02-10511 Council File # O.'1, ���O � 1
2 / Green Sheet # ��� O C�
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5 Presented By "`' "' / � V
6 Referred To Committee: Date
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RESOLUTION NO.
RESOLUTION AUTHORIZING
EXECUTION OF A SECOND AMENDED AND
RESTATED DEVELOPMENT AGREEMENT
AND A MORAL OBLIGATION AGREEMENT
(7. J. HILL PROJECT)
17 A. WHEREAS, the City of Saint Paul, Minnesota (the "City") has heretofore
18 received a proposal from the Housing and Redevelopment Authority of the City of Saint Paul,
19 Minnesota (the "Authority") and Hill Building Limited Partnership, a Minnesota limited
20 partnership (the "Developer") that the City and the Authority assist the Developer with certain
21 public costs of the renovation of an existing building known as the J. J. Hill Building (the
22 "Project").
23 B. WHEREAS, the Project consists of the renovation of the J. J. Hill Building into
24 53 owner-occupied housing units and the construction of related parking facilities.
25 C. WHEREAS, the Authority has heretofore approved the establishment of a taac
26 increment financing district and has adopted a tax increment financing plan with respect to the
27 Project.
28 D. WHEREAS, there has been prepared a Second Amended and Restated
29 Development Agreement (the "Development Agreement") between the Authority, the City and
30 the Developer setting forth the terms and conditions under which the Authority will provide tax
31 increment financing assistance for the Project through the issuance by the Authority of its tax
32 increment revenue note (the "Note").
33 E. WHEREAS, pursuant to the Development Agreement, the Authority has agreed,
34 to the extent permitted by law, to issue its tax exempt tax increment revenue bonds (the °TaY
35 Increment Revenue Bonds"), upon the satisfaction of certain conditions, to refund the Note. The
36 TaY Increment Revenue Bonds will be secured by a pledge of tax increments derived from the
37 Pro}ect and an agreement from the City, in substantially the form on file with the City staff (the
38 "Moral Obligation Agreement") to annually consider replenishing any funds drawn from the
39 bond fund or reserve fund to pay principal or interest on the Tax Increment Revenue Bonds.
1432111v2
O 1. - \cks �
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Yeas Nays Absent
Benanav �
Blakey �
BOSiTOIri �
Coleman �
Harris �
Lantry r
Reiter ,/
*'[ C O
Requested Uy Depariment of:
Planning & Economic Development
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Form
Adopted by Council: Date Ny� �',�J7 �By:
Adoption Certified by Council Secretary
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by Ma}vr
Attorney
Approved by F" ancial Services
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1432I ll v2
DEPARTMENT/OFFICE/COUNCIL: DATE INITIATED GREEN SHEET NO.: LO7OOO O y`�S �
PED - Downtown Team 11/04/02
CONTACT PERSON & PHONE: TE ��TwvnATE
Diane Nordquist (6-6640) � 2 DaraxrMEN�r DmL n�� 6 ci� co[n�rcn,
Mi7ST BE ON COUNCII. AGENDA BY (DATE) �IGN 3 CITY ATTORNEY _ CITY CLERK
4 FINANCIAI. SERV DIR. FINANCIAL SERV/ACCTG
I U13�O2 gNUMBER 5 MAYOR (ORASST.) CIVIL SERVICE COMA-IIS N
ROi1TING Ii[7MAN RIGHTS DEPT. 1 ROBERT SCIIItEIIIt
ORDER
TOTAL # OF SIGNATpRE PAGES _1_(CLIP ALL LOCATIONS FOR SIGNATURE)
ncrlox �QUES�n: Execution of the Second Amended and Restated Development Agreement and Moral Obligation with
Hill Building Limited Partnership, for the development of up to 53 owner occupied housing units in the historic J.J. Hill
Building.
RECOMIbfENDATIONS: Approve (A) or Rejea (R) PERSONAI. SERVICE CO1V'IRACI'S MIJST ANSNER 1'HE FOLLOWING
QUESTIONS:
PLANNING COMbIISSION 1. Hat this person/firm ever worked under a contract for tt�is departrnent?
CIB COMIvIITTEE Yes No
CIVIL SERVICE COMbIISSION 2. Has this person/firm ever bee� a city employee?
Yes No
3. Does this person/firm possess a skill not noxmalty possessed by any cu�rent ciTy employee?
Yes No
Eaplain alI yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPOR'1'UN[1'Y (Who, What, When, Where, wny�: On August 7 � 2��2� �10 H� 1T1C1 �.'I�' COLITIC71
approved an Amended and Restated Development Agreement with Hill Building Limited Partnership to develop up
to 53 units of owner-occupied housing in the historic J.J. Hill building. This Second Amended and Restated
Development Agreement changes the tas increment financing structure slighfly to allow for tax exempt refunded
bonds to take out a taacable developer note.
ADVANTAGESIFAPPROVED:
The developers can proceed with developing up to 53 units of owner occupied condominiums and preserve an historic
structure. a ;Y�e'��
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DdSADVAN'I'AGESIFAPPROVED� r"{�� ��"��'��� NoV 0� ZooL
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None �i��q ���� ��
DISADVANTAGES IF NOT APPROVED:
The developers would not be able to proceed with the development of 53 units of owner occupied condominiums
and the reuse an historic structure.
TOTAL AMOUN'I' OF TRANSACTION: $ O COST/AEVENUE BUDGETED:
F'oxnuvc SoultcE. Tuc Increment Financing AC'rIV1'1'YNDMSEx:
FINANCIAL INFORMATTON: (EXPI,AIN)
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1 Copies of the Development Agreement and Moral Obligation Agreement are on file with the
2 City Clerk.
3 F. WHEREAS, the City's execution of the Development Agreement is solely for the
4 purposes of evidencing its approval of the provisions of Article V thereof relating to the Tax
5 Inerement Revenue Bonds and to evidence its intention of executing the Moral Obligation
6 Agreement at the time the Bonds are issued.
7 NOW, THEREFORE, BE IT RESOLVED by the City Council of the Ciry of Saint Paul
8 as follows:
9 Section 1. The City hereby finds, determines and declares that it is in the public interest
10 of the residents of the City of Saint Paul that the Project be undertaken in order to increase the
11 supply of owner occupied housing units in the downtown area and to renovate an existing
12 historic building.
13 Section 2. The City Council hereby approves the Second Amended and Restated
14 Development Agreement in substantially the form submitted, and the Mayor, Clerk and Director,
15 Office of Financial Services aze hereby authorized and directed to execute the Development
16 Agreement on behalf of the City.
17 Section 3. The City Council hereby authorizes the Mayor, Clerk and Director, Office of
18 Financial Services to execute, prior to the issuance of the Tax Increment Revenue Bonds, a
19 Moral Obligation Agreement, in a form and substance acceptable to the Director, Office of
20 Financial Services and the City Attorney's office; provided that the principal amount of the Tax
21 Increment Revenue Bonds secured by the Moral Obligation Agreement shall not exceed
22 $3,800,000, the net effective interest rate on the Taac Increment Revenue Bonds shall not exceed
23 eight percent, and the final maturity date of the Ta�c Increment Revenue Bonds shall not be later
24 than March 1, 2030.
iasu t i�z