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01-312Council File # �\ - 3\a'1. �� ?' �'' �'�� .f'`�, � _ Resolution # Green sheet # 106938 Presented By SOLUTION C O S NT PA , OTA . 50 Referred To Committee: Date R�SOLUTION AUTHORIZING THE CONTRIBUTION OF FUNDS TO THE Ii�NOVATION OF THE BTJILDING LOCATED AT 400 ROBERT STREET NORTA FOR PERSONNEL DECISIONS INTERNATIONAL PUBLIC HEARING WHER�AS: 10 11 A. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has 12 previously adopted a redevelopment plan (the "Redevelopment Plan") and a tax increment financing plan (the 13 °TIF Plan") for the central business district of the City of Saint Paul (the "City"). ia 15 B. A major objective of both the Redevelopment Plan and the TIF Plan was to prevent the further t6 deterioration of die land and building stock located within the central business district of the City. 17 t8 C. Consistent with the Redevelopment Plan, on January 22, 2001 the City and Persoimel Decisions 19 International ("PDI") entered into a Memorandum of Intent pursuant to which the City agreed to loan 20 $I,500,000 to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation 2 t of the building located at 400 Robert Street North (the "400 Building") to accomodate the tenancy of PDI (the 22 "Project"), the proposed relocation of PDI's headquarters to the 400 Building, and the initial relocation of 500 23 PDI etnployees and the ultimate relocation of approximately 700 PDI employees to the City. 24 25 D. Pursuant to the terms of that Memorandum of Intent, the City and PDI have negotiated a Loan 2G Agreement (the "conh�act") more fully describing the Project, the City's loan and the parties responsibilities with z7 respectthereto. zs 29 E. Pursuant to the Contract, the Project will result in the renovation ofseven floors in the 400 Building, 30 aC an approximate total cost of $3,000,000, to accommodate a phased relocation of 4Q0 PDI employees to the 31 City by the later of January 31, 2002 or the date which is six months after PDI has been given access to all of the 32 space in the Building to be leased by PDI and relocation of an average of 500 full time employees for the calendar 33 year ending December 31, 2002. 3A 20511G3v1 35 ��-3�� 36 F. Pursuant to the Contract, PDI shall be responsible far the costs of the Project. The City's sole 37 responsibility shall be to contribute funds in the principal amount of $1,500,000 to the payment of Froject costs. 38 39 G. In exchAnge for the City contribution described in the preceding recital, the Contract requires PDI 40 to pay to the City interest at the rate of 8.5% annually beginning December 31, 2002 if PDI has not employed in 41 Yhe City at least a00 full time equivalent employees by the later of January 31, 2002 or the date which is six 42 months 2fter PDI has been given access to all of the space in the Building to be leased by PDI for purposes of 43 completing the Project; an average of 500 full time equivalent employees during the calendar years ending 44 December 31, 2002 and December 31, 2003; and an average of 600 fult time equivalent employees during the 45 calendar years ending December 31, 2004 through December 31, 2011. Any payment which PDI is required to 46 make pursuant to this provision shall be made on December 31 of the year in question. In addition to the annual 47 interest payment described above, PDI will pay the City $1,SQ0,�00 if PDI has not maintained auerage 48 employment in the numbers described in this paragraph for a period of ten years from the completion of the 49 Project. The obligation o£PDI to make these payments will be secured by collateral mutually acceptable to PDI 50 and the City. The obligations of PDI to make these payments will be forgiven if the required employment levels si a�•e maintained. 52 53 II. PDI would not undertake the Project but far the execution of the Contract. 54 55 I. The City Council has conducted a public heazing on the proposed execution ofthe Contract and the 56 business subsidy agreement referred to therein, pursuant to and in accordance with Minnesota Statutes, Sections 5� 116J.994, Subdivision 5(a). 58 59 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 60 G� Section 1, Neeotiation of Loan Agreement. The Contract providing for the Project and the business 62 subsidy described herein and in the presentation to the City Council is hereby approved in substantially the form 63 attached hereto as Exhibit A. City staff is hereby authorized to continue all wark necessary to finalize the 64 Contract and the business subsidy agreement in accordance with the terms of this resolution and the informaYion G5 presented to tl�e City Council at this meeting. 66 67 Section 2. Execution of Loan Agreement. The Director, Planning and Economic Development, and other G8 appropriate officials of the City are hereby authorized to execute the Contract and the business subsidy agreement G9 and any other agreements necessary to consummate the transaction contemplated by the Contract and this 70 Resolution upon being advised by City staff that such Contxact is in finai form. 71 72 73 74 75 7G 77 Section 3. Livin�Waee Requirements. PDI has agreed to comply with the requirements of the City's living wage policy in connection with the Project. Section 4. Pinancin� Source Annroval. The use of Fund 149 in the amount of $1,500,000 to pay Project costs is hereby approved. 2 2051IG3vl 7s 79 80 81 82 83 S4 85 86 87 88 S9 90 91 92 93 94 95 96 97 98 99 100 101 102 103 ]04 l05 106 107 ]OS 109 110 111 Section 5. Budeet Amendment. The City's 2001 Budget is amended as follows: 6 �' 3�a' 112 113 t 14 Approved by the Council: March 28, 2001 1t5 k! 20511G3v1 11G D�-�19- 11� EXHIBIT A iis Loan Agreement Requested by Department of: Adoption Certified by Council Secretary . ��y�/ Approved by Mayor: Da __ G -SE� Planninc & E�onomic Develo ment � ' �'�� Form Appr e Cityi}lttorney _. y, i , i� // � iYC�I Approved by �ar for Submiss}'on to uncil �(�iC.. ///L �� :�� C��INAL 20511G3v1 Adopted by Council: Date �� DEPARTMENT/ORI�'ICC/COUNCIL: DATE INITIATED GREEN SHEET N0.7 106938 O\'�� PED March 21, 2001 CONTACT PCRSON & PI�IONE: INITIA E INITIAL/DATE M2TIE F'f2CIC110tt � 1 DEPARTMENT DIR. 4 CITYCOUNCIL � MUST DE ON COUNCIL ACCNllA BY (llATE) ASSIGN ? CITY ATTORNEY CITY CLERK NUMBER FINANCIAL SERV DIR. � FINANCIAL SERV/ACCTG March 28th FOft 3 MAYOR (OR ASST.) _ CNIL SERVICE ROUTING COMMISSION ORDER TOTAL N OP' SIGNATURC PAGCS �(CLIP ALL LOCATIONS FOR SIGNATURE) ncrioN eEQUesTEn: PUBLIC HEARING on approval of a$1.5 million loan for PDI RECOMMENDATIONS: Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNINQ COMMISSION 1 Has this person/firm ever worked under a wnvact for this department7 CID COMMITTCC Yes No CIVIL SGRVICE COMMI5SION 2. Has this person/firm ever been a city employee7 Yes No 3. Does this person/firm possess a skdl not normally possessed by any wrrent city employee? Yes No Expinin nll yes answers on separate sheet and attach to green sheet INITIATINC PROQLCM, IS9UE, OPPORTUNITY (Who, Whet, When, Where, Why): � The Council approved a Letter of Intent on January 22, 2001, pursuant to which the City agreed to loan $1.5 million to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation of the 400 Robert Street building. ADVANTAGES IF APPROVED: Relocation of approximately 700 PDI employees to downtown St. Paul. The project will assist in the atabilization of downtown office space rents. � •4�# �� '� DISADVANTAGES[�APPROVCD: C� None. �9�� ' �� DISADVANTAGCS IP NOT APPROVED: Jobs will not be relocated to St. Paul. TOTAL AMOUNT OP TRANSACTION: $ 1,500,000 COST/REVENUE BODGETED: �6901 FUNDINGSOURCE: p6-149-76990-0547-68088 �� ACT[VITYNUMBER: FINANCIAL INFORMATION: (GXPLAIN) K:\ShnredU'ed9+RANC1I87\qreanahcoLwpd Council File # �\ - 3\a'1. �� ?' �'' �'�� .f'`�, � _ Resolution # Green sheet # 106938 Presented By SOLUTION C O S NT PA , OTA . 50 Referred To Committee: Date R�SOLUTION AUTHORIZING THE CONTRIBUTION OF FUNDS TO THE Ii�NOVATION OF THE BTJILDING LOCATED AT 400 ROBERT STREET NORTA FOR PERSONNEL DECISIONS INTERNATIONAL PUBLIC HEARING WHER�AS: 10 11 A. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has 12 previously adopted a redevelopment plan (the "Redevelopment Plan") and a tax increment financing plan (the 13 °TIF Plan") for the central business district of the City of Saint Paul (the "City"). ia 15 B. A major objective of both the Redevelopment Plan and the TIF Plan was to prevent the further t6 deterioration of die land and building stock located within the central business district of the City. 17 t8 C. Consistent with the Redevelopment Plan, on January 22, 2001 the City and Persoimel Decisions 19 International ("PDI") entered into a Memorandum of Intent pursuant to which the City agreed to loan 20 $I,500,000 to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation 2 t of the building located at 400 Robert Street North (the "400 Building") to accomodate the tenancy of PDI (the 22 "Project"), the proposed relocation of PDI's headquarters to the 400 Building, and the initial relocation of 500 23 PDI etnployees and the ultimate relocation of approximately 700 PDI employees to the City. 24 25 D. Pursuant to the terms of that Memorandum of Intent, the City and PDI have negotiated a Loan 2G Agreement (the "conh�act") more fully describing the Project, the City's loan and the parties responsibilities with z7 respectthereto. zs 29 E. Pursuant to the Contract, the Project will result in the renovation ofseven floors in the 400 Building, 30 aC an approximate total cost of $3,000,000, to accommodate a phased relocation of 4Q0 PDI employees to the 31 City by the later of January 31, 2002 or the date which is six months after PDI has been given access to all of the 32 space in the Building to be leased by PDI and relocation of an average of 500 full time employees for the calendar 33 year ending December 31, 2002. 3A 20511G3v1 35 ��-3�� 36 F. Pursuant to the Contract, PDI shall be responsible far the costs of the Project. The City's sole 37 responsibility shall be to contribute funds in the principal amount of $1,500,000 to the payment of Froject costs. 38 39 G. In exchAnge for the City contribution described in the preceding recital, the Contract requires PDI 40 to pay to the City interest at the rate of 8.5% annually beginning December 31, 2002 if PDI has not employed in 41 Yhe City at least a00 full time equivalent employees by the later of January 31, 2002 or the date which is six 42 months 2fter PDI has been given access to all of the space in the Building to be leased by PDI for purposes of 43 completing the Project; an average of 500 full time equivalent employees during the calendar years ending 44 December 31, 2002 and December 31, 2003; and an average of 600 fult time equivalent employees during the 45 calendar years ending December 31, 2004 through December 31, 2011. Any payment which PDI is required to 46 make pursuant to this provision shall be made on December 31 of the year in question. In addition to the annual 47 interest payment described above, PDI will pay the City $1,SQ0,�00 if PDI has not maintained auerage 48 employment in the numbers described in this paragraph for a period of ten years from the completion of the 49 Project. The obligation o£PDI to make these payments will be secured by collateral mutually acceptable to PDI 50 and the City. The obligations of PDI to make these payments will be forgiven if the required employment levels si a�•e maintained. 52 53 II. PDI would not undertake the Project but far the execution of the Contract. 54 55 I. The City Council has conducted a public heazing on the proposed execution ofthe Contract and the 56 business subsidy agreement referred to therein, pursuant to and in accordance with Minnesota Statutes, Sections 5� 116J.994, Subdivision 5(a). 58 59 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 60 G� Section 1, Neeotiation of Loan Agreement. The Contract providing for the Project and the business 62 subsidy described herein and in the presentation to the City Council is hereby approved in substantially the form 63 attached hereto as Exhibit A. City staff is hereby authorized to continue all wark necessary to finalize the 64 Contract and the business subsidy agreement in accordance with the terms of this resolution and the informaYion G5 presented to tl�e City Council at this meeting. 66 67 Section 2. Execution of Loan Agreement. The Director, Planning and Economic Development, and other G8 appropriate officials of the City are hereby authorized to execute the Contract and the business subsidy agreement G9 and any other agreements necessary to consummate the transaction contemplated by the Contract and this 70 Resolution upon being advised by City staff that such Contxact is in finai form. 71 72 73 74 75 7G 77 Section 3. Livin�Waee Requirements. PDI has agreed to comply with the requirements of the City's living wage policy in connection with the Project. Section 4. Pinancin� Source Annroval. The use of Fund 149 in the amount of $1,500,000 to pay Project costs is hereby approved. 2 2051IG3vl 7s 79 80 81 82 83 S4 85 86 87 88 S9 90 91 92 93 94 95 96 97 98 99 100 101 102 103 ]04 l05 106 107 ]OS 109 110 111 Section 5. Budeet Amendment. The City's 2001 Budget is amended as follows: 6 �' 3�a' 112 113 t 14 Approved by the Council: March 28, 2001 1t5 k! 20511G3v1 11G D�-�19- 11� EXHIBIT A iis Loan Agreement Requested by Department of: Adoption Certified by Council Secretary . ��y�/ Approved by Mayor: Da __ G -SE� Planninc & E�onomic Develo ment � ' �'�� Form Appr e Cityi}lttorney _. y, i , i� // � iYC�I Approved by �ar for Submiss}'on to uncil �(�iC.. ///L �� :�� C��INAL 20511G3v1 Adopted by Council: Date �� DEPARTMENT/ORI�'ICC/COUNCIL: DATE INITIATED GREEN SHEET N0.7 106938 O\'�� PED March 21, 2001 CONTACT PCRSON & PI�IONE: INITIA E INITIAL/DATE M2TIE F'f2CIC110tt � 1 DEPARTMENT DIR. 4 CITYCOUNCIL � MUST DE ON COUNCIL ACCNllA BY (llATE) ASSIGN ? CITY ATTORNEY CITY CLERK NUMBER FINANCIAL SERV DIR. � FINANCIAL SERV/ACCTG March 28th FOft 3 MAYOR (OR ASST.) _ CNIL SERVICE ROUTING COMMISSION ORDER TOTAL N OP' SIGNATURC PAGCS �(CLIP ALL LOCATIONS FOR SIGNATURE) ncrioN eEQUesTEn: PUBLIC HEARING on approval of a$1.5 million loan for PDI RECOMMENDATIONS: Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNINQ COMMISSION 1 Has this person/firm ever worked under a wnvact for this department7 CID COMMITTCC Yes No CIVIL SGRVICE COMMI5SION 2. Has this person/firm ever been a city employee7 Yes No 3. Does this person/firm possess a skdl not normally possessed by any wrrent city employee? Yes No Expinin nll yes answers on separate sheet and attach to green sheet INITIATINC PROQLCM, IS9UE, OPPORTUNITY (Who, Whet, When, Where, Why): � The Council approved a Letter of Intent on January 22, 2001, pursuant to which the City agreed to loan $1.5 million to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation of the 400 Robert Street building. ADVANTAGES IF APPROVED: Relocation of approximately 700 PDI employees to downtown St. Paul. The project will assist in the atabilization of downtown office space rents. � •4�# �� '� DISADVANTAGES[�APPROVCD: C� None. �9�� ' �� DISADVANTAGCS IP NOT APPROVED: Jobs will not be relocated to St. Paul. TOTAL AMOUNT OP TRANSACTION: $ 1,500,000 COST/REVENUE BODGETED: �6901 FUNDINGSOURCE: p6-149-76990-0547-68088 �� ACT[VITYNUMBER: FINANCIAL INFORMATION: (GXPLAIN) K:\ShnredU'ed9+RANC1I87\qreanahcoLwpd Council File # �\ - 3\a'1. �� ?' �'' �'�� .f'`�, � _ Resolution # Green sheet # 106938 Presented By SOLUTION C O S NT PA , OTA . 50 Referred To Committee: Date R�SOLUTION AUTHORIZING THE CONTRIBUTION OF FUNDS TO THE Ii�NOVATION OF THE BTJILDING LOCATED AT 400 ROBERT STREET NORTA FOR PERSONNEL DECISIONS INTERNATIONAL PUBLIC HEARING WHER�AS: 10 11 A. The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has 12 previously adopted a redevelopment plan (the "Redevelopment Plan") and a tax increment financing plan (the 13 °TIF Plan") for the central business district of the City of Saint Paul (the "City"). ia 15 B. A major objective of both the Redevelopment Plan and the TIF Plan was to prevent the further t6 deterioration of die land and building stock located within the central business district of the City. 17 t8 C. Consistent with the Redevelopment Plan, on January 22, 2001 the City and Persoimel Decisions 19 International ("PDI") entered into a Memorandum of Intent pursuant to which the City agreed to loan 20 $I,500,000 to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation 2 t of the building located at 400 Robert Street North (the "400 Building") to accomodate the tenancy of PDI (the 22 "Project"), the proposed relocation of PDI's headquarters to the 400 Building, and the initial relocation of 500 23 PDI etnployees and the ultimate relocation of approximately 700 PDI employees to the City. 24 25 D. Pursuant to the terms of that Memorandum of Intent, the City and PDI have negotiated a Loan 2G Agreement (the "conh�act") more fully describing the Project, the City's loan and the parties responsibilities with z7 respectthereto. zs 29 E. Pursuant to the Contract, the Project will result in the renovation ofseven floors in the 400 Building, 30 aC an approximate total cost of $3,000,000, to accommodate a phased relocation of 4Q0 PDI employees to the 31 City by the later of January 31, 2002 or the date which is six months after PDI has been given access to all of the 32 space in the Building to be leased by PDI and relocation of an average of 500 full time employees for the calendar 33 year ending December 31, 2002. 3A 20511G3v1 35 ��-3�� 36 F. Pursuant to the Contract, PDI shall be responsible far the costs of the Project. The City's sole 37 responsibility shall be to contribute funds in the principal amount of $1,500,000 to the payment of Froject costs. 38 39 G. In exchAnge for the City contribution described in the preceding recital, the Contract requires PDI 40 to pay to the City interest at the rate of 8.5% annually beginning December 31, 2002 if PDI has not employed in 41 Yhe City at least a00 full time equivalent employees by the later of January 31, 2002 or the date which is six 42 months 2fter PDI has been given access to all of the space in the Building to be leased by PDI for purposes of 43 completing the Project; an average of 500 full time equivalent employees during the calendar years ending 44 December 31, 2002 and December 31, 2003; and an average of 600 fult time equivalent employees during the 45 calendar years ending December 31, 2004 through December 31, 2011. Any payment which PDI is required to 46 make pursuant to this provision shall be made on December 31 of the year in question. In addition to the annual 47 interest payment described above, PDI will pay the City $1,SQ0,�00 if PDI has not maintained auerage 48 employment in the numbers described in this paragraph for a period of ten years from the completion of the 49 Project. The obligation o£PDI to make these payments will be secured by collateral mutually acceptable to PDI 50 and the City. The obligations of PDI to make these payments will be forgiven if the required employment levels si a�•e maintained. 52 53 II. PDI would not undertake the Project but far the execution of the Contract. 54 55 I. The City Council has conducted a public heazing on the proposed execution ofthe Contract and the 56 business subsidy agreement referred to therein, pursuant to and in accordance with Minnesota Statutes, Sections 5� 116J.994, Subdivision 5(a). 58 59 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 60 G� Section 1, Neeotiation of Loan Agreement. The Contract providing for the Project and the business 62 subsidy described herein and in the presentation to the City Council is hereby approved in substantially the form 63 attached hereto as Exhibit A. City staff is hereby authorized to continue all wark necessary to finalize the 64 Contract and the business subsidy agreement in accordance with the terms of this resolution and the informaYion G5 presented to tl�e City Council at this meeting. 66 67 Section 2. Execution of Loan Agreement. The Director, Planning and Economic Development, and other G8 appropriate officials of the City are hereby authorized to execute the Contract and the business subsidy agreement G9 and any other agreements necessary to consummate the transaction contemplated by the Contract and this 70 Resolution upon being advised by City staff that such Contxact is in finai form. 71 72 73 74 75 7G 77 Section 3. Livin�Waee Requirements. PDI has agreed to comply with the requirements of the City's living wage policy in connection with the Project. Section 4. Pinancin� Source Annroval. The use of Fund 149 in the amount of $1,500,000 to pay Project costs is hereby approved. 2 2051IG3vl 7s 79 80 81 82 83 S4 85 86 87 88 S9 90 91 92 93 94 95 96 97 98 99 100 101 102 103 ]04 l05 106 107 ]OS 109 110 111 Section 5. Budeet Amendment. The City's 2001 Budget is amended as follows: 6 �' 3�a' 112 113 t 14 Approved by the Council: March 28, 2001 1t5 k! 20511G3v1 11G D�-�19- 11� EXHIBIT A iis Loan Agreement Requested by Department of: Adoption Certified by Council Secretary . ��y�/ Approved by Mayor: Da __ G -SE� Planninc & E�onomic Develo ment � ' �'�� Form Appr e Cityi}lttorney _. y, i , i� // � iYC�I Approved by �ar for Submiss}'on to uncil �(�iC.. ///L �� :�� C��INAL 20511G3v1 Adopted by Council: Date �� DEPARTMENT/ORI�'ICC/COUNCIL: DATE INITIATED GREEN SHEET N0.7 106938 O\'�� PED March 21, 2001 CONTACT PCRSON & PI�IONE: INITIA E INITIAL/DATE M2TIE F'f2CIC110tt � 1 DEPARTMENT DIR. 4 CITYCOUNCIL � MUST DE ON COUNCIL ACCNllA BY (llATE) ASSIGN ? CITY ATTORNEY CITY CLERK NUMBER FINANCIAL SERV DIR. � FINANCIAL SERV/ACCTG March 28th FOft 3 MAYOR (OR ASST.) _ CNIL SERVICE ROUTING COMMISSION ORDER TOTAL N OP' SIGNATURC PAGCS �(CLIP ALL LOCATIONS FOR SIGNATURE) ncrioN eEQUesTEn: PUBLIC HEARING on approval of a$1.5 million loan for PDI RECOMMENDATIONS: Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNINQ COMMISSION 1 Has this person/firm ever worked under a wnvact for this department7 CID COMMITTCC Yes No CIVIL SGRVICE COMMI5SION 2. Has this person/firm ever been a city employee7 Yes No 3. Does this person/firm possess a skdl not normally possessed by any wrrent city employee? Yes No Expinin nll yes answers on separate sheet and attach to green sheet INITIATINC PROQLCM, IS9UE, OPPORTUNITY (Who, Whet, When, Where, Why): � The Council approved a Letter of Intent on January 22, 2001, pursuant to which the City agreed to loan $1.5 million to PDI to pay part of the costs to be incurred by PDI in connection with the proposed renovation of the 400 Robert Street building. ADVANTAGES IF APPROVED: Relocation of approximately 700 PDI employees to downtown St. Paul. The project will assist in the atabilization of downtown office space rents. � •4�# �� '� DISADVANTAGES[�APPROVCD: C� None. �9�� ' �� DISADVANTAGCS IP NOT APPROVED: Jobs will not be relocated to St. Paul. TOTAL AMOUNT OP TRANSACTION: $ 1,500,000 COST/REVENUE BODGETED: �6901 FUNDINGSOURCE: p6-149-76990-0547-68088 �� ACT[VITYNUMBER: FINANCIAL INFORMATION: (GXPLAIN) K:\ShnredU'ed9+RANC1I87\qreanahcoLwpd