268761 WHI7E - CITV CLERK COl1i1C11 � ���� ..
PINK - FINANCE GITY OF SAINT PAUL
BLUERV - MAYORTMENT File NO. ��
ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS;
1 . On February 22, 1977, the Port Authority of the City of Saint Paul , adopted
Resolution No. 1155, giving preliminary approval to the issuance of revenue bonds in
the initial principal amount of approximately $3,100,000 to finance the construction of
the Amtrak facility on Transfer Road in Midwa�y Industrial Park.
2. La�s of Minnesota 1976, Chapter 234, provides tha� any issue of revenue bonds
authorized by the Port Authority of the City of Saint Paul , shall be issued only with the
consent of the City Council of the City of Saint Paul , by resolution adopted in accordance
with law;
3. The Port Authority of the City of Sannt Paul , has requested that the City
Council give its requisite consent pursuant to said law to facilitate the issuance of
said revenue bonds by the Port Authority of the City of Saint Paul , subject to final
approval of the details of said issue by the Port Authority of the City of Saint Paul .
4. It is estimated that the initial principal amount of said bonds will be approx-
imately $3,100,000 and that the net interest cost applicable to said issue will not
exceed 8%, now, therefore, be it
RESOLVED, by the City Council of the City of Saint Pa�ul , tl�at ��n a:ccordance with
Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to �he issuance
of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority
Resolution No. 1155 in the initial principal amount of approximately $3,100,000 at a
net interest cost of not to exceed 8%, the exact details of which, including, but not
limited to, provisions relating to maturities, interest rates, discount, redemption, and
for the issuance of additional bonds, are to be determined by the Port Authority, pursuant
to resolution adopted by the Port Authority, and the City Council hereby authorizes the
issuance of any additional bonds by the Port Authority, fvund by the Port Authority to be
necessary for carrying out the purposes for which the aforesaid bonds are issued.
COUNCILMEN
Yeas Nays Requested by Department of:
Butler
Hozza In Favor
Hunt
Lev� �_ Against BY
Sylvester
Tedesco
� ' 7 �n# Form Approved Ci Att ney
Adopted by Council: Date
Certified P _se �ouncil S cretary � BY
By.
� �
� � Ap ved by Mayor f Su issio to Council
Appro y Mayor: ; Da �.
,: By BY
PUBUSHED MAR Z 6 1977
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N � d� al= Z2/3975
R�v. : 9j8/76
EXPLANAT� OF ADMINISTRATIVE 0 ER$, j
RESOLUTIONS AND ORDINANCES ������:
Date: February 25, 1977
TO: MAYOR EORGE. LATIMER
I
: FR: Eugene : Paul Port Authority I
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gE; AMTRAK-GREYH4UND FACILITY,
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ACTION REQUESTED: ;
In accordance with laws of Minnesota 1976, Chapter 234, i is request,e� that the City Council
by Resclution, a draft copy of which is attached hereta, pprove the is�suance of approxi-
mately $3,100,QQ0 in revenue bonds. Due tQ the cost allo ation of rolt�ing stock, purchased
by Amtrnk, ta the varlous faciliti�s financed with revenu bonds and by! reason af the fact
that Greyhound will occupy more than 1Q� of this facility . a djfferent ',ffinancing method is
befing used tk�an anything we have submltted heretofore. T is proposal � qant�nplates the
issuance of $1 ,000,000 tn tax exetnpt revenue bands under he �1 ,000,OOOI exemption provision, :
and $2,100,QQ4 in taxab�e revenue .bonds. This permits t corrstructior� of this facillty
w�th revenue bonds whereas tt wauld not be possible to is ue all tax e�empt bonds because
the rollfng stock .expenditures would cause a total cost i excess of tt�e capitat exper�di-
ture ljmitation. �
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PURPOSE AND RATIONALE� FOR 2I�IS ACTION:.. I
Fn 1974, the Ctty of St. Paul requested the Port Authorit endeavor to 'locate the Amtrak
station in St. Raul . Following a favorable inclination an Amtrak, tt�e Council authariaed ,
the Por.t Authority to tssue up to $2,0OO,OaO in General ligation Bon�s to facilitate the
re'�acatfon. The proposed faciltty will be the only stati n for Amtrak ';in the Twi.n Cities
and. tf the ftnal negotiatfons with Greyhound and Amtrak re successfuli, would permft the
incorporatfon �tn thfis facitity af not only Greyhound but efferson and Zephyr Lines as
well. In light of the energy crfsis which may limit mea of transpor�atton, the possibilft� '
exists that thfs cnuld be a singularly important inter al transportattion complex in the
years ahead. Approximately 6Q persons will be operating ut of the new Amtrak facility
exclusiv� of Greyhound personnel . The Staff inemorandum the Board ofi Camnissioners
provtdes add�tianal `fnformation.
ATTACHMENTS:
Copy of Port Authortty ResolutiQns No. 1005 and 1155 !
Copy of Draft Council. Resolution �
Copy of Port i�uthority Memorand�,an to Board of Commission s D�ted Febr�ary+ 22, 1977
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` PORT
. � AUTHORITY
OF THE CITY OF ST. PAUL �-�����
Me�mo�ondum
TO: Board of Commissioners pAT� Feb. 22, 1977
FROM: E. A.
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SUBJECT: A��K-GREYHOUND FACILITY
Amtrak received bids on February 10 for the proposed Midway facility from
Kraus-Anderson, Rauenhorst Corporation and Steenberg Construction. A tabu-
lation of the bids to be performed under the contract is attached.
Additional work involved in trackage connections, trackage upgrading,
expenses to date, and legal expenses, are estimated as follows:
Contractor - Low Bidder - Kraus-Anderson $2,273,000
Railroad Track Construction - B-N, Milwaukee,
Minnesota Transfer Railroad 1 ,080,000
Trackage Materials 175,000
Legal and Bond Issue Expense 32,000
Preliminary Expense to Date 60,000
A1Towance for Additional Construction-
Greyhound facilities 100,000
TOTAL $3,g p�;pp�
Less - Participation G.O. Bond Construction Fund 1 ,100,000
TOTAL 2,820,000
Capitalized Interest - 9 Months 175,000
Underwriting Fees 93,000
TOTAL �3,088,000
Proposed bond issues subject to contingency
cost reduction when contracts are awarded $3,100,000
We are currently in joint negotiations with Amtrak and Greyhound to try
and suitably provide sufficient space for the relocation of the St. Paul
Greyhound station in this new facility. It appears that a suitable resolu-
tion to the joint operations and an enlarged facility will result in Greyhound's
relocation.
When the Amtrak project was first proposed the Port Authority, with the
approval of the City Council , was authorized to provide up to $2,000,000
in General Obligation Bond funds for this project. At this time we have
budgeted $1 ,000,000, and it is our recommendation that the budget for this
project be amended to provide an additional $100,000 to participate in the
expansion of the facility if it is necessary to do so to incorporate the
Greyhound operation. This would make this a truly inter-modal transportation
facility because Jefferson and Zephyr Lines would also be operating from
this station. It is recommended that this appropriation be made from either
Accumulated Net Revenues or General Obligation Bond Construction funds
presently on hand.
' Board of Commissioners r�����_
Feb. 22, 1977
Page -2-
It is proposed that the revenue bonds be sold on March 22 and that the
contracts for construction be awarded simultaneously. The construction,
as indicated above, does inclu�e certain off-site work v�hich is essential to
access to the new station.
In workTng with bond counsel on this project over th� last two years it has
developed that Briggs & Morgan will not issue an opinion without first obtaining
a ietter ruling from the Internal Revenue Service. Because of the time frame
caused by the constructian contracts proposed with Kraus-Anderson and the :
various raiTroads, it is not practical to defer the construction for the
time it would take to obtain a ruling if indeed it were, in the final analysis,
favorable. The probtem is I.R.S. 's possible position on the ailocation of
rolling stock purchased or ta be purchased in a 6-year period commencing
three years prior to the issuing date. Therefore, it is our recommendation
that we proceed to issue a $1 ,00�,000 nontaxable revenue bond issue, which is
not affected by capital expenditure limitations and $2,100,000 in taxable -
revenue bonds. This ccmbined wit� the General Obligation Bond Construction
funds wi11 be sufficient to comolete the project for both facilities. 7he
bonds would be issued under Resolution No. 876 to the extent legal]y possible
with either one issue or anott�er being privately placed and secured by the
lease agreement.
This method has not been utilized before by the Port Authority and presents
certain complex legal problems, none of u�hich appear to 5e at this tim e
insurmountable. For the purpose of this specifiic issue it is our recommenda- �
tion, along with that of Miller & Schrosder and Amtrak, that the Dorsey,
i�arquart, ldindi�orst, West & Halladay firm of bond counsels, who have acted
as bond counsel for the Rort Autl�ority on several previous instances, perform
that service on this issue.
The issuance of these bonds will require the establishment of a Debt Service
Reserve Fund of a�proximately $310,000. It is recorr�nended that this amount
be appropriated fror�:the Accumulated Net R�venue �und and escrowed un�i1
the bond issue is retired. The interest on this fund would accrue to the
benefit of the Port Authority.
The project would be leased to Amtrak with a sublease to Greyhound on a 20-
y�ar lease agreement. It is proposed to lease the facility for any extended
periods for $1 .00 per year after the bonds are amortized from rental income.
The property would be taxable for real estate purposes and would revert to
the Port Authority if it were nat used as an Amtrak, Greyi�ound or other
transportation facility.
Staff recomr�ends approval of the additional appropriation of $100,000 from
funds on hand and also. recomm�nds approval of Resolution No. 1155.
EAK:jmo
Attach.
� BID TABULATYON - AMTRAK STATION 2-�$-»
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� Kraus- Rauenhorst Sheehy
Anderson: Construction Construction
� • Mobilize $ 66,000 $ 55,000 $ 13,OOQ
2• Clear & Grubb 1 ,700 4,000 11 ,000
3. Demolition 1 ,500 5,000 1 ,000
4. Site Grade 9,000 20,500 2,200 .
5. Embankment 16,500 75,000 15,000
6. Excavate & Backfill 20,000 27,300 18,000
7. Drainage System 69,000 51 ,400 70,Q00
8, Sewer Lateral 2,500 3,900 7,000
9, Potable Water 150,900 87,500 100,000
10. Compressed Air 29,800 15,000 14,000
11 . Bituminous Surface 51 ,200 54,700 119,047
12. Concrete Curbs 10,700 9,700 13,000
13. Chain Link Fence 4,750 8,300 6,643
14. Landscaping 15,600 9,500 16,948
15. Conc. Platform 317,200 242,444 279,000
16. Platform Canopies 80,800 246,100 280,036
17. Storage Building 20,000 28,500 26,138
18. Trackwork L. S. 101 ,657 94,400 206,468
19. Station Bldg. 45.69 /sq.ft. 45.79/sq.ft. 51 .21/s.f.
993,733 996,000 1 ,186,464
20. Electrical Sitework 283,200 254,200 150,386
21 . Design Fees 7,200 65,000 119,52Q
22. Miscellaneous Work L.S. CPM 7,000 Signs, Sac Charges
Permits 35,000 --
23. Total Bid 2,273,000 2,374,444 2,654,850
24. Perform. Bond 13,060 14,000 18,650
25• Bid Price 2,273,000 2,388,444 2,673,500
Bids Received 2-10-77
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RESOLUTION NO. �_,��
February 22 , 1977
RESOLUTION RELATING TO THE AMTRAK PROJECT; n��
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INCREASING THE BUDGETED ALLOCATION OF FUNDS �- t„�
THEREFOR AND ACCEPTING A PROPOSAL WITH RE-
SPECT TO THE PURCHASE OF BONDS TO BE ISSUED
TO FINANCE THE PROJECT
BE IT RESOLVED by the Port Authority of the City of
Saint Paul as follows:
l. By a Prelimi,nary Agreement, dated as of August
19, 1975, the Port Authority and the National Railroad Pas-
senger Corporation (Amtrak) expressed their mutual intent
with respect to the acquisition and development of a Project
consisting generally of a railroad passenger station, tracks
and related facilities within the City of St. Paul, to be
leased by the Port Authority to Amtrak.
2 . The total cost of the Project and related ex-
penditures necessary to be made in order to make the Project
feasible is presently estimated to be approximately $4 , 000, 000.
For payment of certain costs related to the Project the Port
Authority previously budgeted $1, 000, 000. By memorandum dated
February 18, 1977 the Staff has recommended that this budget
item be increased by $100, 000 in order to permit the Project
to be enlarged to serve as a bus terminal for major commuting
and inter-city bus lines, as well as Amtrak. The recommenda-
tion of the Staff has been reviewed and is hereby approved,
and the budget increased correspondingly, with the appropria-
tion therefor to be made from either Accumulated Net Revenues
or General Obligation Bond Construction Funds presently on
hand.
3. Negotiations with representatives of Amtrak and
operators of bus lines are progressing, and it is now appro-
priate to consider the issuance of Revenue Bonds of the Port
Authority. For this purpose it now appears it will be neces-
sary that the Port Authority issue its Revenue Bonds in the
aggregate principal sum of $3, 100, 000. Such Revenue Bonds
shall be issued in two series, one in the principal sum of
$2 , 100, 000, to pay the cost of acquisition and construction
of the railroad station and related facilities, and one in
the principal sum of $1, 000, 000 to pay the cost of of_f-site
improvements. A proposal for the purchase of such Revenue
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Bonds has been submitted by Miller & Schroeder Municipals, Inc. ,
has been reviewed and is hereby accepted. The officers of the
Port Authority are hereby authorized to endorse such proposal to
show its acceptance by the Port Authority.
Adopted: February 22 , 1977.
v��� eside o the Port Authority
of t City of Saint Paul
Attest:
�Jy,,,,,��,,,.,,�- ecretary
-2-
,L ��G � � Resolution No. 1005
����� August 19, 1975
RESOLUTION
OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
�dHEREAS, the National Railroad Passenger Corporation
(Amtrak) desires to acquire and eonstruct a railroad passenger sta-
tion, tracks and related facilities in the port district of the City
of St . Paul; and
WHEREAS, Amtrak has requested the Port Authority of the
City of Saint Paul to issue approximately $3,000,000 in Industrial
� Revenue Bonds pursuant to Chapter 474 of the Laws of the State of .
Minnesota to acquire and construct said facilities; and
WHEREAS, Amtrak and the Port Authority propose to enter
into a Preliminary Agreement whereby the Port Authority of the City
of Saint Paul will undertake to secure an underwriting agreement to
underwrite said bonds which is acceptable to Amtrak, and to negotiate
a Lease which is mutually acceptable to the parties to the proposed
PreTiminary Agreement ; and
� WHEREAS, the Commissioners of the Port Authority have deter-
mined that said project is in the best interests of the Port Authority
, and the citizens thereof; and
1 WHEREAS, the Commissioners of the Port Authority have deter-
mined that said project is feasible;
NOj�I, THEREFORE, BE IT RESOLVED by the Port Authority of the
City of Szint Paul as follows :
1. The Preliminary Agreement attached hereto as Exhibit A
is hereby approved in substantially the form attached hereto.
2. The authorized officers of the Port Authority are here-
by directed to execute said Preliminary Agreement.
Adopted this 19th day of August, 1975-
PORT AUTHORITY OF THE CITY OF SAINT PAUL
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its President
Att�st : " �-��
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its Secretary
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PORT AUTHORITY OF THE CITY OF SAINT PAUL
1130 MINNESOTA BUILDING, 4TH AND CEDAR, SAINT PAUL, MINN. 55101, PHONE (612) 224-5686
February 25, 1977
The Honorable George Latimer
Mayor, City of St. Paul
City Hall and Court House
St. Paul , Minnesota 55102
Dear Mayor Latimer:
We submit herewith for your review, recommendation and referral details
pertaining to the issuance of revenue bonds in the amount of $3,100,000
for construction of the Amtrak facility on Transfer Road in Midway
Industrial Park, all as more fully described in the attached memorandum.
Negotiations are currently being conducted with Greyhound and Amtrak to
make provision for the inclusion of Greyhound's relocated downtown St.
Paul facility in a combined station.
We are also attaching a copy of Port Authority Resolution No. 1005, adopted
at a meeting of the Board of Commissioners on August 19, 1975, and a copy
of Port Authority Resolution No. 1155, adopted on February 22, 1977.
We include sufficient copies for distribution to the City Attorney's office
and members of the City Council .
Yours truly,
, �,�'
�: �_� � ���, C�_���.
�" Ls�
Eugen��A. Kraut
Assistant Executiv
Vice President
EAK:jmo
Encl .
ROBERT F. SPRAFKA El/GENE A. KRAUT, C.I.D. DONA�D G. OUNSHEE� C.I.D. CLIFFORO E. RAMSTED ROSCOE C. BROWN
E%ECUTIVE VICE PRESIOENT ASSISTANT F%ECUTIVE VICE PRESIOENT DIRECTON, INOUSTRIAL DEVELOPMENT CHIEF ENGINEER CHIEF ACCOUNTANT
COM MISSIONERS JOHN L. SEGL PATRICK J. ROEDLER LOUIS H. MEVERS G. RICMARD SLADE GEORGE W. WINTER ROSALIE L. BUTLER ARTMUR N. GOOOMAN
PRESIDENT VICE PRESIDENT SECRETARY TREASURER
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LEGISLATIVE ADVISOR RAV W. FARiCY, STATE REPRESENTATIVE
C.I.D. Certified Industrial Developer
°�� OFFICE OF THE MAYOR 347 City H�II
GEORGE LATIMER ��
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To: Mayor/Ella From: Phil Lee �
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Subjsc+:port Au-thority bonds Date: 2-28-77
Route tos �
1 . Mayor for si�nature on 2 resolutions �AR � �77
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3. Mrs . Butler.
_ CI_T_1' ATTOf�NEY
Please note that the Port Authority asks us to place this on the
Council agenda for March 15,1977� as they have some people scheduled
to appear with testimony. Notmfy us if the council cannot comply fi��
with this request.
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