05-173Council File # �`��
RESOLUTiON
CITY OF SAINT PAUL, MINNESOTA
Presented
Refened To
Greea Sheet # � �3 a9
Committee Date
l(e
City Council Resolution
[Hmong American Partnership Project]
1 WFIEREAS:
3 1. The Port Authority of the City of Saint Paul (the "Port Authority") has a ven its approval
4 to the issuance of its tarc-exempt revenue notes (the "Notes'�, in an amount not to exceed $1,600,000 to
5 provide fixnds to the Hmong American Partnership ("Hmong American") for the acquisition, conshucrion
6 and equipping of a community center to be located at 1075 Arcade Street in the City of Saint Paul (the
7 "ProjecY'); and
9 2. Minnesota Statutes, Section 469.084, Subd. I 1, provides that any issue of revenue Notes
10 authorized by the Port Authority shall be issued only with the consent of the City Council of the City of
11 Saint Paul, by resolurion adopted in accordance with law; and
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13 3. Approval of the issuance of the proposed Notes by the City Council is also required by
14 Secfion 147( fl of the Intemal Revenue Code of 1936, as amended; and
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4. To meet the requirements of both state and federal law, the Port Authority has requested
that the City Council gives its requisite approva] to the issuance of the proposed Notes by the Port
Authority, subject to final approval of the issuance and details of said Notes by the Port Authority.
NOW, THEREFORE, BE TT RESOLVED by the Council of the City of Saint Paul that, in
accordance with the requirements of 5ection 147(fl of the Intemal Revenue Code of 1986, as amended,
and in accordance with Minnesota 5tatutes, Section 469.084, Subd. 11, the City Council hereby approves
the issuance ofthe aforesaid Notes by the Port Authority for the purposes described in the Port Authority
resoludon adopted February 22, 2005, the exact details of which, including but not limited to, provisions
relating to principal amount, maturities, interest rates, discount, redemption, and the issuance of
additional Notes aze to be detennined by the Port Authority, Hmong American and the purchaser of the
Notes, and the City Council hereby authorizes the issuanae ofany additional Notes (including refunding
Notes) by the Part Authority found by the Port Authority to be necessary for carrying out the piuposes for
which the aforedescribed Notes are issued.
Adopted: March 2, 2005
33563.v9
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Yeas Nays Absent
Senanav �
Bostrom �/
Hazris �/
Helgen ,/
Lantry f
Montgomery `
Thune �
� �
Adopted by Council:
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Adoprion Certified by Council Secretary
By:
Appi
Sy:
Requested by Depaztrnent of:
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheef �
PA - Port nuthoriry
05-1�3
22-FEB-05 ; Green Sheet�.NO: 3025329
CoMact Person & Phone• Deoartment Sent To Person
� Peter M Klein � 0 � tannine & Eco¢om'c Devebo �
224568 q�jyn � i 'Mavor's Office ! Mavor/Assistant �
I Must Be on Council Agenda by (Date): ; Number �
02-MAR-0S � 2 Couocil
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I � Routing 3 �tv Clerk Citv Clerk
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� Order i
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Total # of Signature Pages _(Cifp All Locations fw Signature)
Approval ofthe issuance of approximately $1,600,000 of canduit tax exempt 501(C} (3) revenue notes far Hmong American Partnerslup
to conshuct a community center located at 1075 Arcade Street.
�aations: Approve (A) or R
Planning Commission
CIB Committee
Civil Service Commission
the Following Questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this personffirm possess a skill not normally possessed try any
current city employee? ,
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The Hmong communiry is seeldng to construct a commmiity center to be used as a central gathering place For servaces that its members
requiue.
AtivantageslfApproved:
The issuance of the notes will allow the Hmong American Partnerslup to offer vital services and programs for Saint Paul's Hmong
commumry in one building.
Disadvantapes If Approved:
None.
Disadvantage5 If Not Approved:
The services and progiams that the growing Hmong commnvity requires will be provided in a less efficient mavnex and perhaps not at
ail.
Transaction: 16��Q000
Fundinq Source: pOrl AuthOill�! cO�dUlf
Financial Information: tax-exempt 501 (C) (3)
(Explain) reve
CosURevenue Budgeted:
Activity Number:
SAINT PAUL
PORT AUTHORIrI'Y
MEMORANDUM
TO: Board of Commissioners
(Meeting of February 22, 2005)
FROM: Peter M. Klein �11�`�
Laurie d. Hansen
Kenneth R. John o �
SUB,JECT: Hmong American Partnership (HAP)
PUBLIC NEARING
DATE:
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Feb.16,2005
Authorization Approving the Issuance of Conduit Tax-Exempt Notes in
the Approximate Amount of $1,600,000
RESOLUTfON WO. 4115
Action Requested:
Provide approval for the
exempt notes to be use<
Arcade Street.
Port Authority to issue approximately $1,600,�00 of conduit tax-
for the construction of a new community center iocated at 1075
Public Purpose;
The fiinancing will allow HAP to offer many Hmong services and programs in one building,
including space for community gatherings and celebrations.
Business Subsidy:
Not Applicable.
Backaround:
HAP was founded in 1990 and is a Minnesota nonprofit 501(c)(3) corporafion. HAP's
mission is: to foster trust; to assist Hmong in achieving their fuil potential and parEicipating
actively in the community; and to promofe mutual respect, cultural awareness, and the
exchange of knowiedge and values.
Gurrent Status:
The YMCA that was on this site has been removed and construction of the Fimong
American Center has begun. The tota{ cost of fhe center is expected to be approximately
$3,600,000.
Proposal:
Type of Notes:
Tax-exempt, variable rate demand loan, to be placed via
limited offering to accredited investors in $100,000 minimum
parEicipations.
33518.vi
Board of Commissioners — February 22, 200.5 OS �i�� �
Flmong American Partnership
Page 2
Rate: Initially, approximately 2.05%. The rate will be adjusted every
six months at a percentage of the six month "MIG-1 ".
Security:
Term:
Borrower:
Issuer:
issuer Fee:
Underv✓riter:
Letter of Credit Bank:
Bond Counsel:
Bank Counsel:
Workforce Implications:
Not applicable.
Poticv Exceptions:
None.
Wells Fargo Letter of Credit as well as HAP's unconditional
promise to repay the notes.
20 years
Hmong American Partnership
Saint Paul Port Authority
1/8�' of 7% annually on the outstanding principal bafance of
the notes. The initial fee will be $2,000.
Wells Fargo Brokerage Services, LLS / Public Finance
Division
Wells Fargo Bank, N.A.
Leonard Street & Deinard
Briggs & Morgan
Disclosure:
The Port A�thority Commissioners by SEC n.des are obligated to disclose any risks or
facts you may be aware of that would affect the probability of repayment on these notes.
Recommendation:
We recommend the authorization to issue approximately $1,600,000 of conduit tax-
exempt notes.
PMK:ah
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05-�
Resolution No. 4115
�soLU�rzorr oF
THE PORT AUTHORITY OF TE� CITY OF SAINT PAUL
[F3mong American Partnership Project]
Wf �REA5, the purpose of Minnesota Statutes, Secrions 469.152 through 469.1651, known
as the Minnesota Municipal Indushial Development Act (the "AcP'), as found and determined by
the legislature, is to promote the welfare of the state by the active attracrion, encouragement, and
development of economically sound industry and commerce to prevent so far as possible the
emergence ofblighted and marginal lands and areas of chronic unemployment;
WHEREAS, factors necessitating the active promorion and development of economically
sound indusriy and commerce are the increasing concentration of population in the metropolitan
areas, the rapidly rising increase in the amount and cost of governmental services required to meet
the needs of the increased popularion, the need for development of ]and use which will provide an
adequate taac base to finance these increased costs, and access to employment opportunities far such
popularion;
WHEREAS, the Port Authoriry of the City of Saint Paul (the "Authorit}�') has received a
request from Hmong American Partnership (the `Borrower") that the Authority consider the
issuance of tax-exempt xevenue bonds (which may be in the form of one or more bonds or series} in
an amount not to exceed $1,600,000 (the `Bonds") to provide funds for the acquisition, construcfion
and equipping of a community center to be located at 1075 tlrcade Street in the City of Saint Paul
(the "ProjecY');
WHEREAS, the Authority and the Bonower will enter into a loan and bond purchase
a�eement (the "Revenue AgreemenY') in which the Borrower wilJ agree to make all payments due
on account of the Bonds which sha11 be secured by a Letter of Credit issued by Wells Fargo Bank,
National Association (the "Bank'� pursuant to a Letter of Credit Reimbwsement Agreement to be
dated as of March l, 2005 (the "Letter of Credit AgreemenY') between the Bonower and the Bank;
WI3EREAS, the Authority desires to facilitate the selecrive development of the community
and to help provide the range of services and employment oppomuiities required by the population,
and the Pro}ect will assist the Authority in achieving those objectives;
WHEREAS, the Credit Coxnxnittee has given its approval to the proposed issuance of the
Note, and together with management recommends Board approval; and
WHEREAS, pursuant to notice published in advance as required by state and federal law,
a public hearing was held before the Authority on the proposal of the Borrower to finance the
Project, at which hearing all those who desired to speak were heard, and in connection with
which written comments were taken in advance.
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NOW, TI�REFORE, BE TT RESOLVED by the Authority of the City of Saint Paul, as
follows:
1. On the basis of information available to the Authority, the Authority hereby finc3s
thaY the Project consYitute properiies used or useful in connection with one or more revenue
producing entezprises engaged in any business within the meaning of the Act; the Project furthers
the putposes stated in the Act; and it is in the best interests of the port district and the people of the
City of Saint Paul and in fiutherance of the general plan of development to assisT the Bonower in
financing the Proj ect.
2. For the purpose of financzng the Project, and paying certain costs of issuance and
other eapenses in connection with the issuauce of the Bonds, and provided that the Project and its
financing receive approval by the Department of Employment and Economic Development
("DEED'�, the Authority hereby authorizes the issuance, sale and defivery of the Bonds in an
aggregate principal amount of up to $1,600,000. The Bonds sha11 beaz interest at such rates, sha11 be
ttumbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, and shall be
in such form and haue such other details and provisions as may be approved by the President and
Chief Financial Offrcer of the Authority, the Bormwer aud the purchaser of the Bonds, currently
anticipated to be Wells Fargo Brokerage Services, L.L.C.
3. The Bonds and interest thereon sha11 not constitute an indebtedness of the Authority
or the City of Saint Paul within the meaning of any constitutional or statutory limitarion and ska1J
not constitute or �ve rise to a pecuniary liability of the Authority or the City of Saint Paul or a
charge against their general credit or taxing powers and neither the full faith and credit nor the
taxing powers of the Authority ar the City of Saint Pau1 is pledged for the payment of the Bonds or
intezest thereon.
4. It is hereby found, determiued and declared that
a The issuance and sale of the Bonds, the execution and delivery by the
Authority of the documents which in the opinion of the President and Cluef
Financial Officer o£ the Authority and Bond Counsel are reasonably required in
connection with the issuance of the Bonds, including specifically the Revenue
Ageement and one or more revenue bonds (the "Documents"), and the performance
of all covenants and a,greements of the Authority contained in such docuznents, and
of all other acts and things required under the Constitution and laws of the State of
Minnesota to make the Documettts and the Bonds valid and binding obligations of
the Authority in accordance with their terms, are authorized by Minnesota Statutes,
Sections 469152 through 469.165, as amended (the "AcY').
b. It is desirable that the Bonds be issued by the Authority.
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5. 'The Chair and the Secretary of the Authority, or such other officer as may be
appropriate in the absence of the Chair or Secretary, are hereby authorized to execute the
Documents (to the extent the Authority is a pariy thexeto). The execution of any Document by the
President of the Authority herein authorized shall be conclusive evidence of the approval of such
Document in accordance with the terms hereof.
6. The President and other officers of the Authority are authorized and directed to
prepare and furnish to Bond Counsel certified copies of proceedings and reaords of the Authority
relating to the issuance of the Bonds and other transactions herein contemplated, and such other
affidavits and certificates as may be required to show the facts relaring to the legality of the Bonds
and the other transactions herein contemplated as such facts appear from the books and records in
the officers' custody and control or as otherwise known to them; and all such cerrified copies,
certificates and affidavits, including any heretofore fiunished, shall constitute representarions of the
Authority as to the truth of all statements contained therein.
7. The approval hereby a ven to includes approval of such details as may be necessary
and appropriate and approved by the Authority's President and Chief Financial Officer; and
includes approval of, among other things:
a. estahlishment of the final principal aznount of the Bonds and the interest rate
to be borne thereby; urovided that the masimum aggregate principal amount of the
Bonds shall not exceed $1,600,000;
b. the establishment of the maturity schedule and call provisions to be
applicable to the Bonds; and
c. such related insmunents as may be required to satisfy the conditions of any
purchaser of the Bonds.
8. The authority to approve, execute and deliver future amendments to Documents
entered into by the Authority in connection with the issuance of the Bonds and the other
transactions herein contemplated, is hereby delegated to the President of the Authority, provided
that: (a) such amendments eather do not require the consent of the holders of the Bonds or, if
required, the consent of the required percentage of the holders of the Bonds has been obtained with
respect to such amendment; (b) such amendments do not materially adversely affect the interests of
the Authority as the issuer of the Bonds; (c) such amendments do not contravene or violate any
policy o£ the Authority; and (d) such amendments are acceptable in form and substance to Bond
Counsel. The execution of any instn�ment by the President of the Authority shall be conclusive
evidence of the approval of such instruments in accordance with the terms hereof.
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9. No covenant, stipulation, obligation or agreement contained herain or in the
Documents shall be deemed to be a covenant, stipulation, obiigation or agreement of any member of
the Board of Commissioners of the Authority, or any officer, agent or employee of the Authority in
that persons individual capacity, and neither the Board of Commissioners nor any officer executing
the Bonds skatl be liable personally on the Bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.
Adopted: February 22,2005.
ATTEST:
Its Secretary
PORT AUTHORITY OF 'I'HE CTI'X
OF SAINT PAUL
Its Vice Chair
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