262662 WHITE - CITY CLERK � -J["^y��r'y��
PIN�C - FINANCE GITY OF SAINT PAITL Council jViJR+IJ l�
CANARV -D�PARTMENT
BLUE - MAYOR File NO.
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED� that the Council of the City of Saint Paul hereby
approves :
"A bill for an act relating to the eity of St.
Paul ; providing for and authorizing said city
to issue its general obligation bonds for urban
renewal development purposes and for rehabilitation
loans ; amending Laws ig63, Chapter 881, Sections
1, 2 and 3 as amended; and repealing Laws 19?3,
Chapter 395 , Section 2. "
and recommends the same to the Ramsey County Senate and House
delegations .
_�
COUNCILMEIV Requested by Department of:
Yeas �� Nays
Konopatzki � In Favor
Levine
Meredith � Against BY
3� ��.�'
Tedesco
Mme.President� ��
Adopted by Council: Date
N OV 3 0 19� Form Approved�y i.y rney
Certified ` d by Counc' ecr r BY ^;`
By
� U
Appro d by Mayor: Approved by Mayor for Submission to Council
By By
pU6USHED DEC 0 8 1973
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� � An act relating to the c�.ty of St . Paul; providing for
and authorizing said city to issue its general '
� obliga�ion h�r�ds for ��rb�n �:enewa� deve].opment • `
purposes and f'or rehabilitation loans ; amending
Laws 1963, Chapter 881 , Sections 1, 2 a.nd 3 as .
' amended; and repealing Laws �1973, Chapter 395 , .
Section 2 . ;
IIe it enacLed by the Legislature o�' �;he State of Minnesota: �
Section 1. Laws 1963, Chapter 881, Sectior. 1, as '
amended by Laws 19G7 , Chapter u99 , SecLion l , Laws 19bg,
Chapter 923, Section 1 , La�•�s a.971, Chupter 321 , Sec-
tion 1, and Laws 1973, Chapter 395s 'Section 1, is • .
amended to read: �� - � , . . . . � .
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Section 1. �St . Paul, city of; urban renewal ; rehabili-
taLion loans ; bonds . Subdivision 1(a) . The city of Saint
Paul may issue its ge�neral obl3gation bonds for the purpose
of arid in L'ne ar;:ounLs necessary fo?, paying no� to .exceed
onr� L-hird of the net proj ect- cost of each of the urban
rene�•ral developmen� or code enforcement pro� ects heretofare
_ designated by th� hous�ng and redevelopment authority of
` the city of Saint Paul or the city of Saint Pau1 as the
Downtown, Cathedral, Riverview, Concord Terrace, Summit-
University , and Phalen Area projects and such �addi��.onal
projects which may be approved in the manner provided by
1aw, and for paying any remaining costs of municipal. build-
ings and improvements to be constructed within or ad�acent
,
to the project area and for paying relocation costs
required to be paid by the Housing and Redevelopment
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� Authority pursuant to the provisions of Section 1� . �
M. S. The net pro� ect cost referred to in this act is
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the public redevelopment cost of the pro�ect less its #
capital proceeds , as those ter.ms are defined in Minnesota �
. �
Statutes , Section 462 . 5�►5 , and in subdivision 2 , and as
the amounts thereof are estimated by the city council � `
. � � � • �
prior to the delivery of each series . of bonds . �}�e-�e�a� � ;
�
ex�e�r��-e�-he���-�t��l�e���e�-ke�e��-�����-be-�����e�-�e � �
$��-��Fg9;889- � � • .
(b) It 3.s hereb�� declared that there exists in -
' urban renewal and code enforcement areas within the city
a seziously inadequate supply of safe and sanitary dwelling �
accomodations for persons and families of lova and moderate
income , that such shortage consti'cutes an emergency and a
menace to� the health safet morals welfare and comfort
of citizens of the city • that there exist a number of
dwellings which are inadequate , unsafe or unsanitar,y by �
reason of the absence of roper heatin or lumbing facili-
� ties or by reason of the necessit for elimination of con-
� ditions dan erous to human life or detrimental to health
. which conditions can be corrected and which dwellin�s can
be made ade uate safe and sanitar b the installation of
� a ro riate heating and plumbin� facilit3.es and by rehabili-
� tation and b the elimination of such inade uate unsafe and :
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� unsanitary c�nditior.s ; such rehabilitation cannot readily
� be provided by the ordinary unaided operation of private ,
enterprises without public aid in the form of loans to
owners of such dwellings for the purpose of accomplishing
necessary rehabilitation; that the ins_tallation of proper ,
heating and plumbing f acilities in such d�aellin�s or other
rehabiiitation for occupancy by persons of low and moderate
income as provided in the re�;ulations to be adopted as
hereinafter provided is a public use and a public purpose
.for which public money may be loaned; that such conditions .
require the rehabilitation loan pro�ram herein enacted.;
. and the necessity in the. public interest for this program
is hereby declai ed as a ���at�er cf leg�slative determina`i�n.
Ther. efore , in the event that the city , by resolution of
. the cit,y council , determines .that sufficient money� is not
" .available from the United Sta��s gover. nment , pursuant to
the provisions of Section 312 , Title III of the Federal
. Housing Act of 196� , and act or acts supplemental thereto,
. for the pulpose of making rehabilitation loans in urban
� renewal and code enforcement areas from time to time desig-
nated pursuant to the provisions of subdivision 1(a) hereof,
� then the city may from time to time issue iLs g�neral obli- �
ga�ion- bonds in an amount not to exceed $1,000 ,000 during a
specified 12 month period, herein designated the annual
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increment period for the purpose of making such rehabilita-
tion loans . Prior to maki•ng any rehabilitation loans , the
city council or its designee shall adopt regulations which
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comply substantially �aith �he pr.ovisions of the said
. Section 312, insofar as that section rel.ates to the
. • determinations to be made as a condit3_on precedent to .
L-he makin�; of such loans . •
(c) Not�vithstar�din� the provisions of subdivision 2 of
this section if, in anv annual increment period, a11 or an�
� part of the two-thirds share of capital �rant monies are
not provided by the United States of America pursuant to �
Title I of the T'ederal Housin� Act of 19�19 and acts
� , amendatcry thereof, for an� urba.n rer.e,val pro�ject or
. pr�jPCts f`�^om t�me to time desi�nated pursuant to Subdi-
vision 1(a.) hereof, then the citv may from time to time
—_ �
r �issue 3_ts�ei�eral obli�ation bonds in a total a�gregate
arnounL of not to exceed $10 ,000 �000 for the purposes of
paVin� all or anv part of the capital �raht monies not so
. . provided by the UnS.ted States of America. � �
- (d) The total. am,ount of bonds authorized to be issued
for all pur�oses described in this subdivision 1 shall not
exceed i.n the a��zre�ate �45 , �+00 ,000 . _
• Subd. 2 . Federal grants . The general obligatiori bonds
authorized in subdivision 1(a) for paying not to exceed
- -= one third of the net project eost of urban renewal �
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development or code enforcement pro�jects shall be issued �
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� only in the event the secretary of the department of ':
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housing and urban development obligates the United States . `
G.
of America under authority of Title I of the Iiousing Act
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of 1949 , and acts amendatory thereof, Lo make a capital #
grant to the urUan renewal redevelopment or code enforcement
project or projects in an amount of two thirds of the neL
project cost . In� the event the required federal capital
' grant is authorized under Part A of said Title I in the
- amount of two thirds of the net project cost for the entire
pro� ect , the b onds may be issued from ti.me to time in amounts �
as in the determination of the city council are necessary to
the undei �aking and completion of the project . In the event �
the required capital grant is authorized under Part B af said
Tit1e I in the amount of two thirds of the net pro� ect cost
calculated on the basis of public redevelopment costs
_ incurred less capital �roceeds ,(including falr market
value of property in the project area acquired by the
housing and redev�lopment authority but not sold or leased)
derived on account of the project or projects during e a�
. �articular spe����e�-��-x�e���-pep�e�;-l�e�e��-c�es���a�e�-as
��e annual increment period for the pro� ect or projects ,
� e�-a»-e�e��ge�-a��t���-�-He�et�e��-ge��e�-He�-�e-e�eee�-€��te .
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� 3�ea�es the bonds issued pursuant to subdivision 1(a) during
any such annual e�-��e�a�e� increment period shall not ex-
' ceed, (a) . one third of net pro� ect cost for such period aR�
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�lus the remaining costs of municipal� improvements under-
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,taken in such � period: , or (b) one third of the avera�;e riet �
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pro,ject costs during any tvro or more, but not more �han five � �
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consecutive annual increment �eriods , one of ti;hich shall be
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the annual incrernent periad in which the bonds are issued
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: (provided that the a.mount so corrputed sha�l not , when added �
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to the amou.nt of bor.ds issued duri� thelyears upon_�vhich such �
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at�erage is computed , exceed in dollar amounL one half of the �
� capital �rants made and obligated to be made b,y the United .
States of America under Title I of the Housin� Act of 19�+9
' as amended for urban renet�Tai develo.nment or code enforcement
. projects durin�; such years ) plus the rema�_nzng costs of
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� mun:icipal im�rover�ents underta:ten in the annual �ncrement �
� eriod in which t�he b onds are issued. � . �
Section 2 . Lavas 1963 Cha ter 881 S ' �
. , P , ection 2, is . �
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- amended to read : � • � �
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Sec . 2 . Bonds; r�anner of issuance . ��ek The bonds ;'
described in Section 1 hereof may be authorized, issued, '�
and sold without a vote of Lhe elector. ate by resolution or ' �
resolutions of the city council in accordance cvith the
provisions of Minnesota Statutes, . Sections 475 . 54 to
�75. 56 , 475 . 60 to 475 . 7�2, and 475 .�74 , notwithstanding� any
other provision of law or of the city charter or
ordinances . The amount• thereof shall be excluded €�e�
� _in the computation of the net d�bt of the city as defined
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' #� � F4�x�eee�a �statute; or charter dee��er�-��gT��; � - � ;
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S�t�����s�e�-� . � • , �;� - �
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Section 3. Laws 1963, Chapter 881, Section 3, is � �
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amended to read: � � !
Sec . 3. Sinking fund; tax increments . Subdivision . ;
1. The city ee���as�e�e�-e€-��r�a�ee,--#�e�e���e�-w���-�ke . . - �
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• . - ;
s�r�l���3�-�t���-e�e���d�ee�-�s-g�a�t����-��--sesb�er�-��8-a� � �
��ae-e���de�-e�-��e-�x��-e€-ba���-�a��; Director of Finance
and P�Iana ;ement Services shall maintain a common sinking . '
. fund, in accordance with MinnesoLa Statutes , Section 475 .66 , '
for the pa3►ment of p rincipal .and interest on all urban
renewal bonds issued pursuant to �his act , and no others .
When such bonds have been issued, �he city council may
each year in its discretion direct the county treasurer to
set aside and pay over to the ee���ss�e�e�-e�-���a�ee
Director of Fir.ance and Pfanagemen'c Services for credit to
� this s�nking fund, instead of crediting to the special.
. benefit tax fund described in Minnesota SLatutes , Section
462 . 5�+5 , Subdivision 5, all or part of the tax revenue
derived in the following year � from real estate and permanent
' structures and improvements thereon, situated within any
pro j ect area (whether• or not f inanced by s uch bonds) , in
excess of the tax revenue derived therefrom in the year
immediately preceding that in vrhich the acquisit3on of
such property by the housing and redevelopment authority -
� of the city of Saint Paul first commenced; provided that
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the total amount so directed to be set aside shall not ` '
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exceed the sum of all taxes levied and appropriated by the ;
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city counc�l to the sinking fund, which are to be collected
in such year . .
- , Subd . 2 . The cif, Director of Finance and Mana�'emen�
Services shall maintain a comMOn sinlcin� fund in accordance 1;
i
�aith Minresota Statutes 475 6G for the paym°nt of th� � � � ;
-------- ;
principal and interesL on all bonds issued to finance
rehabilitation loans pursuan� to section 1(b ) hereof, and �
I70 Ot".r1E'?'S . �
Sec . 4 . Sections � and 5 , Laws. l973, Chapter 395 ,
are repealed.
Sec . 5 • This act shall become effective only after
' • its approval by a majority of t;he governin� body of the
city of Saint Paul and upon compliance w.;.th the provisions
of AZinnesota Statutes ,�Section 6�15 .G21.
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