10-498Council File # 10-498
Green Sheet# 3110236
RESOLUTION
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Presented by
F SAINT PAUL, MINNESOTA
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WHEREAS:
City Council Resolution
[eCullet Project]
1. The Port Authority of the City of Saint Paul (the "Port Authority") has given its approval
to the issuance of approximately $3,750,000 of its Tax-Exempt Solid Waste Disposal Revenue
Bonds (eCullet Project) Series 2010-1 (the "Bonds"), to finance the costs to be incurred by a wholly
owned subsidiary of eCullet-St. Paul LLC, a Minnesota limited liability company, in connection with
the acquisition and installation of glass recycling equipment to be located in the City of Saint Paul,
Minnesota (the "Project"); and
2. Minnesota Statutes, Section 469.084, provides that any issue of revenue Bonds
authorized by the Port Authority shall be issued only with the consent of the City Council of the City
of Saint Paul, by resolution adopted in accordance with law; and
3. Approval of the issuance of the proposed Bonds by the City Council is also required
by Section 147(� of the Internal Revenue Code of 1986, as amended; and
4. To meet the requirements of both state and federal law, the Port Authority has
26 requested that the City Council gives its requisite approval to the issuance of the proposed Bonds
27 by the Port Authority, subject to final approval of the details of said Bonds by the Port Authority.
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29 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul that, in
30 accordance with the requirements of Section 147(fl of the Internal Revenue Code of 1986, as
31 amended, and in accordance with Minnesota Statutes, Section 469.084, the City Council hereby
32 approves the issuance of the aforesaid Bonds by the Port Authority for the purposes described in
33 the Port Authority resolution adopted April 27, 2010, and Port Authority Gredit Committee resolution
34 adopted May 18, 2010, the exact details of which, including but not limited to, provisions relating to
35 maturities, interest rates, discount, redemption, and the issuance of additional Bonds are to be
36 determined by the Port Authority, and the City Council hereby authorizes the issuance of any
37 additional bonds (including refunding bonds) by the Port Authority found by the Port Authority to be
38 necessary for carrying out the purposes for which the aforedescribed Bond is issued.
39
40 Adopted: May 19, 2010
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Adoption Certified by Council Secretazy gy:
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Adopfed by Council: Date ��lLf����
SAINT PAUL
PORT AUTHORITY
MEMOR.ANDUM
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TO: CREDIT COMMITTEE DATE: May 6, 2010
(Meeting of May 18, 2�10)
FROM: Laurie J. Hansen
SUBJECT: eCULLET, LLC — BLIC HEARING — SALE OF BONDS
$3,750,000 CONDUIT TAX EXEMPT REVENUE BONDS
RESOLUTION NO. 62
ACTION REQUESTED:
Hold a pubfic hearing fior the issuance ofi up to $3,750,000 of conduit, tax-exempt
revenue bonds for eCullet.
BACKGROUND PROPOSA�:
At the Aprif 27, 2010 Port Authority Board of Commissioners' meeting, the Board
approved the issuance of these bonds subject to the public hearing to be held at this
meeting. This public hearing was not held at the April Board meeting because we did
not have adequate notice of the increased amount of the bond issue to publish for a
public hearing. Final approval of the bond issue is needed by May 19, 2010 to
facilitate pricing of the bonds on May 20, 2010.
RECOMMENDATION:
Recommend approval of the Resolution approval of tax-exempt conduit bonds of
$3,750,000.
LJH:ca
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Resolution No. 62
RESOLUTION OF
THE CREDIT COMMITTEE OF
THE PORT AUTHORITY OF THE CITY OF SAINT PAUL
[eCullet LLC]
WHEREAS, the Port Authority of the City of Saint Paul (the "Authority") has received a
request from eCullet LLC (the "Company") that the Authority consider the issuance of its revenue
bonds (which may be in the form of one or more notes) to finance the acquisition, construction and
installation of glass processing equipment in a facility to be leased by the Company or its affiliate in
the City of Saint Paul (the "Project"); and
WHEREAS, the Credit Committee has previously adopting a resolution giving preliminary
approval to the proposed issuance of revenue bonds for the Project; and
WHEREAS, the Board of Commissioners of the Authority has authorized the issuance of up
to $3,750,000 of revenue bonds to finance the Project (the `Bonds"); and
WHEREAS, the Board of Commissioners of the Authority has authorized the Credit
Committee of the Authority to hold a public hearing pursuant to the requirements of Section 147( fl
of the Internal Revenue Code of 1986, as amended, in connection with the issuance of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Credit Committee of the Port Authority of
the City of Saint Paul, Minnesota as follows:
1. On the date hereaf, in accordanca with Section 147(f� of the Internal Revenue Code
of 1986, as amended, and pursuant to notice published not less than 15 days prior to the date hexeof,
tt�e Credit Cosnmittee held a public heazing on the issuance of up to $3,750,000 of Bonds to finance
the Project.
2. The Credit Committee hereby ratifies and affirms a11 prior findings and preliminary
approvals previously made by the Credit Committee in connection with the issuance of the Bonds
and the Project.
Adopted: Ma}� 18, 2010
CREDIT COMMTTTEE OF THE
PORT AUTHORITY OF THE CTTY
OF SAINT PAUL
By_
Its Chair
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MEMOZZANDLIM
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T�: SORRD OF COMMISSfONERS DATE: April 22, 2010
(Meeting of April 27, 2010)
FROIVI: Laurie J. Hansen
SUBJECT: eCULLET, LLC — PU�LIC HEARING — SALE QF BOt3DS
AUTNORIZAT{ON FOR TAX-EXEMPT FINANCENG ALLOCATiON
APPLiCATiON OF $750,000 AND APPROVAL OF TRX-EXEMPT
CONDUIT BONDS OF $3,750,000
RESOLUTION NO. 4339
ACTfON REQUES'TED:
Authorization for applicafion for additional allocation of $750,000 of tax-exempt
conduit bonding authority from the Minnesota Management and Budget Qepartment
and approval of tax-exempt conduit bonds totaling $3,750,000.
PUBLIC PURPOSE:
The proposed financing will enable eCullef, LLC, to start a glass recycling operation
and add 30 jobs in Saint Paul.
BUSINESS SUBSIQY:
Not applicable.
BACKGROUND:
eCullet is a technofogy based glass processor of post consumer recyclabfes and
waste to produce furnace ready cullet glass, it is headquartered in Palo Aito, CA and
has operations in Oakland (test facility) and Seattie. It currentiy has 50 employees
and the Saint Pauf facility wili be its second commercially operational facility.
Af the February meeting of the Credit Committee, the company received
authorizafian to appiy for $3,000,000 of bonding allocation and was awarded the
ailocation by the Minnesota Management and Budget Department. The company
has subsequently decided to upgrade the equipment purchased and include
additionai equipment to achieve operationai efficiencies. As a result, they will need
adcfitionai bonding ailocation of �750,000 and aufhorization to issue bonds totaling
$3,750,000.
10-498
Board of Commissioners
April 22, 2010
Page 2
PROPQSAL:
eCullet pfans on purchasing processing and sorting equipment and insfalling it in a
leased facility af 2075 Ellis Ave.
At the March, 2010 Credit Committee and Board meetings, eCullet received final
approval of the issuance of $3,000,400 in tax-exempt conduit revenue bonds to
finance this project. The company now wants to increase the bond issue to
$3,750,000 and price the bonds on May 20, 2010. To accommodate their schedule,
we are requesting the Board grant final approval for a total bond issue of $3,750,000,
subjecf to holding a pubiic hearing at the Credit Committee meeting on May 18, 2010.
By hoiding a public hearing on May 18 and assuming City Council approval on May
19, the bonds can be priced on May 20.
Wa had pubfished a notice to hofd a public hearing at today's Board meeting for a
bond issue of $3,000,000. If anyone is present today to testify at that public hearing,
we can take that testimony. in addition, we wiil hold a public hearing on May 18 for a
$3,750,000 bond issue.
WORKFORCE IMPUCRTIONS�
eCullet will create 30 positions in Saint Paul.
RECOMMENDATION:
Recommend approval of the Resolution authorizing tne application for additional
allocation of tax-exempt conduit bonding authority of $750,000 from the Minnesota
Management and Budget Department and approval of tax-exempt conduit bonds of
$3,750,000 (subject to a Public Hearing on May 18).
LJH:ca
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Resolution 1Vo. 4339
RESOLUTION OF
THE BOARD OF COMMISSIOlv'ERS
OF THE PORT AUTHORITY OF THE CTTY OF SAINT PAUL
[eCllet LLC]
WHEREAS, the Port Authority of the City of Saint Paul (the "Port Authority") has previously
authorized the issuance of up to $3,000,000 of its taxable and/or tas-exempt revenue bonds to finance
the acquisition, construction and installation of glass processing equipment by eCullet LLC (the
"Company"} at a facility to be leased by the Company in fhe City of Saint Paul (the "ProjecP'); and
WHEREAS, the Port Authority has now been advised by the Company that [ts financing needs
are now anticipated to increase to 53,750,000 because of the acquisition of additional and enhanced
equipment; and
WIIEREAS, the Port Authority desires to facilitate the issuance of revenue bonds in the ful]
amount needed by the Company for the Project, and to take all actions necessary to provide for such
issuance.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Port
Authority of the City of Saint Paul, Minnesota as follows:
I. AII findings previousiy made by the Port Authority in connection with the Project, and
the proposed issuance of revenue bonds therefore, are hereby ratified and affirmed.
2. The Port Authority
revenue bonds for the Project in
approximate amount of $3,750,000.
hereby authorizes the issuance of its tax-exempt and/or t�izable
the principa] amount determined by the Company, up to the
3. To facilitate the issuance of revenue bonds in this higher principal amount, the Port
Authority hereby authorizes (a) the application for such additional bonding allocation from the State of
Minnesota as is required, and (b) the conduct of a public hearing by the Credit Committee at its May 18,
2010 meeting. The Port Authority further authorizes a request for public approval of the Project and the
proposed revenue bonds to be submitted to the City of Saint Paul, following the May 18 public hearing,
all as required by law.
Adopted: April 27, 2010.
PORT AUTHORITY OF Tf� CITY
OF SAINT PAUL
BY (.f�q.L .���(.
Its C ir
ATTEST:
Sec •etary �
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� Gree� Sheet Green Sheet
10-498
Green Sheet Green Sheet Green Sheet Green Sheet
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DepartmenUOffice/Council: Datelnitiated: Gre'e{7 Shee't NO 3110236
PE _Planning & Economic 07 MAY 2010
Development �
Contact Person & Phone: Department Sent To Person 1'ti /Daie
Laurie J. Hansen 0 Ianniu & Economic Develo me � `J �fl
ZZd-J�686 1 Iannin¢ & Economic Developme De artment Director __ (�
Assign Z 'nancial Services ,Office Financial Services
Must Be on Council Agenda by (Date): Number
19-MAY-10 For 3 i Attorne _ Ci Attorne �� �-�
Routing 4 a or's Off4ce MayorlAssistant �
Doc. Type: RESOLUTION W/$ Order 5 ouncil Ci Council
TRANSACTION 6 'N Clerk Ci Clerk
E-Document Required: Y
Document Contact: Laura EckeA
Contact Phone: 266-6633
Total # of Signature Pages _(Clip AII Locations for Signature)
Action Requested:
Approval of the Port Authority's issuance of $3,75Q000 in tax exempt, revenue bonds for eCullet-St. Paul LLC.
Recommendations: Approve (A) or Reject (R): personal Service Contracts Must Answer the Following questions:
Planning Commission 1 Has this person/firm ever worked under a contrect for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this personffirm ever been a city empioyee?
Yes No
3. Does this person(firm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
eCullet is a technology-based glass processor preparing post consumer recyclables and waste to produce furnace-ready cullet glass.
eCullet has located a facility in Saint Paul to establish its second commercially operaYional facility.
AdvanWges H Approved:
Bond issue will provide needed financing for construction and installation of glass recycling equipment and the creation of 30 new
jobs in St Paul.
DisadvanWges If Approved:
None
�isadvantages If Not Approved:
cCullet will not locate in St. Paul. i
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Total Amount of I
Trensaction: $3,750,000.00 CosURevenue Budgeted: !
Funding Source: CondUit revenue band Activity N�mber: ��
Financial Information: I
(Explain) I
May 7, 2010 2:06 PM Page 1