06-368Council File # �� �(,�
GreenSheet# q���q/,q
RESOLUTION
, e^ CI�I( OF SAINT PAUL, MINNESOTA �C�
Presented
1 CONTLWATION OF A DISCRETIONARY LEVY AND EXECUTIOI�' OF TI AMEA'DED JOINT POWERS AGREEMENT FOR
THE ISSUANCE OF PORT AUTHORITY GREAT NORTHERN BUSNESS CENTER TIF BOI��DS
Wt�REAS, By its Council File No. 00-657 (the "City Resolution"), the City of Saint Paul (the "City") has
previously authorized the Port Authority of the City of Saint Paul (the "Port Authority") to issue bonds secured by a
general obligation pledge of the City to provide funds for the purpose of fmancing the costs of preparing approximately
21 acres of land in what is now the Great Northem Business Center — Phase I TaY Increment Financing District and
Hazardous Substance Subdistrict (the "TTF DistricP') for development; and
8 The City Resolution anticipated that the G.O. Bonds would be issued as temporary bonds, and provided the
9 City's authorization to the Port Authority to refund those bonds with one additional three year bond also secured by the
10 City's general obligation pledge, and to further refund the G.O. Bonds without the City's general obfigation pledge, and
11 with no further action by the City; and
12 Pursuant to the City Resolution, the Port Authority has previously issued its $4,500,000 Tax fixempt Temporary
13 Tax Increment Revenue Bonds, Series 2000-6 and its $4,365,000 Ta�c Exempt Temporary Tax Increment Revenue
14 bonds, Series 2Q03-9 (ttte "G.Q. Bonds") to refund them, both secured by the general obligation pledge of the City; and
15 In connection with the issuance of the G.O. Bonds, the City and the Port Authority entered into an Agreement
16 Relating to Great Northern Business Center Project and Joint Powers Agreement Relating to Bonds Issued Therefor
17 (the "Joint Powers AgreemenY') dated as of September 1, 2000, and providing for the issuance of the G.O. Bonds and
18 the refunding thereof, and the pledge of certain funds generated by the Port Authority's use of its Discretionary Levy
19 under Minn. Stat. §469.053, Subd. 6; and
20 The G.O. Bonds mature on August 1, 2006; and
21 In addition to the City's general obligation pledge, the G.O. Bonds are also secured by tas increments
22 generated by the TIF District, which to date have not provided sianificant support for the G.O. Bonds, because
23 development of parcels in the TIF District had not yet been completed; and
24 If the G.O. Bonds are not paid on or before August 1, 2006, the City will be required to levy a tas sufficient to
25 pay all principal and interest then due on the G.O. Bonds; and
26 The Port Authority has now sold all parcels in the TIF District to private businesses, and all constcuction has
27 been commenced if not completed; and
28 It is the Port Authority's desire to issue its tax-exempt taY increment bonds (the "TIF Bonds") and use the
29 proceeds to pay the G.O. Bonds on or before their August l, 2006 maturity date; and
30 It is the Port Authority's fiu desire to relieve Yhe City ofthe general obligarion pledge cunently outstanding
31 with respect to the G.O. Bonds, and to secure the TIF Bonds by a pledge of tax increments together with a pledge of
32 funds to be generated through a discretionary tax levy of $105,000 per year, available to the Port Authoriry under Minn.
33 Stat. Section 475.61; and
34 The Port Authoriry and the City have been advised by Piper Jaffray & Co., underwriter for the TIF Bonds,
35 that a pledge of the discrerionary levy will be required fo sell the TIF Bonds, since there has not been sufficient tax
36 collection history in the TIF District; and
��-3��'
37 The Port Authority and the City have also been advised by Leonard, Street and Deinard, the Port Authority's
38 Bond Counsel, that in order for the Bonds to be issued on a tax exempt basis, the Assessment Agreements currently in
39 place between the Port Authority and the Taxpayers must be terminated, which termination requires the consent of the
40 City.
41 The City recognizes that the elunination of its general obligarion pledge is a significant benefit to the City,
42 and wishes to facilitate the issuance of the TIF Bonds and the payment of the G.O. Bonds from the proceeds thereof,
43 and
44 1`he City desires to enter into an amendment to the 7oint Powers Agreement (the "Amended 7oint Powers
45 AgreemenY') in substantially the form presented to the City at this meeting, to reflect the completion of the Project
46 described therein, the issuance of the Bonds, the conrinuation of the Discretionary Levy, and the terminarion of the
47 Assessment Agreements.
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49
50
51
52
53
54
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Samt Paul that:
The City understands that in order to relieve the City of the general obligation pledge cutrently supporhng the
G.O. Bonds, it is necessary for the Port Authority to covenant that it will levy taYes in the annual amount of $105,000
pursuant to Minn. Stat. Secrion 469.053, Subd. 6 to be used to supplement tas increments generated by the TIF District
in the payment of principal and interest due on the TIF Bonds and the City hereby agees that the City shall conrinue to
make the discretionary levy in the annual amotmt of $105,000 at the request of the Port Authority and as necessary to
pay principal and inTerest on the Bonds; and
55 In order to facilitate the issuance of the Bonds as tax exempt bonds, the City fiuther authorizes and approves the
56 termination of the existing Assessment Agreements, as described herein; and
57 To facilitate the issuance of the Bonds, and the elimination of the general obligation pledge of the City, the
58 City hereby auYhorizes the Mayor, Ciry Clerk and Director, Office of Financial Services to execute the Amended
59 Joint Powers Agreement containing the provisions approved hereby.
Yeas Nays Absent
Benanav i /
Boshom �/
Haxris �
Helgen /
Lanriy `
Montgomery /
Thune �
Adopted by Council: Date � /G/, a/�
Adoption Certified by Council Secretary
BY �,C�S
Approved i ay . Date Z.i v�
s
Requested by DeparhnentoE
Office of Financial Services
BY �
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Form Approved by City Attomey
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By: �'� r S� � � �,C?-�t�
Form Ap�i�b ay r Su ssion to Counci]
By:
a�-�� Green Sheet Green Shee# Green Sheet Green Sheet Green Sheet Green Sheet
F$ – Financial Services
Contact Person 8 Phone:
Taid Hurley
zss�aas�
Must ee on Council Agenda by
19-APR-06
ContractType:
AR-RESOLUiION W/$ iRANSACTION
07-ApR-06 � Green Sheet NO: 3030349
-' Department Sent7oPerson InitiaVDate
0 mancia en�ices
AsSign 1 inancial Services De artment irector
Number Z 7nanciai Services Ofiice Financial en�i
For y s
Routing 3 i Attone� �j�__
O�def 4 4avor's ffice �1 a�or/ ssist n[
5 ouncil ih ounc'I
6 iN !er' Ci Clerk
ToW I# of Signature Pages _(Clip All Locations for Signature)
Actfon Requested:
Signatures requested on the attached resolution approvin� continuation of a discretionary levy and execution of the amended joint
powers agreement for the issuance of Port Authority Great Northem Business Center TIF Bonds.
Appro�e (A) or
Planning Commission
CIB Committee
CiNI Sen4ce Commission
1. Has this person/firm e�er worked under a contract for this depadment?
Yes No
2. Has this person/firm e�r been a city employee?
Yes No
3. Does this persoNfirm possess a skill not normaily possessed by any
curteot city employee?
Yes No
Expiain all yes answers on separete sheet and attach to green sheet
initiating Problem, issues, Opportunity (Who, What, When, Where, Why):
The Port Authority issued [emporary General Obligation Bonds for [he development of the Great Northem Business Center. These
Bonds mature on August 1, 2006. To relieve the City of the General Obligation pledge cunently supporting the Bonds, the Port
Authority will issue Great Northem Business�Center TIF Revenue Honds. .
Advantages If Approved:
The City will eliminate the general obligation pledge on the Great Northem Business Center TIF Bonds.
DisadvanWges IfApproved:
None.
Disadvantages If Not Approved:
The bonds will not be pald before August 1, 2006 and the Ciry will be required to levy a tax sufficienC to pay alt pcincipai aod
due on the GO Bonds.
Total Amou�t of
Transaction:
Funding Source:
Financial Info rmation:
(Explain)
CostlRevenue Budgeted:
Acfivity Number:
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April 7, 2006 i0:23 AM Page 1