02-732QRI�'li�t��
council File # �`�.��3',,,
Resolution #
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Presented By
Referred To
Committee: Date
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RESOLUTION APP120VING A JOINT PLEDGE AGREEMENT AND RELATED
DOCUMENTS IN CONNECTION WITH THE UPPER LANDING PROJECT
5 WHEI2EAS, the Housing and Redevelopment Authority ofthe City of Saint Paul, Minnesota (the "HRA")
6 has been engaged in on-going negotiations with Centex Multi-Family Communities, L.P. (the "Developer")
7 regarding the development of previously improved land which has become blighted and contaminated, and the
8 agreements relating thereto are set forth in a Contract for Redevelopment (the "Redevelopment Agreement")
9 dated as of May 31, 2001 between the HRA and the Developer (the "Upper Landing Project"); and
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11 WI IEREAS, the Upper Landing Proj ect Area is in the City's 1987 Riverfront Redevelopment Project Area
12 and Riverfront Redevelopment Plan (the "Redevelopment Plan"), as amended, and is included in the Tas
13 Increment Financing Plan for the Riverfront Renaissance Tas Increment Financing District (the "TIF Plan"), a
14 redevelopment district as authorized by Minnesota Statutes, Section 469.174, Subdivision 10; and
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16 WIlEREAS,theUpperLandingProjectAreacurrentlyconsistsofimprovedparcelswhichazeinthecity's
17 100-year flood plain and are contaminated by industrial pollutants, and will require ea�tensive prepazation and
18 remediation prior to redevelopment, including but not limited to removal of buried structures and debris, removal
19 of contamivated soil, filling, gzading, piling and compacting of the site; and
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WHEREAS, pursuant to the Redevelopment Agreement, it is anticipated that the IIRA wili issue tax
increment bonds (the "TIF Financing") to finance, in part, the costs to be incurred by the Developer in the
remediation ofthe Upper Landing Pmject Site, the preparationofthe Upper Landing Project Site for construction
ofthe Upper Landing Project, and certain other pubiic redevelopment costs and that tax increments collected form
the Upper Landing Project Area and the Upper Landing Project will be pledged to the payment of the TIF
Financing pursuant to a Joint Pledge Agreement (the "Pledge Agreement") between the City and the HRA; and
WHEREAS, the City has determined that the redevelopment ofthe Upper Landing Project Area and the
construction of the Upper Landing Project thereon, is in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota as
32 foilows:
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34 1. The Council hereby approves the terms and conditions ofthe Joint Pledge Agreement (the "Pledge
35 Agreement") in substantially the form submitted, and authorizes the Mayor, Director, Office of Financial
36 Services, City Clerk and Director, Department of Planning and Economic Development and other appropriate
Cen[exUvaupperciTy council resolution.DOC
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officials of the City to execute the Pledge Agreement. The Pledge AgreemenY sha11 be executed in substautially
the form submitted, with such changes therein as may be deemed necessary or desirable by City staffand counsel
to the City to complete information, correct or clarify the language thereof, or to make such changes as wiil best
effectuate the intent thereof. In the absence of any of the authorized signatories, his or her designee shail execute
the Pledge Agreement in his ot her place with the same force and effect.
2. Once the Pledge Agreement has been executed and delivered, the Council delegates the authoriry
to approve, execute and deliver future amendments to the Pledge Agreement in connection with the transactions
contemplated thereby to the Director of the City's Department of Plamiing and Bconomic Development, provided
that such amendments do not materially adversely affect the interests of the City and are acceptable in the form
and substance to the City Attorney, or other counsel retained by the City to review such documents.
3. All documents, instruments, certificates and other items necessary to implement the Pledge
Agreement shall be executed by the Director of the City's Departmeni of Planning and Economic Development
upon approval of the form thereof by the office of the City Attorney.
Approved by the Council: , 2002
� �
Requested by Department of:
BY:
Approved by Mayo�: � Date
BY:
Centex�hcauppercity council
Form Approved
Hy:
ved by M
/ / $y'
Adopted by Covncil: Date ��y �`� �,�q p�,�
— � — �. - ��T _
Adoption Certified b�. Council Secretary
DEPARTMENT/OFFiCE/COUNCIL:
PED
CONTACT PERSON 8e PHONE:
Allen Carlson, 266-6616
MUST BE ON COUNCII. AGENDA BY (DATE)
August 14, 2002
DA'� �„T'"TE° GREEN SHEET
au�r s, Zooz
IhR7'IAL/DATE
� 2 DEPAR7'NIENT DIR.
ASSIGN (j.���
NUyyggg 3 CCCPATTORNEY McCa1L_ (�(yy �
FOR � r
ROYITING '� FINANCiAL. SERV DIR.
ORDER
TOTAL # OF SIGNATIJRE PAGES
_5 MAYOR (OR ASST.)
ALL LOCATIONS FOR
rro.: ao2is�
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b d. -1'�2—
SNITTALlDATE
_S_ CITY CLERK
_SCOUNCII.RESEARCH
1 1"EAM
ACTION REQiTESTED:Sign attached resolution approving a Joint Pledge Agreement and related documents in
connection with the Upper Landing Project and the issuance by the FIRA $20.9 million of t� increment revenue
bonds.
RECOMIv1ED7DATIONS: Approve (A) or Reject (R)
PLANNING COMH-IISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
A HRA RES. No. 02-5/8-6
A Council File # 02A04
PERSONAL SERVICE CON'1'RACIS MUST ANSWEA THE FOLLOWINC
QUESTiONS:
1. Has Utis person/fum ever worked under a coniract for this department?
Yes No
2. Has this pe�on/firsn ever been a city employee�
Yes No
3. Does this person/fittn possess a skill not noimally possessed by any curtent city employee?
Yes No
Explaiv all yes answers on separate sheet and attach to green sheet
INI1'IA11NG PROBLEM,ISSUE, OPPORTiINITY (Who, What, When, Where, Why):
Pursuant to the First Amendment to the Contract for Redevelopment between the EIRA, City and Centex Multi-
Family Communities LLC, the HRA has agreed to issue tax increment revenue bonds, which net proceeds will go
towazds reimbursing Centex for certain private and public tas increment eligible infrastructure costs to assist in the
development of approxunately 589 units of rental and ownership housing on the Upper Landing site. The
m�imwn net proceeds that Centex is entitled to is $18.1 million. Staff is proposing bond amounts of up to $6
million series 2002A and $14.9 miilion of Series 2002B tax increment bonds. Net proceeds after cost of issuance,
negative arbitrage and debt service reserve will be appro�mately $15.7 to $16 million to Centex.
The bonds will be non-rated, 25 year term with interest rates in the range of 7.5% and 7.75%. These bonds aze not
an obligation to the City or HRA and are solely repaid from pledged tax increments generated by the project.
The Pledge Agreement is the document by which the City and HRA pledge their right, title and interest of tax
increments generated by the project to secure repayment of the bonds issued.
nnvaNTncES iF arrxovEn: Centex will be limited to $18.1 million of bond proceeds. Previously Centex was also
entitled to rennbursement from a tax increment note. _
DISADVAN'1'AGES IF APPROVEID
p� V � � � L�S�'S(_
Y
vasnnvnN�rasES u� NoT arrxovEn: HRA and City would be in violation of their contractual obligations pursuant to the
Contract for Redevelopment.
TOTAL AMOI7NT QF TRANSACCION: $2Q900,000 of tac increment bonds
F'UNDING SOURCE:
FIlVANCIAL INFORMATION: (EXPLAIl�
COST/REVENUE BUDGETED:
ACTA'1'TY NUMBER: