02-760Council File # 02�7�_
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Presented By
Referred To
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Resolution #�
RESOLUTION
Green Sheet # �01772
L, M{NNESOTA
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RESOLUTION AUTHORIZING
EXECUTION OF AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT
AND A RESEItVE REPLEI�ISFiMENT AGREEMENT
(JAMES J. HILL BUILDING PROJECT)
A. WHEREAS, the City of Saint Paul, Minnesota (the "Cit}�') has heretofore
received a proposal from the Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "Authorit}�') and Hill Building Limited Parinership, a Minnesota lunited
parinership (the "Developer") that the City and the Authority assist the Developer with certain
public costs of the renovation of an existing building lrnown as the James J. Hill Building (the
"Proj ecY');
B. WHEREAS, the Project consists of the renovation of the James J. Hill Building
into 53 owner-occupied housing units and the construction of related parking facilities;
C. WHEREAS, the Authority has heretofore approved the estabiishment of a taac
increment financing district and has adopted a tas increment financing plan with respect to the
Project;
D. WHEREAS, there has been prepazed an Amended and Restated Development
Agreement (the "Development AgreemenY') between the Authority, the City and the Developer
setting forth the terms and conditions under which the Authority will provide taac increment
financing assistance for the Project through the issuance by the Authority of its tas increment
revenue bonds (the "Tax Increment Revenue Bonds"). The T� Increment Revenue Bonds will
be secured by a pledge of taY increments derived from the Proj ect and an agreement from the
City to annually consider, if needed, replenishing any funds drawn from a debt service reserve to
pay principal ar interest on the Tax Increment Revenue Bonds (the "Reserve Replenishment
AgreemenY'). A copy of the Development Agreement is on file with the City Clerk;
E. WHEREAS, the City's execution of the Development Agreement is solely for the
purposes of evidencing its approval of the provisions of Section 4.2, 43, 4.6, 4.7 and 4.11 thereof
relating to the preconditions to the issuance of the TaY Increment Revenue Bonds, the terms of
the Taat Increment Revenue Bonds, the application of taY increments, and the funding and use of
moneys in the Reserve Fund, Supplemented Reserve Fund and Prepayment Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul
as follows:
Section 1. The City hereby finds, determines and declares that it is in the public interest
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of the residents of the City of Saint Paul that the Project be undertaken in order to increase the
supply of owner occupied housing units in the downtown area and to renovate an existing
historic building.
Section 2. The City Council hereby approves the Amended and Restated Development
Agreement in substantiail� the form submitted, and the Mayor, Clerk and Director, Office of
Financial Services are hereby authorized and directed to execute the Development Agreement on
behalf of the City.
Section 3. The City Council hereby authorizes the Mayor, Clerk and Director, Office of
Financial Services to execute, priar to the issuance of the Tas Increment Revenue Bonds, a
Reserve Replenishment Agreement, in a form and substance acceptable to the Director, Office of
Financial Services and the City Attorney's office; provided that the principal amount of the Tas
Increment Revenue Bonds secured by the Reserve Replenishment Agreement shali not exceed
$3,250,000, the net effecrive interest rate on the Tax Increment Revenue Bonds shall not exceed
5.5%, and the final maturity date of the Tas Increment Revenue Bonds shall not be later than
February 1, 2028.
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Adopted by Council: Date � Q��
Adoption Certified by Council Secretary
Byc
Approved by
By:
Requested by Department o£:
Plannin & Econo
By: "
Approved by Fi ic�'.al rvi
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By:
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Form Approved by Ci ttox
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roved by Mayq&' or Submi
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DEPARTMENT/OFFICE/COUNCR.: DATE INTT7ATED GREEN SHEET NO.:ZOI I�TZ O�� � D
PEB 8/9/02
CONTACT PERSON & PHONE: ` 1�1'[n7./DnTE [NI7�aL✓DnTE
Gary Peltier, 6-6619 rj
2 DEPARTMENT DIlL. 6 CTTY COUNCII,
MiJST BE ON COUNC[L AC�ENDA SY (DATE) �I '� 3 CITY ATTORNEY(Ke11�F� CTTY CLERK
NUhIBER 4 FINANCIAI, SERV D ii FINANCIAL SERV/ACCTG
AU�l1SY21,2.002 F0R SMAYOR(ORASST.) _CIVII,SERVICECOMMISSION
ROUTING I To� Cc
ORDER
TOTAL # OF SIGNATURE PAGES 1(CL1Y ALL LOCATIONS FOR SIGNAT[JRE)
ncriox xE4uESZen: Adoption of City Council resolution authorizing execurion of Amended Development
Agreement for the 7ames J. Hill Building Project and approval of the City "moral obligation" for the FIRA TIF
bonds.
RECOMMENDATTONS: Approve (A) or Reject (R) PERSONAI. SERVICE CONTRACTS MUST ANSWER THE FOLLOWING
QUESTIONS:
PLANNING COMMISSION 1. Has this person/firm ever worked under a conhact for this department?
CIB COMMITTEE Yes No
CNII. SERVICE COMMISSION 2. Hzs this person/firm ever been a ciTy employee?
A HRA Board Yes No
3. Does this person�firm possess a sldll not normally possessed by any current ciTy employee?
Yes No
Explain all yes answers oo separate sheet and attach to green sheM
INITIATING PROBLEM, ISSUE, OPPORTUNTTY (Who, What, When, Where, Why):
Final approval of Development Agreement with developer of the J.J. Hill Building. City is signer of the agreement
due to the "moral obligation" pledge to the HRA TIF bonds.
ADVANTAGESIFAPPROVED:
HRA TIF bonds will be issued and J.J. Hill Building Project will proceed.
DISADVANTAGES IF APPROVED:
The City will pledge to replenish any funds drawn from the debt service reserve for payments on the bonds.
DISADVANTAGES IF NOT APPROVED:
There would be an approximately $500,000 gap in tke sources of funds for the redevelopment of the building.
TOTAL AMOUNT OF'I'RANSACTION: COST/REVEN[JE BUDGETED: �
7�
F[JNDING SOURCE: ACTIVITY NlJMBER: �6 ) �/'g ` 76 � 07 �. C Z V` I� pbvo
FINANCIAL INFORMATION: (EXPLAIN) �b ! (./ b' — 7 6 2 07 — �c.c �s a.r «.� �ea �
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