209046�' , o�t�n eu�cttr ct��•
PRESENTED BY
ORDINANCE
COUNCIL FILE NO.
ORDINANCE NO.
'0')04 '
created, in an amount not less than 5% in excess of the slum required
to pay the principal and interest of the same when and asFsuch
principal and interest mature and, after such Bonds have been delivered
to the purchasers, such tax shall be irrepealable until all such in-
debtedness is paid, and after the issuance of such Bonds no further
action by said Port Authority shall be necessary to authorize the
extensions, assessments and collection of such tax; that the Secretary
of said Port'Authority shall forthwith furnish a certified copy of such
levy to the County•Auditor of Ramsey County, Minnesota, the county
in which said Port Authority and said City are located, together with
full information regarding the Bonds of said Port Authority for which
the tax is levied, and such County Auditor shall extend and assess the
tax so levied, and shall do so annually until the principal and interest
have been paid in full; provided that said Port Authority may, on or
before October 15 in any year, by appropriate action cause its Secretary
to certify to the said County Auditor the amount on hand and available
in its own treasury from earnings or other income, including the amount
in the sinking fund, which it will use to pay the princip�l or interest
-in
on each specified issue-of -its Bonds and the County Auditor
shall reduce the .levy for that 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; and that all such taxes being
authorized to be levied under Section 458.193, Minnesota Statutes 1961,
pursuant thereto shall be .collected and remitted to the Port Authority
by the County Treasurer in accordance with the provisions'bf law governing
the collection of other taxes and shall be used solely for the payment
of the?ip�cindipafib.�'-andtlitterest on such Bonds when due.
Section 4. That said Port Authority shall provide for
the exercise of the•authority hereby granted for its issuance and sale
of its. said Bonds, and the pledge of the full faith, credit and re-
sources of said City of Saint Paul as security for the payment of the
same, by its appropriate resolutions; and that in each such instance said
Port Authority shall make due compliance with all applicable requirements
of this ordinance, said Chapter 45.8, Minnesota Statutes 1961, Chapter 475
Minnesota Statutes 1961, and all other applicable laws.
Section 5. That this ordinance .shall take effect and be
in force thirty days after its passage, approval and publication.
Yeas Councilmen Nays
Dalghsh
Loss
Mortinson 0
Peterson
Rosen
Mr. President (Va/voulis %)
Attest:
V City Clerk
I 6-62 2 z
Passed by the rcil S'EP
In Favor
Against
{.
OririnaPto•City Clerik . t
t ' 4
ORD•I
PRESENTED BY j
`Councll File No. 208046— Ordinance No.
122877 —By Bernard T. Holland —Robert
F. Peters$n-
AA' 6rdinance providing for and
�� ,• authority to the Port Author-
E- City of Saint Paul to issue
General Improvement Bnncrs
= • %art I Authority authorizer 1
Statlaes 19r' r:hante,-
i
NO. 209046
NO. K'
'-An ordinance providing for and granting authority to
the Port Authority of the City of Saint Paul to issue
and sell General Improvement Bonds of said Port
Authority authorized by Minnesota Statutes 1961, Chapter
458, in the par value amount of $5,000,000.001additional
to the General Improvement Bonds of said Port,Authority
heretofore authorized to be issued and sold by said Port
in ' Z Authority under and pursuant-to Ordinances Noy. 11913 and
u No. 12166 respectively, for the procurement by said Port
Authority of additional necessary funds for its defray -
a ment of the cost and expense necessarily incurred and
` to be incurred by said Port Authority for its program
of port and industrial development, in anticipation of
the receipt by said Port Authority of payments, appro-
priations, rents and profits and of income from other
sources; prescribing the amount and form of such bonds
and the maximum rate of interest thereon; an8 providing
that such bonds shall be secured by and authorizing said
Port Authority to.pledge the full faith, credit and
resources of the City of Saint Paul, a city of the first
class of the State of Minnesota, in which said Port
Authority has been created, as security for the payment
of said bonds.
WHEREAS, The Port Authority of the City of Saint Paul did
heretofore adopt its Resolution No. 186, dated September 5, 1962, there-
by expressly constituted its application for and did thereby request the
authorization of the Council of the City of Saint Paul, pursuant to
Section 458.193, Minnesota Statutes 1961, for the issuance and sale, by
said Port Authority, of General Improvement Bonds of "saidjPort Authority,
in the aggregate par value amount of $5,000,000.00, additional to the
General Improvement Bonds of said Port Authority heretofore authorized
to be issued and sold by said Port Authority under and pursuant to
Ordinances No. 11913 and No. 12166, respectively, when and as found
necessary by the Authority, for the purposes set forth in said resolu-
tion,.a certified copy whereof, pursuant thereto, as andjfor such appli=
cation in behalf of said Port Authority, was prepared and presented to
said City Council, by its,Secretary, in behalf of said Port Authority;
and
WHEREAS, the Council of the City of Saint Paul, being duly
advised in the premises, finds and determines that it is,urgent and
necessary that said Port Authority of the City of Saint Paul issue and
sell, in the near future, such additional General Improvement, °Bonds of
-said Port Autb9r -.:ty in the -aggregate par value amount'of$5,000,000.00
Yeas Councilmen Nays
Dalglish '
Holland
Loss
Mortinson
Peterson
Rosen
Mr. President (Vavoulis)
Attest:
1M 6-62 X22
City Clerk
Passed by the Council
I
Tn Favor
A gainst
Approved:
Mayor
0
2
necessary for the procurement, by said Port Authority, of additional
funds in said amount, for the purpose of paying costs incurred and to
be incurred in the near future in the program-of port and industrial
development described herein and mentioned in said resolution, all
pursuant to the provisions and by authority of said Minnesota Statutes
1961, Chapter 45.8, and in anticipation of the receipt by said Port
Authority of payments, appropriations, rents and profits and of in-,
come from other sources, a duly certified.copy of said resolution being
filed herewith, which, by reference, is made part and parcel hereof,
and it is now the intention of said Council to grant authority there-
for to said Port Authority, and to prescribe the form and maximum rate
of interest of said bands and to provide therefor and to authorize
said Port Authority to pledge the full faith, credit and resources
of said City for the payment of such bonds as the'same shall 'be issued
and sold, pursuant to the authority of said Minnesota Statutes 1961,
Chapter 45.8, and pursuant to the authority granted by this ordinance',
by said Port Authority;
NOW, THEREFORE;'THE COUNCIL OF THE CITY OF SA NT PAUL
DOES ORDAIN:
Section 1. That subj -ect thereto and in accordande with
the applicable provisions, terms and conditions of this ordinance and
those contained in said Minnesota Statutes' 1961, Chapter 45 -8, authority
is hereby granted unto the Port Authority of the City of Saint Paul,
for its issuance and sale of its General Improvement Bonds authorized
by Section 45.8.193, Subdivision 1, of Minnesota Statutes 1961, Chapter
458, in the aggregate par value amount of $5,000,000.00, additional to
the - General Improvement Bonds of said Port Authority, Series A, dated
September 1, 1961, heretofore issued and sold by said Port Authority
as authorized by Ordinance No. 11931, adopted by the Council and approved
by the Mayor- February 3, 1961, additional to the General Improvement
Bonds of said Port Authority, Series B. dated April 1, 1962, in the
amount of $2,500,000:00, heretofore issued and sold by said Port Authority,
as authorized by Ordinance No. 12166, adopted by the Council and approved.44.4
by the Mayor March 13, 1962, and, additional to the General Improvemen-C,,:4,1-
Bonds of said Port Authority,, Series C, in the 'amount of ;$ 2 , 5 0 0 , 0 0 0, 0 0 :`'.'x
heretofore authorized to be Issued and sold by said Port Authority by
said Ordinance No. 12166, which in no part have been issued and which
together with the proceeds thereof have been substantially committed
under contracts and agreements heretofore made as authorized by said
Ordinance No. 12166 to the payment of pertinent obligations of said
Port Authority; that said additional bonds are-authorized to,be issued
and sold in the aggregate par value amount of $5,000,000100, for the
procurement by said Port Authority of the additional necessary funds,. -
in said amount, for its defrayment of the cost and expense necessarily
W
2 WA6
incurred and to be incurred, in the'near future,' for the program of
port and industrial development described be'l'ow; that said additional
Bonds hereby are authorized to be issued and sold in said aggregate
par value 'amount, when and as such necessity is found by said Pdrt
Authority to exist; and that said additional Bonds hereby authorized,
pursuantito the provisions and by authority of said Minnesota Statutes
1961, Chapter 458, shall be issued and sold in anticipationrof the
receipt by said Port Authority of payments, appropriations, 4 rents
and profits and of income from other sources, and solely in furtherance
of said Port Authority's program of port and,industrial development
comprising: I
(1) The acquisition of waterfront, riparian and other lands
and the,onstruction of docks, wharves, p
c piers,, dikes
and'oth.er related port facilities, both in conjunction
with the Federal government and separately;
(2) The acquisition, development and redevelppment of
lands for the purpose of establishing a system of
harbor and river improvements and industrial devel-
opments within the port district, and within the
industrial development district heretofore created
therein for that purpose;'
(3) The provision of recreational lands and facilities
along-the river; and I
(4) Incidental to the foregoing, 'the ~`construction of
a dike in conjunction with the Federal government;
dredging and filling, grading and reclaiming marginal
land for port and industrial purposes; the development
of port and industrial areas; and the construction
of storm and sanitary sewers, potable water distri-
bution systems and streets in those areas.'
Section 2. That said Bonds shall be in the form of serial
Bonds and each Bond shall bear date not later than the first day of the
month in which thersame is delivered to the purchaser thereof; that the
first installment of each issue of such Bonds shall mature not later
than three (3) years from and after the date of the same and the last
installment thereof shall mature not later than thirty (36) years from
and after the date of the same; that no amount of- principal of said
Bonds payable in any calendar year shall exceed five (5) times the
smallest amount of principal maturing in any calendar year ending
three.'(3) years or more after the date of issue of the same; and that
said Bonds shall be issued and sold by said Port Authority in the manner
provided by law; that said Bonds shall be each in the denomination of
a multiple of $1,000 and shall bear interest not in excess of six per
cent (6 %) per annum payable semiannually according to interest coupons
to be attached to the same; that said Bonds shall be substantially in
the form hereinafter prescribed by the Council of said City, and approved
by its Corporation Counsel; that said Bonds shall bear such interest as
said City Council shall approve, and shall be sold in one or more
series by said Port Authority for not less-than par value plus accrued
interest, to the highest bidder therefor, after two (2)•weeks' published
notice of the time and place for-receiving bids thereon -; that the
proceeds from the .issuance and sale of said Bonds, as received -by said
Port Authority, shall 'be deposited by it in a fund of said Port Authority
allocated thereto and subject to disbursement only in defrayment of
the costs and expenses necessarily incurred and to be incurred by said
Port Authority for the program of port4and industrial development here -
inabove described., all pursuant to -the "provisions and by authority of
said Minnesota Statutes 1961, Chapter 458, and in anticipation *of. -the
receipt by said Port Authority of payments, appropriations; rents.,and
profits and income from other sources; that -said Bonds shall be payable
in lawful money of the United States of America at the office of the
Fiscal Agent of said Port Authority as shall be appointed by said Port
Authority, and as security for the prompt and faithful payment of both
principal and interest of said Bonds said Port Authority is hereby.
authorized to pledge the 6411 faith, credit and resources of said C-.ty;
that said Bonds fier.eby:-authorized to_ be' ,issued and sold -by
l said Port
Authority, in the aggregate par value of $5,000,000.00, shall be r
entitled "Port Authority of the City of Saint Paul General Improvement
Bond, Series ", shall be issued in series consecutively designated,
the Bonds of each series to be numbered. consecutively beginning with
No. 1, and shall bear interest at such rate or rates not in excess of
six per cent (6 %) per annum as shall be approved by resolution by said
CityJCouncil; that each of said Bonds shall be signed by the President
of said Port Authority, attested by its Secretary and countersigned'by
its Treasurer, .provided that all but one of said signatures may be
printed, lithographed, stamped or engraved on the Bonds, and interest
coupons shall be attached thereto and shall be executed ana authenticated
by the printed, engravedtor lithographed facsimile signatures' of its
President and its Secretary; that each of said Bonds shall be' sealed with
the corporate seal of said Port Authority, or a printed, lithographed or
engraved facsimile thereof; that if approved by resolution of'said Council
any of said Bonds may be made subject to redemption and prepayment at
the option of said Port Authority at such time and price or prices and
upon such notice as shall be prbvided.in" said resolution; that each said
Bond shall be.in substantially the following form which has:;been ppe-
scribed by said Council-" and approved by the Corporation Couns.el,of said
r�s
l
_ 5 _ 209,046
City, with suitable variations as to serial designation and number,
denomination, place of payment, redemption provisions, interest rates,
and nominal date 'of issue:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF RAMSEY
PORT AUTHORITY OF THE CITY OF SAINT PAUL
GENERAL IMPROVEMENT BOND
SERIES
No. $
KNOW ALL MEN BY THESE PRESENTS, that the Port Authority of
the City of Saint -Paul, in the.'County of Ramsey and State of Minnesota,
acknowledges itself to owe and-,for value received hereby promises 'to
pay to bearer the'sum of r
Dollars
on the first day of , 19 , ,together with 'interest
e
thereon at the rate, per cent f %)
per annum from the date hereof until paid, payable _ { , 19 ,
and semiannually�:,thereafter on the�'first days of an
in each year, ifiterest•to maturity being evidenced
by and payable in accordance - with -,and'upon presentation an,d surrender of
the annexed interest coupons as,. =,they severally become due., Both principal
and interest of this bond`: are`' payable in]awful money of the United States
of America at the office of 1 ,
in , and for the prompt payment of this bond, both
principal and in eres , when due -, the full faith, credit and resources.
of the City of Saint Paul are hereby irrevocably pledged.
This bond is one of a series amounting in the aggregate to
the sum of Dollars ($ ) issued by said
Port Authority for the purpose of procurement by said Port, Authority of
funds for the payment on account of said Port Authority o� the cost
and expense necessarily incurred and to be incurred by said Port
Authority for a program of port and industrial development described in
Ordinance No. - of the City of Saint Paul, all pursuant to the
provisions and by authority of Minnesota Statutes -1961, Chapter %8,.and
in anticipation of the receipt by said Port Authority of payments,
appropriations, rents and profits and income from other sources there-
under, and in acco`r'd�nce with the provisions, terms and conditions
' P
V ;_0
of Chapter 458, Minnesota Statutes 1961. This bond is issued pursuant
to.said ordinance, as enacted by the Council of the City of Saint Paul
and duly signed, attested and authorized by said Chapter 45.8, Minnesota
Statutes 1961, also by Resolution of said Council No. ' 1 , passed
and approved , 19 , and under authority and in all
respects in full compliance with the Charter of said City off Saint
Paul, as applicable thereto, also by resolution of said Port Authority
No. passed and approved , 19 ' , under authority thereof,
and in all respects in full compliance with all appli,cablelprovisions
of law and Chapter 475, Minnesota Statutes 1961.
It is: hereby certified-and recited that all t ings, acts
and conditions required by the Constitution and laws of the State of
Minnesota and the Charter of said City to happen.and be done and per-
formed precedent to and in the issuance of this bond have happened and
been done and performed in regular and due form and time ap required
by law; that prior to the issuance of this bond said Port.Aq-thority'has
levied for each.year, until the principal and interest are paid in
full, a direct annual tax on all the taxable property in the 'City of
Saint Paul in an amount not less than five per cent in excess;of the
sum required- to pay, th'e principal and interest hereof when'l and
as such principal and interest mature, which tax is irrepe
all such indebtedness is paid, and may be reduced only in
and to the extent provided in said Chapter 45.8; that addit
if necessary for full payment of such principal and interes
required by law to be levied'_upon all such property withou
as to 'rate or amount; and that neiJher the total indebtedne
City of Saint Paul•,nor that of-said Port Authority, includ
exceeds any constitutional, statutory or charter lim-itatio
IN WITNESS WHEREOF, the,'said 'Port Authority o
Saint Paul, by its proper officers, has caused this bond t
with [a lithographed-facsimile of ] its Official Seal, to
countersigned by the [lithographed facsimilel' signatures o
President and its Treasurer, attested' by the'[manual ] sig
Secretary, and each of the interest coupons- hereto annexed
and authenticated by the lithographed facsimile signatures
President and Secretary, and has caused a true and correct
opinion•rendered by bond counsel as to the validity of the
eluding this bond, rendered at the time of delivery hereof
printed. er
,on the revse'side of this bond, and has caused t
be'fidate'd as of the first day of ,. 1
19
Countersigned':
Treasurer
Attest:
Secretary
T. 1•.5
lable until
he manner
onal taxes
are 1,4
14itatiori.
s of the r:
ng. this bond,
,�.,y
the City of
be sealed.
e signed and
its .
ature of its
to be executed.
ofj its •
Qpy of-the
issue in-
to be
is ,bond to
No.
Authority
to pay to
States at
620,9046
- 7 -
COUPON
On the.first day of , 19_T, the Port
of the City of Saint Paul, Ramsey County, Minnesota, promises
bearer Dollars lawful money of the United
the office of in
zor interest clue that clay Ion its Yort
Authority of the:Qity of Saint Paul 'General Improvement Bond, Series
dated 19 " • , N
Attest:
(Facsimile signature) (Facsimile signature):`
Secretary
President
and that there shall be printed on the reverse'side of each bond a true
and correct copy of the text of the opinion rendered by bond counsel as
to the validity thereof, at the time of delivery of such bond, together
with the following certificate to be exeG:uted by a lithgra hed facsimile
of the signature of the Secretarp:c
I certify that the above is..a full, true and correct copy'
of the legal opinion rendered by bond counsel on the issue Iof bonds of!-,
the Port Authority of the City;of Saint Paul which includes the within
bond, dated.as of the date,of delivery of-and payment for the bonds.
- (Facsimile signature)
Secretary
Section 3. That such Bonds, both in respect cf the
principal amount of the same and in respect of the interest thereon,
shall be. paid by said Port Authority from tax levies provided therefor
and authorized by said Chapter 45.8, Minnesota Statutes 1961, and from
the earnings and all income received by said Port Authority from what-
ever source derived, to the extent that such earnings and income are
determined by the'Port Authority to be available for such purpose and
are not pledged for the payment of revenue bonds issued under Minnesota
Statutes 1961, Section 45.8.194; that said Port Authority, i�n the event
of the issuance of any of said Bonds authorized hereunder shall, before
the issuance of the same, levy for each year, until the principal and
interest are paid in full, a direct annual tax on all the taxable
property in said City of Saint Paul in -which said Port Authority has been
-G
K
FRANK D. MARZITELLI
EXECUTIVE VICE PRESIDENT
LYLE E. KINVIG
GENERAL MANAGER
FRANK E. CLAWSON
DIRECTOR
INDUSTRIAL DEVELOPMENT
DALE D. BRAD13OCK
CHIEF ENGINEER
PHILIP W. FITZPATRICK
CONSULTANT
COMMISSIONERS
PHILIP H. NASON
PRESIDENT
RICHARD C. RADMAN
VICE PRESIDENT
ROBERT W. JOHNSON
SECRETARY
NEIL H. GRIEBENOW
TREASURER
ALBERT J. BRAND
BERNARD T. HOLLAND
ROBERT F PETERSON
LEGISLATIVE ADVISORS
H. W. SCHULTZ
STATE SENATOR
D. D. WOZNIAK
STATE REPRESENTATIVE
i
®�
P O R T A U T H O R I T Y
OF T H E C I T Y OF S A I N T P A U L 6 0 E A S T F O U R H S T R E E T
SAINT PAUL I, MINNESOTA - 224 -5686
September 7, 1962
Mrs. Agnes O'Connell
City Clerk
City of Saint Paul
City Hall and Court House
Saint Paul 2, Minnesota
Dear Mrs. O'Connell:
There is sent you herewith a certified copy of Reso
No. 186 adopted by the Port Authority on September
and dealing with the request for authorization by t
Council for the issuance of additional general impr
bonds in the amount of $5,000,000.
1962
e City
It is requested that this matter be presented to the City
Council at their meeting on Wednesday, September 121 1962.
It is desired that the matter not be presented to t
Council prior to that date as additional documents
same subject are under preparation by "the Corporati
Very truly yours,
Frank D. Marzitelli
Executive Vice President
FWF: j s
cc: Mr. Louis Sheahan
Director of Laws
Corporation Counsel
City of Saint Paul
Mr. Arthur B. Whitney, Jr.
Bond Attorney
Port Authority of the City of Saint Paul
City
the
Counsel.
FRANK D. MARZITELLI
EXECUTIVE VICE PRESIDENT
LYLE E. KINVIG
GENERAL MANAGER
FRANK E. CLAWSON
DIRECTOR
INDUSTRIAL DEVELOPMENT
DALE D. BRADDOCK
CHIEF ENGINEER
PHILIP W. FITZPATRICK
CONSULTANT
COMMISSIONERS
PHILIP H. NASON
PRESIDENT
RICHARD C. RADMAN
VICE PRESIDENT
ROBERT W. JOHNSON
SECRETARY
NEIL H. GRIEBENOW
TREASURER
ALBERT J BRAND
BERNARD T HOLLAND
ROBERT F. PETERSON
LEGISUTIFE ADFISORS
H W. SCHULTZ
STATE SENATOR
D. D. WOZNIAK
STATE REPRESENTATIVE
,,�- &'? �, I,-) � �
P O R T AU T H O R {I T Y
OF THE CITY OF SAINT PAUL \61 EAST F O U R T HI S T R E E T
SAINT PAUL I, MINNESOTA - 224 -5686
September 19, 1962
i
Mrs. Agnes H. O'Connell
City Clerk
City of Saint Paul
City Hall and Court House
Saint Paul 2, Minnesota
Dear Mrs. O'Connell:
Responding to your recent request, there is attached'hereto
a certified copy of Port Authority Resolution No. 186 adopted
September 5, 1962 and which resolution serves as the!basis
for the proposed Ordinance covered by Council File No. 209046
and which deals with the granting of authorization for the
Port ,Authority to issue General Improvement Bonds in the par
value amount of $5,000,000.
PWF:js
Encl. 1
Very truly yours,
P. W. FEZ
Consultant
a
PORT AUTHORITY OF THE CITY OF SAINT PAUL
CERTIFICATION
It is hereby certified that the document attached and
affixed hereto is a full and true copy of Resolution No. 186
unanimously adopted by the Port Authority of the City of
:Saint Paul at their meeting on September 5, 1962, and is as
it appears in the pertinent minutes of that meeting of the
said Authority.
• Date: September 6, 1962.
•
r '
(SEAL)
r
•
bert W Jo-Inrson
Secre ary
•
'1
Res. No.
PORT AUTHORITY OF HE CXTY OF SAIRT PAULO
®LUTZ0N
WHEREAS, The Fort Authority of the City of Saint Paul has Undertaken,
under and pursuant to A9innesota Statutes 1961, Chapter 459, a p gram of
port and industrial development as described In its Resolution Do. 159,
dated January 23, 1962, and
TIMMS 9 The initial costs of this program have been paid with
fiords derived from the sale of $2,500,000 General Improvement B Inds,
Series A, dated September 1, 1961, issued ag authorized by Ord na3nce Noe
11913 of the Council of the City of Saint Paul, dated February 3, 1961, and
WHEREAS, Said Council by O dinance No. 12166, dated Harch 13, 1962,
authorized the issuanee of addit onal bonds in the aggregate annru t of
$5,000,000, of which $2,500,000 General Rmprcovement Bonds, Series B,
slated April 1, 1962, have been Issued and sold and the re-mainder are to
be issued and sold in the near future for the payment of additio al costs
of the program under contracts heretofore shade and to be awarded in the
wear future, and
WHEREM, Contracts now advertised for bads will require the commit-
ment of additional funds of substantial amount in addition to th se
estimated in Resolution No. 0 159 , and it is now estimated that t;h further
development of the program will noire additional conm itiments be
evade for tjhich a further authorization of borrowing inz the aggragrate
arum of $5,000,600 should be s a ur ed,
NOW, THEREFORE, ICE ZT RESMED, That the Port Authority of he
City of Saint Paul does hereby na4ke application to the Council 0� the
-1-
0
n
0
�.j
0
City of Saint Paul for author zation by ordinance, pursuant t Minnesota
Statutes 1961, Section 458019 , of the issuance and sale by t e Fort
Authority of its General Imp vement Bonds in the aggregate 7unt of
$5,000,000 over and above the bonds authorized by said Ordinances No.
11.913 and Igo 0 12166, to be is ued and sold in one or rove addiltional
series, when and as found nee ssary by the Authority, for the urpose
of providing funds to pay costs, of the port and industrial prog ant for
t!aich the outstanding bonds hav been authorized, and the pledg of the full
faith, credit and resources of the City for the payment of sue bonds
and interest thereon, said bon to be issued in compliance wi h all
applicable requirements of sue ordinance, and of Minnesota St Lutes 1961,
Chapters 458 and 475, and all Cher applicable lags, and bear g interest:
at such rate or rates as the C=ell shall approve,,
BE IT FURTHER k0E$®LVED 9 T}}at the Secretary of the Port Authority
be and he is hereby directed to present: a certified copy of this reso-
lution to the Council of the City of Saint Paul, as and for such application.
Adopted:
A
Robert Vet. a
searatary
President of thI
Port Authority of the (City of
Saint Paul,
r
- -
Sept. 12, -1962.
-
Mr. Frank D. Marzitelli,"
`
-
- ' txac. Vice- President Port Authority.
..
6o Be Fourth St.
i
St. Paul,. Minn.
- _
Dear M_ r. Marzits7li
- '
Louis P. Sheahan, • Dire.cior of Law,
suggested t the enclosed
'copy- ,of,the Port Authority Resolution N :
!
e,certified d returned
to thia,,office... He suggested . a form tant as follows: "Th®' -
foregoing is hereby certified ' as a ,and
t copy of Resolution
="
No. -186 adopted by�the Port Author of the
y of Saint Paul on 'J
Septeinber $, 1962, `aa - it appears in pe
�\
ent minutes of a meeting
of the said Authority ".' ' •
- I - _ .
We therefore su
such a certification
'
affixed•to the Resolutio nd ret he _e
to this office. .
_ . Very truly yours,
City Clerk ..
Res. No
PORT AUTHORITY OF THE CITY OF SAINT PAUL
RESOLUTION
WHEREAS, The Port Authority of the City of Saint Paul has uhdertaken,
under and pursuant to Minnesota Statutes 1961, Chapter 456, a p7gram of
port and industrial development as described in its Resolution N. 159,
dated January 23, 1962, and
WHEREAS. The Initial costs of this program have been paid w*th
funds derived from the sale of $2,500,000 General Improvement Bonds,
Series A, dated September 1, 1961, issued aS cwthorized by Ordinance No.
11913 of the Council of the City of Saint Paul, dated February 3� 1961, and
WHETS, Said Council by Ordinance No. 12156, dated March 1�, 1962,
authorized the.lasuance of additional bonds in the aggregate amouait of
$5,000,000, of which $2,500,000 General Improvement Bonds, Series E,
dated April 1, 1962, have been issued and sold and the rcemainderlare to
be issued and sold in the near future for the payment of additional costs
of the program under contracts heretofore made and to be awarded n the
near future, and
iHEREAS, Contracts now advertised for bids will require the 6osmit-
went of additional funds of substantial amount in addition to tno4e
estimated in Resolution No. 159, acrd it is now estimated that the further
development of the program will require additional commitments to be
made for which a further authorization of borrowing in the aggmg to
amount of $5,000,000 should be secured,
NOWO THEREFORE, BE TT R SOLVED, That the Port Authority of
City. of Saint Paul does hereby make application to the Council of
-1-
t
Res. No
PORT AUTHORITY OF THE CITY OF SAINT PAUL
RESOLUTION
WHEREAS, The Port Authority of the City of Saint Paul has uhdertaken,
under and pursuant to Minnesota Statutes 1961, Chapter 456, a p7gram of
port and industrial development as described in its Resolution N. 159,
dated January 23, 1962, and
WHEREAS. The Initial costs of this program have been paid w*th
funds derived from the sale of $2,500,000 General Improvement Bonds,
Series A, dated September 1, 1961, issued aS cwthorized by Ordinance No.
11913 of the Council of the City of Saint Paul, dated February 3� 1961, and
WHETS, Said Council by Ordinance No. 12156, dated March 1�, 1962,
authorized the.lasuance of additional bonds in the aggregate amouait of
$5,000,000, of which $2,500,000 General Improvement Bonds, Series E,
dated April 1, 1962, have been issued and sold and the rcemainderlare to
be issued and sold in the near future for the payment of additional costs
of the program under contracts heretofore made and to be awarded n the
near future, and
iHEREAS, Contracts now advertised for bids will require the 6osmit-
went of additional funds of substantial amount in addition to tno4e
estimated in Resolution No. 159, acrd it is now estimated that the further
development of the program will require additional commitments to be
made for which a further authorization of borrowing in the aggmg to
amount of $5,000,000 should be secured,
NOWO THEREFORE, BE TT R SOLVED, That the Port Authority of
City. of Saint Paul does hereby make application to the Council of
-1-
. r.
City of Saint Paul for authorization by ordinance, pursuant to
Statutes 1961, Section 458.193, of the issuance and sale by the
Authority of its General. Improver*nt Bonds in the aggregate am
$5,000,000 over and above the bonds authorized by said Ordinano
11913 and No. 12166, to be issued and sold in one or more addit
aeries, when and as found necessary by the Authority, for the P.
of providing funds to pay costs of the port and industrial progrc
etich the outstanding boards have been authorized, and the pledge
faith, credit and resources of the City for the payment of such
and interest thereon, said bonds to be issued in compliance wilt
applicable requirwents of such ordinance, and of Minnesota Sta
Chapters 458 and V5, and all other applicable laws, and bearin
at such rate or rates as the Council shall approve,
BE IT FURTHER RF4OLVED s That the Secretary of the Port
be and he is hereby directed to present a certified copy of
lution to the Council of the City of Saint Paul, as and for
Adopted: September 5. 1962.
Attest°
Robert W Johnson
Sec ary
(SEAL)
n
President of
Port Authority of
Saint Paulo
is of
No°
nal
pose
for
f the full
onds
all
,ices 1961,
interest
,city
ri eso-
application°
City of
n
FRANK D. MARZITELLI
EXECUTIVE VICE PRESIDENT
LYLE E. KIN to
GENERAL MANAGER
FRANK E. CLAWSON
DIRECTOR
INDUSTRIAL DEVELOPMENT
DALE D. BRADDOCK
CHIEF ENGINEER
PHILIP W. FITZPATRICK
CONSULTANT
COMMISSIONERS
PHILIP H. NASON
PRESIDENT
RICHARD C. RADMAN
VICE PRESIDENT
ROBERT W. JOHNSON
SECRETARY
NEIL H. ORIESENOW
TREASURER
ALBERT J. BRAND
BERNARD T. HOLLAND
ROBERT F. PETERSON
LEGISLATIVE dDFISORS
H. W. SCHULTZ
STATE SENATOR
D. D. WOZNIAK
STATE REPRESENTATIVE
POINT AUTH0RITY
OF THE CITY OF SAINT PAUL 6 0 E A S T F O U R T H iS T R E E T
SAINT PAUL I, MINNESOTA, - 224 -5686
September 27 1962
' p ��
Honorable Mayor and
Members of the City Council
Saint Paul, Minnesota
Re: Bond Ordinance - City Council
File No. 209046
Gentlemen:
In support of our request for additional bonding
authority so as to give 'proper continuity to our
industrial parks and recreational area program,
attached are -the following three schedules:
1. Report on Status of Bond Income,and
Capital Expenditures as of
September 1, 1962.
2. Status Report on Land Acquisition by
Parcel as of September 1, 1962.
3. Estimated Acquisition and Construction
Costs as of September S, 1962.
If requested, an oral report will also be made at
the Council meeting on the Ordinance File now
before you.
Yours very truly,
f dm /c
encl.
Executive Vi
k '
Y
J
Memo: Does not include lands ye to be
acquired or improvement contracts
yet to be let.
REPORT ON
STATUS OF BOND
INCOME AND
CAPITAL
EXPENDITURES
AS OF 9 -1 -62
I N D U S
R
Riverview
North ort
Southi3ort
LAE
PARK
BOND ISSUES:
Authorized
7,500',000
Unissued
2,500,000.
Bonds Sold
--��0
EXPENDITURES:`
Land,
2,241,247
22,032.
36,455.
88,510.
4
Total
2,3880242
'Floodwall
1809000
Dockwall
3509766
371,791.
Material Removal,
Filling & Grading
1230986
Storm Sewer,
Sanitary Sewers &
Lift Station
2069234
•
Tree Planting
Engineering
5,912.
136 618
---m',606.
313.
20 742.
Total
3920534.
, 1 .
11396,365.j
ACTUAL EXPENDITURES
3,784,607
Funds on Hand 9-1-(2
1,2159393
OUTSTANDING COMMITMEN
S ON
CONTRACTS LET:
Sewers
19,897
Filling $ Grading
390,888
2219529.
Demolition
280111
Dockwall
193p421.
Total
,
,
853 846
BOND FUNDS AVAILABLE
-1 -62
36.10547
Memo: Does not include lands ye to be
acquired or improvement contracts
yet to be let.
' STATUS REPORTCN.LAND ACQUISITION BY PARCEL
AS OF SEPTEMBER 1, 1962
4
I N D U S
T R I A L
P A R K S
CROSBY j
'Southport
LAKE
TOTAL
Riverview
Northport
AREA I
otal Parcels
434
24
37
5
S00
Number Taken by
Direct Purchase
241
4
14
1
260
•
5
Percentage
55.5
16.7
37.8
20.
52.
To Be Taken by"
. •
•
,
Condemnation
193
20
23
4
,
240
_
Percentage
44.5
83.3
62.2
80.
48;
9
a
l
a
C
}
SUMMARY -
RIVE RVIEW
INDUSTRI-
L PARK
Project
Area
1 -A
1 -B
{
Total Parcels
185
249
•
Number Taken by
-
3
Direct Purchase
108
133
Percentage
58.4
53.4
}
:
.k
To Be Taken by
Condemantion
77
116
Percentage
41.6
46.6
�`
4
w
•
A
S
FDM
a
9 -5 -62
J
_r
7
ESTIMATED ACQUISITION AND CONSTRUCTION COSTS
AS OF SEPTEMBER 5, 1962
I
I N D U S T R
LAKE TOTAL
Riverview Northport Southport AREA
.I
LAND:
Damages to be Paid 500889923. 135,936.
Legal, Appraisals and
Condemnation Service 186,620.1 10.320.
Total Estimated Land :
Cost' 59275,543. 1469256.
CLEARANCE:
Demolition $ Clearing 205,000. 109000.
100,636. ,2949500. 5,619,995
159730. 2,33). 215p000
1169366. 296,830. 5,834,995
35,000
" }250,000.11
Total Project Cost 112,681,543.1 156,256.1 4,3360366.1 3020742. 1171476,907.11
I J I I l i
i
I
DM
Floodwall
1800000.
1809000.
Dockwall
396,935.
1,4209000.
1,816,935.
Material'Removal, •.
,•
Filling and Grading
1,3059375.
896,500.
292019875.
Storm Sewers,
Sanitary Sewers and.
Lift Stations
2,8089545.
243,175.
390519720.
Water Mains
575,000.
206,325.
781,325.
Streets
3809882.
567,430.
948 312.
Railroad Trackage
225,000.
949500.
319,500.
Tree Planting
50912.
5,912.
Preliminary - Final
Design and Construc-
tion Engineering
364,000.
207,775.
571,775.
Contingencies - 15%
965 263.
549t295.
1 514 558.
•
7 406 000
10 000
4 220 000
5 912
11 641 912
Total Project Cost 112,681,543.1 156,256.1 4,3360366.1 3020742. 1171476,907.11
I J I I l i
i
I
DM
FRANK D. MARZITELLI
EXECUTIVE VICE PRESIDENT
LYLE E. KIN VIG
GENERAL MANAGER
FRANK E. CLAWSON
DIRECTOR
INDUSTRIAL DEVELOPMENT
DALE D. BRADDOCK
CHIEF ENGINEER
PHILIP W. FITZPATRICK
CONSULTANT
COMMISSIONERS
PHILIP H. NASON
PRESIDENT
RICHARD C. RADMAN
VICE PRESIDENT
ROBERT W. JOHNSON
SECRETARY
NEIL H. GRIEBENOW
TREASURER
ALBERT J. BRAND
BERNARD T. HOLLAND
ROBERT, F. PETERSON
LECISLATIFE ADFISORS
H. W. SCHULTZ
STATE SENATOR
D. D. WOZNIAK
STATE REPRESENTATIVE
i
OF THE C I T Y OF S A I N T P A U L \60 E A S T F O U R ,T H S TREE T
SAINT PAUL I. MINNESOTA - 224 -5686
October 5, 1962
Port Authority Commissioners
Legislative Advisors
Re: Bond Ordinance No. 12287
City Council File No. 209046
Gentlemen:
Enclosed is a copy-of our letter of transmi tal
dated September 27, 1962, addressed to the Mayor
and the City Council concerning the above Ordinance.
Also enclosed is a copy of the transcript of remarks
made at the Council meeting on that date. `
These were prepared as I felt that an appropriate
record of the presentation made t6 "the Council should
be had and also that you should' have copies. for your
information and record. .
Yours very truly,
ran lc D. Marzi �eY i
Executive Vice�P , esident
I
fdm /c
encls.
cc: Mayor G. J.Vavoulis
Commissioner M. Rosen
Commissioner S.•Mortinson
Commissioner F. Loss
Commissioner J. Dalglish
City Clerk U • ' ' "' - '-
E �,I _ I � l•
OF THE CITY OF SAINT PAUL \-60 EAST FO U RTH JSTRE ET i{
' I
SAINT PAUL 1, MINNESOTA - 224.5686 I
September 27, 1962,' t
FRANK D. MARZITELLI
fix ECUTIVE VICE PRESIDENT i
LYLE E. KINVIG
GENERAL MANAGER
FRANK E. CLAWSON
l
DIRECTOR DEVELOPMENT 'Honorable Mayor and '
INDUSTRIAL
Members of the City Council
DALE D. BRADDOCK
CHIEF ENGINEE Saint Paul, Minnesota
R . - r
i
PHILIP W. FITZPATRICK Re: Bond Ordinance ' -• City Council
CONSULTANT I
File No. 209046
coslanssloNSRS
Gentlemen:
PHILIP H. NASON
PRESIDENT -
In support'of our request for additional bonding
RICHARD C.RAD authority so as to give proper continuity to our
,
VICE PRESIDENT NT �
JOHNSON - industrial parks and recreational area program,
ROBERT W. �.
attached are the following three schedules:
SECRETARY
h ^HWGR ^EE^ENOW 1. Report on Status of Bond Income ; and
Capital Expenditures as of
ALGERT .I., BRAND September 1, 1962. l
BERNARD T. HOLLAND
2•. Status Report on Land Acquisition by ;
ROBERT F. PETERSOH , • Parcel as of September 1, 1962.
LEGISL.ITIYE 4DYISORS - 3. Estimated Acquisition and Construction
Costs as of September 5, 1962.
H. W. SCHULTZ
STATE SENATOR - 1
D. D. WOZNIAK If requested, an oral report will also be made at
STATE R[PRESENTATIV[ the Council meeting on the Ordinance File now
before you.
Yours very truly, s
Frank . arzi e i
Executive Vice r side,nt .
f dm /c
REPORT ON STATUS-OF BOND INCOME AND
CAPITAL EXPENDITURES AS OF 9 -1 =62
I N D -US I R I A K �3
Riverview North ort Southport PARK
Memo: Does not include lands ye. to be
C acquired or improvement c ntracts
yet to be let.
a
t
4
BOND ISSUES!
Authorized
Unissued
i 795000000
Bonds Sold
f
2 500 000
D ,
EXPENDITURES:
Land
Total
29241024.7 2.2,032., 36,453. 88,510.
'203880242
. Floodwall
1800000
Dockwall
350,766 3711,7910
Material Removal,
Filling 8 Grading
123,986
Storm Sewer,
4
Sanitary Sewers &
Lift Station
206,234
Tree Planting
5,912.
Engineering
136.6'18 313. 20,742. a
Total
9979606. 13. ,5 s0912. _11396,36501
ACTUAL EXPENDITURES
3,784,607
Funds on Hand 9-1-(2-
102159393
OUTSTANDING COMMITMEN
S ON
CONTRACTS LET:
,
Sewers
19,897
Filling $ Grading
3909888 221,529.
Demolition
28,111
'
Dockwall
193p421. i
Total
43 ,8 , 5 . 853 846.' f
BOND FUNDS AVAILABLE 1-1-62
.
36.10547�I
Memo: Does not include lands ye. to be
C acquired or improvement c ntracts
yet to be let.
a
t
4
TDF T -62
STATUS REPORTCN.LAND ACQUISITION BY-PARCEL
AS
OF SEPTEMBER
1, 1962
I N D U
S T R I A L
P A R K S
CROSBY
Riverview
North or •
South ort
LAKE'
AREA
TOTAL
otal Parcels
434
24
37
5
Soo
Number Taken by
Direct Purchase
241
4
14
1
260
Percentage
•,
55.5'
16.7
37.8
20.
52.
•
To Be Taken by
;
Condemnation
193
20
23-
4
240
Percentage
44.5.
83.3
62.2
80.
48.
;
s
�-
SUMMARY -
RIVE RVIEW
INDUSTRI
L PARK
Project
Area
A
1 -B
s
Total Parcels
185
249
i
Number Taken by
Direct Purchase
108
133
Percentage
58.4
53.4
To Be Taken by
5
Condemantion
77
116
Percentage
41.6
46,6
,
TDF T -62
r
ESTIMATED ACQUISITION AND CONSTRUCTION COSTS
AS OF SEPTEMBER 5, 1962
,k
LAND:
,,Damages to be Paid
Legal, Appraisals and
Condemnation Service
Total Estimated Land
Cost
CLEARANCE:
LAKE I I TOTAL
verview Northport Southport AREA
5,0880923,
1L,620.
135,936,
10,320.
10;09636.
15 730.
•2940500.
2,330.
506190995.
21S,000.,
50275,543.
146,256.
1169366.
296,830.
5,8340995.
Demolition $ Clearing
2050000.
100000.
350000.
:;250,000.
IMPROVEMENTS:
Floodwall
180,000.
1801000.
Dockwall
3960935.
10420,0000
:1,8169935.
Material'Removal',
Filling and Grading
1,3059375.
896,500.•.
202019875.
Storm Sewers,
Sanitary Sewers and
Lift Stations
•2,8089545.
2439175.
3,0519720.
Water Mains
575,000.
2069325'.
781,325.
Streets
3809882.
5679430.
948,312.
Railroad Trackage
22.50000.
949500.
3199500.
Tree Planting
50912.
59912.
Preliminary - Final
Design and Construc-
tion Engineering
3640000.
207,775.
5710.775.
Contingencies - 15%',
965 263.
549P295.
1,514,558.
'
7,406,000.
10,000.
402209000.
50912.
I
1196419912.
Total Project Cost
12,6810543.
•
1569256.
49336,366.
30207421.
I
1704760907.
� f .
DM
9-5 -62
i
FRANK D. MARZITELLI
EXECUTIVE VICE PRESIDENT
LYLE E. KIN VIO
GENERAL MANAGER
FRANK E. CLAWSON
DIRfiCTOfl
INDUSTRIAL DEVELOPMENT
DALE D. BRADDOCK
CHIEF ENGINEER
PORT AUTHO'R11T1(
EAST FO'U RTH STR EET
OF THE CITY OF SAINT PAUL 6.0 ,
SAINT PAUL I, MINNESO; A - 224 -5686
REMARt <S MADE BY THE MAYOR, MEMBERS OF THE SAINT PAUL
CITY COUNCIL AND FRANK D. MARZITELLI, EXECUTIVE VICE
PRESIDENT OF THE PORT AUTHORITY OF THE CITY OF SAINT
PAUL CONCERNING BOND ORDINANCE NO. 12287, COUNCIL
FILE NO. 209046, ADOPTED THURSDAY, SEPTEMBER 27, 1962
CITY COUNCIL CHAMBERS, CITY HALL'AND COURT HOUSE
1
PHILIP W. FITZPATRIGK
City Clerk Harold Riordan: Final reading'on adoption of
CONSULTANT Ordinance submitted by Commissioners 'Peterson and Holland.
COMMISSIONERS Mr., Riordan read Mr. Marzitellits letter of transmittal
PHILIP H. NASON dated September 27, 1962, covering the three schedules:
PRESIDENT
RICHARD C. RADMAN 1. Reports on Status of Bond Income and Capital
VICE PRESIDENT Expenditures as of September 1, 1962.
ROBERT W. JOHNSON
SECRETARY 2. Status Report on Land Acquisition by Parcel
NEIL H. GRIEBENOW as of September 1, 1962.
TREASURER
ALBERT J. BRAND 3. Estimated Acquisition and' Construction Cost's
as of September 5, 1962.
BERNARD T. HOLLAND
ROBERT F. PETERSON Mayor Vavoulis: Is there any-discussion?
LEGISLATIVE ADVISORS
H. W. SCHULTZ
STATE SSNATOR
D. D. WOZNIAK
STATE REPRESENTATIVE
Commissioner. Mortinson: When this matter of the Port
Authority was up for discussion a couple of years ago,
I felt the Housing and Redevelopment Authority should
acquire these properties. Mr. Philip Fitzpatrick,
representing the Port Authority Commission, appeared
before the Council and said the total cost would not be
over $5 million. Later, the Port Authority came back to
the City Council with a'request for an additional amount
and the total cost was then put at $12 million. Now it
is $17 million. That is triple the original amount asked
for.
Ile are getting ourselves into a real serious position on
bond indebtedness in this City. We are in a position where
the City is in debt about $150 million and anotheri$5 million
here and $5 million there, and in another two or three
years we will have a terrific tax burden, not because of
operational costs of the City but because of bond indebted-
ness. Somewhere along the line we must 'start looking these
things over before authorizing the floating of bonds. When the
taxpayer gets his tax bill and it is increa$ed not 2 or 3 mills
but 50 or 610 - we are getting/ into a real serious situa ion.
Mayor Vavoulis: What do you suggest we do?
Commissioner Martinson: I thinle notice should be served on the
Port Authority informing•them:that this is the last ordinance we
will pass granting them additional bonding authority. I
Mayor Vavoulis: I question serving notice on the Port Authority
as bond requests are based on need. The Port Authority has made
factual studies. We have two of our councilmen serving on the
Board. Mr. Marzitelli is here and can report further.on� this.
Mr. Marzitelli: Your Honor, Mayor Vavoulis, and,Memberslof the
City Council. In support of-the Bond Ordinance, Council lFile
No. 209046, now before you, I thought that probably before I
explained in greater detail the financial statements attached
to my letter of transmittal dated this morning, you may want to
see the development plans for the Southport and Northport Indus-
trial Development areas. I did not bring any development plans
for Riverview Industrial Park because you are more familiar with !
Riverview Industrial Park area boundaries than with the bloundaries
of the other two industrial development areas, i
First, Southport. The area is bounded on the'Test by the
Mi.ssissippie River,,on the South by the Saint Paul city limits,
on the East by the Chicago Great Western Railway and on the �
North by properties presently belonging to Metropolitan Airports
Commission. We will acquire all told approximately 122 acres
of land. The development plan, as outlined on the map ink color,
shows the stages of development. As you know, it is a barge
channel. Contracts have already been let for -the piling and
dredging for the first stage. The first stage of development
will provide approximately 1,300 feet of dock viall, and nine
parcels of land which will measure about 200 feet wide and 500
feet deep, or slightly over 20 acres. Our Director of Industrial
Development has had inquiry and is negotiating with various
industries representatives who are anxious to enter into lease
agreements utilizing this,facility.
Northport consists of approximately 36 acres and lies between
the Saint Paul Downtown Airport, the Mississippi River andithe
newly constructed f loodwall. It includes also the area presently
used as a marina for aircraft tising pontoons and which is owned
and operated by the Metropolitan Airports Commission. Our'indus-
trial Development Director is currently negotiating with represent-
atives of the Twin City Barge C Towing Company for the use ,of
-this land. We are presently acquiring.this land and as rapidly
as same is acquired, it is being cleared and we expect to have all
these lands acquired and cleared'and a lease agreement entered into
within a reasonably short period-of time,
-2-
When we encountered soil problems in the Riverview and Southport
Industrial areas, it was my opinion -that, in addition to calling
these subsoil conditions.to - the attention of -the Port Authority
Commission 'and the City Council, a statement showing the revised
land acquisition'and improvement costs should also be submitted
as it concerns our total expanded program.
As you will note on the schedule entitled "Report on Status of
Bond Income and Expenditures as of September 1, 1962 ", which
schedule shows our current bonding situation, expenditures made
to date and outstanding commitments for construction contracts
let, leaves us with bond funds available in the amount of about
$361,000. 1
It is also to be noted that in February, 1961, the Saint Paul
City Council did give to-us bonding authority in the amount of
$2,500,000, and in March, 1962, gave additional bonding authority
in the amount of $55000,000, which brings our bonding authority
to $75500,000. Bonds in the amount of $2,500,000 were sold in
September of 1961 and an additional amount of $255005000 was
sold in April of 1962, which gave us current working capital of
$5,000,000 and unissued bonding authority of $2,500,000.
As to commitments or•e'stimates made prior to my coming to the
Port Authority, I can say with all frankness that while some
members of the City Council may have had the impression or may
have understood that $7,500,000 would be sufficient to acquire these
lands and make capital improvements necessary so that-these lands
may be made available for industrial use,. I don't see how that could
possibly be. Forrest & Cotton report made available to the Port
Authority in May of 1961, as it relates to Riverview Industrial
Park, estimated construction costs based'on April, 1961 price'
levels at $3,370,000. It is to be noted that these estimated
construction costs were made without benefit of soil borings !and
tests, and L believe you will agree with me that if soil problems
are encountered an increase in these estimated construction costs
would be in order.
Forrest & Cotton also reported to the Port Authority under date
of January 6, 1962, concerning the development of the Southport
area. They proposed three plans of development for Southport:
Development Plan No. 1, in the amount of $3,582,000; Plan No.12
in the amount of $4,488,000; and Plan No. 3, t,7hich is a limited
plan, in the amount of $1,063,000. Plan No. 1 was adopted and
modified by the Port Authority. As our schedule shows, construction
work is now in process in Southport. Contracts'have been let!for the
construction of the dockwall, dredging, filling and grading. lIt is
estimated that the total construction cost of this project will be
in the neighborhood of $4,220,000. The above cost estimates do not
include the cost of land acquisition. These are merely the con-
struction improvement costs. You can readily see that it would be
impossible for the Port Authority to carry out the entire program
-3-
currently underway for $7,500,000, as the estimated cost'of con-
structing these improvements-is equal -to, or slightly in! excess of,
the amount or our current bonding-authority. Again it is1to be
noted that this leaves little or no money for the acquisition of
land. I i
i
As this schedule shows, for Riverview Industrial Park we have
already expended $2,241,000 for the acquisition of land and have
expended $997,000 for the floo'dwall, dockwall, filling and grading,
sewers and engineering, and have outstanding commitments in the
amount of $4385000 for work yet to be done on contracts let on
sewers, filling and grading and demolition.
For Northport, as our reports will show, we do not intend to make
any capital improvements. Gde merely intend to acquire and clear
the land. The amount already expended is $22,345. l
For Southport, we have already paid out $46,453 for the acquisition
of land; $392,534 on capital improvements completed and ow
$414,950 on work yet to be performed on capital improvement contracts
let.
Moneys expended for the•,acquisi.tion of land and tree planting in
Crosby Lake Park amount ito $94,422.
It is to be noted from the schedule that the amounts expended for
the acquisition of land as of September 1, 1962, is $2.,3881242;
capital improvements paid for $1,396,365,,or a -total pay -out of
$3,784,607, leaving cash on hand as of September 1, 1962 in the
amount of $1,215,393, against which we have outstanding commitments
on contracts let in the amount of $853,846 leaving bond funds
available for other work in the.amount of $361,5477, I
Now, granted we have an additional $2,500,000 of bonding authority
we have not yet exercised, and we expect to be selling these bonds
within two to three months. It is our desire to gear the sale of
these bonds with the sales to be made by the City of Saint Paul
and other governmental agencies so that we may obtain the lowest
interest rate possible. In the interim, we will probably make
short term loans from the banks, loan in anticipation of the bond
sale. I.
I would also like to call to your attention that land is being
acquired based on appraisals made for us- by independent feel
appraisers and that the above expenditures do not-include cost
of land acquired prior to our September 1961 bond issue.
IN
Secondly is a schedule entitled "Status Report on Lnnd Acquisition.
by Parcel as of'September 1, 1962". Again this is a recap and shows
the approximate number of parcels in each of the industrial develop-
ment areas and the Crosby Lake Park area. They are as follows: ,
n
Riverview Industrial Park 434 parcels
Northport 44 parcels
Southport 37 parcels
Crosby Lake Park 5 parcels
It is -to be noted that we acquired by direct purchase, that is�the
land owner accepted the offer made by the Port Authority, which
offers were based upon appraisals made for the Port Authority by
independent fee appraisers, the following:
Riverview Industrial Park 55.5 °a
Northport 16.7%
Southport 37,8%
Crosby Lake Park 20,0%
The remaining parcels will be taken either by direct purchase or
condemnation. Based upon our experience to date, we have reason
to believe most of the remaining parcels will be taken by condem-
nation procedures and will be settled either through Court Comm-
ission awards or by verdicts•rendered by District Court juries.
However, we are hopeful that very few, if any, of these matters
will be appealed for jury trial.
The schedule does-not include parcels of land presently owned by
Metropolitan Airports Commission, the City of Saint Paul and alfew
privately held properties.
Now, the third schedule entitled "Estimated Acquisition and Construction
Costs as of September 5, 1962T1 is the schedule to which Commissioner
Mortinson makes reference and asks complete information in order that
our money needs may be better understood. It is to be noted that this
schedule shows the estimated acqu- isiti.on'and construction costs for
the development of Riverview Industrial Park, Northport and Southport
Industrial Development areas and the Crosby Lake Park area. In this
estimate we have included all the costs which we feel will be encoun-
tered, including recoverable expenditures., These revisions were made
necessary because of our expanded program and also because of the soil
conditions encountered. I
You will note that damages to be paid for properties taken in the
Riverview Industrial Park area'are estimated at $5,088,923. This
figure was arrived at - - you will recall the Status Report onithe
Number of Parcels shows we have already acquired 55% of the land
in this area; therefore, we know exactly what we paid for those
properties. The remaining parcels have all been appraised for'the
Port Authority by outside fee appraisers with the exception of those
properties still belonging to the Metropolitan Airports Commissioft,
the City of Saint Paul and a few parcels of industrial or commercial
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properties for which we have not yet received appraisals, but�for
which we have made estimates.
There is also a contingency factor included in the amount of
damages we expect to pay for properties -taken. The contingency
factor is provided to cover the cost of any adjustments made f
by Court Commission awards or those cases which may be appealed
to the District Court for jury trial.
Those amounts shown as damages to be paid for Riverview Industrial
Park, Northport and Southport Industrial Development areas and
the Crosby Lake Park area have all been estimated on the same'
basis, and we have estimated -that the awards paid for the taking
of these properties will be in the -total amount of $5,619,995'.
Legal, appraisals and condemnation service costs as shown are
based upon our actual experience to date and estimated for the
parcels yet to -be taken. Demolition and olearincr costs-are also
based upon our .experience -to date and estimated -For the work }yet
to be done. I would also like -to call your attention to the fact
-that all demolition contracts are let -t-hrough the City Architect's
office and the City Purchasing Department. •Construetion.cos&Ls of-
improvements for Riverview Industrial Park are estimated to be
slightly over $7 million and for the Southport Industrial Developrent
area about $4,200,000. As has been stated earlier, contracts
for some of this construction, as relates both -to Riverview Indus-
trial Park and Southport, have already been let. I
I would also like to call your particular attention to the fact that
we do have a 15% contingency in the amount .of $1,514,558 for con-
struction improvements and engineering. We have placed this amount
in our budget because of the uncertainty with which we are still
faced, mostly because of tine soil conditions encountered; and until
such time as these additional soil -tests are taken and complelted,
and construction has begun, it would be more prudent to make pro-
vision for the situation in -t-he event that - -the area required exten-
sive piling. If these additional soil tests prove that the soil
condition is such -that extensive piling as determined by ourl
engineer is not required, we may be able to save most, if not all,
of the 15% contingency, which we have estimated in the amount of
$1,514,000.
I also. want to call to your attention that our estimated acquisition
and construction costs also include recoverable expenditures., For
instance, we are acquiring lands which will be needed by the 'r?innesota•
Highway Department for rights -of -way for the locating and constructing
of Trunk Highway 56, the Lafayette Street Bridge project. The Highway.
Department has agreed to acquire said necessary rights-of-way-and
to reimburse us on the basis of the -Fair market value of thelland taken.
We have also included an amount of $319,500 -For'railroad trackage.
lVe will be contacting the railroad companies and will be requesting
of them that they pay the cost of or reimburse us for the cost o�
said railroad trackage.
We also expect -to make substantial savings if these addltionall
soil tests prove that piling is,not required or required in a lesser
amount than we have estimated to date in the construction of our
sewers, water mains and engineering costs.
,a
Too, we can also expect to make some savings in the cost of filling
and grading . Gle are hopeful that filling material can be obtained
From the Minnesota Highway Department at a cast less than estirated
for hauling and placing of said fill material, which material will
be available as a result of the freeway.construction program.'.
It is my opinion that the members of the City Council and the
citizens of the City of Saint Paul want to be informed as to what
the total estimated cost of the projects will be including recover-
able expenditures so that when bonding authority is given, bonds
are sold and -the program is in the process of being carried out,
all can look forward with a greater measure-o'" assurance to what
will be the cost of -these developments and the investment required
on the part of the citizens. I
It is to be noted -t-hen that this brings the cost of land acquisition
and improvements for Riverview Industrial Park to- $12,681,S43.� This
means that we will be acquiring 12,003,115 square feet of land, of
which 7,914,472 square feet will be saleable..
Northport. - Our Industrial Development Director is currently nego-
tiating with the representatives of the Twin City,Barge and Tgwing
Company for the sale or leasing of this industrial area. We expect
to be able to acquire'these properties for $156,000. No construction
improvements on the part of the Port Authority are being considered.
As rapidly as we are able to acquire these.properties, -the sane
will be cleared and will be made available for industrial use!
Southport We have estimated that the cost of acquiring land!and
the construction of improvements thereon will be $4,336,366. This
amount also includes -recoverable expenditures, or savings that may
be made possible if soil conditions do not demand extensive piling.
Our Industrial Development Director is currently meeting withlrepre-
Ou
sentatives of a number of firms who have indicated a real interest
in acquiring barge channel river frontage.
Crosby Lake Park Area is estimated to cost $302,000. I want to call
-to your attention, however, that no provision is made for any
capital improvements = -n the Crosby Lake Area such as buildings,
utilities, including sewer and water, or streets. Our program
merely provides for the acquisition of these lands, and malcing� them
available for recreation, as they presently exist.
It is to be noted that the total project cost for the three industrial
development areas and the recreation area is estimated to be $17,476,907.
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Today we are asking for bonding authority in the amount of
$52000,000. That, together with.the'bonding authority we have '
previously been given, will amount of•$12,500,000. We are not
asking for bonding authority in the full amount of $17,476 000.
To do so, we believe, would be premature especially in the
light of the soil conditions encountered. We are hopeful that
as a result of the soil tests currently being made' different '
methods of construction may be used which will bring aboutla
substantial reduction in our estimated construction costs.
We are
e preparing. for the sale of land in 1962 and feel reasonably
sure that some of this land will be disposed of in 1963. If this
becomes so, we can expect revenues from cash sales as well as lease'
agreements that may be entered into. These moneys, together with
the potential savings in construction costs, may be in sufficient
amounts so as to make unnecessapy our having to return to the City
Council for additional bonding authority to complete these projects:
If the sales or savings are not in sufficient amounts, and'it is
necessary to request additional bonding authority, it will b!,e sub -' }
stantially less than that indicated in our Estimated Acquisition
and Construction Cost schedule.
I believe the City Councix agrees that there is a need for a
continuance of this program to make 1"Lnds,available for industrial
use; that there is an increase in public understanding concerning f
the public interest and needs for development of industrial parks '
and, as Commissioner Mortinson has indicated, these investments C
in our industrial park program should result in an increase in our
tax base, an increase in taxes presently collected from the district
and will create employment opportunities, jobs, more payroll and
purchasing power, which I believe you will agree serves the best
interests of the citizens, of Saint Paul.-
1
While tentative plans are being developed for the utilizationlof •
Pig's Eye area, it is to be noted that the matter before you contains
no-request for funds for the development of this area It is our
opinion that maximum effort should be made on the part of our staff,
to develop the industrial areas now under way.
Commissioner Rosen: On the basis of the figures you have here,
you will have-to come back for another $5 million. As of now it
is $12,500,000.
Mr. Marzitelli: If the City Cou ncil concurs, it will be $12,5
If the estimates do not hold or the savings which we feel can
are not realized - yes, we will'be back for additional bonding
authority. I am satisfied, however, that there are recoveraYil
expenditures'whitin this budget.
i
0,000,
e made
r�
t
t
Commissioner Loss: Railroad trackage?
"Mr. Marzitelli: If we contribute the land, the railroad companies
should pay for" the facilities. Also, the Minnesota Highway Department
will be acquiring rights -of -way for Trunk Highway 56 and'have already
agreed that they will reimburse us based upoh the fair market value
of the land at the time of the taking. Also, I hope that�Drs. Arthur
and Leo Casagrande,-professors at Harvard University, can1come up
with a recommendation which will permit us to construct utilities
without our having to do the amount of.piling our local consultant
and Port Authority engineers have shown in their final plans. If soil
conditions prove out better than what our engineers have anticipated
to date, those contingency factors could be eliminated or substantially
reduced. There could be a subtanital saving just in that one
construction item alone. It is the soil condition that isiincreasing
construction costs more so than any one item.
Commissioner Dalglish: When did you first start making soil
investigations and how much has been spent'on this? i
II 1
Mr. Marzitelli:' Forrest & Cotton's May 1961 report shows construction
cost estimates were made without benefit of,soil investigations. There
may have been some soil borings made, but very few. Of course, when
the project was let to a consulting engineer for design, then soil
borings and tests were mandatory in order that the consulting engineering
firm would know what design criteria would be needed for this facility.
When the final design was in process it revealed that the poor subsoil
conditions existed. There is a strata of clay which lies in a horizontal
position, which weaves through the area and is variable in thickness
and in its composition. Also, the State Street dump is noticompletely'
decomposed and is very poor material as it relates to the construction
of this utility. In my opinion, soil tests actually were not made
until such final design engineering contracts had been let,
Commissioner Dalglish: I take it you*are going to push for all
information you can get on the soil condition. I
Mr. Marzitelli: I have asked Dr. Leo Casagrande to include in his
erport on the soil conditions for the Riverview Industrial Park area,
some comments on how much time and the cost that would be required
to make a soil analysis of the Southport Industrial area. If we could
get this soil information during the fainter months.- in January,
February and March - that would be in sufficient time to permit the
consulting engineering firm employed for final design on streets and
utilities to prepare plans and specifications to proceed, an we
could let construction contracts immediately following the co pletion
of the fill contract now under way.
We are pushing for all of the.soll information we can possibly get
our hands on and feel that we have one of the best engineering teams
in the Country, Drs. Arthur and Leo Casagrande, conducting this study.
W`13
r;
A
Commissioner Rosen: Couldn't this be done by local men?
Mr. Marzitelli:; Commissioner, as you know we have a former engineer
of the Department of Public Works, in whom we have a lot of confidence,
as our Chief Engineer. He and the firm of Toltz,. King, DuvallF
Anderson and Associates who do work for the Minneapolis -Saint Paul
Sanitary Sewer District, using soil information .supplied to them
by the Soil Exploration Company (Twin City Testing'Laboratory)� have
come to the conclusion that due to the soil conditions in Riverview
Industrial Park piling is necessary to support the utility. There
was disagreement between members of the staff to the effect that while
piling may be the best, it is the most costly and, therefore, it was
felt an outside expert should be brought in to review the plans for
the purpose of determining if a different method of construction,
which would result in a lower cost, is possible. I
Mayor Vavoulis: Let's have roll call on-the Ordinan
City Clerk Harold Riordan called roll and Ordinance
adopted by a vote of six in favor and none against.
Commissioners present: Dalglish
Loss
l
Mortinson
Peterson
Rosen
Mr. President ( Vavoulis;
Commissioner Holland was absent.
J_ c
9/27/62
is ^ 2nd_
Laid over to
9
3rd and apvLl
Yeas \ Nava ,/---- Yeas
Dalglish Dalglish
Holland
Loss
Mortinson ortins n
Peterson' tars
Rosen osen
Mr. President Vavonlis
a
pL1gI.IS��:ii
209046