96-1504 � � Council File # Q �
Ordinance #
�S �S .� L.i 0�3� Gree
ORDINANCE
CITY O S INT PAIIL MINNESOTA �1
Presented B
Referred T Committee: Date
�
2
3 An ordinance repealing C.F. No. 96-1341 and
4 substituting in lieu thereof this ordinance granting authority to
5 the Port Authority of the City of Saint Paul to issue and sell
6 the bonds in the aggregate principal amount not to exceed
7 �6,150,000, and any bonds to refund such bonds, to secure
S such bonds with a pledge of the full faith, credit and resources
9 of the City of Saint Paul, and to use the proceeds derived from
10 the sale of such bonds to pay the cost and expense necessarily
11 to be incurred by said Port Authority for acquisition of lands,
12 environmental remediation, construction of infrastructure
13 improvements and the relocation of owners, occupants and
14 tenants, pursuant to the provisions and by authority of
15 Minnesota Statutes, Chapter 469, as amended, and prescribing
16 the amount and form of such bonds and the manner for
17 establishing the rate of interest thereon.
18
19 WHEREAS, on August 23, 1994 the Port Authority of the City
20 of Saint Paal (the "Port Authority") adopted its Resolution No.
21 3489, finding that the land commonly known as the Williams Hill
22 Site is blighted and marginal properties within the meaning of
23 Minnesota Statutes, Sections 469.048 et seq., and establishing and
24 creating the "Williams Hill Industrial Development District"; and
25 WHEREAS, on November 13, 1996, the Council adopted
26 Ordinance No. 96-1341; and
27 WHEREAS, said Ordinance No. 96-1341 failed to include
28 certain provisions dealing with the authorization granted therein
29 which the Council had intended to include; and
�
1 WHEREAS, the Council dea�es to repeal Ordinance No. 96-
q�-lSoy
2 1341 and to adopt this ordinance�s lieu thereof; and -
3 WHEREAS, the City of Saint Paul, Minnesota (the "City"), has � :
4 authority under Minnewta Statu�s, Section 469.178, Subd. 2, to
5 issue general obligation bonds papble from tax increments of a tax
6 increment district created by tie Port Authority, and the Port -
7 Authority has authority under Mi�esota Statutes, Section 469.060, �
8 to issue bonds for its purposes i� anticipation of income from any
9 source which are secured by the fd faith, credit and resources of the
10 City, and pursuant to this Ordina�ce and Section 3.4 of that certain -
11 Loan Agreement between the City:�nd the Port Authority (the "Loan =
12 Agreement") evidencing the CDBG Loan (as hereinafter defined), the -
13 Port Authority wilt issue bonds to which are pledged both tax =
14 increments and the fu[I faith crec�t and resources of the Ci • and '"' �
, tY, .
15 WHEREAS, on October 22, 1996, the Port Authority adopted
16 its Resolution No. 3600 expressly requesting the authorization of the =
17 Council of the City of Saint Pa�, pursuant to Minnesota Statutes,
18 Section 469.060, for the issuance and sale by the Port Authority of -
19 its bonds in the aggregate pi�cipat amount not to exceed
20 $6,150,000 (the "Bonds") and for.the pledge of the fuil faith, credit
21 and resources of the City to the p�ment of such Bonds, which Bonds
22 will also be secured by tax inaements to be derived from the
23 Williams Hill Tax Increment �ancing District and Hazardous
24 Substance Subdistrict therein (coikctively referred to herein as the �
1405337.11 2
1 "District"), the establishment of which was approved by the City by
� (�- 1SO �-1
2 its Resolution No. 96-1321 adopted on October 16, 1996; and
3 WHEREAS, in its Resolution No. 3600 the Port Authority
4 described the purposes for which the Bonds will be used, to wit: �rst,
5 to the repayment of a loan previously made by the City from
6 Community Development Block Grant funds (the "CDBG Loan") to
7 the Port Authority, as evidenced by the Port Authority's Tau
S lncrement Revenue Note (Williams Hill Project), Series 1996 (the
9 "Note"), for the purposes of paying or reimbursing the costs and
10 expenses necessarily incurred by the Port Authority for acquisition of
11 the Williams Hill Site, environmental remediation, construction of
12 infrastructure improvements, the relocation of owners, occupants and
13 tenants, and then for all other purposes authorized by authority of
14 Minnesota Statutes, Chapter 469, as amended (the�'Act"); and
15 WHEREAS, the Council of the City (the "Council"), being dufy
16 advised in the premises, finds and determines that it is necessary and
17 appropriate that the Port Authority issue and sell bonds of the Port
1 S Authority in the aggregate principal amount not to exceed
19 �6,150,000 for the purposes as stated above; and
20 WHEREAS, on the basis of the foregoing, it is now the
21 intention of the Council to grant authority to the Port Authority for
22 the issuance of the Bonds; to prescribe the manner for estabtishing
23 the amount, maturity schedule, rates of interest, and the maximum
24 rate of interest, to be borne by the Bonds; to authorize the Port
1405337.11 3
1 Authority to establish the date, denomination, place of payment and °�(�-�S O y
2 other details of the Bonds, including the form of the Bonds; and to
3 authorize and consent to the pledge by the Port Authority of the full
4 faith, credit and rewurces of the City to the payment of the Bonds as
5 the same shall be issued and sold by the Port Authority, pursuant to
6 the authority of the Act, and pursuant to the authority granted by
7 this Ordinance; and
8 WHEREAS, the Loan Agreement provides that the City has
9 completed the first reading of this ordinance authorizing the issuance
10 of the Bonds by the Port Authority, and such Loan Agreement also
11 provides that the City may cause bonds to be issued other than
12 pursuant to this Ordinance in order to repay the CDBG Loan if
13 certain conditions are met:
14 NOW, THEREFORE, THE COlINC1L OF THE CITY OF SAINT
15 PAllL DOES ORDAIN:
16 Section 1
17 Authorization of Bonds. That subject to, and in accordance
18 with, the appliwble provisions, terms and conditions of this ordinance
19 and those contained in Section 469.060 of the Act, authority is
20 hereby granted to the Port Authority for the issuance and sale of its
21 Bonds in the aggregate principal amount not to exceed $6,150,000
22 and the use of the proceeds of such Bonds first for the repayment of
23 the CDBG Loan, and then for all other purposes authorized by the
1405337.11 4
1 Act. The tau increments from the District shall be pledged to the
2 payment of the Bonds � � 'S���
3 Section 2
4 Establishing Terms of the Bonds. That the Port Authority is
5 hereby authorized to establish the date, denomination, place of
6 payment, form and details of the Bonds, provided that the Bonds
7 shall be issued and sold by the Port Authority as ta�c exempt and/or
8 taxable Bonds in one or more series, in the manner provided and
9 allowed by law; the Bonds shall be secured by a pledge of the tax
10 increments to be received by the Port Authority from the District;
11 the initial principal amount of the Bonds shall be equal to an amount
12 sufficient to repay the CDBG Loan in full, to pay costs incurred in
13 connection with the issuance of the Bonds, and to fund a reserve as
14 necessary to allow the tax levy to be canceled as provided in Section
15 4 below (but shall not exceed an amount equal to �6,150,000); the
16 Bonds shall mature in the amounts and years and bear interest at the
17 rate or rates per annum established by the offer to purchase the
18 Bonds which is determined to be the most favorable by a Pricing
19 Committee comprised of one representative from the Port Authority
20 and the City's Director, Department of Finance and Management
21 Services, provided that the average annual weighted interest rate of
22 the Bonds shall not exceed nine percent (9%) per annum payable
23 semi-annually unless such higher average annual weighted interest is
24 specifically approved by a resolution adopted by a majority of the
1405337.11
5
1 members of the Council; and the proceeds from the issuance and sale
q�-lsoy
2 of the Bonds as received by said Port Authority shall be used first to
3 repay the CDBG I.oan, and then for all other purposes authorized by
4 the Act. The Bonds may be made subject to redemption and
5 prepayment at the option of the Port Authority at such time and
6 price or prices as shall be determined by the Port Authority and
7 approved by the Pricing Committee described above and upon such
S notice as is required by law. It is recogmized that Section 469.060 of
9 the Act provides that the Bonds must be in the amount and form and
10 bear interest at the rate set by the Council, that the Port Authority
11 with the consent of the Council shall set the date, denominations,
12 place of payment, form, and details of the Bonds and that the Council
13 is required to decide whether the issuance of the Bonds by the Port
14 Authority is proper and if so, the amount of Bonds to issue, and that
15 the Council is required to give specific consent in the Ordinance to
16 the pledge of the City's full faith, credit and resources to the Bonds.
17 The standards and delegation to the Pricing Committee set forth
1 S herein are intended as such full required action of the Council, and
19 except as provided herein no further approval of the Council is
20 required for the issuance of the Bonds under Section 469.060 of the
21 Act.
22 Section 3
23 Pledge of Full Faith and Credit. That as security for the
24 prompt and faithful payment of both principal and interest of said
1405337.11
s
1 Bonds the Port Authority is hereby authorized to pledge the full
°l� -�so`��
2 faith, credit and resources of the City of Saint Paul, and such Bonds,
3 both in respect of the principal amount of the same and with respect
4 to the interest thereon, may be paid by the Port Authority from tax
5 levies provided therefor and authorized by the Act.
6 Section 4
7 Ta Levy. That the Port Authority, in the event of the issuance
8 of am► said Bonds authorized hereunder, shall before the issuance of
9 the same, levy for each year, until the principal and interest are paid in
10 full, a direct annual tax on all the taxable property in said City of Saint
11 Paul, in an amount not less than 5% in excess of the sum required to
12 pay the principal and interest of the same when and as such principal
13 and interest mature and, after such Bonds have been delivered to the
14 purchasers, such tax shall be irrepealable until all such indebtedness is
15 paid, and after the issuance of such Bonds no further action by said
16 Port Authority shall be necessary to authorize the extensions,
17 assessments and collection of such tax. That the Secretary of said Port
18 Authority shall forthwith furnish a certified wpy of such levy to the
19 County Auditor of Ramsey County, Minnesota, the county in which
20 said Port Authority and said City are located, together with full
21 information regarding the Bonds of said Port Authority for which the
22 tau is levied and such County Auditor shall extend and assess the tax
23 so levied, and shall do so annually until the principal and interest have
24 been paid in full. That amr surplus resulting from the excess levy
1405337.11 7
1 therein provided shall be transferred to a sinking fund after the
°l �--l5b�
2 principal and interest for which the ta�c was levied and collected has
3 been paid; provided, that said Port Authority may, on or before
4 September 15 in any year, by appropriate action cause its Secretary to
5 certify to the said County Auditor the amount on hand and available in
6 its own treasury from tax increments derived from the Williams Hill
7 Tax lncrement Financing District, earnings or other income, including
8 any amounts in the sinking fund, which it will use to pay the principal
9 and interest or both on each specified issue of its Bonds and the
10 County Auditor shall reduce the levy for that year herein provided for
11 by that amount. That the amount of funds so acquired shall be set
12 aside by said Port Authority and be used for no other purpose than for
13 the repayment of the principal and interest on such Bonds. That all
14 taxes being authorized to be levied under Minnesota Statutes, Section
15 469.060, as amended, shall be collected and remitted to the Port
16 Authority by the County Treasurer in accordance with provisions of
17 law governing the collection of other taues and shall be used solely for
18 the payment of such Bonds when due.
19 Section 5
20 No Further Council Action. That said Port Authority may
21 provide for the exercise of the authority hereby granted for its issuance
22 and sale of the Bonds in the aggregate par value amount provided in
23 Section 2 hereof, for the aforesaid purposes, and the pledge of the full
24 faith, credit and rewurces of said City of Saint Paul, as security for the
1405337.11 $
1 payment of the same, by its appropriate resolution, and without
�� ( SO LI
2 further action of the Council. The authority to set the maturity �
3 amounts and interest rates on the Bonds has been delegated to the
4 Pricing Committee as provided in Section 2 hereof. That in exercising
5 the foregoing authority, the Port Authority shall make due compliance
6 with all appliwble requirements for this ordinance, said Section
7 469.060, Minnewta Statues, as amended, Sections 469.174 through
8 469.179, as amended, Chapter 475, Minnewta Statutes, as amended,
9 and all other applicable laws.
10 Section 6
11 Authorization of Refunding Bonds. Pursuant to and in
12 accordance with the provisions, terms and conditions of this
13 Ordinance and the Act, authority is hereby granted to the Port
14 Authority to issue and sell Bonds as authorized by Minnesota
15 Statutes, Section 469.060, in aggregate principal amounts necessary
16 for the purpose of securing funds as needed by the Port Authority to
17 refund obligations issued under this Ordinance. The principal of the
18 refunding bonds may exceed the principal of the bonds to be
19 refunded to the extent necessary and appropriate to pay interest
20 thereon (including interest accruing as capital appreciation), to pay
21 costs of issuing the refunding bonds and to allow for discount upon
22 sale, and to fund reserves and capitalized interest for the refunding
23 bonds.
24
1405337.11 9
1 Section 7
2 Effective Date; Nullification. That this ordinance shall take
� �-I � ° y
3 effect and be in force 30 days after the passage, approval and
4 publication; provided, however, that this ordinance shall be null and
5 void and of no further force and effect in the event the City provides
6 the Port Authority with a written certification from an expert
7 satisfactory to the Port Authority stating that the Bonds if issued as
8 provided herein would bear interest at a rate which is at least 30 basis
9 points higher than interest on either (i) bonds issued by the City with
10 identical security, or (ii) other forms of financing by the City or the
11 Port Authority proposed by the City in lieu of bonds with identical
12 security, and the City exercises its right to cause bonds to be issued
13 other than pursuant to this Ordinance or to cause another form of
14 financing to be entered into in order to repay the CDBG Loan pursuant
15 to Section 3.1(2) of the Loan Agreement.
DI IAI IQUrn
16
�1AN 181997
17 Section S
18 Re�ealer• That Ordinance No. 96-1341 adopted by the Council
19 on November 13, 1996 is hereby repealed.
Blake Y�s Nays Absent Requested by Department of:
Bostrom �
Harris r
Guerin r
Mega rd ,�
Retttnan ✓
Thune ✓ By�
Adopted by Coun ' . ��Date , ;�� FO�R APProved by City Attorney
�'�
Adoption Ce ified by Co tary By:����' —S !
� � /��- S/- �'� �. . ,.
BY� Approved by Mayor for Submission to Council
Approved by Mayo . Date � l�
� . By.
1405337.11 1�
�e-�5oy
IOFFlCE/COUNCIL DATE INITIATED � O���
City Council 12/4/96 GREEN SHEET
CONTACT PERSON 8 PHONE INITIAUDATE INITIAL/DATE
�DEPARTMENT DIRECTOR �CITY COUNCIL
Councilmember Rettman 266-8650 �SS��N �CITYATTORNEY �CITYCLERK
NUMBER FOR
MUST BE ON COUNCIL AOENDA BY(DATE) R��J�� �BUD(iET DIRECTOR �FIN.$M4T,$�RVICES DIR.
ORDER MAYOR(OR ASSISTANT)
Dec. 4, 1996 ❑ ❑
TOTAL#OF SIGNATURE PA(�ES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION REQUESTED:
An ordinance repealing C.F. 96-1341 and substituting this ordinance granting authority to th
Port Authority of the City of Saint Paul to issue and sell bonds in the aggregate principle
amount not to exceed $6,150,000.
RECOMMENDATIONS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER TFIE FOLLOWING�UESTIONB:
_PLANNING COMMI331QN _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this departmeM?
_CIB COMMITTEE _ YES NO
2. Has thfs person/firm ever been a city employee?
_BTAFF _
YES NO
_DI3TRICT COURT _ 3. DOes this erson/firm
p possess a skill not normally posseased by any current city employee?
SUPPORT3 WHICH COUNCIL OBJECTIVE? YES NO
Ezplain all y�s enswen on ssparet�shsst and attach to presn she�t
INITIATINO PROBIEM,ISSUE,OPPORTUNITY(Who,Whet,Whe�,Where,Why):
ADVANTAOE3 IF APPROVED:
DISADVANTAGES IF APPROVED:
DISADVANTAOES IF NOT APPROVED:
TQTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGETED(CIRCLE ONE) YES NO
FUNDI(iO SOURCE ACTIVITY NUMBER
FINANCIAL INFORIiiiATION:(EXPLAIN)