03-581��hG`f�U2d — �X�\�p��" � — J�.h< �� `d�^.^ti1
RESOLUTION
Presented By
Referred To
OF SAINT PAUL, MINNESOTA
3d
Committee:
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A resolution ratifying Ordinance No. 93-1423; awarding the sale and
granting authority to the Port Authority of the City of Saint Paul to issue and sell
the bonds of said Port Authority in the aggregate principal amount of
approxunately $14,915,000, to secure such bonds with a pledge of the full faith,
credit and resources of the City of Saint Paul, a city of the first class of the State
of Minnesota, and to use the proceeds derived from the sale of such bonds to
refund the Port Authority's $16,OOQ000 General Obligation Bonds, Series 1994,
originally issued to pay the cost and expense incurred by said Port Authority for
its acquisition of lands, its construction of infrastructure improvements thereon
and the relocation of owners, occupants and tenants therein, pursuant to the
provisions and by authority of said Minnesota Statutes 1992, Chapter 469, as
amended.
WHEREAS, the Port Authority of the City of Saint Paul (the "Port Authority") has
previously issued its $16,000,000 General Obligation Bonds, Series 1994 (the "Prior Bonds")
pursuant to the provisions of the Port Authority's Resolution No. 3463 and Ordinance No. 93-
1423 (the "Authorizing Ordinance") adopted by the Council of the City of Saint Paul, pursuant to
Minnesota Statutes 1992, Section 469.060 (the "AcY'); and
WHEREAS, the Prior Bonds aze secured by the pledge of the full faith, credit and
resources of the City of Saint Paul, as provided in the Authorizing Ordinance; and
WHEREAS, the proceeds of the Prior Bonds were applied by the Port Authority to
finance the acquisition and development of the Texaco Site and the Arlington-Jackson Site
(collectively the "ProjecY'); and
WI3EREAS, the City has now been advised that it is desirable far the Port Authority to
issue and sell its General Obligation Refunding Bonds, Series 2003-8 in the principal amount of
approximately $14,915,000 (the "Bonds") for the purpose of refinancing the costs of the Proj ect
by refunding and prepaying the Prior Bonds, and that significant annual and present value costs
Councit File # 03 — $g t
Green Sheet # 30 Oo S O 1
03 - S8!
1 savings would inure to the benefit of the taspayers of the City as a result of the proposed
2 refunding; and
3 WHEREAS, the Port Authority did, on May 27, 2003, adopt its resolution authorizing the
4 issuance of the Bonds subject to receipt of the approval and authorizarion of a Pricing Committee
and the City, as provided herein; and
6 WHEREAS, the City has been advised by the City Attorney's office and bond counsel
that the authorization provided by the Authorizing Ordinance and this Resolution aze sufficient
under the Act to provide for the issuance of the Bonds on the terms and conditions described
9 herein; and
10 WHEREAS, on the basis of the foregoing, it is now the intention of the Council of the
11 City of Saint Paul to ratify and reaffirm the approval provided by the Authorizing Ordinance; to
12 award the sale of the Bonds; to reaffirm the authority of the Port Authority for the issuance of the
13 Bonds; and to authorize and consent to the continuing pledge by the Port Authority of the full
14 faith, credit and resources of the City of Saint Paul to the payment of the Bonds as the same shall
15 be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to the
16 authority granted by the Authorizing Ordinance and this Resolution.
17 NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE COUNCIL OF THE CITY
18 OF SAINT PAUL AS FOLLOWS;
19
Section 1
20 That subject to, and in accordance with, the applicable provisions, terms and conditions
21 of this resolution and those contained in the Authorizing Ordinance and the authority is hereby
22 granted to the Port Authority of the City of Saint Paul, for the issuance and sale of its Bonds in
o3-s8t
1 the aggregate principal amount described herein, and the use of the proceeds of such Bonds, for
2 the redemption and prepayment of the Prior Bonds on Mazch 1, 2004.
3 Section 2
4 That the Port Authority is hereby authorized to issue the Bonds as taY exempt Bonds, in
5 the manner provided by law; the Bonds shall mahue in the years and bear interest at the rate or
6 rates per annum described in the Certificate of the Pricing Committee (comprised of one
7 representative each from the Port Authority, the City's Office of Financial Services and
8 Springsted Incorporated) attached hereto as E�ibit A; and the proceeds from the issuance and
9 sale of the Bonds as received by said Port Authority shall be deposited by it in an escrow fund of
10 the Port Authority subject to disbursement only to pay interest on the Bonds due March 1, 2004
11 and to redeem and prepay the principal portion of the Prior Bonds maturing after March 1, 2004
12 on March 1, 2004, and for all other purposes authorized by authority of the Act. The Bonds shall
13 be subject to redemption and prepayment at the option of the Port Authority, with notification to
14 the City, as described in the attached Certificate of the Pricing Committee described above and
15 upon such notice as is required by law.
16
Secrion 3
17 That as security for the prompt and faithfixl payment of both principal and interest of said
18 Bonds, and as originally provided in the Authorizing Ordinance, the Port Authority is hereby
19 authorized to pledge the full faith, credit and resources of the City of Saint Paul, and such Bonds,
20 both in respect of the principal amount of the same and in respect of the interest thereon, shall be
21 paid by the Port Authority from tax levies provided therefor and authorized by the Act.
22
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03-5�1
Section 4
2 That the Port Authority, in the event of the issuance of any of said Bonds authorized
3 hereunder shall levy for each yeaz, beginning in 2004 for payment in 2005 and until the principal
4 and interest are paid in full, a direct annual tax on all the taYable properiy in said City of Saint
5 Paul in which said Port Authority has been created, in an amount not less than 5% in excess of
6 the sum required to pay the principal and interest of the same when and as such principal and
7 interest mature and, after such Bonds have been delivered to the purchasers, such tax shall be
8 irrepealable until all such indebtedness is paid, and after the issuance of such Bonds no fiuther
9 action by said Port Authority shall be necessary to authorize the extensions, assessments and
10 collection of such tas. The levies previously made by the Port Authority in 2003 and preceding
11 years are hereby ratified and affirmed. That the Secretary of said Port Authority shall forthwith
12 fiirnish certified copies of such levy to the Director, Office of Financial Services for the City, and
13 to the County Auditor of Ramsey County, Minnesota, the county in which said Port Authority
14 and said City are located, together with fixll information regarding the Bonds of said Port
15 Authority for which the tas is levied and such County Auditor shall extend and assess the tax so
16 levied, and shall do so annually until the principal and interest have been paid in full. That any
17 surplus resulting from the excess levy therein provided shall be transferred to a sinking fund after
18 the principal and interest for which the taac was levied and collected has been paid; provided, that
19 said Port Authority may, on or before October 15 in any year, by appropriate action cause its
20 Secretary to certify to the Director, Office of Financial Services of the City and said County
21 Auditor the amount on hand and available in its own treasury from earnings or other income,
22 including the amount in the sinking fund which it will use to pay the principal and interest or
23 both on each specified issue of its Bonds and the County Auditar shall reduce the levy for that
03- S8'�
year herein provided for by that amount. That the amount of funds so acquired shall be set aside
by said Port Authority and be used for no other purpose than for the repayment of the principal
and interest on such Bonds. That all such tases being authorized to be levied under Section
469.060, Minnesota Statutes 1992, as amended, pursuant thereto shall be collected and remitted
to the Port Authority by the County Treasurer in accordance with the provisions of law
6 governing the collection of other taaces and shall be used solely for the payment of such Bonds
���
Section 5
That the Port authority shall provide for the exercise of the authority hereby granted for
10 its issuance and sale of the Bonds, for the aforesaid purposes, and the pledge of the full faith,
11 credit and resources of said City of Saint Paul, as security for the payment of the same, by its
12 appropriate resolution, and without fiu•ther action of the City Council of the City of Saint Paul.
13 That in each such instance said Port Authority shall make due compliance with all applicable
14 requirements of this resolution, the Authorizing Ordinance, chapter 469.060, Minnesota Statutes
15 1992, as amended, Chapter 475, Minnesota Statutes 1992, as amended, and all other applicable
16 laws.
17
Section 6
18 Based on the recommendarion of the Pricing Committee and the bid awarded hereby, as of
19 the anticipated date of issuance of the Bonds of June 15, 2003, the present value of the dollaz
20 amount of the debt service on the Bonds, computed to their stated maturity dates, after deducting
21 any premium, is lower by at least 3% than the present value of the dollar amount of debt service on
22 the Prior Bonds refunded thereby, exclusive of any premium, computed to their stated maturity
23 dates. In computing the dollar amount of debt service on the Bonds, expenses of the refunding
aa -s��
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payable from a source other than the proceeds of the Bonds or the interest derived from the
investment thereof have been added to the dollar amount of debt service on the Bonds.
Secfion 7
The Official Statement on file with the City is hereby approved, with such inserkions,
modifications or supplements as shall be required by law or otherwise recommended by the Port
Authority's bond counsel and/or financial advisor. The distribution of the Official Statement is
hereby ratified. The Official Statement dated June 2, 2003 is hereby "deemed final" wiUun the
meaning of Rule 15c2-12 of the Securities and Exchange Commission.
Section 8
10 1. The Authorizing Ordinance is in all respects ratified and affirmed
11 hereby.
Requested by Department of:
Approved by �Ia�c1r: Date � � !�/_
�,, '��:4i�1
Office o in ' Service
By: G c
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Form Approved by City Attorney
B �;���'. ?l�'�..r�i
!� Mayor for
Q��
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Adopted by Council: Date o�
Adoption Certified by Council Secretary
Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Shee
Fs ���;�7 serv;ces
Contact Person & Phone:
Todd Hurtey
266-8837
Must Be on Council I
17JUN-03 w .
ToWi # of Signature Pages
Date Initiaf
29-MAY-03
�
Assign
Number
For
Routing
Order
Green Sheet NO: 3000801
DenartmeM SeM To Person
0 "nan " 1
1 mancial Services De rtment Direct r
2 � A r
3 ta �or's ifice Ma odAssismnt
4 uo i
{Clip All Lowtions fior Signature)
t
os-S8�
Ratify Ordinance #93-1423 granting authority to the Port Authority to issue and sell bonds to refund the PA's $16M GO Bonds, Series
1994, accept winning proposal & award bid.
idations: Approve (A) or R
Plan�ing Commission
CIB Committee
Civii Service Commission
(R):
MustAnswerthe
1. Has this personffirtn ever worked under a contract for this department?
Yes No
2. Has this perso�rtn ever been a city employee?
Yes No
3. Does this personffirtn possess a skill not normally possessed by any
curtent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Protilem, Issues, Opportuniry (Who, What, When, Where, Why):
Bonds aze for the purpose of refunding the Port Authority's $16,009,000 General Obligation Bonds, Series 1994, resulting in significant
tax levy savings. '
AdvantapeslfApproved:
Financing will be available to refund the Port Authoirty's $16,OOQ000 General Obligation Bonds, Series 1994, restulting in s��nificant tax
levy savings.
DisadvantapeslfApproved:
None.
l��'
,��� 4 � �.O�i
Disadvanqges if Not Approved:
These savings will not occur.
Transaction: 14915000
Fundinp Source:
Ffeancial Information:
(Explain)
CosURevenue Budgeted:
ActiviN Number.
A m �.�. � � � �v�nc. 1 � �
E7�TT A
To C�ty of Saint Paul Resolution 03-581
CERTIFICATE OF PRICING
COMNIIT°TEE
The undersigned representatives of the Port Authority of the City of Saint Paul (the "Port
Authorit�'), the City of Saint Paul, Office of Financiai Services (the "Cit}�') and Spriugsted
Incorporated, financial advisor to the Port Authority (the "Financial Adviso�') hereby certify as
follows in connection with the issuance and sale by the Port Authority o£ its General Obligafion
Refunding Bonds, Series 2003-8 (the `Bonds"):
1. Each of ffie undersigned aze duly authorized by Resolution No. 4013 of the Port
Authority (the `Bond Resolution"), Ordinauce No. 93-1423 of the City (the "Authorizing
Ordinance'� to act as members of the Pricing Committee with respect to the Bonds, and such
authority has not been revoked, withdrawn or otherwise modified.
2. Pursuant to the Bond Resolution and the City Resolution, the Pricing Committee is
granted the authority to open and tabulate bids and make a recommendation to the City regarding
the award of the sale of the Bonds to the prospective purchaser presenting an offer to purchase the
Bonds which is determined to be the most fauorable by the Rricing Comxnittee based on true interest
cost.
3. The Pricing Committee has received affidauits showing publication of a notice of
sale for the Bonds in such publications as required by law. On the date hereof, the Financia2
Advisor has advised the Pricing Committee that all sealed bids received pursuant to said norice of
sale are tabulated and set forth on Schedule A attached hereto and incorporated in this certificate by
reference. After due considerarion of such bids, this Pricing Cominittee herefiy detennines that the
bid of Morean Stanlev, Dean Witter & Co. to purchase the Bonds in the principal amount of
$14.535,000 ; bearing interest at the rates of inteiest set forth below; paying therefor the sum of
$14,397,77337 , plus accrued interest; and with a hue interest cost of 3.7188% is hereby found and
detemuned to be the most fauorable bid received (the `Bid"), and, on behalf of the Port Authority
and the City, is hereby accepted, and in accordance with the authoriry granted in the Bond
Resolution is submitted to the City for considerafion and awazd.
4. In accordance with the authority granted in the Bond Resolution and the City
Resolution and as sat forth in the Bid, the Bonds shall beaz interest at the rates per annum and shall
mature in the years and amounts as set forth below, respecrively:
Maturity Date Principal
arch 1 Amount
2005 $530,000
2006 535,000
aoo� s4s,000
Interest
Rate
2.000%
a.oao
a.000
2344844�1 �._1
Bond Ruolution of ffie Port Authority
� of the (.lry of Saint Paul
R����d — S�� ,�, �o,
aoos
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
560,000
575,000
590,000
610,000
635,000
655,000
680,000
705,000
735,000
765,000
795,000
835,000
865,000
910,000
955,000
1,000,000
1,055,000
2.000
2.500
2.750
3.000
3.000
3.000
3.125
3300
3.500
3.625
4.000
4.000
4.000
4.000
4.000
4.000
4.000
5. In accordance with the authority granted by Sections 3 and 17 of the Bond
Resolution the amount of the annuai tax lery, calculated in the manner provided in Section 17, to be
assessed against all tasable properties in the City of Saint Paul, Miunesota shall be in the amounts
and in the years as foliows:
Year of Tas Lew
Year of Ta:c Collection
Amount
of Tac Lew
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
$1,066,349.82
1,060,469.82
1,059,734.82
1,064,039.82
1,068,029.82
1,068,686.07
1,072,649.82
1,079,684.82
1,080,68232
1,086,299.82
1,090,237.32
1,097,309.07
1,101,797.82
1,104,180.00
1,112,790.00
1,109,220.00
1,120,140.00
1,129,170.00
1,136,310.00
1,152,060.00
2344844v1
C-2
Bond Resolulion of the Port Auihonty
- of the CiTy of Saint Paul
fTh'�<v�^,ec� J�.ne�ll�
a��
6. Based on the bid accepted by the Pricing Committee, as of June 15, 2003, the present
value of the dollaz amount of the debt service on the Bonds, computed to their stated maturity dates,
after deducting any premium, is lower by 9328% thau the present value of the dollar amount of
debt service on the 1994 Bonds refunded thereby, exclusive of any premium, computed to their
stated maturity dates, which is greater than the 3% required by law. In computing the dollaz amount
of debt service on the Bonds, expenses of Yhe refunding payable from a source other than the
proceeds of the Bonds or the interest derived from the invesbnent thereof have been added to the
dollaz amount of debt service on the Bonds.
zsaasaa�i C-3
Bond Resolution of ttie Port Authority
of the Ciry of Saint Paul
Am�a —
Dai J 2003.
JUf�4 �I
l
ab��
�� �.
�ident of ort Authority of the Ciry of
Saint Paul
�
D�r' OfFice of Financial Services of the City�
of Saint aul
c % y
an authorized representative of Springsted
Incorporated,
financial advisor to the Port Authority of the
City of Saint Paul
2344844v1
C-4
Bond Resolution of ihe Port Authority
of the CiTy of Saint Paul
Schedule A
Certificate of Pricing Committee
03- 581
85 E. SEVENTH PLACE, SUITE 700
SAINT PAUL, MN 55107-2887
651.223.3000 FAX:651.223.3002
E-MAIL: advisors@springs[ed.wm
��
$14,915,000*
PORT AUTHORTTY OF THE CTI'Y OF SAL�TT PAUL, MINNESOTA
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2003-8
(BOOK ENTRY ONLI�
AR'ARD: MORGAN STANLEY — MORGAN STANLEY DW INC.
CITIGROUP GLOBAL MKTS
UBS FIlVANCIAL SERVICES INC.
BEAR, STEARNS & CO.
CRONIN & CO. INC.
BANC OF AMERICA SECURITIES
CIBC WORLD MARKFTS IDiC.
HUTCHINSON SHOCKEX ERLEY
CHARLES A SCHWAB
CITIZENS BANK
SALE:
Moody's Rating: Aaa
Standard & Poor's Rafing AAA
Years 2011 throagh 2019
FSA Insured
SPRINGSTED
Advisors to the Public Seunr
�
June 11, 2003 Moody's Rating: Aa2
Standard & Poor's Rating AAA
Years2005through 2010
and 2020 through 2024
Interest
Net Interest Tme Interest
Bidder Rates Price Cost Rate
MORGAN STANLEY—
MORGAN STAIVI.EY DW INC.
CITIGROUP GLOBAL MKTS
UBS FINANCIAL SERVICES INC.
BEAR, STEARNS & CO.
CRONRV & CO. II�IC.
BANC OF AMERICA SECURITIES
CIBC WORLD MARKETS INC.
HUTCHINSON SAOCKEY ERLEY
CHARL,ES A SCHWAB
CITIZENS BANK
2.00% 2005-2008
2.50% 2009
2.75% 2010
3.00% 2011-2013
3.125% 2014
330% 2015
3.SQ% 2016
3.625% 2017
4.00% 2018-2024
(Continued)
$14,774,185.75 $6,973,459.94 3.7218%
CORPORATE pFFICE: SNNf PAi]L, MN • V�sit ourwebsrte az wwwsprwgsrod.com
DES MOINES, IA • MILWAUKEE, 0.'( .�ppOLIS, MN • OVERLAND PARK, IC$ . y1RGIMA BEACH, VA • WASHIlJG70N, DC
o3-S�i
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
U.S. BANCORP PIPER JAFFRAY INC.
WELLS FARGO BROKERAGE
SERVICES, LLC
EDWARD D. JONES & COMP�NY
2.00% 2005-2008
2.50% 2009
3.00% 2010-2014
$14,728,562.50
$6,966,784.44
3.7247%
RBC DAIN RAUSCI�R INC.
ABN-AMRO FINANCIAL SERVICES
CIBC WORLD MARKETS
HOWE, BARNES INVESTMENTS, INC.
WACHOVIA BANK, NATIONAL
ASSOCIATIO�
FIARRIS TRUST & SAVINGS BANK
325% 2015
3.40°/a 2016
3.50% 2017
3.60% ZOIS
4.00% 2019-2023
4.10% 2024
2.00% 2005-2008
2.25% 2009
2.75% 2010-2011
3.00% 2012-2013
4.00% 2014-2024
$14,891,501.54
$7,049,200.40
3.7467%
REOFFERING SCHEDULE OF THE PURCHASER
Rate
2.00%
2.00%
2.00%
2.00%
2.50%
2.75%
3.00%
3.00%
3.Q0%
3.125%
3.30%
3.50%
3.625%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
4.00%
Yeaz
2005
2006
2007
Z008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Yield
1.15%
1.41%
1.70%
2.00%
2.25%
2.55%
2.75%
2.875%
3.05%
320%
3.40%
3.55%
3.70%
3.80%
3.90°/a
4.00%
4.05°/a
4.08°/a
4.125%
4.15%
BBI: 427%
Average Marisity: 12.501 Yeazs
* Subsequent to bid opening, the issue size decreased from $14,915,000 to $14,535,000. The March 1, 2005 through March 1,
2009 maturittes decreased by $5, 000; fhe March 1, 2010 and March 1, 20II maturities decreased by $I5, 000; the March 1, 2012
maturity decreased by $10,000; the March 1, 2073 through March I, 2017 maturities decreased by $Z0,000; the March 1, 2018
and March 1, 1019 maturities decreased by $25, 000; the March 1, 2020 and March 1, 2021 maturities decreased by $35, 000; the
March 1, 2022 maturiry decreased by $30,000; the 1Llarch l, 2023 maturzty decreased by $35,000; ¢nd ihe
March 1, 2024 maturity decreased by $30,000.
a3 - S8'�
EXHIBIT A
CERTIFICIATE OF THE PRICING COMMITTEE
(To be substituted on June 11 after the sale)