269724 WHITE - CITV CLERK ������
PINK - FINANCE GITY OF SAINT PALTL Council
CANARV - DEPARTMENT 1
BLUE - MAVOR Flle NO.
�
. Co�ncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS:
1 . On August 16, 1977, the Port Authority of the City of Saint Paul , adopted
Resolution 1241 , giving preliminary approval to the issuance of revenue bonds in the
initial principal amount not to exceed $250,000 to finance a medical clinic for Abrams,
P.A. on a 28,706 square foot site located at University Avenue and Mackubin.
2. Laws of Minnesota 1976, Chapter 234, provides that any issue of revenue bonds
authorized by the Port Authority of the City of Saint Paul , shall be issued only with the
consent of the City Council of the City of Saint Paul , by resolution adopted in accordance
with law;
3. The Port Authority of the City of Saint 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 not
more than $250,000 and that the net interest cost applicable to said issue will not exceed
8�, now, therefore, be it
RESOLVED, by the City Council of the City of Saint Paul , that in accordance with
Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance
of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority
Resolution No. 1241 in the initial amount of not to exceed $250,000 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, rederr�ption, and for the
issuance of additional bonds, are to be determined by the Port Authority pursuant to
resolution adopted by the Port Authority, and the City Council hereby authorizes the
issuance of any additional bonds (including refunding bonds) by the Port Authority,
found by the Port Authority to be necessary for carrying out the purposes for which
aforesaid bonds are issued.
COUNCILMEN Requested by Department of:
Yeas Nays �
Butler
Hozza ' In Favor
Hunt
Levine J __ Against BY
Roedler
Sylvester
Tedesco
Adopted by Coun il: Date S�P 8 �977 Form Approved by City Attorney
Certified _ y Cou .il Secret�ry BY �
By
Appr e by blayor. � sEP Approved or for ub ' on to Council
By BY
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PUBLISHEU S�P 1 7 1977
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PORT AUTHORITY OF i'HE CITY OF SAINT PAUl. •
1130 MINNESOTA BUILDING, 4TH AND CEDAR, SAINT PAUL, MINN. 55101, PHONE (612) 224-568 � ��
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August 18, 1977 '
Mr. Gerald Isaacs -
Adminis�rator of Economic Development
City of St. Paul
55 E. 5th Street
St. Paul , Minnesota 55101
SUBJECT: '�BRAMS PROFESSIONAL ASSOCIATIOP! '�-
PRELIMINARY AGRE�h1ENT - RESOLUTION 1241
MEDICAL CLINIC - MACKUBIN AND UlVIVERSITY AVENUE
Dear Jerry:
We submit herewith for your review and referral to the Office of the
Mayor, City Council and City Attorney's office details pertaining ta
the issuance of revenue bonds for the construction of the above project
in the amount of $225,00�.00. The Port Authority authorized the
issuance of these bonds for construction of the Medical Clinic on
August 16 by Resolution 1241 .
In addition to the staff inemorandum we are attaching a draft copy of
the proposed City Council Resolution and a copy of Port Authority
Resolution 1220. The bonds will be issued based on a private place-
ment for the purchaser, Summit National Bank and the security for th�
revenue bonds will b� Dr. Abrams, life insurance on Dr. Abrams and
the real estate.
These bonds are not issued under the Port Authority's security and ,
the Port Authority is not liable for their paym2nt in the event of �
default.
We would appreciate your expeditious handling of this project. I
'� Yours truly,
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~j--�=�,+�,�:,..�.
�Eugene A. Kraut
Assistant Executive
cc: R. Broeker Vice President
EAK: SJS
ROBCRT F. SPRAFRA EIIC�O�tZ�A. Kn�UT. C.I.D, DONA�O G. DUNSMEE, C.1.D. CIiFFORD E. RAMS�ED. ROSG06 C. BROWN
CXECUTIVE VICE PRESIDEHT ♦SSiST�NT E%ECVT�VE ViCE FwE51DENT DiHEG�bR. �NOUSTRiAI DEVELOPMENT CH�EF ENG�NEqR . C1f1EF ACGC1.tNTwIiT �
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COMMISS�ONEiiS GEOHGE W. WINTER FATRICK J. ROEOLEP LOU15 H. NEYEHS G. RICMI�RD S�ADE R05I1l.lE L. BUT�ER /1R�MUR N. GOJOMAN WlltiAM J. $EIFERT
PqE3106NT V�CE PRE5IDENT 9EGRETARY TREASVNER . . . �
C.I.U. Certified Indacstrial Developer ,�=�.>z i
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. oM ol: lz�zg�5
Rev. - 9/8/76
EXPLANATION OF ADMINISTRATIVE ORDERS, ����2�
RESOLUTIONS, AND ORDINANCES �
Date: August 18, 1977 .
TO: : MAYOR �EORGE LATIMER
FR: E.A. ,�St� Paul Port Authority : .
�
gE: ABRAMSf, P.A. MEDICAL CLINIC
- PRELIMINARY AGREEMENT
RESOLUTION N0. 1241
ACTION REQUESTED:
In accordance with the Laws af Minnesota 1976, Chapter 234, it is requested that the
City Council by Resolution, a draft copy of which is attached hereto, apprave the
issuance of an amount not to exceed $250,000 in revenue bonds to build a new medical
clinic for Abrams , P.A. to be located on a site at University and Mackubin.
PURPOSE AND RATIONt�LE FOR THIS ACTION:
The purpose of the bond issue is to finance the construction of a new medical clinic.
Abrams, P.A. is presently located on Selby Avenue in St. Pau1 . The new facility re-
presents a major new development to upgrade the area and improve the delivery of
medical services to the residents of the surrounding community. The proposed lndus-
trial revenue bond issue is issued under Chapter 474 and does not place any obligation
on the reserves and revenue of the Port Authority. A private placement has been
secured for the purchase of the bonds.
ATTACHMENTS:
Staff Memorandum
Draft Ci ty Counci 1 Resol ution
Part Authority Resolution No. 1241
Preliminary Agreement
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/Q► t� THORITY �����
OF THE CITY OF ST. PNUL '
Meniorandun�
TO: BOARD OF COMMISSIONERS DAT� Aug. I2, 1977
�(Aug. 16, 1977 MeEting)
�`''�-f'
FROM: `� ! `
J.F. Faue
SUBJECT: qg�s, p.A. MEDICAL CLINIC
PRELIMINARY AGREEMENT
RESOLUTION N0. 1241 _
1. THE PROJECT
The Port Authority Board of Commissioners approved the acquisition
of the site from the St. Paul Housing and Redevelopment Authority
by Resolution 1222 and the lease of the site to Dr. Abrams by
Resolution 1223, both of which were approved on Ju]y 19, 1977.
At that time, it was reported to the Board the method of financing
had not been determined but the Port Authority was cooperating �rith
Dr. Abrams in an effort to secure appropriate financing for th�e
facility proposed.
The project calls for the construction of a medical clinic of
approximately 5,000 square feet to be constructed on a 28,706
square foot parcel located at the northeast corner of Mackubin
and University Avenue, This is viewed as an important and neces-
sary addition to the development of this area, and the Port Authority
was asked to lend its assistance in whatever way possible to bring
the project to fruition. The estimated construction cost for the
new medical clinic will be approximately $225,000. Dr. Abrams
employs approximately 10 people at the present tim�, and his staff
will move with him to the new location, The new clinic has adequate
facilities to accommodate one or two additional doctors which will
greatly expand the services af the medical c1inic to meet the needs
of the community,
2. THE TENANT
Dr. Alexander Abrams, a medical doctor, has maintained a practice
in the Selby area of St. Paul for several years. His present cZinic
on Selby Avenue has been the location of his medical practice for the
1ast 12 years. Dr. Abrams has his practice incorporated as th�
Abrams, P.A. The financial statements for Abrams, P.A. fo1low in
- BOARD OF COMMISSIO�ERS
August 12, 1977
Page -2- .
this report along with a cash projection for the next ten years.
� 7his information has been supplied to and approved by the prospective
purchaser for the bonds, which �ill be privately placed.
'Abrams, P.A. proposes to move their entire operation to the new location
as soon as the new facility is ready.
3. FINA�iCING
Financing for the project is proposed through the issuance of indus-
trial revenue bonds under Statute 474 which does not pledge any of
the r�sources or revenues of th� Port Authority. Bonds will be sald -
on the basis of the financial statement of Abrams, P.A. The project
is estimated at this time at $225,000. Abrams, P.A. will part�cipate
in the amount of approximately $25,000, The amount of bonds will cover
construction and expenses in the bond issue for legal , printing, and
. placement for a total bond issue of $200,000 to $207,000. The contract
for construction is being negotiated at this time; and when these numbers
are finalized, the exact amount of the bond issue can be determined.
4. UNDER'�JRITING
Mi11er & Schroeder Municipals have secured a private placement for the
bond issue, The prospective purchaser has reviewed the financial
statement of Abrams , P.A, and is awalting the documentatton for the
lease, the bond resolution, and the bond purchase agreement.
5, TERMS OF THE LEASE
Terms of the proposed lease and p1^ivately placed revenue bond issue .
w111 be for a period of 20 years with an effectiv� date of October 1 ,
1977. 7he lease will provide for a $25,000 participation by Abrams,
P.A. and the remainder of the pro�ect cost to be financed by industrial
revenue bonds in the amount of approximately $207,000 which will allow
for cons�ruction of $200,000 and legal and placement expenses of $7,000.
The negotiated interest rate for the bonds at this time is 6-1/2q. In
additi.on, the lease will proVid� for life insurance to bz provided by
Abrams, P,A. , the princi�al , Dr. Abrams, to be in favor of tne bonds
for a period of at least ten years in the amount of $10Q,000.
6, RECO�lMEilDATION
Staff has reviewzd the financial data, interviewed the principals of
Abrams , P.A. , and has cooprated in securing the private placem�nt for
the proposed industrial revenue bonds to finance the construction of
the project. The project and the plac�ment of the bonds to finance
it is viewed as one of significant importance to thp development of
the area along Universlty and the deliVering of inedical service to
the commu�ity it serves.
Staff recommends apprcvai ,
JFF:ca
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� � ABR�'"IS, P.A.
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� � FINANCIAL STATEMEN'TS
- (Cash Basis)
� Septetaber 30, 1976
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i BREITMAN, ORENSTEIN aNO SCHWEITZER
� C E R T I �1 c D P U 8 L 1 C A C C O U N T A N 7 S .
MINNEAPOLIS,MlNNE50TA � �
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( BREITMAN, ORENSTEIN ANO SCHW {TZE
CERTIFIED PUBLIG ACCOUNTANTS '
� LEO BREITMAN,C.P.A. M EST PLAZA BUILDING
HARVEY L. ORENSTEIN, C.P.A. M EAPOLIS, MINNESOTA 55402
� STANLEY H.SCHWEITZER, C.P.A. . T PHONE {612) 339-7811
EOMUND A. GOTTLIEB,C.P.A.
.IAMES R.ZOCH,C.P.A.
BARRY R. RUBIN,C.P.A. •
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December 16, 1976
�
� " Board of Directors and Shareholder
Abrams, P.Ao �
� 644 Selby Avenue
� St. Paul, Minnesota 551U4
� The accompanying statement of assets and liabiliti res ing from cash
transactions of Abrams, P.A. as of September 30, 1 6 an 975 and the
� related statemen,t of revenues and expenses and ret ned nings for the
years then ended were not audited by us and accord gly da not express
�n opinion on them.
4 :Because of Che omission of accoun.ts receivable and �ccou payable, the
cash basis sCatement.� ref�rred to above do not pre nt t financial
position or results of operations of the company, d th tatem.ent of .
! changes in financial position has been omitted.
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� $REITMAN, ORENSTEIN AND SCIi�+TEITZER}��
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Certified Public Accountants
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ABRAMS, P.A. EXEI�TBIT A
STATEMENT OF ASSETS AND LIABILITIES
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(Cash Basis)
(Una.udited)
3eptember 30,
ASSETS 1976 1975
CURRENT AS3ETS: '
Due fram officer $18,.933 $13,933
Other current assets 2,967 481
TOTAL CURRENT ASSETS 21,90Q 14,414
PRQPERTY AND EQUIPMENT: _
Land 2,400 2,G00
� B�cilding and i.mprovements 62,496 . 62,496
� Off ice furniture and equipment 18,327 18,184
iAutomobile 7,755 � 5,043
, 90,978 88,123
Less accumulated depreciation 43,446 � 38,9R4
4.7,532 49,129
TOTAL ASSETS � $69 32 $6�
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES:
� Bank overdraft $ 146 $ 4,O1Q
, �urrent maturities of long-term debt 3,250 3,000
Emgloyee payrall deductions 4,789 6,047
; TOTAL CQRRENT LIABILITIES 8,185 13,057
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LO�iG-TEFL�1 DEBT: _
Installment contracts, less current maturities 17,485 17,551
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SHAREHOLDER�S EQUITY:
Common stock - par value $10
Authorized 2,SOO shares;
Issued 500.shares . 5,000 5,000
Paid-in capital 5,000 5,000
Retained earnings 33,7b2 Z2�935
43,762 32,935
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $69.432 $63.543_
See notes to financial statements.
TMIS REPORT REPRESENTS BOOK FIGURES W�THOUT INDEPENDENT VERIFICA- BREITMAN, ORENSTEIN AND SCHWEI'fZER - .
TION: THUS WE ARE NOT IN A POSITION TO EXPRESS AN OPINION HEREON• CER7IFIEO PUBLIC ACGOUPiTANTS
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I ABRAMS, P.A. i EXHIBIT B
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STATEMENT OF REVENUES AND EXPENSES �`D RETAI D NGS
4 (Cash Basis)
� (Unaudited)
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! Yea En,d Se tember 30
1976 ' 1975
( FEE INCO� $197,614 '00.0° $208,774 100.0Y
EXPELISES 187,290 94.8 216,408 103.7
� INCOti1E� (LOSS) BEFORE OTHER INCOrfE 10,324 ! 5.2 � (7,634) (3.7)
� OTNER IIdCQ�: .
Piiscellaneous income 2,670 1..4 1,817 .9
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ItiCO��iE (LOSS) BEFORE INCOME TAXES 12,994 � 6.6 (5,817} (2.8)
IINCO�fE TAXES PAID FOR FRIOR YEARS 2,167 I 1.1 3,000 1.4
I ;�'ET INCO,IE (LOSS) lo,s2� `'' s.s Cs,si�) �.2�>
RETAINED EARNINGS - B'EGINNING OF YEAR 22,935 j 3I.,752
IRET�INED EARNINGS - END OF YEAR $ 33,762 $ 22.935
I \�PiBER OF SHARES OUT5TANDTNG 500 500
E.4R��iINGS (LOSS) PER SHAR.E $21.65 _ $ 17.63
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See notes to f inancial statements.
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4 ;M13 REpORT REPRESENTS BOOK FIGURES WITHOUT lP3DEPENDEhT VERIFICA' !BR�iT N, ORENSTEIN ANO SCNWEITZER
TION: THUS WE ARE NOT IN A POSITION TO EXPRE55 AN OPINION�HERcON• � i 7lFlEp PUBLIC ACCOUNTANTS
I ABRA.'�iS, P.A. .
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NOTES TO FINANCIAL STAT�fENTS
September 30, 1976 and 1975
(Unaudited)
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1 Note 1 - ACCOUNTING POLICIES:
Accounting policies of the Company are summarized below:
(a) Cash Basis:
The Comgany elected to maintain its records on the cash
basis for both f inancial reporting and income tax purposes.
(b) Property and Equipmentr �
Property and equipment are recorded at cost. . Expenditures
� for renewals and betterments are capitalized. Repairs azd
� maintenance costs are charged to expense. When items are
disposed of, the cost and accumulated depreciation are
eliminated from the accounts, and any gain or loss is
ref lected in the results of operations.
(c) Depreciation:
The cost of properCy and equipment is 3epreciated on the
straight line method over the estimated useful li.ves.
. Estimated useful lives are as follo��s:
Building and improvements 22 years
I Equipment 3 to 8 years
� Vehicles 3 years
Note 2 - LONG-TERM DEBT:
Long-term debt consisted of the foZlowing:
1976 1975
; Mortgage, payable maturing April 28, 1981,
! payable in monthly installments of $354.50 •
with interest at 6% per annun, collateraiized
j by land and building $17,731 $20,551
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Note payable to bank due on April 4, 1979,
, with interest at 10.91%, collateralized by
� an automobile 3,004 -0-
20,735 20,551
� Less current maturities (3,250) (3,000
)
i Total long-term debt $17,485 $17.551
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� � THIS REPORT REPRESEN75 BOOK FIGURES WITHOUT IhDEPEKDE.�1T, VeRiFfC:: BREITMAN, ORENSTEIIV�AND SCHWEITZER
� TION: THUS WE ARE NOT IN A POSITION TO EXPRESS AN OPINION McREON• � CERTIFIED PUBLIC ACCOUNTANTS
i ABRArIS, P.A. SCHEDULE B-I
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SCHEDULE OF EXPENSES
I (Cash Basis)
i (Unaudited)
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Year Ende Se tember 30,
1976 1975
ERPE�SES:
Salary - officer $' 56,400 28.Sy $ 70,700 33.9�
Salary - other �?+4,029 22.3 52,734 25.2
• Auto expense 1,890 1.0 2,297 l.l
f Business meetings 2,397 ' 1.2 1,635 .8
� Depreciation 5,577 � 2.8 5,497 2.6
Donations 1,062 .5 � 725 .3
f Dues and subscriptions 957 .5 793 .4
► E�ployee benef its . 784 .4 2,454 1.2
Insurance 6,967 I3.5 5,394 2.6
� Interest 2,606 ' 1.3 � 756 .3
'� Linen 1,142 .6 895 .4
;iedical drugs and supplies h1,958 6.1 14,142 6.8
i Office expense �,702 � 1.9 3,007 1.5
` Outside services 6,507 3.3 6,236 3.0
! Postage 1,752 .9 I,483 .7
Professiona.l services ,�11,935 6.0 10,959 5.3
� Prof it sharing and pension trust
, contributions 11,478 5.8 14,222 6.8
Repairs and maintenance 4,612��:' 2.3 3,607 1.7
Taxes - payroll 4,846' 2.5 9,066 4.3
Taxes - real estate 2,211," 1.1 2,215 1.1 _
Telephone 2,132 1.1 2,32b 1.1
Travel 155 .1 3,045 1.S
Utilities : 2,191 1.1 2,220 2.1
� TOT_�I. EXPENSES $187,290 4.8% $216.408 103.7y
S2e notes to financial statements.
3H1> R=?ORT REPRESENTS BOOK FIGURES WITHOUT INDEPENDEN7 VERIFICA- B �ITMAN RENSTEIN AND SCHWEITZER .
SIOV: Ti-fU5 WE ARE NOT IN A POSITION TO EXPRESS AN�OPINION HEREON• � CERTI D PU6LIC ACCOUNTANTS
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BREITMAN, ORENSTEIN ANO SCHWEITZER
( �eo eREirrnnN.c.P.a. CERTIFIED PUBLIC ACCOUNTANTS
NARVEY ORENSTEIN.C.P.A.
S7ANLEY SCHWEIT2ER,C.P.A.
EOMUND GOTTUEB.C.P.A. �
,lAMES IOCH.C.P.A. MIDWEST PIAZA BUILDING
1 BkRRY RUBIN,C.P.A. MINNEAPOLIS,MINNESOTA 55402
DAVIO LAMBERGER.C.P.A. TELEPHONE(612)339-7811
JON FRASER,C.P.A.
( DAVID ORENSTEIN,C.P.A.
ROE3ERT KARON,C.P.A.
MICNAEI MURRAY.C.P.A.
WIIUAM OBERf1E1T,C.P.A.
MALCOLM MeDEfiMID.C.P.A.
STANLEY MILIER,C.P.A.
MERUN HENSCH
( DAVIO BENENSON�'
lAUR1E BREITMAN
RICHAqD ORENSTEIN
DAVID WIEKER
� May 4, i977
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� Board of Directors and Shareholder
Abrams, P.A.
644 Selby Avenue
1 SC. Paul, Minnesota 55104
� The accompanying statement of assets and liabilities resulting from cash
transactions of Abrams, P.A, as of March 31, 1977 and September 30, 1976
and the related :�tatement of revenues and expenses and retained earnings
for the peri.od indicated were not audited by us and accordingly we do not
� express an opini�n on them.
The cash basis s�tatements referred to above are restricted to internal
( use by Abrams, P.A. and do not present the financial position or .results
of operations of the company, nor do they necessarily include all dis-
closures that might be required for a fair presentation in conformity
f with generally accepted accounting principles.
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REITMAN, ORENSTEIN AND SC�IWEITZER
Certified Public Accountants
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ABRAMSz P.A. �
FIIIANCIAL STATE�ifENTS
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(Cash Basis)
March 3I, 1977
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IBREITMAN, ORENSTEIN aHO SCHWEI �R
� CER7IFIED PUBLIC kCCOUPITAN ..$ �
� ' MINNEAPOLIS,MINNESOTA
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� ABRAMS P.A. EXHIBIT B
� STATEMENT OF REVENUES AND EXPENSES AND RETAINED EARNINGS
Six Months Ended March 31, 1977
(Cash Basis) �
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! FEE INCOME $98,070 100.0%
� 86,398 g8.1.
EXPENSES .
IINCOME BEFORE dTHER INCOME 11.,672 11.9
OTHER INCOME•
fMiscellaneous income 823 •8
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INCOME BE_FORE INCOME TAXES 12,495 12.7
, INCOME TAXES PAID FOR PRIOR YEAR� 2,896 2.9
NET IN_C_OME 9,599 9.870
� RETAINED EARNINGS - BEGINNING OF PERIOD 33 L762
� RETAINED EARNINGS - END OF P�RIOD $43,361
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� • RESTRICTED FOR INTERNAL USE_
� TFf15 REPORT REPRESENTS BOOK FIGURES WITHOU7 INDEPENDEN7 VERIFICA- BREITMAN, ORENSTEiN AND SCHWEITZER
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. ABRAMS, XHIBIT A
� STATEr1ENT OF ASSETS AND LIABI IES ��r,,
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(Cash Bas is) ���1�
(Unaudited)
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� Ma.r 31, September 30,
ASSETS 77 1976
I CURR�NT ASSETS•
Cash $ 033 $ -0-
Due from off icer 1 933 18,933
� � Other current assets 967 2,967
TOTAL CURRENT ASSErS 2 933 21,900
PROPERTY AND EQUIPMENT, AT COST:
� Land � � 00 � 2,4Q0
Building and improvements 6 , 96 62,496
Office furniture and equipment 2 , 16 18,327
AuComobile 55 7,755
� 9 , 6 7 90 8
Less accumulated depreciation 4 46 43,��4b
� � 4 ?.1 41,�',32
TOTAL ASSETS I' $7 54 $69.432
� I.IABILITIES AND SHAREHOLDERt S EQUTTY
CURRF,N'C LIABILITIES:
� Ba�k overdraft � $ 0- $ �46
Curre.nt maturities of long-term debt 3 00 3,254
Em�loyee paproll deductions 2 67 4,789
TOTAL CURRENT LIABILITIES S 67 8,185
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LONG-TERI�i DEBT: '
Installment contracts, less current maturities 15 2b 17,485
� SHAREHOLDER�S E UTTY:
Common stock - par val.ue $10
� Authorized 2,5�0 shares
Issued 500 shares S 0 . 5,000
Paid-iu capital S 0 5,000
p Retained earnings 43 I 33,762
C 53 1 43,762
� TOTAL LIABILITIES AND SHAREHOLDER�S EQUITY $74 4 $69,432
� - RESTRICTEO FOR INTERNAL USE. �
THIS REPORT REPRESENTS 800K FIGURES WITMOUT INDEPENDENT VERIFICA' BRE MAN, NSTEIN AND SCNWEITZER
TION; TMUS WE ARE NOT IN A POSITION TO EXPRESS AN OPINION MEREON• � ����ERTIF{ PUBLIC ACCOUNTANTS
� ABRAMS, P.A, SCHEDULE B-1
SCHEDULE OF EXPENSES
Six Months Ended riarch 31 197 '
(Cash Basis)
(Unaudited)
EXPENSES:
Salary - officer 21,600 22.0%
Salary - other 27,516 28.1
Auto expense 1,189 1.2
Business meetings 1,370 1.4
Depreciation and amortization . 3,400 3.5
Donations 781 •$
Dues and subscriptions 743 .8
Insurance 2,351 2.4 �
Interest 529 .5
Linen 543 .6
Medical drugs and supplies 4,927 5.0
Office expense 2,041 2.1
Outside services 806 .&
Postage 848 .9
- Professional services 6,314 6.4
Profit sharing and pension trusts 3,000 3.0
�Repairs and maintenance 1,510 1.5
, Taxes - payrall 3,121 3.2
Taxes - real estate � 1,030 1.1
Telephone 1,404 1.4
Utilities 1,375 1.4
TOTAL EXPFNSES $86,398 8s.1% .
� � RESTRICTEO FOR INTERNAL USE. �
THIS REPORT�REPRESENTS 600K FIGURES WITHOUT INDEPENDEN7 VERIFICA- �fREITMA ORENSTEIN AND SCHWEITZER
TIAAI: THIIC wF naF N07 inl A P05171�N TO EXPRESS AN OPINION HEREON• , , CER 1 IED PUBLIC ACCOUNTANTS
ABRAMS. P.A.
CASH PROJECTION
Ten Years Ended September 30, 1987
(Cash Basis) .
BREITMAN, ORENSTEIN nNO SCHWEITZER
� C E R T 1 F� E U P U B L i C A C C O U N T A N T S
MINNEAPOUS, MINNESOTA . �
. BREITMAN, ORENSTEIN Ar,�SCHWEITZ R
CERTIFIED PUBLIC ACCOUNTANTS
LEO BREITMAN,C.P.A.
HAR`!EY ORENSTEIN,C.P.A.
STAtJ�_EV SGHtiNEITZ[R,C P.A.
ffD�AUYD GOTTUEB.C.P.A.
�A�ses zoCr+.C.P.a. MIDWEST PLAZA BUILDING
BARRY RUBIN.C.P.A. MINNEAPOLIS,MINNESOTA 55402 �
0.4viD�nhtBERGEA,C.P.A. TELEPHONE(ot2)333-7811
JON FRASER,C.P.A. � - �
DAVID ORENSTEIN,C.P.A.
R09ERT KARON.C.P.0. � .
MICH:.EL MURfiAY.C�.P.A. . �
1NILUA'.t OBERAEiT,C.P.A.
MAICOL�d McOERMID.C.P.A.
STAriLEY Ati�LER,C.P.A. �
� � MERLIN HENSCH � . � - � . . . � -
DAViD BENENSON
IAURiE BREITMAN
RICHARO OFENSTEM
DAVID�vIEKER
July 28s 1977
Abrams, P.A.
644 Selby Avenue
Saint Paul, Minnesota
We have prepared the Cash Projection for Abrams, P, for e ten
years ended September 30, 1987. The information co �.ined n the
attached statement and schedul.e is based on informa on su lied
to us by the Professional Association and assembled nto s Cement
and schedule form for presentation. Since no verif' ation as made
as to the validity or accuracy of the information s plied no opinion
can be rendered on the attached statements.
. � '`L'' -
r��st2%�� .
BRETTMAN, ORENSTEIN AI�� SCHWEITZER
Certified Public Accountants
i ABRAl�iS, P.A. SCHEDULE A-l�
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES
� Year Ended SepCember 30, 1978
(Cash Basis)
(Unaudited) `
I
I
I
GENERAL AND ADMINISTRATIVE EXPENSES:
ISalaries - officer $ 52,000
� Salaries - other 68,000
Auto expense 2,400
I Business meetings 2,500
Donations 1,100
Dues and subscriptions 1,500
Employee benefits 1,000
! Iz�surance 7,000
Linen 1,1p0
Medical drugs and supplies 10,000
( Office expense 4,000
Outside services 1,600
Postage 1,750
Professional services 12,000 �:
Profit sharing and pension trust contributions 10,600
Repairs and maintenance 3,000
Taxes - payroll 6,000
� Telephone 2,�Q�
I Travel 150
Utilities 2,700.
�
1 TO�TAL GENERAL AND ADMINISTRATIVE EXPENSES $190,900 -
�
�
� ,
�
i •
�
9
#
�
�
� RESTRICTE� �OR INTERNAL USE. -
THIS REPORT REPRESENTS BOOK FIGURES WITHOUT INDEPENOENT veRiFtCa- BREITMAN, ORENSTEIN AND SCHWEITZER
EXHIBIT A
.
1981 1982 1983 1984 1985 ]. 1987
--_-----
$294,284 $323,712 $356,083 $391,691 $430.860 $ 7 46 $521,34I
$ 19,060 $ 30,817 $ 45,927 $ 64,726 $ 87,583 $11 , 04 $147,136
294„284 323,712 356,083 391,691 430,860 47 46 521,341
313,344 354,529 402,010 456,417 518,443 58 50 668,�+77
254,088 279,497 307,447 338,192 372,�11 '�; !� 40 ; 12 450,133 .
6,655 7,321 8,053 8,858 9,744 1 718 11,790
2b0.743 286,818 315,500 347,050 381,755 I 41 930 461,923
52,�01 67,711 86,510 109,367 136,688 16 920 206,554
2,584 2,584 2,584 2,584 2,584 ,584 2,584
19s200 19,200 19,200 19,200 19,200 1 200 19,200
21,784 21,784 21,784 21,784 21,784 2 784 21,784
$ 30,817 $ 45,927 $ 64.726 $ 87,583 $I14.904 $14 136 $184,770
.' ABKAMS, P.A.
NOTES TO P ROJECTION
Ten Years Ended September 30, 1987
(Cash Basis)
(Unaudited) '
The Cash Projection was based on the following assumptions:
1. Fee income will increase by 10% each year.
2. General and administrative expenses are based on historical
data and updated as necessary. These expenses are paid one
, month after they are incurred and will increase by 10% each
year.
3. Real estate taxes will increase by 10% each year.
4. Building requirement payments were obtained from Port
Authority personnel.
- RESTR�CTED FOR INTERNAL USE_ � � .
� THIS REPORT REPRESENTS BOOK FIGURES WITHOUT INDEPENDEN�T VERIF�CA- BREITMAN, ORENSTEIN AND SCNWEITZER
TtON: TMUS WE ARE NOT IN A POStTiON TO EXPRESS AN OPiN10N HER[ON• cFR7rF�Fn Puw�_�c ACLOl1NTANTS
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ResoZution No. 1241
RESOLUTION OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS , the purpose of Chapter 474, Minnesota
Statutes, know*n as the Minnesota Municipal Industrial Develop-
ment Act (hereinafter called "Act") as found and determined by
the legislature i, to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound indus.try and commerce to prevent so f ar as possible
the emergence of blighted and marginal lands and areas of chronic
unemployment and to aid in the development of existing areas
of blight, marginal land and persistent unemployment; and
WFiEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost
of governmental services required to meet the needs of the
increased population and the need for develo�ment of land use
which will provide an adequate tax base to finance these increas-
ed costs and access to em�loyment opportunities for such popu-
lation; and
WHEREAS, The Port Authority of the City of Saint Paul
(the "Authority") has received from Abrams, P.A. (hereinafter
referred to as "Company") a request that the Authority issue its
revenue bonds (which may be in the form of a single bond) to
finance the acquisition, installation and construction of
facilities for a medical clinic (hereinafter collectively called
the "Project") in the City of St. Paul, all as is more fully
described in the staff report on file; and
WHEREAS, the Authority desires to facilitate the
selective develapment of the community to retain and improve
i:ts tax base and to help it provide the range of services and
employment opportunities required by its population, and said
Project will assist the City in achieving that objective. Said
Project will help to increase the assessed valuation of the City
and help maintain a positive relationship between assessed valua-
tion and debt and enhance the image and reputation of the City;
and
WHEREAS , the Project to be financed by revenue bonds
will result in the employment of approximately 10 persons in the
new facilities; and
WHEREAS , the Authority has been advised by repres�nta-
tives of the Company that conventional, commercial financing to
pay the capital cost of the Project is available only on a
limited basis and at such high costs of borrowing that the
economic feasibility of operating the Project would be signi-
ficantly reduced, but the Company has also advised this Author-
ity that with the aid of revenue bond financing, and its re-
sulting low borrowing cost, the Project is economically more
feasible.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners
of the Port Authority of the City of Saint Paul, Minnesota as
follows :
1. On the basis of information available to the
Authority it appears, and the Authority hereby finds, that s�.id
Project constitutes properties, used or useful in connection
with one or more revenue producing enterprises engaged in any
business within the meaning of Subd�.vision la of Section 474.02
of the Act; that the availability of the financing under the
Act and willingness o� the Authority to furnish such financing
wi11 be a substantial inducement to the Company to undertake
the Project, and that the effect of the Project, if undertaken,
will be to encourage the development of economically saund
industry and commerce and assist in the prevention of the
emergence of blighted and marginal land, and will help to
prevent chronic unemploymen-t, and will help the City to retain
and improve its tax base and provide the range of services , in-
cluding ,medical. services, and employment opportunities required
by its population, and will help to prevent the-movement of
talented and educated persons out of the state and to areas
within the state where their services may not be as effectively
used and will result in more intensive development and use of
land within the City and will eventually result in an increase
in the City� s tax base.
2. Subject to the mutual agreement of the Authori�y,
the Company and the purchaser of the revenue bonds as to the
details of the lease and other documents necessary to evidence
-2-
.
and effect the financing of the Project and the issuance of the .
revenue bonds , the Project is hereby approved and authorized and
the issuance of revenue bonds of the Authority (which may be in
the form of a single bond) in an amount not to exceed $250,000
Eother than such additional revenue bonds as are needed to
complete the, Project) is authorized to finance the costs of the
Project.
3. There has heretofore been filed with the Authority
a form of Preliminary Agreement between the Authority and Com-
pany, relating to the proposed construction and financing of the
Project. The form of said Agreement has been examined by the
Commissioners. It is the purpose of said Agreement to evidence
the commitment of the parties and their intention with respect to
the proposed Project in order that the Company may proceed �
without delay with the commencement of the acquisition, install-
ation and construction of the Project and any temporary financing
thereof with the assurance that there has been sufficient "offi-
cial action" under Section 103 (b) of the Internal Revenue Code of
1954, as amended, to allow for the issuance of long term indus-
trial revenue bonds to finance the entire cost of the Project
upon agreement being reached as to the ultimate details of the
Project and its financing. Said Agreement is hereby approved,
. and the President and Secretary of the Authority are hereby
authorized and directed to execute said Agreement. Upon exe-
cution of the Agreement by the Company, the staff of the Author-
ity are authorized and directed to continue negotiations with the
Company so as to resolve the remaining issues necessary to the
preparation of the lease and other documents necessary to the
adoption by the Authority of �.ts final bond resoluti.on and the
issuance and delivery� of the bonds .
4. The revenue bonds and interest thereon shall not
constitute an indebtedness of the Authority or the City of
Saint Paul within the meaning o� any constitutional or statu-
tory limitation and shall not constitute or give rise to a
pecuniary liability of the Authority or the City or a charge
against their general credit or taxing powers and neither the
full �aith and credit nor the tax3,ng powers of the Authority or
the City is pledged for the payment of the bonds or interest
thereon.
5. Tn order to facilitate completion of the revenue
bond financing herein contemplated, the City Council is hereby
requested to consent, pursuant to Laws of Minnesota, 1976,
Chapter 234, to the issuance of the revenue bonds herein con-
templated and any additional bonds which the Authority may
from time to time deem necessary to complete the Project or to
refund such revenue bonds; and for such purpose the Executive
Vice President of the Authority is hereby authorized and directed
-3-
, � .
i • '
to forward to the City Cotzncil copies of this resolution and said
Preliminary Agreement and any additional available information
the City Council may request.
Adopted August 16 , 1977 . ,,
,
%
Attest - t �(�.,
Preside�t
` The Po�t thority of the City
� :i � of Saint Paul
Se etary
-4-
. ,����,���
PRELIMINARX AGREEMENT
THTS AGREEMENT, made and entered into this 16th day
of August, 1977 , by and between the PORT AUTHORfiT'� OF THE CITY
OF SAINT PAUL, a public corporation organized and existing under
the provisions of Minnesota Statutes, Chapter 458, and a re-
development agency within the meaning of Minnesota Statutes,
Chapter 474 , hereinafter called "Port Authority" , and Abrams,
P.A. , a professional association organized under the laws of
the State of Minnesota, hereinafter called "Company" ;
WITNESSETH:
WHEREAS:
A. The Company and Port Authority intend that
a facility be acquired, installed and con-
structed for use as a medical clinic on
premises described in Exhibit A attached
hereto and incorporated herein by reference,
said facility and premises being herein-
after called "Project" ;
B. The parties hereto intend, subject to the
terms, covenants and conditions herein con-
tained, to enter into a Lease (hereinaf ter
called "Lease") of the Project in the form
and tenor customary with respect to com-
mercial revenue bond financing in the State
of Minnesota and to finance the acquisition,
installation and construction of the Project
through the issuance by the Port Authority
of Commercial Development Revenue Bonds
(hereinafter called Bonds) which may be in
the form of a single bond pursuant to
Minnesota Statutes, Chapters 458 and 474 .
NOW THEREFORE, in consideration of the mutual covenants
herein contained, it is hereby agreed by and between the parties
hereto as follows:
1. The Company and the Port Authority agree to nego-
tiate the Lease in a form and tenor customary with respect to
commercial revenue bond financing in the State of Minnesota,
including without limitation the provision for the following:
(a) The Lease term sha11 commence on the nominal
date of the Bonds and shall extend through the final
maturity date of the Bonds.
(b) The Company sha11 agree under the Lease
to make monthly payments commencing on the first day
of the month in the amounts set out in said negotiated
Lease, but in any event sufficient to pay when due
debt service on the Bonds and to amortize the cost
of the land.
-2-
(c) Interest on earnings derived from the
investment of the monthly payments and other monies
in the Bond Fund and the Construction Fund shall inure
to the benefit of the Port Authority.
(d) The Company shall have the option to pur-
chase the Project at an amount required to discharge
the Bonds , including payment of Paying Agent and
Escrow Agent fees and any other liabilities accrued
under the Lease plus such additional amount, if any,
determined in the Lease to be required to reimburse
the Port Authority for its equity in the Project.
(e) The Company sha11 be entitled to credit
against its last installments of payments due during
the term of the Lease the principal amount of any
surplus construction funds transferred to the Bond
Fund.
(f) The Company shall agree to cause the Pro-
ject to be maintained in good working order and free �
of liens to the extent provided in the Lease .
(g) The Company shall agree to procure on or
before termination of the construction period and
maintain in its name and in the name of the Port
Authority, liabilit� and property insurance with
respect to the Pro�ect in amounts and against risks
customary with respect to such properties .
-3-
(h) The Company agrees that prior to the
commencement of the construction of any part of the
Project, the Company will cause to be filed with the
Port Authority and approved by its duly authorized
agent the Plans and Specifications for the entire Pro-
ject certified by an engineer registered in the State
of Minnesota and that with respect to at least that
part of the Project the Company then wishes to
undertake the Company will first cause to be filed
- with the Port Authority and approved by its duly
designated agent, (i) all payment and performance
bonds for the work to be undertaken, (ii) all con-
struction contracts, including any installation
contract, (iii) such builders risk, installation
floater, and liability insurance as will fully
protect the Company, contractor and Port Authority
(who shall be named as an additional insured) as
their interests shall appear, against risk of loss
or damage to the Project and Project premises and
against claims which may arise from the construction,
acquisition and installation of the Project, and (iv)
waivers from the general contractor and all subcon-
tractors and suppliers of all rights against the
Port Authority for damages to property except such
-4-
rights as they may have to proceeds of such insurance.
All construction contracts entered into for construc-
ting the Project described herein shall include
provisions that the wages paid to skilled and un-
skilled labor shall not be less than the prevailing
wage rates currently in effect in the City of
Saint Paul.
(i) The Company shall agree to pay all taYes ,
assessments , and other governmental charges that are
or may become due with respect to the Project.
2. Prior to the commencement of construction of the
Project, the Port Authority and the Company shall complete and
enter into a Project Agreement in substantially the form on
file in the office of the Port Authority or into the negotiated
Lease which may substantially incorporate by reference Articles
1 and 2 of such Project Agreement.
3. Upon negotiation of the details of said Lease
and final determination of the terms of the Bonds , the Port
Authority sha11 thereafter issue said Bonds in accordance with
the terms and conditions set forth in the Project Agreement;
provided that:
(a) Details of the sale and issuance of the
Bonds to be issued by the Port Authority shall be
sub�ect to �inal approval by the Company and the
Port Authority.
-5-
(b) Issuance of said Bonds shall be subject to
the issuance of the approving opinion of Briggs and
Morgan, Professional Association, Bond Counsel for the
Port Authority and for the City of Saint Paul, and
the furnishing of all documents, resolutions, agree-
ments, financial information, certifications , and
representations necessary to the sale and delivery of
the Bonds, including those which are customarily used
and those which are customary and necessary to comply
with all state and federal laws, regulations, rulings
and decisions.
4. Regardless of whether or not for any reason the
Bonds are issued, the Company shall upon demand nevertheless
promptly pay or reimburse the Port Authority for the payment of
all out-of-pocket expenses incurred by the Port Authority in
connection with the Project including without limitation all
Bond Counsel and other legal fees incurred in the preparation
of this Preliminary Agreement, the negotiated Lease and other
related documents.
5. The Port Authority reserves the right to issue
Bonds to a bank or other financial institution in the form of a
single bond, with installments of principal, in lieu of serial
bonds.
-6-
6. This Agreement is subject to the approval of
the City Council of the City of Saint Paul as provided by
Chapter 234 of the Laws of Minnesota for 1976 .
IN WITNESS WHEREOF, the parties hereto have caused
these presents to be executed as of the day and year f irst
above written.
In the Presence of: PORT AUTHORITY OF THE CITY
OF SAINT PAUL
BY
I ts
BY
I ts
(Corporate Seal)
In the Presence of: ABRAMS, P.A.
By
Its
By
I ts
(Corporate Seal)
-7-
EXHIBIT A
LEGAL DESCRIPTION OF PROJECT PREMISES
Lots l, 2, and 3, Bloc� 15, Smith' s Sub-__
division oF Stinson' s Division of thz
North•:�est � af Section 36, Township 29, .
- Rang� 23, according to the plat ther�of on
file anc� of record in the office o� the
Register of Dz�ds within and for Rams�y _
County, rlinnzsota; excapt the South 20
feet of said Lots, t�ken for th� Fridening
of Universi-ty Av�r_ue; together �vith th�
S�uth � of tha� vacated part of the alley
in said Block 15 lying East of the Z�7est
lir�e of said Block 15 ���nich accruzd to
said Lots 1, 2, and 3 by reason of vacation: -
And Lots 16, 17, and 18 in said Bloc',c 15;
together with th� I�orth 2 of that vacated
part of thz alley in said Block 15 lying
East of th4 ti���st line of said Block 15
which accru�d to said Lots by reason of
vaca�ion_ Contains 29,076 square fzet,
more or less.
A-1
+ \, 3 . � a..t,,
� -� .. . . � * . 1 �� .. �� � � . .
OM O1: �2/1975
Rev. : 9;/8/76
EXPLANATION OF ADMINISTRATIVE (7RDERS, � :
ItESOLUTIONS, �D ORDINANCES
• ,�������
Date: August 18, 19�'7
TO: , MAYOR EOR�E LATIMER
FR: E.A. t. Paul Port Authority
REe AB , P.A. N�DICAL CLINIC
. PRELIMINARY J4GRfEM�NT
RESOLUTI4N N0. 124] .
ACTION REQUESZ'ED:
In accordan.ce with the Laws of Minnesota 1976, Chapter 234, i� �is requested that the
C'�ty �o�c�1 by Resolutian, a draft copy of which is attached .h�reto, approv�� th�
tsswnnce of an amownt not to exceed �25Q,0� in revenue bonds �to build a new 'med�cal'
clinic for Abrams, P.A. to be located on a site at University i�artd Mackubin.
PURPOSE AN�t RATIONALE` FOR THIS ACTION:
The purpose af the bvr�d issue is to finance the construction t�f a new medic�l clinic. -
Abrams, P.A, is presently located on Se1by Avenue i:n St. Paul.> The new facility re-
presents a major new dev�lopment ta t�pgrade the area and irrq�r�ve the� delivery of
medical services to the resfdents af the s�urrounding conmunity;. The proposed fndus-
trial revenue bond issue is issued under Chapte�^ 474 and does tinvt place any obli9�ntion
on the reserves and revenue af the Port Autfiori�ty. A private ;placement has been
secured for the purchase of the bonds.
ATTACHMENTSz
Staff Memorandum
Draft City Council Resolution .
P�rt Autfiori ty Resol uti on No. 1241
Pretiminary Agreement