01-413r
Resolution #
Green Sheet # \c�9 ya
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0
Presented By
Referred To
covncil File #� C\— y��J
Committee: Date
TI� CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Council member
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introduces ttie following resolution and moved its adoption:
RESOLUTION NO.
9 RESOLUTION APPROVING A BUSTNESS SUBSIDY AGREEMENT,
10 ENVIRONMENTAL INDEMNITY AND 30INT PLEDGE AGREEMENT, AND
11 AUTHORTZING OTHER ASSOCIATED DOCUMENTS ALL IN CONNECTION WITH
12 THE U.S. BANK OPERATIONS CENTER TO BE CONSTRUCTED ON THE WEST
13 SIDE FLATS
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WHEREAS, the City of 5aint Paul, Minnesota (the "City") andthe Housing and RedevelopmentAuthorify
of the City of Saint Paul, Minnesota (the "HRA") have been engaged in on-going negotiations with Atlantic
Financial Group, Ltd. (the "Developer") and U.S. Bank, Nafiona7 Association (the "Bank") regarding the lease
by the FIRA to the Bank of an approximately 6 3!4 acre site located in the "west side" of the City, which is bound
by a meandering line approximately 130 to 1601ineal feet south o£ the Mississippi River on the north, Robert
Street on the east, and by planned Fairview and Livingston Streets which aze to be constructed on south and west,
respectively (the 'Bank Project Area") and the construction thereon by the Developer of an office project and
parking facilities (the "Bank Project"), all as more fully described in the Redevelopment Agreement (the
"Redevelopment Agreement") to be entered into among the HRA, the Developer and the Bank; and
WHEREAS, the Bank Project Area is in the City's 1987 Riverfront Redevelopment Project Area and
Riverfront Redevelopment Plan (the "Redevelapment Plan"), as amended, and is included in the Tax Increment
Financing Plan for the Riverfront Renaissance Tax Increment' Financing District (the "TIF Plan"), a
redevelopment district as authorized by Minnesota Statutes, Section 469.174, Subdivision 10; and
0 WHEREAS, the Bank Project Area currently consists of improved parcels which aze in the city's 100-year
1 flood plain and are contatninated by industrial pollutants, and will require extensive preparation and remediarion
2 prior to redevelopment, including but not limited to removal of buried structures and debris, removal of
3 contauiniated soil, filling, grading, piling and compacting of the site; and
WI3EREAS, pursuant to the Redevelopment Agreement, it is anticipated that the HRA will issue tax
� increment bonds and notes (the "TIF Financing") to fmance, in part, the costs to be incurred by the Developer
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3fi in the remediation of the Bank Project Site, the prepazation of tkie Bank Project Site for construction of the Bank
38 Project, and certain other public redevelopment costs and that taY increments collected form the Bank Project
39 Area and the Bank Project wiii be pledged to the payment of the TIF Financing pursuant to a JoSnt Pledge
40 A�eement (the "Pledge Agreement") from the City and the HRA; and
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WF�REAS, as a condirion to the issuance of the TIF financing and the lease of the Bank Project Area
to the Bank the I3RA wili requite the Bank to sign a Business Subsidy Agreement (the "Business Subsidy
Agreement") in the form attached to the Redevelopment Aa eement, setting forth certain wage and job goals for
the Bank Project; and
WI�REAS, as a condifion to the construction of the Bank Project, the Bank and the Developer have
requited that the City agree to (a) apply to the Mimiesota Department of Trade and Economic Development
("DTED") Contamination C1ean up Grant Program for grant funds to be applied to the remediation of the Bank
Project Area and (b) execute an Environmental Indemniry in fauor of the Developer and the Bank (the
"Environmental Indemnity"); and
WI-IEREAS, the City has determined that the redevelopment of the Bank Project Area and the
conshucfion of the Bank Project thereon, is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paui, Minnesota as
foliows:
59 1. The Council hereby approves the terms and conditions of the Susiness Subsidy Agreement, the
60 Environmental Indemnity and the Pledge Agreement (collectively, the "Agreements") in substantially the forms
61 submitted, and authorizes the Mayor and other appropriate officials of the City to execute the Agreements. The
62 Agreements shall be executed 'an substantially the form submitted, with such changes therein as may be deemed
63 necessary or desirable by City staff and counsel to the City to complete information, correct or clarify the
64 language thereof, or to make such changes as will best effectuate the intent thereof. In the absence of any of the
65 authorized signatories, lus or her designee shall execute the Agreements in his place with the same force and
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effect.
2. Once the agreements have been executed and delivered, the Council delegates the authority to
approve, execute and deliver future amendments to the Ap eements in connecrion with the transactions
70 contemplated thereby to the Execufive I}irector the City's Department of Planning and Economic Development,
71 provided that such amendments do not materially adversely affect the interests of the City and are acceptable in
72 the form and substance to the City Attorney, or other counsel retained by the City to review such documents.
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74 3. All documents, instruments, certificates and other items necessary to implement the Agreements
75 shall be executed by the Executive Director the City's Depariment of Flatming and Economic Development upon
76 approval of the form thereof by the o� ce of the City Attorney.
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'8 Approved by the Council: April 25, 2001
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2070627v1
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Adoption Certi
By:
Approved by Ma
Hy:
2�7Q627v
Requested by Department oE:
Plannin & Economic De elo ment
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By:
Approved by Financial Services
By:
Foxm Appraved
���b�
£ied by Council Secretary
_V� � � BY:
yor: Date / Approved by Mayor r Submissi o ouncil
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� 1 $Y°
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Adopted by Council: ➢ate Q O O
DEPARTMENT/OFFICElC9UMCII.: DATE IlYITTATED GREEN SHEET No.:106942 o�.y��
PED Apri116, 2001
CONTACl' PERSON & PHONE: � 1�7T1AL/DATE INPI7AGDATE
Marie Franchett 266-6702 z D�enxTn�x r n� s ci�covrrcn.
MI7ST BE ON COUNCII. AGENDA BY (DATE) �IGN ? CITY ATI'ORNEY� _ CITY CLERK
IVIrMgC g 4 FINAt3CIAL SERV DIR. FSNAISCiAL SERVfACCTG
APL1I ZS�Il FOR
ROUTING 5 MAYOR (OR ASST.) _ CML SERVICE CONA�IISSION
ORDER
TOTAL # OF SIGNA'1'URE PAGES _(CLIP ALL LOCATIONS FOR SIC.IN.4TORE)
acr[ox �QirFS►•En: Resolution approving a business subsidy agreement, environmental indemnity, a joint pledge
agreement, and authorizing other documents in connection with the U.S. Bank project.
RECO1vIIvIENDA7TONS: Approve (A) or Rejec[ (A) PERSONAI, SERVICE CONTRA("fS M[JST AIVSWER TfiE FOLLOWING
QUESTIONS:
PLANNING COMNIISSION 1. Has this peison/ficm ever worked under a contract for this department7
CIB COMbIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has fl�is person/fum ever been a ciry employee?
Yes No
3 Does [h�s person/firm possess a skill not normally possessed by any current ciTy employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
IN177A1'ING PROBLEM, LSSUE, OPPORTONITY (Who, What, When, Where, Why):
On July 26, 2000, the f1RA authorized execufion of a Memo of Understanding for the US Bank project. The
Memo of Understanding called for providing tas increment fmancing for the US Bank project.
ADVANTAGESIFAPPROVED: �
Construction of 350,000 sq.ft. of office building space, as the first phase of a mixed-use urban village development
for the west side flats azea. Consolidation of approximately 2,150 US Bank employees at this location.
DISADVAN'I'AGES IF APPROVED:
None.
DISADVA,NTAGES IF NOT APPROVED:
The project will not move forwazd.
TOTAL AMO[1NT OF'CRANSACTION: $46,732,512 COSTBEVENUE BUDGETED:
FONDING SOURCE: Riverfrout Renaissance TIF 1 �
ACTIVITY NUMBER: �� Ll " 1�O� � • �-L�. L' O f�CF� NQ� - Ll3 r "r � f2r'[
FIlVANCIALINFORMA110N:(EXPLAliV) ���' �hLrP'G'clnev�"F ! h� T ��-Y� l�
Issuance of TIF Revenue bond5 and residual pay as you go note. Bonds will be $15,75Q000.
,itc 1-Fe4 Skc�:� vt�r�1 �� {�vtl dr.���S
K \Sba��PeA�FRRANCHE11USCOUVCilresotif.wpd
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Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
CERTIFICATE OF RECORDING SECRETARY
The undersigned hereby certifies as foliows:
That she is the duly appointed, qualified Assistant Secretary of the
Housing and Redevelopment Authority of the City of Saint Paui,
Minnesota, herein called the "Locai Pubiic Agency"; �
2. That the attached RESOLUTION NO. 01-3l28-10 is a true and correct
copy of the resolution as adopted on the 28th day of March, 2001;
3. That the seal affxed below constitutes the official seal of the Local
Public Agency and this Certificate is hereby executed under such
of;iciai seai; and
4. That the undersigned is duly authorized to execute this Certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and the seai of the said Housing and
Redevelopment Authority of the City of Saint Paui, Minnesota, this 30th day of March, 2001.
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Ass stant Secretary
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spo�,sored Uy:
Commissioner Colematt
I-IOUSING AIv'D R�DEVELOPVIE�IT AUT�-IORITY OF
TI-I� CITY OP SAINT PAUL
RAMSEY COUNTY
STATE OF MII�R�ESOTA
RrSQLLiTIOi�' 1�Q. 01-3(2S-10
R�SOLUTIO\' �STABLISHIhG TH� RIVERFRONT
RE�ATSSAi�'C� TAX I\'Cl2�ME\T FI\'An`CI\G DISTRICT
Ai�'D ADOPTI\G THE TA7i I\Cl2L'nZEi�T PLAi\'
TFI�REFOIL�
I �VI-IEF.EAS, it has 6een proposed that the Board of Commissioners (the "Board").of the
2 I-Iousin� and Redzvelopment Authority (thz "HRA") for the City of Saint Pzul (the "City ") adopt
3 the ta� increment financin� plan (the "Plan") for and establish the Ri��erfront Renaissance T1�
4 Increntent Pivancina District, all pt�rsuant to liid in conformitp �ti�ith esistino law, includin�
5 ivfinnesota Statutes, Section 469.174 to 4G9.179, inclusicz, as lmended, al! as reflected in the Plan
6 and presented for the Board�s considzration; and
S ��'HEP`EAS, the HRt\ has investi�a[ed the facts relatin� to thz estabfishmznt of the
9 Riverfront Renaissance Ta� Increment Financin� District, and has caused th: Plan to be prepared;
10 and
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12 lVHEREAS, the proposed de�'elopment 1s desctibed in the P1an, in the opinion of the HRA,
13 ��•ould not reasonably be expected to occur solely through private im•estment within the reasonable
14 foreseeable future, and, therefore, the use of tas increment financin� is deemed necessary; and
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�VHEREAS, the HRA has performed all �ctions required b}• la�ti• to bz performed prior to the
fldoption of the Plan, but no[ limited to, notification of Ramsey Count}' and School District No. 62>�
havinQ taxiiig jurisdiction over the property to be included in Riverfront Renaissance Tax Increment
Financin� District, a request for revie��� of and tivritten conunent on the Plan by the City Plannin�
Commission, and a request that the Council schedule a public hearin� on the Plan upon published
notice as required by la�v.
23 1�TOR', THEREFOIZE, BE IT RESOLVED bp the Board as follo���s:
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The HRA hereby� finds that the creation of the Riverfront Renaissance Tar Increment
26 Financin� District is in the public interest and is a"redeveiopment aistricr unaer rviinn�s��n
27 Statutzs, Section 469.174, subdi��ision 10; and has set forth the reasons and supporting facts for its
28 determination in «Titino, attached hereto as E�hibit A.
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30 2. Conditioned upon the approval tliereof by the City Council follot�'in� its public
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31 hearin� tl�ereon, the Plan, as presented to the HRt1 on this date, and ��•hich is attached to and made
32 1 part of tl�is resolution, is hereby approved, established and adopted and shall be placed on file in
33 the oftice of the City Administrator.
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35 3. Upon approval of the Plan by the City Council, the staff, the HRA's advisors and
36 legal cotmsel are authorized and directed to proceed with the impiementation of the Plan and for this
37 purpose to nepotiate, draft, prepare and present to this Board for its consideration all fi�rther plans,
;S re;olutions, CIOCll411CI11S �111C1 CORtC8Cl5 IlCCCSSfli} for this pur�ose. Appro�al of the Plan dnes no!
39 constitute appro��al of any pro}ect or a Development A�reement «�ith anp de�•eloper.
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4. Upon approval of the Plan by the City Council, the HRt1 Dirzctor is authorized to
forGG•�rd copies of the Plan to the Ramsey Cotmty Auditor flnd the MinnesotaDepartment of Revemie
pursuant to Minnesotl Statutes 469.17�, subdivision 2.
Approved by the Board of Commissioners of the Housin� and Redeti•zlapment Authority of
tlie City of St. Paul this 2Sth da}' of b4arch, 2000, '
I9630i3v1 . 2
o�-�li�
EXHIBIT A
TO
RESOLUTION NO. 01-3125- �p
The reasons and facts supporting the findings for the adoption oftlie Ri�•erfront Renaissance
Taz Increment Finlncin� District (the "Tax Inaement Districc") as required pursuan[ to Minnesota
Statutcs, Sectiai 4G9.17�, Subdi�•ision 3:
Finding tirrtt tlee Disirict is a"rerlevelop»tent dislricL"
This Tax Increment District qualifies 1s a rzde��elopmznt district because the followin�
conditions exist — in a manner reasonablq distributed throu�hout the district: parcels
consisting of 70 percent ofthe area of the district are occupied by bui(din�s, streets, utilities,
or other improvements and more than 50 percent of the buildin�s, not includin� outbuildings,
1re stnicturally substandard to a d�gree requirin� substantial reno�'ation or clearance,ls mare
fiilly described belou•:
A. The Project is in the P.iverfront Redevelopment Project Arza established by the
Housin, and Redeeelopmen[ Authority of thz City ofSaint P1ul, ��fiose boundaries �re larger
than the boundaries of the Tax Increment District.
B. Thz Ta� Increment District consists of 69 contiguous parcels and other public right-
of-wap that consist of 4,4�4,617 square fezt.
C. Prior to the creation of the Tas Increment District, parcels constitutin� 4,330,345
square feet -- 97 ? 1%-- of the area of the Ta� Increment District « occupied (at least I S%
co�•ered) by buildinas, streets, utilities, or other impro�'ements (collecti�•el}�
"Improvements"). The Impro�•ements «'ere reasonabl}' distributzd throughout the Ta�
Increment District.
D. Prior to its creation, tl�e Ta� Ineremznt District cantained ele��en total buildings. Of
these eleven buildin�s, the followin� nine «�ere structurally substandard:
1. 63 South Robert Street
2. 19� South Robert Street
3. 0 South Robert Street
4. 60 East Plato Boule<<ard
5. 1 �Vater Street Nest
6. 266 Shepard Road
7. 41 ChicaQo Avemie East
8. 34 East Fillmore A�•enue
9. 162 ��'abasha Street South
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"Structuralty substandard" is understood to mcan con[ainin� defects in stiuctural elements
or 1 combination ofdeficiencics in essential utilities a�id facilities, in li�ht and centilation,
fire protection includin� adequate egress, la}•otd flnd condition of interior partitions, or
similar factors, ���hich defects or deficiencies arz of suf6cient total si�niFicancz to juscif}�
substantial renovation or clearance.
2. Pi�trlistg thrrt tlte praposed developmeuf ivo:ilrt t:ot rensos:nbli� be expected to occtrr sofels•
f6ro u� k I�rivr.l:� rn sz:s[rxerif x�it(t in flrc rensonnGl�•jnresc�r��rh/efulure anrt IGnt tlre increosed
rxrr�•hef value oJtlte site thal can reaso�rablr be e.rpecfed in nccur iritleout ilre use of inx
increment finaacin,; ivoald Ge less t(tcut ilre ifurease in fhe ��mrket v�rlr�e estin:rrled io
resullfi•ant tlrc� praposed developnrer:t afterstrbtr•trcting tlee presenf i•altie of ihe projecferf
trtx i�icrements for 1Le nmxitx�un dtn•t�tio�t of the tlislrict pernritted by t/ee plau.
Due to thz hi�li cost of development on the parcels includine the cost of land lcquisition,
demofition and rehabilitation oFsubstandard structures, soil coirzction, flood remediation,
pollution abatzment, le�al costs associated with titlz «•or�, constructing neti�• public
infrastructure, constructin, parkin� facilities, and financin, tl�e proposed improvements, this
project is feasible onl}' tluou�h assistance, in part, from tax increment fiiiancin;.
A contparative analysis of estimatzd market �•alues both �cith and �ci�hout establishment of
the Ri�•erfront P.enaissancz Tax Incremen[ Financin� Dis?rict and the use of tax iucrements
has been performed as described lbove. If al! deretopmznt �ehich is proposed to assist �vith
ta� increment �ces•e co occuc in the P.i��erfront Renaissance Site, the total increased market
��alue ��•ould be up to �170,S7�,000. It is thz HRA's findinR that there �could be no
sienificant increase in the base snnrket value expected to occur ��'ithin 2� y�ears ��'ithout the
use of tax incremznt financin�. This finding is based upon er•idence from general past
eaperience ���ith the hi�h cost of pro�•idin� public impro�'einents in the general area of this
District.
3. Fitidirig tkat flte Riverfratt Reiraissm�ce Trr.r Incremeat Fi�rrurciitg District ca jorn:s to
!ke ge�rerrt! pla�t for tlte develop»�enf or rerlere(optrten( of ilae nuu�icipality rts a wlzole.
The Ri�•erfront Renaissance Tat Increment Financin� Plan has been re<<ien•ed by the HRA
and has been found to conform to the general development and redzti�elopment plan of the
City. Tlie plan conforms to the 1937 Riverfi•ont RedeYelopment Project flren as amended
in 2000. The plan also conforms to the Saint Pcad on the bfississippi Derelopnrent
Fr•a+nefrol•k, «'hich ���as adopted in 1997, the tiUest Side Flats De�'elopment Strate�}', whicli
was adopted in 2001 and the Upper Landing Urban DesiQn Mastec Plan, �vhich �vas adopted
in 2001.
Q, FlilflJti� tltctt Ute fa.r iacreruettt fiaa�tcing plan r��il! tt jjord mn.citnuf�: opportunit})
consistent rcith tbe soar�d rieeds of the conrt�:rrnity ns n ivhoJe, for fl:e derelopment or
rerle�•elop�rtent vf fGe�r•ojecl b}� prirafe er�t�rprise.
1979233�'1 A-4
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Private enterprise ��•ill buiid and occupy the facilities proposed to be constnicted as part of
tlie Tax Increment Financina Plan.
5. I'ittdi�zg tlzaf the tr:ttt:icipnlify elncts fhe »:ethorl of tax ittcreft:es�t corripttfafiort seffortlt iti
Secfiot:469.Z77, Sr�bdivision 3, clnrtse (a).
The HRA and the City have elected to compute the fiscal disparities contribucion for the
Disiricc in accoida�re «itl� Scctio�; hG9.i 77, S,iUdi��ision 3, clausc (� �. I Ili7 C8i)1l1fCi� 11Ci t ��
capacit}� of the District ��•ill not be reduczd in order to ma.l a fiscal disparities contribution.
1979233vt
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�E
DS
Side
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. G�ant_(Sp_cify')
O;h>r Funds to be
: Private Financing_
PROJECTED
' �USES OF�UNDS
Pubiic Park Faciiities
Sociai, Recreafional
Interest Reduction Payments
TIF Bond ! Note Principat Paymenh
� TIF Bond Note interest Pavments
Administrati Costs
Pollution Abatement
�er Uses £
Municipal t
Low / Modf
USES
Drake
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Side
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TAXINC ` (i)
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�Affoldahle �TotalSources
Housing � �,____
569 0 160,775,3a6
0 p� p
000 - 0 50,584,800
�6� 0� 6,000,000
D 0' 0
0 Oi G
0 Oi G
OOJ --- O' 6.05� OC:,
25, 000, 000 ( 25,ODO,�GO
000 0� � �54,337,10�
-- --j i C
� 0 i c
� e
569 25 000 0 0 402,587.25Q �
'Affordable Totai Uses
iHousin
000� 5,000,000 � 6,357,000
000 p �,555,000
0 0 �200,006
�QO 0 26,415,552
000 0: . 2,2i0.00C
0 0 � I 300.OU?
--- o ' e
o' c
000 0; { SO,SB:,BCJ
000 0; 66,8t'o,9o':
000 0 6,00O,OOQ
41d 0 1.983.47c
000 0 t4.319,6<3
000 0: � 54,375,00'v
000 0 � 552.00G
000 0; S,OOO,OOG
,151 0 7,572,075
' 0 G
0 0 � 1,277.6C'v
,000� 16,250,000' 22,750,OOu
Q. 0 2,729,SOG
0' 3,750,000 i 7,459,167
� 0� 0
; I c
i � �
Totai Uses i 22,635,955 � 101,87A,728 253,070,So9 25,000,000 � 402,5£
Sources overUses ! 0� 0 0. 0'
t) Other numbers represented in the Pian will be adjusted to reFlect this Sources and Uses
?)Estimated S5.5 million pay-as-you-go note vdil be issued for the West Side Flats Corporate Campus for a total523,255,000 in bonds and notes
Estimated S15 million pay-as-you-go note wili be issued for the Upper Landing Project (or a totzl of 545,000,000 in bonds and notes
n2 � 03f2812001 �
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Resolution #
Green Sheet # \c�9 ya
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Presented By
Referred To
covncil File #� C\— y��J
Committee: Date
TI� CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Council member
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introduces ttie following resolution and moved its adoption:
RESOLUTION NO.
9 RESOLUTION APPROVING A BUSTNESS SUBSIDY AGREEMENT,
10 ENVIRONMENTAL INDEMNITY AND 30INT PLEDGE AGREEMENT, AND
11 AUTHORTZING OTHER ASSOCIATED DOCUMENTS ALL IN CONNECTION WITH
12 THE U.S. BANK OPERATIONS CENTER TO BE CONSTRUCTED ON THE WEST
13 SIDE FLATS
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WHEREAS, the City of 5aint Paul, Minnesota (the "City") andthe Housing and RedevelopmentAuthorify
of the City of Saint Paul, Minnesota (the "HRA") have been engaged in on-going negotiations with Atlantic
Financial Group, Ltd. (the "Developer") and U.S. Bank, Nafiona7 Association (the "Bank") regarding the lease
by the FIRA to the Bank of an approximately 6 3!4 acre site located in the "west side" of the City, which is bound
by a meandering line approximately 130 to 1601ineal feet south o£ the Mississippi River on the north, Robert
Street on the east, and by planned Fairview and Livingston Streets which aze to be constructed on south and west,
respectively (the 'Bank Project Area") and the construction thereon by the Developer of an office project and
parking facilities (the "Bank Project"), all as more fully described in the Redevelopment Agreement (the
"Redevelopment Agreement") to be entered into among the HRA, the Developer and the Bank; and
WHEREAS, the Bank Project Area is in the City's 1987 Riverfront Redevelopment Project Area and
Riverfront Redevelopment Plan (the "Redevelapment Plan"), as amended, and is included in the Tax Increment
Financing Plan for the Riverfront Renaissance Tax Increment' Financing District (the "TIF Plan"), a
redevelopment district as authorized by Minnesota Statutes, Section 469.174, Subdivision 10; and
0 WHEREAS, the Bank Project Area currently consists of improved parcels which aze in the city's 100-year
1 flood plain and are contatninated by industrial pollutants, and will require extensive preparation and remediarion
2 prior to redevelopment, including but not limited to removal of buried structures and debris, removal of
3 contauiniated soil, filling, grading, piling and compacting of the site; and
WI3EREAS, pursuant to the Redevelopment Agreement, it is anticipated that the HRA will issue tax
� increment bonds and notes (the "TIF Financing") to fmance, in part, the costs to be incurred by the Developer
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zo�o6z��i
• ' 4t-'�113
3fi in the remediation of the Bank Project Site, the prepazation of tkie Bank Project Site for construction of the Bank
38 Project, and certain other public redevelopment costs and that taY increments collected form the Bank Project
39 Area and the Bank Project wiii be pledged to the payment of the TIF Financing pursuant to a JoSnt Pledge
40 A�eement (the "Pledge Agreement") from the City and the HRA; and
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WF�REAS, as a condirion to the issuance of the TIF financing and the lease of the Bank Project Area
to the Bank the I3RA wili requite the Bank to sign a Business Subsidy Agreement (the "Business Subsidy
Agreement") in the form attached to the Redevelopment Aa eement, setting forth certain wage and job goals for
the Bank Project; and
WI�REAS, as a condifion to the construction of the Bank Project, the Bank and the Developer have
requited that the City agree to (a) apply to the Mimiesota Department of Trade and Economic Development
("DTED") Contamination C1ean up Grant Program for grant funds to be applied to the remediation of the Bank
Project Area and (b) execute an Environmental Indemniry in fauor of the Developer and the Bank (the
"Environmental Indemnity"); and
WI-IEREAS, the City has determined that the redevelopment of the Bank Project Area and the
conshucfion of the Bank Project thereon, is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paui, Minnesota as
foliows:
59 1. The Council hereby approves the terms and conditions of the Susiness Subsidy Agreement, the
60 Environmental Indemnity and the Pledge Agreement (collectively, the "Agreements") in substantially the forms
61 submitted, and authorizes the Mayor and other appropriate officials of the City to execute the Agreements. The
62 Agreements shall be executed 'an substantially the form submitted, with such changes therein as may be deemed
63 necessary or desirable by City staff and counsel to the City to complete information, correct or clarify the
64 language thereof, or to make such changes as will best effectuate the intent thereof. In the absence of any of the
65 authorized signatories, lus or her designee shall execute the Agreements in his place with the same force and
66
67
68
69
effect.
2. Once the agreements have been executed and delivered, the Council delegates the authority to
approve, execute and deliver future amendments to the Ap eements in connecrion with the transactions
70 contemplated thereby to the Execufive I}irector the City's Department of Planning and Economic Development,
71 provided that such amendments do not materially adversely affect the interests of the City and are acceptable in
72 the form and substance to the City Attorney, or other counsel retained by the City to review such documents.
73
74 3. All documents, instruments, certificates and other items necessary to implement the Agreements
75 shall be executed by the Executive Director the City's Depariment of Flatming and Economic Development upon
76 approval of the form thereof by the o� ce of the City Attorney.
��
'8 Approved by the Council: April 25, 2001
'9
2070627v1
o�-�t�
Adoption Certi
By:
Approved by Ma
Hy:
2�7Q627v
Requested by Department oE:
Plannin & Economic De elo ment
r
By:
Approved by Financial Services
By:
Foxm Appraved
���b�
£ied by Council Secretary
_V� � � BY:
yor: Date / Approved by Mayor r Submissi o ouncil
! �
� 1 $Y°
1
� '
Adopted by Council: ➢ate Q O O
DEPARTMENT/OFFICElC9UMCII.: DATE IlYITTATED GREEN SHEET No.:106942 o�.y��
PED Apri116, 2001
CONTACl' PERSON & PHONE: � 1�7T1AL/DATE INPI7AGDATE
Marie Franchett 266-6702 z D�enxTn�x r n� s ci�covrrcn.
MI7ST BE ON COUNCII. AGENDA BY (DATE) �IGN ? CITY ATI'ORNEY� _ CITY CLERK
IVIrMgC g 4 FINAt3CIAL SERV DIR. FSNAISCiAL SERVfACCTG
APL1I ZS�Il FOR
ROUTING 5 MAYOR (OR ASST.) _ CML SERVICE CONA�IISSION
ORDER
TOTAL # OF SIGNA'1'URE PAGES _(CLIP ALL LOCATIONS FOR SIC.IN.4TORE)
acr[ox �QirFS►•En: Resolution approving a business subsidy agreement, environmental indemnity, a joint pledge
agreement, and authorizing other documents in connection with the U.S. Bank project.
RECO1vIIvIENDA7TONS: Approve (A) or Rejec[ (A) PERSONAI, SERVICE CONTRA("fS M[JST AIVSWER TfiE FOLLOWING
QUESTIONS:
PLANNING COMNIISSION 1. Has this peison/ficm ever worked under a contract for this department7
CIB COMbIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has fl�is person/fum ever been a ciry employee?
Yes No
3 Does [h�s person/firm possess a skill not normally possessed by any current ciTy employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
IN177A1'ING PROBLEM, LSSUE, OPPORTONITY (Who, What, When, Where, Why):
On July 26, 2000, the f1RA authorized execufion of a Memo of Understanding for the US Bank project. The
Memo of Understanding called for providing tas increment fmancing for the US Bank project.
ADVANTAGESIFAPPROVED: �
Construction of 350,000 sq.ft. of office building space, as the first phase of a mixed-use urban village development
for the west side flats azea. Consolidation of approximately 2,150 US Bank employees at this location.
DISADVAN'I'AGES IF APPROVED:
None.
DISADVA,NTAGES IF NOT APPROVED:
The project will not move forwazd.
TOTAL AMO[1NT OF'CRANSACTION: $46,732,512 COSTBEVENUE BUDGETED:
FONDING SOURCE: Riverfrout Renaissance TIF 1 �
ACTIVITY NUMBER: �� Ll " 1�O� � • �-L�. L' O f�CF� NQ� - Ll3 r "r � f2r'[
FIlVANCIALINFORMA110N:(EXPLAliV) ���' �hLrP'G'clnev�"F ! h� T ��-Y� l�
Issuance of TIF Revenue bond5 and residual pay as you go note. Bonds will be $15,75Q000.
,itc 1-Fe4 Skc�:� vt�r�1 �� {�vtl dr.���S
K \Sba��PeA�FRRANCHE11USCOUVCilresotif.wpd
.� -
a! -4i�
Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
CERTIFICATE OF RECORDING SECRETARY
The undersigned hereby certifies as foliows:
That she is the duly appointed, qualified Assistant Secretary of the
Housing and Redevelopment Authority of the City of Saint Paui,
Minnesota, herein called the "Locai Pubiic Agency"; �
2. That the attached RESOLUTION NO. 01-3l28-10 is a true and correct
copy of the resolution as adopted on the 28th day of March, 2001;
3. That the seal affxed below constitutes the official seal of the Local
Public Agency and this Certificate is hereby executed under such
of;iciai seai; and
4. That the undersigned is duly authorized to execute this Certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and the seai of the said Housing and
Redevelopment Authority of the City of Saint Paui, Minnesota, this 30th day of March, 2001.
�
� "
,� �i "(�L�- f y 1
Ass stant Secretary
a►-4�3
spo�,sored Uy:
Commissioner Colematt
I-IOUSING AIv'D R�DEVELOPVIE�IT AUT�-IORITY OF
TI-I� CITY OP SAINT PAUL
RAMSEY COUNTY
STATE OF MII�R�ESOTA
RrSQLLiTIOi�' 1�Q. 01-3(2S-10
R�SOLUTIO\' �STABLISHIhG TH� RIVERFRONT
RE�ATSSAi�'C� TAX I\'Cl2�ME\T FI\'An`CI\G DISTRICT
Ai�'D ADOPTI\G THE TA7i I\Cl2L'nZEi�T PLAi\'
TFI�REFOIL�
I �VI-IEF.EAS, it has 6een proposed that the Board of Commissioners (the "Board").of the
2 I-Iousin� and Redzvelopment Authority (thz "HRA") for the City of Saint Pzul (the "City ") adopt
3 the ta� increment financin� plan (the "Plan") for and establish the Ri��erfront Renaissance T1�
4 Increntent Pivancina District, all pt�rsuant to liid in conformitp �ti�ith esistino law, includin�
5 ivfinnesota Statutes, Section 469.174 to 4G9.179, inclusicz, as lmended, al! as reflected in the Plan
6 and presented for the Board�s considzration; and
S ��'HEP`EAS, the HRt\ has investi�a[ed the facts relatin� to thz estabfishmznt of the
9 Riverfront Renaissance Ta� Increment Financin� District, and has caused th: Plan to be prepared;
10 and
11
12 lVHEREAS, the proposed de�'elopment 1s desctibed in the P1an, in the opinion of the HRA,
13 ��•ould not reasonably be expected to occur solely through private im•estment within the reasonable
14 foreseeable future, and, therefore, the use of tas increment financin� is deemed necessary; and
15
16
17
is
19
20
21
��
�VHEREAS, the HRA has performed all �ctions required b}• la�ti• to bz performed prior to the
fldoption of the Plan, but no[ limited to, notification of Ramsey Count}' and School District No. 62>�
havinQ taxiiig jurisdiction over the property to be included in Riverfront Renaissance Tax Increment
Financin� District, a request for revie��� of and tivritten conunent on the Plan by the City Plannin�
Commission, and a request that the Council schedule a public hearin� on the Plan upon published
notice as required by la�v.
23 1�TOR', THEREFOIZE, BE IT RESOLVED bp the Board as follo���s:
24
?5
The HRA hereby� finds that the creation of the Riverfront Renaissance Tar Increment
26 Financin� District is in the public interest and is a"redeveiopment aistricr unaer rviinn�s��n
27 Statutzs, Section 469.174, subdi��ision 10; and has set forth the reasons and supporting facts for its
28 determination in «Titino, attached hereto as E�hibit A.
?9
30 2. Conditioned upon the approval tliereof by the City Council follot�'in� its public
(9630i3et
o1-y�o
31 hearin� tl�ereon, the Plan, as presented to the HRt1 on this date, and ��•hich is attached to and made
32 1 part of tl�is resolution, is hereby approved, established and adopted and shall be placed on file in
33 the oftice of the City Administrator.
34
35 3. Upon approval of the Plan by the City Council, the staff, the HRA's advisors and
36 legal cotmsel are authorized and directed to proceed with the impiementation of the Plan and for this
37 purpose to nepotiate, draft, prepare and present to this Board for its consideration all fi�rther plans,
;S re;olutions, CIOCll411CI11S �111C1 CORtC8Cl5 IlCCCSSfli} for this pur�ose. Appro�al of the Plan dnes no!
39 constitute appro��al of any pro}ect or a Development A�reement «�ith anp de�•eloper.
40
41
42
43
4 �1
4�
4G
47
4. Upon approval of the Plan by the City Council, the HRt1 Dirzctor is authorized to
forGG•�rd copies of the Plan to the Ramsey Cotmty Auditor flnd the MinnesotaDepartment of Revemie
pursuant to Minnesotl Statutes 469.17�, subdivision 2.
Approved by the Board of Commissioners of the Housin� and Redeti•zlapment Authority of
tlie City of St. Paul this 2Sth da}' of b4arch, 2000, '
I9630i3v1 . 2
o�-�li�
EXHIBIT A
TO
RESOLUTION NO. 01-3125- �p
The reasons and facts supporting the findings for the adoption oftlie Ri�•erfront Renaissance
Taz Increment Finlncin� District (the "Tax Inaement Districc") as required pursuan[ to Minnesota
Statutcs, Sectiai 4G9.17�, Subdi�•ision 3:
Finding tirrtt tlee Disirict is a"rerlevelop»tent dislricL"
This Tax Increment District qualifies 1s a rzde��elopmznt district because the followin�
conditions exist — in a manner reasonablq distributed throu�hout the district: parcels
consisting of 70 percent ofthe area of the district are occupied by bui(din�s, streets, utilities,
or other improvements and more than 50 percent of the buildin�s, not includin� outbuildings,
1re stnicturally substandard to a d�gree requirin� substantial reno�'ation or clearance,ls mare
fiilly described belou•:
A. The Project is in the P.iverfront Redevelopment Project Arza established by the
Housin, and Redeeelopmen[ Authority of thz City ofSaint P1ul, ��fiose boundaries �re larger
than the boundaries of the Tax Increment District.
B. Thz Ta� Increment District consists of 69 contiguous parcels and other public right-
of-wap that consist of 4,4�4,617 square fezt.
C. Prior to the creation of the Tas Increment District, parcels constitutin� 4,330,345
square feet -- 97 ? 1%-- of the area of the Ta� Increment District « occupied (at least I S%
co�•ered) by buildinas, streets, utilities, or other impro�'ements (collecti�•el}�
"Improvements"). The Impro�•ements «'ere reasonabl}' distributzd throughout the Ta�
Increment District.
D. Prior to its creation, tl�e Ta� Ineremznt District cantained ele��en total buildings. Of
these eleven buildin�s, the followin� nine «�ere structurally substandard:
1. 63 South Robert Street
2. 19� South Robert Street
3. 0 South Robert Street
4. 60 East Plato Boule<<ard
5. 1 �Vater Street Nest
6. 266 Shepard Road
7. 41 ChicaQo Avemie East
8. 34 East Fillmore A�•enue
9. 162 ��'abasha Street South
vl� �!3
"Structuralty substandard" is understood to mcan con[ainin� defects in stiuctural elements
or 1 combination ofdeficiencics in essential utilities a�id facilities, in li�ht and centilation,
fire protection includin� adequate egress, la}•otd flnd condition of interior partitions, or
similar factors, ���hich defects or deficiencies arz of suf6cient total si�niFicancz to juscif}�
substantial renovation or clearance.
2. Pi�trlistg thrrt tlte praposed developmeuf ivo:ilrt t:ot rensos:nbli� be expected to occtrr sofels•
f6ro u� k I�rivr.l:� rn sz:s[rxerif x�it(t in flrc rensonnGl�•jnresc�r��rh/efulure anrt IGnt tlre increosed
rxrr�•hef value oJtlte site thal can reaso�rablr be e.rpecfed in nccur iritleout ilre use of inx
increment finaacin,; ivoald Ge less t(tcut ilre ifurease in fhe ��mrket v�rlr�e estin:rrled io
resullfi•ant tlrc� praposed developnrer:t afterstrbtr•trcting tlee presenf i•altie of ihe projecferf
trtx i�icrements for 1Le nmxitx�un dtn•t�tio�t of the tlislrict pernritted by t/ee plau.
Due to thz hi�li cost of development on the parcels includine the cost of land lcquisition,
demofition and rehabilitation oFsubstandard structures, soil coirzction, flood remediation,
pollution abatzment, le�al costs associated with titlz «•or�, constructing neti�• public
infrastructure, constructin, parkin� facilities, and financin, tl�e proposed improvements, this
project is feasible onl}' tluou�h assistance, in part, from tax increment fiiiancin;.
A contparative analysis of estimatzd market �•alues both �cith and �ci�hout establishment of
the Ri�•erfront P.enaissancz Tax Incremen[ Financin� Dis?rict and the use of tax iucrements
has been performed as described lbove. If al! deretopmznt �ehich is proposed to assist �vith
ta� increment �ces•e co occuc in the P.i��erfront Renaissance Site, the total increased market
��alue ��•ould be up to �170,S7�,000. It is thz HRA's findinR that there �could be no
sienificant increase in the base snnrket value expected to occur ��'ithin 2� y�ears ��'ithout the
use of tax incremznt financin�. This finding is based upon er•idence from general past
eaperience ���ith the hi�h cost of pro�•idin� public impro�'einents in the general area of this
District.
3. Fitidirig tkat flte Riverfratt Reiraissm�ce Trr.r Incremeat Fi�rrurciitg District ca jorn:s to
!ke ge�rerrt! pla�t for tlte develop»�enf or rerlere(optrten( of ilae nuu�icipality rts a wlzole.
The Ri�•erfront Renaissance Tat Increment Financin� Plan has been re<<ien•ed by the HRA
and has been found to conform to the general development and redzti�elopment plan of the
City. Tlie plan conforms to the 1937 Riverfi•ont RedeYelopment Project flren as amended
in 2000. The plan also conforms to the Saint Pcad on the bfississippi Derelopnrent
Fr•a+nefrol•k, «'hich ���as adopted in 1997, the tiUest Side Flats De�'elopment Strate�}', whicli
was adopted in 2001 and the Upper Landing Urban DesiQn Mastec Plan, �vhich �vas adopted
in 2001.
Q, FlilflJti� tltctt Ute fa.r iacreruettt fiaa�tcing plan r��il! tt jjord mn.citnuf�: opportunit})
consistent rcith tbe soar�d rieeds of the conrt�:rrnity ns n ivhoJe, for fl:e derelopment or
rerle�•elop�rtent vf fGe�r•ojecl b}� prirafe er�t�rprise.
1979233�'1 A-4
o►-4t3
Private enterprise ��•ill buiid and occupy the facilities proposed to be constnicted as part of
tlie Tax Increment Financina Plan.
5. I'ittdi�zg tlzaf the tr:ttt:icipnlify elncts fhe »:ethorl of tax ittcreft:es�t corripttfafiort seffortlt iti
Secfiot:469.Z77, Sr�bdivision 3, clnrtse (a).
The HRA and the City have elected to compute the fiscal disparities contribucion for the
Disiricc in accoida�re «itl� Scctio�; hG9.i 77, S,iUdi��ision 3, clausc (� �. I Ili7 C8i)1l1fCi� 11Ci t ��
capacit}� of the District ��•ill not be reduczd in order to ma.l a fiscal disparities contribution.
1979233vt
A-5
�E
DS
Side
97
. G�ant_(Sp_cify')
O;h>r Funds to be
: Private Financing_
PROJECTED
' �USES OF�UNDS
Pubiic Park Faciiities
Sociai, Recreafional
Interest Reduction Payments
TIF Bond ! Note Principat Paymenh
� TIF Bond Note interest Pavments
Administrati Costs
Pollution Abatement
�er Uses £
Municipal t
Low / Modf
USES
Drake
i
i
e
�
Side
�1
oi-�t�'3
TAXINC ` (i)
� '- '
�Affoldahle �TotalSources
Housing � �,____
569 0 160,775,3a6
0 p� p
000 - 0 50,584,800
�6� 0� 6,000,000
D 0' 0
0 Oi G
0 Oi G
OOJ --- O' 6.05� OC:,
25, 000, 000 ( 25,ODO,�GO
000 0� � �54,337,10�
-- --j i C
� 0 i c
� e
569 25 000 0 0 402,587.25Q �
'Affordable Totai Uses
iHousin
000� 5,000,000 � 6,357,000
000 p �,555,000
0 0 �200,006
�QO 0 26,415,552
000 0: . 2,2i0.00C
0 0 � I 300.OU?
--- o ' e
o' c
000 0; { SO,SB:,BCJ
000 0; 66,8t'o,9o':
000 0 6,00O,OOQ
41d 0 1.983.47c
000 0 t4.319,6<3
000 0: � 54,375,00'v
000 0 � 552.00G
000 0; S,OOO,OOG
,151 0 7,572,075
' 0 G
0 0 � 1,277.6C'v
,000� 16,250,000' 22,750,OOu
Q. 0 2,729,SOG
0' 3,750,000 i 7,459,167
� 0� 0
; I c
i � �
Totai Uses i 22,635,955 � 101,87A,728 253,070,So9 25,000,000 � 402,5£
Sources overUses ! 0� 0 0. 0'
t) Other numbers represented in the Pian will be adjusted to reFlect this Sources and Uses
?)Estimated S5.5 million pay-as-you-go note vdil be issued for the West Side Flats Corporate Campus for a total523,255,000 in bonds and notes
Estimated S15 million pay-as-you-go note wili be issued for the Upper Landing Project (or a totzl of 545,000,000 in bonds and notes
n2 � 03f2812001 �
r
Resolution #
Green Sheet # \c�9 ya
r� .�i
2
0
Presented By
Referred To
covncil File #� C\— y��J
Committee: Date
TI� CITY OF SAINT PAUL
RAMSEY COUNTY
STATE OF MINNESOTA
Council member
6
7
introduces ttie following resolution and moved its adoption:
RESOLUTION NO.
9 RESOLUTION APPROVING A BUSTNESS SUBSIDY AGREEMENT,
10 ENVIRONMENTAL INDEMNITY AND 30INT PLEDGE AGREEMENT, AND
11 AUTHORTZING OTHER ASSOCIATED DOCUMENTS ALL IN CONNECTION WITH
12 THE U.S. BANK OPERATIONS CENTER TO BE CONSTRUCTED ON THE WEST
13 SIDE FLATS
14
15
16
17
18
19
20
21
22
23
24
?5
?6
��
8
9
WHEREAS, the City of 5aint Paul, Minnesota (the "City") andthe Housing and RedevelopmentAuthorify
of the City of Saint Paul, Minnesota (the "HRA") have been engaged in on-going negotiations with Atlantic
Financial Group, Ltd. (the "Developer") and U.S. Bank, Nafiona7 Association (the "Bank") regarding the lease
by the FIRA to the Bank of an approximately 6 3!4 acre site located in the "west side" of the City, which is bound
by a meandering line approximately 130 to 1601ineal feet south o£ the Mississippi River on the north, Robert
Street on the east, and by planned Fairview and Livingston Streets which aze to be constructed on south and west,
respectively (the 'Bank Project Area") and the construction thereon by the Developer of an office project and
parking facilities (the "Bank Project"), all as more fully described in the Redevelopment Agreement (the
"Redevelopment Agreement") to be entered into among the HRA, the Developer and the Bank; and
WHEREAS, the Bank Project Area is in the City's 1987 Riverfront Redevelopment Project Area and
Riverfront Redevelopment Plan (the "Redevelapment Plan"), as amended, and is included in the Tax Increment
Financing Plan for the Riverfront Renaissance Tax Increment' Financing District (the "TIF Plan"), a
redevelopment district as authorized by Minnesota Statutes, Section 469.174, Subdivision 10; and
0 WHEREAS, the Bank Project Area currently consists of improved parcels which aze in the city's 100-year
1 flood plain and are contatninated by industrial pollutants, and will require extensive preparation and remediarion
2 prior to redevelopment, including but not limited to removal of buried structures and debris, removal of
3 contauiniated soil, filling, grading, piling and compacting of the site; and
WI3EREAS, pursuant to the Redevelopment Agreement, it is anticipated that the HRA will issue tax
� increment bonds and notes (the "TIF Financing") to fmance, in part, the costs to be incurred by the Developer
�
zo�o6z��i
• ' 4t-'�113
3fi in the remediation of the Bank Project Site, the prepazation of tkie Bank Project Site for construction of the Bank
38 Project, and certain other public redevelopment costs and that taY increments collected form the Bank Project
39 Area and the Bank Project wiii be pledged to the payment of the TIF Financing pursuant to a JoSnt Pledge
40 A�eement (the "Pledge Agreement") from the City and the HRA; and
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
WF�REAS, as a condirion to the issuance of the TIF financing and the lease of the Bank Project Area
to the Bank the I3RA wili requite the Bank to sign a Business Subsidy Agreement (the "Business Subsidy
Agreement") in the form attached to the Redevelopment Aa eement, setting forth certain wage and job goals for
the Bank Project; and
WI�REAS, as a condifion to the construction of the Bank Project, the Bank and the Developer have
requited that the City agree to (a) apply to the Mimiesota Department of Trade and Economic Development
("DTED") Contamination C1ean up Grant Program for grant funds to be applied to the remediation of the Bank
Project Area and (b) execute an Environmental Indemniry in fauor of the Developer and the Bank (the
"Environmental Indemnity"); and
WI-IEREAS, the City has determined that the redevelopment of the Bank Project Area and the
conshucfion of the Bank Project thereon, is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paui, Minnesota as
foliows:
59 1. The Council hereby approves the terms and conditions of the Susiness Subsidy Agreement, the
60 Environmental Indemnity and the Pledge Agreement (collectively, the "Agreements") in substantially the forms
61 submitted, and authorizes the Mayor and other appropriate officials of the City to execute the Agreements. The
62 Agreements shall be executed 'an substantially the form submitted, with such changes therein as may be deemed
63 necessary or desirable by City staff and counsel to the City to complete information, correct or clarify the
64 language thereof, or to make such changes as will best effectuate the intent thereof. In the absence of any of the
65 authorized signatories, lus or her designee shall execute the Agreements in his place with the same force and
66
67
68
69
effect.
2. Once the agreements have been executed and delivered, the Council delegates the authority to
approve, execute and deliver future amendments to the Ap eements in connecrion with the transactions
70 contemplated thereby to the Execufive I}irector the City's Department of Planning and Economic Development,
71 provided that such amendments do not materially adversely affect the interests of the City and are acceptable in
72 the form and substance to the City Attorney, or other counsel retained by the City to review such documents.
73
74 3. All documents, instruments, certificates and other items necessary to implement the Agreements
75 shall be executed by the Executive Director the City's Depariment of Flatming and Economic Development upon
76 approval of the form thereof by the o� ce of the City Attorney.
��
'8 Approved by the Council: April 25, 2001
'9
2070627v1
o�-�t�
Adoption Certi
By:
Approved by Ma
Hy:
2�7Q627v
Requested by Department oE:
Plannin & Economic De elo ment
r
By:
Approved by Financial Services
By:
Foxm Appraved
���b�
£ied by Council Secretary
_V� � � BY:
yor: Date / Approved by Mayor r Submissi o ouncil
! �
� 1 $Y°
1
� '
Adopted by Council: ➢ate Q O O
DEPARTMENT/OFFICElC9UMCII.: DATE IlYITTATED GREEN SHEET No.:106942 o�.y��
PED Apri116, 2001
CONTACl' PERSON & PHONE: � 1�7T1AL/DATE INPI7AGDATE
Marie Franchett 266-6702 z D�enxTn�x r n� s ci�covrrcn.
MI7ST BE ON COUNCII. AGENDA BY (DATE) �IGN ? CITY ATI'ORNEY� _ CITY CLERK
IVIrMgC g 4 FINAt3CIAL SERV DIR. FSNAISCiAL SERVfACCTG
APL1I ZS�Il FOR
ROUTING 5 MAYOR (OR ASST.) _ CML SERVICE CONA�IISSION
ORDER
TOTAL # OF SIGNA'1'URE PAGES _(CLIP ALL LOCATIONS FOR SIC.IN.4TORE)
acr[ox �QirFS►•En: Resolution approving a business subsidy agreement, environmental indemnity, a joint pledge
agreement, and authorizing other documents in connection with the U.S. Bank project.
RECO1vIIvIENDA7TONS: Approve (A) or Rejec[ (A) PERSONAI, SERVICE CONTRA("fS M[JST AIVSWER TfiE FOLLOWING
QUESTIONS:
PLANNING COMNIISSION 1. Has this peison/ficm ever worked under a contract for this department7
CIB COMbIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has fl�is person/fum ever been a ciry employee?
Yes No
3 Does [h�s person/firm possess a skill not normally possessed by any current ciTy employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
IN177A1'ING PROBLEM, LSSUE, OPPORTONITY (Who, What, When, Where, Why):
On July 26, 2000, the f1RA authorized execufion of a Memo of Understanding for the US Bank project. The
Memo of Understanding called for providing tas increment fmancing for the US Bank project.
ADVANTAGESIFAPPROVED: �
Construction of 350,000 sq.ft. of office building space, as the first phase of a mixed-use urban village development
for the west side flats azea. Consolidation of approximately 2,150 US Bank employees at this location.
DISADVAN'I'AGES IF APPROVED:
None.
DISADVA,NTAGES IF NOT APPROVED:
The project will not move forwazd.
TOTAL AMO[1NT OF'CRANSACTION: $46,732,512 COSTBEVENUE BUDGETED:
FONDING SOURCE: Riverfrout Renaissance TIF 1 �
ACTIVITY NUMBER: �� Ll " 1�O� � • �-L�. L' O f�CF� NQ� - Ll3 r "r � f2r'[
FIlVANCIALINFORMA110N:(EXPLAliV) ���' �hLrP'G'clnev�"F ! h� T ��-Y� l�
Issuance of TIF Revenue bond5 and residual pay as you go note. Bonds will be $15,75Q000.
,itc 1-Fe4 Skc�:� vt�r�1 �� {�vtl dr.���S
K \Sba��PeA�FRRANCHE11USCOUVCilresotif.wpd
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a! -4i�
Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
CERTIFICATE OF RECORDING SECRETARY
The undersigned hereby certifies as foliows:
That she is the duly appointed, qualified Assistant Secretary of the
Housing and Redevelopment Authority of the City of Saint Paui,
Minnesota, herein called the "Locai Pubiic Agency"; �
2. That the attached RESOLUTION NO. 01-3l28-10 is a true and correct
copy of the resolution as adopted on the 28th day of March, 2001;
3. That the seal affxed below constitutes the official seal of the Local
Public Agency and this Certificate is hereby executed under such
of;iciai seai; and
4. That the undersigned is duly authorized to execute this Certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and the seai of the said Housing and
Redevelopment Authority of the City of Saint Paui, Minnesota, this 30th day of March, 2001.
�
� "
,� �i "(�L�- f y 1
Ass stant Secretary
a►-4�3
spo�,sored Uy:
Commissioner Colematt
I-IOUSING AIv'D R�DEVELOPVIE�IT AUT�-IORITY OF
TI-I� CITY OP SAINT PAUL
RAMSEY COUNTY
STATE OF MII�R�ESOTA
RrSQLLiTIOi�' 1�Q. 01-3(2S-10
R�SOLUTIO\' �STABLISHIhG TH� RIVERFRONT
RE�ATSSAi�'C� TAX I\'Cl2�ME\T FI\'An`CI\G DISTRICT
Ai�'D ADOPTI\G THE TA7i I\Cl2L'nZEi�T PLAi\'
TFI�REFOIL�
I �VI-IEF.EAS, it has 6een proposed that the Board of Commissioners (the "Board").of the
2 I-Iousin� and Redzvelopment Authority (thz "HRA") for the City of Saint Pzul (the "City ") adopt
3 the ta� increment financin� plan (the "Plan") for and establish the Ri��erfront Renaissance T1�
4 Increntent Pivancina District, all pt�rsuant to liid in conformitp �ti�ith esistino law, includin�
5 ivfinnesota Statutes, Section 469.174 to 4G9.179, inclusicz, as lmended, al! as reflected in the Plan
6 and presented for the Board�s considzration; and
S ��'HEP`EAS, the HRt\ has investi�a[ed the facts relatin� to thz estabfishmznt of the
9 Riverfront Renaissance Ta� Increment Financin� District, and has caused th: Plan to be prepared;
10 and
11
12 lVHEREAS, the proposed de�'elopment 1s desctibed in the P1an, in the opinion of the HRA,
13 ��•ould not reasonably be expected to occur solely through private im•estment within the reasonable
14 foreseeable future, and, therefore, the use of tas increment financin� is deemed necessary; and
15
16
17
is
19
20
21
��
�VHEREAS, the HRA has performed all �ctions required b}• la�ti• to bz performed prior to the
fldoption of the Plan, but no[ limited to, notification of Ramsey Count}' and School District No. 62>�
havinQ taxiiig jurisdiction over the property to be included in Riverfront Renaissance Tax Increment
Financin� District, a request for revie��� of and tivritten conunent on the Plan by the City Plannin�
Commission, and a request that the Council schedule a public hearin� on the Plan upon published
notice as required by la�v.
23 1�TOR', THEREFOIZE, BE IT RESOLVED bp the Board as follo���s:
24
?5
The HRA hereby� finds that the creation of the Riverfront Renaissance Tar Increment
26 Financin� District is in the public interest and is a"redeveiopment aistricr unaer rviinn�s��n
27 Statutzs, Section 469.174, subdi��ision 10; and has set forth the reasons and supporting facts for its
28 determination in «Titino, attached hereto as E�hibit A.
?9
30 2. Conditioned upon the approval tliereof by the City Council follot�'in� its public
(9630i3et
o1-y�o
31 hearin� tl�ereon, the Plan, as presented to the HRt1 on this date, and ��•hich is attached to and made
32 1 part of tl�is resolution, is hereby approved, established and adopted and shall be placed on file in
33 the oftice of the City Administrator.
34
35 3. Upon approval of the Plan by the City Council, the staff, the HRA's advisors and
36 legal cotmsel are authorized and directed to proceed with the impiementation of the Plan and for this
37 purpose to nepotiate, draft, prepare and present to this Board for its consideration all fi�rther plans,
;S re;olutions, CIOCll411CI11S �111C1 CORtC8Cl5 IlCCCSSfli} for this pur�ose. Appro�al of the Plan dnes no!
39 constitute appro��al of any pro}ect or a Development A�reement «�ith anp de�•eloper.
40
41
42
43
4 �1
4�
4G
47
4. Upon approval of the Plan by the City Council, the HRt1 Dirzctor is authorized to
forGG•�rd copies of the Plan to the Ramsey Cotmty Auditor flnd the MinnesotaDepartment of Revemie
pursuant to Minnesotl Statutes 469.17�, subdivision 2.
Approved by the Board of Commissioners of the Housin� and Redeti•zlapment Authority of
tlie City of St. Paul this 2Sth da}' of b4arch, 2000, '
I9630i3v1 . 2
o�-�li�
EXHIBIT A
TO
RESOLUTION NO. 01-3125- �p
The reasons and facts supporting the findings for the adoption oftlie Ri�•erfront Renaissance
Taz Increment Finlncin� District (the "Tax Inaement Districc") as required pursuan[ to Minnesota
Statutcs, Sectiai 4G9.17�, Subdi�•ision 3:
Finding tirrtt tlee Disirict is a"rerlevelop»tent dislricL"
This Tax Increment District qualifies 1s a rzde��elopmznt district because the followin�
conditions exist — in a manner reasonablq distributed throu�hout the district: parcels
consisting of 70 percent ofthe area of the district are occupied by bui(din�s, streets, utilities,
or other improvements and more than 50 percent of the buildin�s, not includin� outbuildings,
1re stnicturally substandard to a d�gree requirin� substantial reno�'ation or clearance,ls mare
fiilly described belou•:
A. The Project is in the P.iverfront Redevelopment Project Arza established by the
Housin, and Redeeelopmen[ Authority of thz City ofSaint P1ul, ��fiose boundaries �re larger
than the boundaries of the Tax Increment District.
B. Thz Ta� Increment District consists of 69 contiguous parcels and other public right-
of-wap that consist of 4,4�4,617 square fezt.
C. Prior to the creation of the Tas Increment District, parcels constitutin� 4,330,345
square feet -- 97 ? 1%-- of the area of the Ta� Increment District « occupied (at least I S%
co�•ered) by buildinas, streets, utilities, or other impro�'ements (collecti�•el}�
"Improvements"). The Impro�•ements «'ere reasonabl}' distributzd throughout the Ta�
Increment District.
D. Prior to its creation, tl�e Ta� Ineremznt District cantained ele��en total buildings. Of
these eleven buildin�s, the followin� nine «�ere structurally substandard:
1. 63 South Robert Street
2. 19� South Robert Street
3. 0 South Robert Street
4. 60 East Plato Boule<<ard
5. 1 �Vater Street Nest
6. 266 Shepard Road
7. 41 ChicaQo Avemie East
8. 34 East Fillmore A�•enue
9. 162 ��'abasha Street South
vl� �!3
"Structuralty substandard" is understood to mcan con[ainin� defects in stiuctural elements
or 1 combination ofdeficiencics in essential utilities a�id facilities, in li�ht and centilation,
fire protection includin� adequate egress, la}•otd flnd condition of interior partitions, or
similar factors, ���hich defects or deficiencies arz of suf6cient total si�niFicancz to juscif}�
substantial renovation or clearance.
2. Pi�trlistg thrrt tlte praposed developmeuf ivo:ilrt t:ot rensos:nbli� be expected to occtrr sofels•
f6ro u� k I�rivr.l:� rn sz:s[rxerif x�it(t in flrc rensonnGl�•jnresc�r��rh/efulure anrt IGnt tlre increosed
rxrr�•hef value oJtlte site thal can reaso�rablr be e.rpecfed in nccur iritleout ilre use of inx
increment finaacin,; ivoald Ge less t(tcut ilre ifurease in fhe ��mrket v�rlr�e estin:rrled io
resullfi•ant tlrc� praposed developnrer:t afterstrbtr•trcting tlee presenf i•altie of ihe projecferf
trtx i�icrements for 1Le nmxitx�un dtn•t�tio�t of the tlislrict pernritted by t/ee plau.
Due to thz hi�li cost of development on the parcels includine the cost of land lcquisition,
demofition and rehabilitation oFsubstandard structures, soil coirzction, flood remediation,
pollution abatzment, le�al costs associated with titlz «•or�, constructing neti�• public
infrastructure, constructin, parkin� facilities, and financin, tl�e proposed improvements, this
project is feasible onl}' tluou�h assistance, in part, from tax increment fiiiancin;.
A contparative analysis of estimatzd market �•alues both �cith and �ci�hout establishment of
the Ri�•erfront P.enaissancz Tax Incremen[ Financin� Dis?rict and the use of tax iucrements
has been performed as described lbove. If al! deretopmznt �ehich is proposed to assist �vith
ta� increment �ces•e co occuc in the P.i��erfront Renaissance Site, the total increased market
��alue ��•ould be up to �170,S7�,000. It is thz HRA's findinR that there �could be no
sienificant increase in the base snnrket value expected to occur ��'ithin 2� y�ears ��'ithout the
use of tax incremznt financin�. This finding is based upon er•idence from general past
eaperience ���ith the hi�h cost of pro�•idin� public impro�'einents in the general area of this
District.
3. Fitidirig tkat flte Riverfratt Reiraissm�ce Trr.r Incremeat Fi�rrurciitg District ca jorn:s to
!ke ge�rerrt! pla�t for tlte develop»�enf or rerlere(optrten( of ilae nuu�icipality rts a wlzole.
The Ri�•erfront Renaissance Tat Increment Financin� Plan has been re<<ien•ed by the HRA
and has been found to conform to the general development and redzti�elopment plan of the
City. Tlie plan conforms to the 1937 Riverfi•ont RedeYelopment Project flren as amended
in 2000. The plan also conforms to the Saint Pcad on the bfississippi Derelopnrent
Fr•a+nefrol•k, «'hich ���as adopted in 1997, the tiUest Side Flats De�'elopment Strate�}', whicli
was adopted in 2001 and the Upper Landing Urban DesiQn Mastec Plan, �vhich �vas adopted
in 2001.
Q, FlilflJti� tltctt Ute fa.r iacreruettt fiaa�tcing plan r��il! tt jjord mn.citnuf�: opportunit})
consistent rcith tbe soar�d rieeds of the conrt�:rrnity ns n ivhoJe, for fl:e derelopment or
rerle�•elop�rtent vf fGe�r•ojecl b}� prirafe er�t�rprise.
1979233�'1 A-4
o►-4t3
Private enterprise ��•ill buiid and occupy the facilities proposed to be constnicted as part of
tlie Tax Increment Financina Plan.
5. I'ittdi�zg tlzaf the tr:ttt:icipnlify elncts fhe »:ethorl of tax ittcreft:es�t corripttfafiort seffortlt iti
Secfiot:469.Z77, Sr�bdivision 3, clnrtse (a).
The HRA and the City have elected to compute the fiscal disparities contribucion for the
Disiricc in accoida�re «itl� Scctio�; hG9.i 77, S,iUdi��ision 3, clausc (� �. I Ili7 C8i)1l1fCi� 11Ci t ��
capacit}� of the District ��•ill not be reduczd in order to ma.l a fiscal disparities contribution.
1979233vt
A-5
�E
DS
Side
97
. G�ant_(Sp_cify')
O;h>r Funds to be
: Private Financing_
PROJECTED
' �USES OF�UNDS
Pubiic Park Faciiities
Sociai, Recreafional
Interest Reduction Payments
TIF Bond ! Note Principat Paymenh
� TIF Bond Note interest Pavments
Administrati Costs
Pollution Abatement
�er Uses £
Municipal t
Low / Modf
USES
Drake
i
i
e
�
Side
�1
oi-�t�'3
TAXINC ` (i)
� '- '
�Affoldahle �TotalSources
Housing � �,____
569 0 160,775,3a6
0 p� p
000 - 0 50,584,800
�6� 0� 6,000,000
D 0' 0
0 Oi G
0 Oi G
OOJ --- O' 6.05� OC:,
25, 000, 000 ( 25,ODO,�GO
000 0� � �54,337,10�
-- --j i C
� 0 i c
� e
569 25 000 0 0 402,587.25Q �
'Affordable Totai Uses
iHousin
000� 5,000,000 � 6,357,000
000 p �,555,000
0 0 �200,006
�QO 0 26,415,552
000 0: . 2,2i0.00C
0 0 � I 300.OU?
--- o ' e
o' c
000 0; { SO,SB:,BCJ
000 0; 66,8t'o,9o':
000 0 6,00O,OOQ
41d 0 1.983.47c
000 0 t4.319,6<3
000 0: � 54,375,00'v
000 0 � 552.00G
000 0; S,OOO,OOG
,151 0 7,572,075
' 0 G
0 0 � 1,277.6C'v
,000� 16,250,000' 22,750,OOu
Q. 0 2,729,SOG
0' 3,750,000 i 7,459,167
� 0� 0
; I c
i � �
Totai Uses i 22,635,955 � 101,87A,728 253,070,So9 25,000,000 � 402,5£
Sources overUses ! 0� 0 0. 0'
t) Other numbers represented in the Pian will be adjusted to reFlect this Sources and Uses
?)Estimated S5.5 million pay-as-you-go note vdil be issued for the West Side Flats Corporate Campus for a total523,255,000 in bonds and notes
Estimated S15 million pay-as-you-go note wili be issued for the Upper Landing Project (or a totzl of 545,000,000 in bonds and notes
n2 � 03f2812001 �