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09-198Council File # � � � �� � Green Sheet #_;Z� RESOLUTION MINNESOTA ? Presented 1 WHEREAS, on July 13, 1994, the City Council of the City of Saint Paul (the "City") established the 2 Culhual Capital (Cultural STAR) Investment Program; and 4 WHEREAS, the Cultural STAR Program is funded with ten percent of an additional one-half of one 5 percent sales tax on sales transactions that occur within the City, pwsuant to Minnesota Statutes, Chapter 6 297A, authorized by the State of Minnesota, Chapter No. 375, Sec. 46; and 7 8 WHEREA5, the purpose of the Cultural STAR Program is to promote economic growth in Saint Paul by 9 strengthening the arts and culture sector and by supporting Downtown as a vital cultural center; and 10 1 I WHEREAS, the Cultural STAR Program has leveraged over $300 million of economic development 12 annually in the City of Saint Paul, resulting in $1.9 million of annual local government revenue. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 WHEREAS, The Arts Partnership, a Minnesota non-profit corporation, has applied for $3 million dollars in Cultural STAR funding, to be used to for capital costs incurred as part of its construction of a 1,100 seat concert hall and support spaces at its downtown Saint Paul campus (the "Project"); and WHEREAS, the City requires, among other things, that the following conditions be satisfied: 1) that the $3 million doliar Cultural STAR funding be allocated over a ten (10) year period, commencing in 2008, with the City being obligated to allocate no more than $300,000 of said aggregate funding per year; 2) that construction of the Project begin no later than December 31, 2015, and that it be completed no later than three 3 years after the commencement date of the construction; 3� that the Cultural STAR funds be disbursed to The Arts Partnership on a reimbursement basis followin� submission of a request and documentation of expenditures in accordance with City r�ulations and procedures; 4) that prior to each disbursement of funds, The Arts Partnership submit documentation that the Cultural STAR funds have been matched at a ratio of no less than 3:1 with additional Project funding from non-City sources; and 5) that The Arts Partnership and the City enter into a Loan Agreement, which provides for among other things, the manner by which the City will disburse the loan proceeds and the conditions by which the City will forgive The Arts Partnership's repayment of any receipt of such loan proceeds; WHEREAS, pursuant to 1998 Minnesota Laws Chapter 389, Article 8, Sec. 37, Subdivision 1, a citizen review panel, commonly known as the Cultural STAR Boazd, has completed its annual review of all proposals for the expenditure of funds in Cycle 14 of the Cultural STAR Program, including the Project and has recommended the approval of the Project; and o�-f ��6 43 44 WI3EREAS, the Mayor has reviewed the application for the Project in Cycle 14 of the Cultural STAR 45 Program and recommended the approval of the Project; and 46 47 48 49 50 51 52 53 54 55 56 57 5� 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 WfIEREAS, the Project does not represent a Business Subsidy as defined by Minnesota Statutes, Chapter 116J; NOW, THEREFORE BE IT RESOLVED, that the City Council hereby approves the funding recommendations from the Cultural STAR Program for the Project as described above, and be it FiJRTHER RESOLVED, that the applicable City staff negotiate and execute a Loan Agreement on behalf of the City, with The Arts Partnership, consistent with the above-described terms and conditions, together with such other terms and conditions which are not adverse to the City, provided that such terms and conditions are acceptable in form and substance to the Saint Paul City Attorney, and be it FINALLY RESOLVED, that the Council approves the budget amendment as follows. CURRENTBUDGET CHANGES AMENDED BUDGET Transfer from HRA Debt Service Fund (Sales Tax) '08 Budget $9Q000.00 $90,000 Comment: Last $90,000 fram 2008 budget not used P7-930-90304-7304-00000(Prior Years) $935,626.86 $0.00 $935,626.86 TOTAL FINANCING PLAN $1,025,626.86 $0.00 $1,025,626.86 SPENDING PLAN — 2008 Cultural STAR Arts Partnership: Undesignated Adopted Budget — City Sales Tax P7-930-90399-0548-77999 $0.00 $45,791.68 $45,791.68 RNC Cultural Events P7-930-90310-0548-71754 $255,791.68 ($255,791.68) $0.00 Comment: $255,791.68 remaining from RNC used far The Arts Partnership Ordway expansion. Direct Project Casts P7-930-90310-0547-77000 $190,506.71 $0.00 $190,506.71 P7-930-90310-0299-77000 $444,328.47 $0.00 $444,328.47 RECOMMENDATIONS: The Arts Partnership Ordway Expansion P7-930-90309-0547-71808 $0.00 $30Q000 $300,000 CLOSE OUT PROJECTS: Skyway Kiosks P7-930-90309-0547-71791 $90,000 ($90,000) $0.00 Comment: $9Q000 for skyway kiosks projec� which did not proceed $a5,791.68 will be used for Ordway AL JYL+'1Vll1Nl> YLAPI ,025,626.86 o�-(a8 i can ivay� r+usciu ReClu by Department of: 1 B yite � m � � [ ICinni nL� C�/ �COnlLI � (lP Hazris ✓ _ By: Appra �� Apprc L I J 1 U I o< @$y: Adopted by CounciL Date a�/��(�'�j Apprc Adoption Cert�i by Counci] Secretary g BY� //l�i�/��?�%��i;n Approved May�Date j �L � �; �� � � —7T � f � By� f `._ �>C.�- G _� 92 �--� � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � o�-«g DepartmenUOfficelCouncil: Dateinitiated: Gl�een SheP.t NO 3066839 PE _ Planning & Economic � �_FEB-09 . Development Cofkact Person & Phone: Deoartment Sent To Person Ini4'allDate KlJft SChUI}Z � 0 lannin & Economic Develo me Knr[ Schultz _A L _ 26G6SJ0 1 lannin & Ecouomic Develo me Bob Aammu Assign Z lannin & Economic Develo me Cec' Must Be Qn Council Agenda by (Date): Number �k.�edor T F 3 ' Attome PeteMcCall �" Routing 4 ncial Services Ma ret KeR Doc. Type: OTHER Order 5 a or•s Oifice Ma or's Office AGREEMENT/CONTRACT 6 ouncil Cti Council E-Document Required: N 7 ivic Center Ci Clerk Document Contact: Contact Phone: Total # of Signature Pages _(Clip All Locations for Signature) Action Requested: Adoption of the attached Council Resolution and budget amendment, which approves Culhual STAR funding recommendations for The Arts Partnership. Recommendations� Approve (A) or Rejec[ (R): Personal Service Contracts Must Answer the Following Questions:_ Planning Commission 1. Has this person/frm ever worked under a contract for this tlepartment? CIB Committee Yes No Civil Service Commission 2. Has this person/frm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any currenf ciry employee? Yes No 6cplain all yes answers on separate sheet and attach to green sheet. Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Approval of the attached Council Resolution and budget amendment will allocate funding for the construction of an 1,100-seat concert hall and support spaces at the Ordway Center for Performing Arts. Advantages If Approved: Cultural STAR funds, will be made available for The Arts Parhiership project. Disadvantages If Approved: None. Disadvantages If Not Approved: Total Amount of 7ransaction: $300,000.00 CosURevenue Budgeted: Y Funding Source: CUltural STAR Program Activity Number: P7-930-9031-0547-71808 Fi nancial I nformation: (Explain) February 11, 2009 9:58 AM Page 1