� CUTTING
cutting of holes for ventilation ducts In
floor in various places
DIA1�tOND DRILLING AND SUPPLY CO3 invoice 2,068.00
�4 .
.:� � � y:
- . .-,
DOERFLER BUSINESS OFFICE .
DOERF�ER SQUARE
345 WABASHA•SAINT PAUL.MINNESOTA 55102
(612)222•6856 .
LOCATION WORK AND SUBCONTRACTORS AMMOUNT
LOWER LEVEL COMPACTOR
' COMPACTION SYSTEMS, lienwaver, invoice $ 7,329.00*
MAIN AND LOWER LEVEL
TRUCKING �
hauling and dumping of demolition
debris
HOCHBAN CONTRACTTNG , inuoice 12,904.0�
MAIN TAi�ING AND PAINTTNG
taping of kitchen, restaurant, bathrocros,
lobby, liquor store, tobacco shop, two
offices; paint liquor store, tobacco
shop, two offices,. mailarom
DAGEN CONSTRUCTION COMPANY lienwaver 15,000.00*
MAIN,OUTSIDE ARCF�ITECT
designing stores, ldbby and outside ,
banners, windows and entries
ASSOCIATE PROJECT CORP. 7,400.00
LOWER LEV�L ARCHITECT
_ -- designing of lower level disco
ASSOCIATE PRO.�ECT CORP. 12,SC�.O�**
total $ 625,494.00
* Doerfler paid out $ 156.129.00
� Work completed $ 388.267.00
- ** Work to be completed $ 237,227.00
�