265491 WHITE — CITY CLERK 1
PINK — FINANCE COl1I1C11
CANqRY — DEPARTMENT GITY OF SAINT PAITL File NO. ���,��e[1
BLUE — MAVOR
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
Resolved, that upon recommendation of the Mayor and pursuant to Section
10.07.4 of the Charter of the City of St. Paul, there is hereby transferred the
sum of $50,000.00 from the Contingent Reserve General, Activity 09060 to Activity
00105 in the Office of the Mayor to be delineated as follaws:
Office of the Mayor
Activity 00105 City Administrator
159-000 Fees - Other _ . $50,000.00
A pproved as to funding: Approved:
����W �
�'-�0-25 udget Dir ctor
��a.
COUIVCILMEIV Requested by Department of:
Yeas Nays �
�Christensen
C.�Hozza In Favor
Levine /i►
c�^ Rcedler � Against BY
�lvester
edesco /j
President Hunt��� / /
Adopted by Council: Date � 2 9 �� Form Approved y Cit Attonyb' ' f
Certifi as by ouncil Secretary BY
.
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Y .
Approv by Mayor: Date '7 Approved by M �+or for Submission to cil
By By �
*"i"-'°',t�';� �� � �:�r J Acting M yor
GITY OF SAIrT PAIIL
e ■° OFFIGE OF TIiE MAYOB
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I.AWRENCF, n. CiOHEN May 2 1 � 19 7 5
MnYOa
MEMORANDUM
T0 : Council President Ruby Hunt ,
Chairman, Utilities Committee
FROM: Mayor Lawrence D. Cohen
SUBJECT: Proposed Feasibility Study of New Downtown Steam Plant
By memorandum dated May 19 , 1975, you expressed your intent to oppose
participation by the City of Saint Paul in a proposed feasibility
study of a new downtown steam plant . I agree with you that the city
should be very cautious lest its participation in the study somehow
commit us to actual participation in the ownership or operation of a
steam facility which might be built pursuant to the findings and
analysis of an in-depth study. In my opinion your statement regarding
this point, which was incorporated into the motion, will be sufficient
to protect the city, and I appreciate your foresight in recognizing
this potential danger .
However, I have great difficulty with your analysis concerning the
public benefit . The city , over the years , has expended millions of
dollars to rejuvenate and establish a healthy downtown area, which is
so important for the entire city. This has been done by use of
many strategies , including outright funding , by use of Urban Renewal
Bonds , and more recently , the Downtown Development District concept .
If in future years NSP is not going to supply steam to our growing
downtown area , it seems that a $25 , 000 investment by the city in a
joint venture with the private sector in such a study is fully
justified in light of the substantial investments already made and
future growth which could be jeopardized by the absence of a
comprehensive analysis of providing needed steam. This study could
indicate many factors , such as environmental benefits and energy
conservation.
Surely there could be no better expenditure of public funds than to
protect val.uable assets and areas which have had the continued support
of the City Council and the Administration over a number of years .
I strongly urge you to reconsider your position on this matter. Such
a study is needed and in my opinion of great public concern. Partic-
ipation in this study by the city serves a valid public service and I
encourage all members of the City Council to support the city ' s
participation in this study .
LDC/lm r22
� r� , CITY OF SAINT PAUL
+ ��* � � OFFICE OF THE CITY COUNCIL
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4_ � �5��,f, , 265�91
- - May 19, 1975
RUBY t-�UNT
Counci2�cman
T0: Mayor Lawrence D. Cohen
City Council t4embers
f�DM: Ru6y Hunt, Cnairman, Utilities Committee ��-
�
P,c: Proposed Feasi6flity S�udy of New Downtown Steam Plant
At a meeting on April 22, 1975, tfie Council Utilities Corr�nittee approved a
motion 6y Councilman Sylvester that we move ahead on the proposed feasifiility study
of a new downtown steam plant wit�i a corr�nitment of $25,000 of city money. The
motion was approved on a 2 to 1 vote, wit�i Sylvester and myself in favor, Councilman
Levine opposed.
Since both Councilman Christensen and Councilman Roedler had previously in-
dicated tf�eir support, and I wras concerned a6out moving the matter 6ack to Council ,
I voted in favor of the mot�on, subject to certaln conditions. T suggested the
motion include a statement tf�at t�e city has no intent to participate in 6uying or
relocating t�ie present steam piant or to affect the expansion plans of West Publish-
ing Company, and this statement rrras incorporated into the motion.
After consi.dera6le tE�ought, I have concluded that even with these stated
con�itions, T cannot support t�e motion, and must present the proposal to the Council
without my 6acking. Tfie reason I have reached this conclusion invol�s the proposed
funding of the study. T 6eiieve we must explore furtf�er whether there is indeed a
puolic benefit to justify tE�e expenditure of pu6lic funds. Perhaps it is more
appropriate to use private fur�s to underta[ce the study. The possibility of federal
or state grants for the purpose couid also 6e explored.
In answer to my question as to wF►o would be responsible for running a new
steam plant, Mr. Hall replied tfie study would answer this, but perhaps we are looking
tah�ard a pu6lic-private partnership. As I stated at the time, this is a major policy
decision. I am concerned that a public-private partnership in the study will lead tQ
a public-private partnersE�ip in steam plant operation.
I am not ready to conclude that this is the direction we should go, and there-
fore, I 6elieve the city would 6e well advised not to participate directly in any
steam plant study.
I have asked the Ci.ty Clerk to place this matter on the agenda for Thursday,
May 2Z
CC: �homas Kelley John Nassef City C7erk
4tat Davidson Tha�as Connelly
Bill Buth Erv Timm
Amos Martin Bob Hall
Tony Deliel T(�o�nas Stearns
CITY HALL SEVEN`I�-I FL�JOR SAINT PAUL, MINNESOTA �5102 612/298-5378
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CITY OF SAINT PAUL
OFFICE OF THE CITY ADMINISTRATOR
LAWRENCE D. COHEN THOMAS J. KELLEY
MAYOR
Apri l �6, 19 7 5 RECEIVED
APR 171975
Council President Ruby Hunt
Honorable Council Members Council President
Saint Paul �ity Council Ruby Hunt
City Hall
BUILDING
Dear President Hunt and Honorable Council Members :
Enclosed for your consideration and action is a transfer
of funds in the amount of $50 ,000 from the Contingent Reserve
General account to the Office of the Mayor.
The purpose of this transfer is to make sufficient monies
available to undertake a feasibility study of steam plant op-
erations in downtown Saint Paul - the first step in a series
of activities aimed at phasing out Northern States Power' s
existing plant, constructing a new steam generating facility
in an appropriate downtown location, and creating adequate
space for an environmentally sound expansion of the facili-
ties of West Publishing Company.
The $50 ,000 will be used to employ the consulting firm
of Gibbs , Hill, Durham and Richardson, Inc. of Omaha and
Minneapolis. This firm was chosen after interviews with
several consultants conducted by Housing and Redevelopment
Authority staff, representatives of the Building Owners and
Managers Association (BOMA) , and Northern States P�wer. This
office has reviewed the proposed study scope of services and
generally found it to be acceptable (see attached scope of
services and City-HRA correspondence) .
As you will note from the attached City-BOMA corres-
pondence, BOMA has volunteered to pay $25,000, or one-half,
of the costs of the proposed study. The City would provide
the entire $50,000 immediately to begin the study, and would
be reimbursed by BOMA when sufficient member pledges have
been collected.
365 City Hall, Saint Paul, Minnesota 55102
- 55
Kelley to Council - 2 - April 16, 1975������
I have asked the manager of this project, Robert Hall
of the HRA, to be present at the Council meeting at which
this matter is brought up for consideration to answer any
questions you may have. If you wish to contact him prior
to this , he may be reached at 298-4218. In addition, a
brief summary report prepared by Mr. Hall is attached for
your information.
The Administration urges your early action on this
matter so that we can begin to resolve this series of re-
lated problems whose solution is so important to the future
vitality of our downtown area. If you have any questions
about this matter, please contact me at yaur �onvenience.
Sincere ly, r >�
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. �,��-,� s .
Thomas J. i�elley
City Administrator
attachments
cc: Mayor Lawrence D. Cohen
Richard Schroeder
Roger Mattson
Donald Spaid
Daniel Dunford
Rose Mix
Edward Helfeld
Robert Hall
William Buth
John Nasseff
TJI�:lb
�'6��91
SCOPE OF SERVICES
The purpose of this study is to determine if the existing steam plant
system can adequately serve the heating and cooling requirements of
downtown St, Paul or whether a new facility will be necessary, The
study will include an alternative fuel price comparison of gas, oil,
coal and s olid waste. The study will identify the economic and
environmental impact plus the operating and financial options regarding `
the facility. The study will also include an analysis and system layout
for the selected location as determined by the study,
The consultant proposes that the study goals will be accomplished within
the framework of services as outlined in the scope below, The study as
proposed will be completed six months after the notice to proceed.
Task 0100 Develop Public Information and Involvement Program
0110 Develop a plan for establishing continuing communi-
cations with local officials and the general public.
Task 0200 Market Research -- Seasonal Heatin� and Coolin�
Requirements for powntown St. Paul
0210 Determine the potential boundaries of the area to
be served.
0220 Prepare a questionnaire to be distributed to the
present and futu�e heating and cooling customers.
�� 0230 Survey the market area by distributing questionnaires
and managing the data collection.
0240 Using the market data in Task 0230, compile and
tabulate consumption and demand loads for heating
and cooling requirements,
0250 Project these load requirements into 5, 10, and 20
year forecasts.
3/28/75
. Page 2 �S��n�
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0260 Using existing steam system data provided by the
city and NSP, evaluate the physical conditions
of the distribution lines (age, size and usage).
0270 Determine the projected operating plant capacities
for 5, 10, and 20 years,
Task 0300 Preliminary Plant Concept
0310 Determine if the existing plant and facilities are
adequate for future consideration,
� 0320 Develop criteria for and choose sites in cooperation
with the client,
0330 Based on the extent of the analysis conduct in
Task 310, the sites will be rated to determine
location selection.
0340 Prepare a general layout of the proposed facilities.
0350 Prepare a preliminary cost estimate for the plant
and distribution system.
0360 Prepare flow schematic showing plant operation.
Task 0400 Economic Evaluation
0410 Estimate the final system capital and operating
costs for the initial installation and the 5, 10,
and 20 year incremental additions.
0420 Discuss various Financing Plans
such as;
1, Revenue B onds
2. Industrial Bonds
3. Federal or State Grants
Review financing alternatives with principal users.
0430 Determine the economic feasibility for both the
user and the operating entity.
3/28/75
� . �s5�9
Page 3 1
0440 Evaluate the use of solid waste as a supplemental
fue 1.
0450 Compare alternative fuels such as: gas, oil, coal
and s olid waste.
Task 0500 General Environmental Considerations
<
0510 Prepare a preliminary assessment of potential
beneficial and/or detrimental environmental effects
that may be produced by the facilities. The consul-
tant does not intend for this task to result in a
complete Environmental Impact Statement.
Task 0600 Implementation
0610 Analyze the various methods of system operation
and ownership, such as:
1. Joint Venture
2. Private Enterprise
3. Othe r C ombinati ons
Select an operating entity based on the analysis
conducted.
0620 Recommend a preferred financing plan,
0630 Prepare a construction schedule for the project,
Task 0700 Final Report
0710 5ubmit a preliminary draft report in 4 months.
0720 Print twenty-five copies of first draft for official
public review and c omment,
0730 Complete final report.
0740 Print fifty copies of final report.
3/28/75
. ' �6�491
Page 4
MEETING AND REPORTING
GHDR personnel will be available for periodic review of the study and
not less than three public meetings as required,
DATA 50URCE5
All study data will be provided upon clients request.
=�Indicates tasks that will be performed by the client,
3/28/75
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COMPENSATION GUIDELINES
Task Subtotals Months Dollars
Tasks 100 and 200 2. 0 $17, 500
Task 300 1. 0 11, 100
Task 400 1, 0 7, 800
Task 500 1, 0 3, 200
Task 600 1, 0 4, 300
Task 700 1, 5 6, 100
Total Compensation 6, 0 $50, 000
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� : �5 East Fifth Street, Saint Paul, Minnesota` 551 O1. Edward N.Helfeld,executive director.phone 223 5218
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�DATE �cx 3i, i9�s �
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HOUSING AND R,EDEVELOPMENT AUTHORITY OF THE CITY OF SArl�l�l�' �PAUL,, MINNESOTA
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TO �orr�s J. KELLEY - CITY AI)i�INISTRATOR ` �:� �'" ,
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FROM EDWARD N. HELF�.,'LD 4 _, j�,,; :. ;� , � .�
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SUBJECT STEAt�1 PLP.NT rEASIBILITY STUDY � =� • . _ - .
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On March 21, 1975 the staff and the BOMA group intervfewed the three finalist
consultants and after considerable discussion, the unanimous choice to undertake
the Feasibility Study was Gibbs, Hill, Durham and Richardson, Inco, of Omaha and
Minneapolis. They have agreed to do the Study for $50,QUO and complete it within
six months.
The anclosed Scope of Services was prepared by the consultant and reviewed and
modified by our sCaff and the B0.3A staff and could be attached to and made part of
a normal city Contract for Services.
The remaining question is how the Study should be financed and we would recommend
, that the City pay the full $50,000 with a pledge from BO?�fA to reimburse the City
for 5Q% of the $5d,000 or $25,000. The BOMA group will meet on Wednesday, April 2,
1975 to consider this recommendation and wi11 get back to us. We will advise you
of the outcome of that meeting.
Incidentally, we did contact Prof. Pat Starr of the University and invited him to
sit in on the consultant interview meeting, but he declined because he has already
done so�e work for one of the consultants and felt that his attendance might be a
conflict of interest. •
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ENCLOSURE _
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CITY OF SAINT PAUL
OFFICE OF THE CITY ADMINISTRATOR.
April 7, 1975 THOMAS ). KELLEY
TO: Edward N. Helfeld
FR• Thomas J. Kelley (5�--
RE: Steam Plant Feasi.bility Study
The HRA-BOMA choice of consultants for the feasibility study is ac-
ceptable to ttie City, and we are in the process of identifying the
requisite $50,000 to fund the study. We are pleased that BOMA has
chosen to assist in study funding, and the $50,000 will become
� available shortly after we have received BOMA's written commitment
for its $25,000 share of the costs.
With regard to the scope of services which you transmitted with yaur
memorandum, we have certain concerns which we would appreciate your
staff considering:
l. Who is responsible for making contacts with other, possibly-
affected aqencies; such as the Follution Control Agency or the
Waste Control Commission?
2. We understand that the impiementation task will include schematics
on all new pipe locations and sizes, necessary redesign of,existing
.pipes, and so on. Is this correct?
3. Who exactiy is the "client" mentioned in task 0320 and else-
where?
4. What is meant by the phrase "based on the extent of the analysis
conduct (sic) in Task 310 . . ." in task 0330?
5. Who will take responsibility locally for task 0230? •
6. We would suggest that 40 copies of the draft report and 75 copies
of the final report be prepared.
. TJI�/ca
cc: Mayor Lawzence D. Cohen
Richard E. Schroeder
Donald L. Spaid
365 City Hall, Saint Paul, Minnesota 55102
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. DAT�E APRIL 14 19 75 ' .`�� �- �`�'s �� �^�
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HOUSiPJG AND REDEVELOPMEP�T AUTHORITY OF THE CITY OF SQI�I��Pat���'�j��;�r� r '
y�- SOTA
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TO TIiOMAS J. iC�I.LEY . �, `��.. � �'J i � �W c?;-`' . .
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f RO M rb,- EDWARD N. HLZFL'I,D ,j`v/J �
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SUBJECT STEA.�Z pLANT F�ASIBILITY STUTJY
This is in response to your memo of A ri1 7. � ' * �
P I'irst BO.�lA held• a meeting of their steam
users on April 8th and unanimously endorsed the concept of pledging $25,000 tor the
`�•�'� � feasibility study. On April 14th �,•e expect BO�fA to �ive its formal approval and in the
.;.,
meantime Bill Buth �vill be contacting steam usErs and BOMA members to get individual
_ pledges. Also, I am glad to learn that you caill schedule a hearing b�fore the City '
Council within the next two weeks, or as soon as possibl�e to secure the necessary
appropri�tion. Please advise me or Bob Hall of the specific date and we wiZl be presen�
along with BortA representatives to answer any questions the Council may have.
The foZlowing are answers to the specific concerns raised in your memo; . ;
b
(1) Who is responsible for making contacts with other, possibly-affected agencies;
Rac.h R�S thp Pol)T�tion l;ontr�] A�encv �r th,� W�ste Gor.*_ro? Gomr!;��;n,�� ;
i
Answer: Most of the contacts will be made by the consultant, specifically their �
local repres�ntative, Mr. Floyd J. F'rosber r
agencies on other stndies and knows s ecificalla whichealt with all the
contacted. P y P�oP1e .,hould be
If speci£ic requests from the City are required, the designated
Project Manager, Robert F. Hall, will handle them.
6
(2) We understand that the implementation task will include schemAtics on all new
pipe locations and sizes, necessary redesign of existing pipes, anc3 sa on. Is ;�
r this correct? .
f
� �
- • Answer:� Once a preliminary site selection is made or �
two alternative sites), the consultant will preParebma s showinnathee or `
+• P g prebable
location of r.ew steam lines from the site ro ttie service areas, indicating '
whether such sites should be located in streets, sidewalks, buildings, etc; �
aTso indicaring where anc� how the eg;isfiing stea.*► distribution lines mi;;ht
be utilized. The consultant will al�o provids cast estimates for the
distribution systern but wili not go into actual working drawings of either
tite plant or. the steam Iines. Such details are beyond the scope of thi�
study and are part of the actual design of the plant when and if it is
deterniined that it will be built.
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. THO�lAS J. KELLEY - 2 - " APRIL. I4, 1975
(3) Who exactly is the "client" mentioned� in task 0320 and elsewhere����� �
Answer: The client is the City of Saint Paul unless the City Council should choose
Co mak� the BOMA group a specific party to the contract. t�Je recommend that � '
the City remain as the sole client to keep the legal o'nligations as s3.mple
and .strai�htforward as possible. In the conduct of the study, however, we .
fully expect representatives of BflNi.A and the steam users to activcly partici-
pate in iaorklsessions with the consultant and provide a great deal of input
to the study.
(4) What is meant by the ghrase "based on the extent of the analysis conduct (sic)
in Task 310 ..." in task 0330?
Answer: First the consultant will evaluate the existing NSP steam plant and determine
its adequacy �ar continued and future use, includin� tiie candition �nd
location of existing distribution lines. In the folloziing task (0320) the
consultant together with HRA planning staff, Ylaruting Comsnission staf£ and
additional staff input from other City agen.cies such as PubZic Works wi.11
examine and evaluate various r.eca site alternatives and will use data obtained
i n 0310 as part of that evaluation. SpecificalZy, for ex�*nple, what existing
NSP steam lines could be used ss part of a new distribution system?
, �(5) Who wi11 Cake responsibility locally for task 0230?
Ans_,,.,wer: T��sk 023C� is n?rt of *_he r�?rket resezrch p�:sse of the �tu�y u;.d i.t c���c�
that the consultant will "Survey the market area by distribu�ing questionnaires
and managing the data coZlection". The survey is intended to determine the
nature, extent and locations of present and �uture ste��m and cooling users
and the Project Manager �nd BO�tA representatives will assist the consultant
iR distributing the questionnaires and gstting them hack to the consultanC in
the shoreest possihle ti�ae so Chat he may pravide the necessary aizalysis.
(b) T�e wauld su�gest that 40 copies of the draft report and 75 copies of the final
report be prepared. .
Answer: Wg have contacted the consultant and he agrees and will prepare 40 draft
reports and 75 final reports. �.'he Scope of Services will be revised accord-
ingly.
I trust these will answer your concerns and should any further clarification be necessary,
Bob Hall will be gl�d �o provide additional in€or�ation.
CC: Mayor Lawrence D. Cohen �
Richard E. Schroeder
Donald L. Spaid
P.S. tire will prepare report to City Council memhers as requested in your phone convsrsatior
today wiCh Bob I�all.
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April 17, 1975 ���
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TO: Mayor Lawrence D. Cohen
Members of the City Council
FR: Robert F. Ha11A��
1�
RE: ' Request for Funds for Steam Plant Feasibility Study
A request will soon be made to the City Council for the appropriation
of funds necessary to undertake a study to determine the feasibility
of building and operating a new heating and cooling facility to serve
the downtown Saint Paul area.
This request is a result of ineetings between the City Administrator,
Housing and Redevelopment Authority staff, and representatives of
the Saint Paul Building Owners and Managers Association (BOMA) , who
are attempting to determine whether the City and the downtown steam users
should jointly undertake the construction of a modern steam plant to
replace the present limited Northern States Power steam plant located
on Kellogg Boulevard next to West Publishing Company.
Such a venture, if possible, could have at least three beneficial
results:
1. Provide a long-ter.m, low-cost heating and cooling
energy source for present and future steam users in
the Saint Paul downtown.
2. Reduce the present pollution levels in the downtown
area by providing a new facility and eliminating the
need for individual steam plants in separate
buildings.
3. Permit West ?ublishing Company to expand from their
present building, thus mainta.i.n:i.r�g a low profile
and saving the present river view.
Discussions with the downtown business community explored many pos-
sible ways of accomplishing the objectives noted above. The building
owners have, for several years, been acutely aware of the problems of
rising energy costs, energy scarcity and the need to provide good
energy alternatives to present sources, particularly gas service,
It was at their request that the exploratory meetings began. Al1
parties quickly concluded that many very technical questions remained
unanswered and that these questions must be answered before informed
decisions can be made as to how (or if) the City of Saint Paul should
become a participant in such a project.
. • I
• . . I
A :request for a feasibility' study proposal° �iaas prepared jointly by ��v��,�
staff and BOMA, and sent ta eight highly-qualified engineering con-
sultant firms. Seven replied. Their proposals were evaluated and
three were interviewed by HRA staff and BOMA. The fi�al unanimous
choice was the firm of Gibbs, Hill, Durham and Richartison of Omaha
and Minneapolis, who are presently undertaking a major solid waste
study for Hennepin County and the University of Minnesota and are
thoroughly familiar with Saint Paul and the �ain Cities area.
In brief, the feasibility study will determine, from both an economic
and engineering standpoint, whether or not to build a heating and
cooling plant to serve the downtown. The study will recommend
sites, suggest rates to be set, methods of financinq, methods of
organization, ecological considerations and many othex factors as
indicated in the Scope of Services.
In addition to the consultant, many city agencies and departments, in-
cluding the Department of Public Works, Assessments and Valuation
Division, Office of City Planning, Planning Commission, the Port
Authority and the Housing and Redevelopment Authority will be re-
quested to provide necessary expertise and input. Also, the ap-
propriate metropolitan and state agencies will be contacted and
involved during the study process. A major source of information
and evaluation will be the downtown businessmen themselves, who have
already pledged to provide $25,000 or half of the tot�l study cost.
The study, if funded, will produce a preliminary report in four
months and a final report in six months. Periodic work progress
reports will be provided to the City Council and Mayor's Office
and public meetings will be held to keep the general public fully
informed.
cc: Thomas J. Kelley
�6��9.�
Mr. Thomas Ke l le y
City Administrator
April 15� 1975
Page Two
The above statement was passed by our Membership at our April
14th, 19�5 Membership Meeting. A copy of the Resolution was
submitted to Mr. Thomas Kelley for his information.
We are pleased to cooperate with the City in this venture and
we feel the potential benefit will enhanc� the development of
S t. Paul.
S incere ly,
ST. PAUL ASSOCIATIC�T OF BUILDING
Q�II�RS & MANAGERS , INC.
W il liam A. Buth
Executive Director
WAB/gk