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00-657��a�s�;�� e - _�v.\� � � � 3000 �a�es � � a- 3,''�,5 �'�O Ordinance # ORDINANCE . CITY OF SAINT PAUL, MINNESOTA Presented by Referred To Council File # 00 - 65`� Green Sheet # 101333 �� Date AN ORDINANCE (A) GRANTING AUTHORITY TO Tf3E PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL TEMPORARY BONDS IN 'I'fiE AGGREGATE AMOUNT NOT TO EXCEED THE INITIAL PRTNCIPAL AMOUNT OF $4,500,000, At3D ANY BONDS TO REFL3ND SUCI3 BONDS, TO SECURE THE INITIAL ISSUE OF TEMPORARY BONDS AND ONE ADDITIONAL ISSUE OF TEMPORARY REFUNDING BONDS WITH A PLEDGE OF TfiE FULL FAITH, CREDIT AND RESOURCES OF THE CITY OF SAINT PAUL, AND TO USE TIiE PROCBEDS DERSVED FROM THE SAI.,E OF SUCH BONDS TO PAY THE COST AND EXPENSE NECESSARILY TO BE INCURRED BY THE PORT AUTHORITY OF THE CITY OF SAINT PAUL EOR ACQUISITION OF LAND, CLEARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CENTER -PHASE 2 TAX INCFtEMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS AND BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PRESCRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING THE RATE OF ZNTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A JOZNT POWERS AGREEMENT IN CONNECTION WZTH TFIE PROSECT. WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, finding that certain lands were blighted and marginal properties within the meaning of Minnesota Statutes, 5ections 469.048 et seq., and establishing and creating the Great Northern Business Center - Phase I Industrial Development District (the "District"); and WHEREAS, the City of Saint Paul, Minnesota (the "City"), has authority under Minnesota SCatutes, Section 469.178, Subd. 2, to issue general obligation bonds payable from tax increments of a tax increment district created by the Port Authority, and the Port Authority has authority under Minnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of income from any source which are secured by the full Eaith, credit and resources of the City, and pursuant to this Ordinance, the Port Authority will issue bonds to which are pledged both tax increments and Che full faith, credit and resources of the City (the "Bonds"); and WHEREAS, the Port Authority has requested the authorization of the Council of the City of Saint Paul (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance and sale by the Port Authority of the Bonds in the aggregate principal amount not to exceed the initial principal amount of $4,500,000, and for the pledge of the full faith, credit and resources of the City to the payment of such Bonds, which Bonds will also be secured by tax increments to be derived from the District, in connection with the Project, as defined below; and S'u'�:'r :`-i: ", 1171 1.1. a e. :� � ' '� , oo-�5q WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2000; and WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and expenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other puxposes authorized by authority of Minnesota Statutes, Chapter 469, as amended (the "Act"), with respect to the Project; and WHEREAS, it is the preference of the City to avoid the collection of general tax levies to pay the Bonds prior to the time tax increments are received from the District, and for the PorC Authority, as issuer of the Bonds, to avoid such taac levies by capitalizing interest and/or rolling over temposary obligations, and by levying pursuant to Minnesota Statutes, Section 475.61; and WHEREAS, it is anticipated that the Bonds will be issued as temporary bonds pursuant to Section 469.178, Subd. 5, of the Act, maturing within three years £rom their date of issuance; and WHEREAS, the Council, being duly advised in the premises, finds and determines that it is necessary and appropriate that the Port Authority issue and sell Bonds in the aggregate initial principal amount not to exceed $4,506,000 Eor the purposes as stated above; and WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for esCablishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be borne by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources of the City to the payment of the Bonds as the same sha11 be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to the authority granted by this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authority enter into a Joint Powers Agreement to set forth the duties and responsibilities of each in connection with the Project: 15711.'f. � NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: � O�� S� Section 1 Authorization of Bonds. That subject to, and in accordance with, the applicable provisions, terms and conditions of this ordinance and those contained in Section 469.060 of the Act, authority is hereby granted to the Port Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acquisition, clearance, remediation and construction of improvements on land within the District as contemplated by the Plan for the District, and then for all other purposes authorized by the Act with respect to the Project. Section 2 Establishing Terms of the Bonds. That the Port Authority is hereby authorized to establish the date, denomination, place of payment, form and details of the Bonds, provided that the Bonds shall be issued and sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series, in the manner provided and allowed by law; the Bonds shall be secured by a first lien pledge of the tax increments to be received by the Port Authority from the District; the initial principal amount of the Bonds shall not exceed $4, 500, 000; the Bonds shall mature in the amounts and years and bear interest at the rate or rates per annum, including rates which vary in accordance with a formula, established by the offer to purchase the Bonds which is determined to be the most favorable by a Pricing Committee comprised of the President and the Chief Financial Officer of the Port Authority and the Director, Office of Financial Services, the Deputy Mayor and the Director of the Department of the Planning and Economic Development of the City, provided that the true interest rate of the Bonds shall not exceed six percent (6.00°s) per annum payable semi-annually unless such higher true interest is specifically approved by a resolution adopted by a majority of the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction of improvements on land within the District as described in the Plan, and then for aIl other puxposes authorized by the Act with respect to the Project. The Bonds may be made subject to redemption and prepayment at the option of the Port Authority at such time and price or prices as shall be determined by the Port Authority and approved by the Pricing Committee described above. It is recognized that Section 469.060 of the Act provides that the Bonds must be in the amount and form and bear interest at the rate set by the Council, that the Port Authority with the consent of the Council shall set the date, denominations, place of payment, form, and details of the „�,,.,. 3 � oo _ `5� � Honds and that the Council is required to decide whether the issuance of the Bonds by the " Port Authority is proper and if so, the amount of Bonds to issue, and that the Council is required to give specific consent in the Ordinance to the pledge of the City's full faith, credit and resources to the Bonds. The standards and delegation to the Pricing Committee set forth herein are intended as such full required action of the Council, and except as provided herein no further approval of the Council is requized for the issuance or refunding o£ the Bonds under Section 469.060 of the Act. Section 3 Pledge of Full Faith and Credit. That as security for the prompt and faithful payment of both principal and interest of (a) said Bonds in an amount not to exceed $4,500,000 and (b) one issue o£ temporary re£unding bonds issued pursuant to Section 469.176, Subd. 5, of the Act, if the Pricing Committee has determined that the issuance of temporary refunding bonds is desirable, and has established the terms for such temporary refunding bonds, includinq the interest rate to be borne thereby, the Port Authority is hereby authorized to pledge the full faith, credit and resources oP the City of Saint Paul; and such Bonds (including an issue of temporary refunding bonds described in clause (b), both in respect of the principal amount of the same and with respect to the interest thereon, may be paid by the Port Authority from tax levies provided therefore in accordance with Section 4 hereof. Section 4 Tax Levy. That the Port Authority, in the event of the issuance of any 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 an amount not less than 5� in excess of the sum required to pay the principal and interest of the same when and as such principal and interest mature and, after such Bonds have been delivered to the purchasers, such tax shall be irrepealable until all such indebtedness 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 o£ said Port Authority shall forthwith furnish a certified copy of such levy to the County Auditor of Ramsey County, Minnesota, 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. That any suxplus resulting from the excess levy therein provided shall be transferred to a sinking fund 117t'1.1. � � oa_cs`l after the principal and interest for which the tax was levied and collected has been paid; provided, that said Port Authority shall, on or before SepCember 15 in any year, by appropriate action cause its Secretary to provide its preliminary certification to the said County Auditor of the amount on hand and available in its own treasury or in trust from tas increments derived from the District, grants of federal or state funds received for the Project, earnings or other income, including any amounts in the sinking fund, which it will use to pay the principal and interest or both on each specified issue of the 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 puxpose than for the repayment of the principal and interest on such Bonds. That all taxes being authorized to be levied under Minnesota Statutes, Section 469.060, as amended, shall be collected and remitted to the Port Authority by the County Treasurer in accordance with provisions of law governing the collection of other ta�ces and shall be used solely for the payment of such Bonds when due. I3otwithstanding the foregoing provisions oE this Section 4, taxes may be levied and canceled or omitted by the Port Authority in the manner provided by Minnesota Statutes, Section 475.61, to the extent legally permissible. Section 5 No Further Council Action. ThaC said Port Authority may provide for the exercise of the authority hereby granted for its issuance and sale of the Bonds in the aggregate principal amount as provided in Sections 2 and 6 hereof, for the aforesaid puxposes, and the pledge of the fu11 faith, credit and resources of said City of Saint Paul, as security for the payment of the same, by its appropriate resolution, and without further action of the Council. The authority to set the final principal amount, maturity amounts and interest rates on the Bonds has been delegated to the Pricing Committee as provided in Section 2 hereof. That in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requiremenCS for this ordinance, said Section 469.060, Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port Authority to issue and sell {a) one issue of temporary reEUnding bonds as authorized by Minnesota Statutes, Sections 469.060 and 469.178, Subd. 5 and (b) bonds as authorized by '1171 M1.9. � Section 7 Joint Powers Agreement. In connection with the creation of the District and the financing of the Project, the Council hereby approves the execution and delivery by the City of a Joint Powers Agreement, to be entered into between the City and the Port Authority. The form of the Joint Powers Agreement is approved substantially in the form submitted and on file in the offices of the City Council, with such subsequent changes as may be approved by City staff, counsel and Bond Counsel as contemplated by tihis Section 7. The Mayor, City Clerk and Director, Office of Financial Services, are hereby authorized and directed to execute the Joint Powers Agreement in substantially the form submitted, as modified pursuant to this Section 7, and any other documents and certificates which in the opinion of the City staff, counsel and Bond Counsel are necessary to the transactions herein described. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. The approval hereby given to the Joint Powers Agreement includes approval of such additional details therein as may be necessary and appropriate, and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the Director, Office of Financial Services of the City. Section 8 Effective Date. That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the . oo - csq Minnesota Statutes, Section 469.178, Subd. 4, in aggregate principal amounts necessary for the purpose of securing funds as needed by the Port Authority to refund the Bonds issued under this Ordinance, without any further action of the Council, provided that the Port Authority shall not pledge the full faith, credit and resources of the City of Saint Paul to refunding bonds issued pursuanC to clause (b), unless further authorization is granted by the City at the time of the issuance of such refunding bonds. The Pricing Committee shall have the same role with respect to refunding bonds issued pursuant to clause (a) of the preceding sentence as is set forth in Section 2 for the initial issuance of the Bonds. The principal of the refunding bonds may exceed the principal of the Bonds to be refunded to the extent necessary and appropriate to pay interesC thereon (including interest accruing as capital appreciation), to pay costs of issuing the refunding bonds and to allow for discount upon sale, and to fund reserves and capitalized interest for the refunding bonds.. 1'{7'11.5. � oa -G.s 9 City's home rule charter pertaining to the procedure for referendums on ordinances enacted ,� the governing body. Q z � eas a sen enanav �, ey � os om � o eman � ✓ an � ei er �- `�1 O O Adopted by Council: Date �� a 6-� z , Adoprion Certified by Council Secretary BY' �1�� --... Appxoved by er�. Date �� -E <� PUBl.�NEO sy: � ,�;17 �pp eq ested by Departrnent of:_ By� ��- '�"l� Form Approve by City Attomey B , c � . C_. � _� �� Approved by Mayor or Submission to Councll B 11356.1. � o��Gsq Saint Paul Port Authority Hansen �� 6/27/00 GREEN SHEET m NO� On July 12, 2000 �� ROI/7Y16 TOTAL � OF SIGNATURE PAGES on�wri � arvwnaeEr '� � alra.ilUc ❑ w1ucu�� dY � ❑ wuxoKaomKera �wva�lw��wsnwrl ❑ (CLIP ALL LOCATIONS FOR SIGNATURE� Authorization for the Port Authority to issue bonds in the principal amount not to exceed $4,500,000, which will produce at least $4,000,000 fo� project costs. -Authorize the Port Authority to pledge the City's general obligation to the full amount of ±hese bonds, all of which will also be secured by a first lien on tax increr�ent. or PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Pqrt Authority Board Has this pe�soMrm em v,orked uakr a caArac[ torfhis depaAment7 YES NO Fles this peisorJfirm ewr been e�ary empbyee? YE3 NO Does ihis PeisonlFrm P� a eidA rwt �am�albP�eesseU M anY wrtent alY emPbYee'7 YES NO la Mis peraoMum a fa�pded vdMOft VES t� �tan au v� arexers nn renaiate she� and attach tonreen she� ,` I Atithorization of the issuance of this tax incre�nent supporteu� gen.eral obligatiorz debt is necessary for redevelopr.�ent a.nd remediatiQn of the Great NortI�ern Business Center - Phase' I'. isa--.�.--.r.�=.� The Gre�t Northern Business Center - Phase I[nrill provide significant _land , area to �.. manufacturers to expand znd/or relocate their busines�es in St. Paul. Further, job , potential will be maYir.�ized v�ith 281 to 420 jobv beirzg provided an site. ,,.. �OU�G�,�9�� ?R� ��1. Pdone 3ADVANTAGES IF NOT APPROVED Project will not move forward OFTRANSACT10Nt 13,222,000 COET/REVENUEBUD6ETED�dRCLEON� VES NO souece Tax Increment Financin�, Grant ACTNT'NUTABER Receipts, Mandatory Levy, GO Levy NFORMATION (IXPWN) 0 0 —GSQ RIN OF THE CIN OF SAINT PAUL ��.,,, .r,�.,.�.�ARK TOWERS • 345 ST. PEfER STREE� • ST. PAUL, MN 55102-1661 June 27, 2000 Mr. Brian Sweeney, Director Planning & Economic Development Department 1300 City Hall Annex 25 West Fourth Street Saint Paul, Minnesota 55102 RE: GREAT NORTHERN BUSINESS CENTER — PHASE I Dear Mr. Sweeney: FAX (657) 223-5798 TOLL FREE (800) 328-8417 • PHONE (651) 224-5686 „e; r �•.:'':�3i Ce�.1 ��,�a�u�. ;. . y, '��:;�: We submit for your review and referral to the office of the Mayor, City Council, and City Attorney's office, details pertaining to the pledge of the City's general obligation to the Port Authority issuance of $4,500,000 in bonds, for the Great Northern Business Center — Phase I. We have attached a draft copy of the proposed Ordinance. We are requesting the first reading on July 12, 2000. Your expeditious handling of this matter will be appreciated. Sincerely, �i�� / Laurie J. Hansen Chief Financial Officer LJH:ah Attachment cc: Mayor Coleman 113'17.'I. ORiG1NA� Presented by Referred To Committee Date AN ORDINANCE GRANTING AUTfIORITY TO THE PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL BONDS IN THE AGGREGATE AMOUNT NOT TO E CEED THE INITIAL PRINCIPAL AMOUNT OF $4,500,000, AND ANY BONDS TO REFUND SU BONDS; TO SECURE SUCH BONDS WITH A PLEDGE OF THE FUI,L FAITH, CREDIT AND RES CES OF THE CITY OF SAINT PAUL; AND TO USE THE PROCEEDS DERIVED FROM TAE S OF SUCH BONDS TO PAY THE CQST AND EXPENSE NECESSARILY TO SE INCCTRRED BY PORT AUTAORITY OE TFIE CITY OF SASNT PAUL FOR ACQUISITION OF LAND, C ARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CE ER -PHASE I TAX INCREMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PR CRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING RATE OF INTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A SOINT P ERS AGREEMENT IN CONNECTION WITH THE PROSECT. , WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, fin ing that certain lands were blighted and marginal properties within the meaning of Minn ota Statutes, Sections 469.048 et seq., and establishing and creating the Great Nor ern Business Center - Phase Z Industrial Development District (the "District"); an WHEREAS, the City of Saint P 1, Minnesota (the "City"), has authority under Minnesota Statutes, Section 469.178 Subd. 2, to issue general obligation bonds payable from tax increments of a tax incre ent district created by the Port Authority, and the Port Authority has authority under M'nnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of ' come from any source which are secured hy the fu11 faith, credit and resources of th City, and pursuant to this Ordinance, the Port Authority will issue bonds to which a pledged both tax increments and the full faith, credit and resources of the City �Ehe "BOnds"); and WHEREAS, the ort Authority has requested the authorization of the Council of the City of Saint Pa (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance an sale by the Port Authority of the Bonds in the aggregate principal amount not to excee the initial principal amount of $4,500,000, and for the pledge of the full faith, cre t and resources of the City to the payment of such Bonds, which Bonds will also be secur d by tax increments to be derived from the District, in connection with the Proje„E•t, as defined below; and Council File # 00 — G S7 Green Sheet # 101333 Ordinance # ORDWANCE CITY QF SAINT PAUL, MINNESOTA 11356. I cC -G S 9 WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2oo0 and ORIGiNAL WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and eacpenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other purposes authorized by authority of Minnesota Statutes, Chapter 469, a amended (the "ACt"), with respect to the Project; and [kTHEREAS, it is the preference of the City to avoid the col�. levies to pay the Bonds prior to the time tax increments are recei and for the Port Authority, as issuer of the Bonds, to avoic capitalizing interest and/or rolling over temporary obligations program), and by levying pursuant to Minnesota Statutes, Sect WHEREAS, the Council, being duly advised in the pr it is necessary and appropriate that the Port Autkozi aggregate initial principal amount not to exceed $4,5(y� above: and / general tax the District, such tax levies by in a commercial paper finds and determines that 61] and issue and sell Bonds in the ,000 for the purposes as stated 1 To be discussed if no commercial paper program. 11356.1. 00 -cs � WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for establishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be bome by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources o� the City to the payment of the Bonds as the same shall be issued and sold by the Por Authority, pursuant to the authority of the Act, and pursuant to the authority granted b this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authorit enter into a Joint Powers J �reement to set forth the duties and responsibilities o each in connection with the �roject: ((1 NOW, TEiEREFORE, THE COUNCIL OF TAE CITY OF SAINT P DOES ORDAIN: v � Section 1 O Authorization of Bonds. That subject to, d in accordance with, the applicable Drovisions. terms and conditions of this ordinan and those contained in Section 469.060 of the Act, authority is hereby granted to the ort Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acqui tion, clearance, remediation and construction of improvements on land within the Distri t as contemplated by the Plan for the District, and then Eor all other purposes authoriz d by the Act with respect to the Project. 2 Establishing Terms of the Bo Els. That the Port Authority is hereby authorized to establish the date, denomination, lace of payment, form and details of the Bonds, provided � that the Bonds shall be issued �nd sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series,�n the manner provided and allowed by law; the Bonds shall be secured by a first lien p1'edge of the tax increments to be received by the Port Authority from the District, the J�. principal amount of the Bonds shall not exceed $4,500,000; the Bonds shall annum, including in the amounts and years and bear interest at the rate or rates per which vary in accordance with a formula, established by the offer to purchase the Bo ds which is determined to be the most favorable by a Pricing Committee comprised of he President and the Chief Financial Officer of the Port Authority and the Director, O££ice of Financial Services of the City, provided that the average annual weighted interest rate of the Bonds shall not exceed percent (_�) per annum payable 11356.1. ao-GSq semi-annually unless such higher average annual weighted interest is specifically approved by a resolution adopted by a majority o£ the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction �f improvements on land within the District as described in the Plan, and then for all �ther purposes authorized by the Act with respect to the Project. The Bonds may be made r�ubject to redemption and prepayment at the option of the Port Authority at such time and tJ ^�rice or prices as shall be determined by the Port Authority and approved by the Pricing LL �ommittee described above and upon such notice as is required by law. It recognized that Section 469.060 of the Act provides that the Bonds must be in the am t and form and bear interest at the rate set by the Council, that the Port Authori the Council shall set the date, denominations, place of payment Bonds and that the Council is required to decide whether the Port Authority is proper and if so, the amount of Bonds to required to give specific consent in the Ordinance to the F credit and resources to the Bonds. The standards and de e set forth herein are intended as such full required a ioi provided herein no further approval of the refunding of the Bonds under Section 469.060 of the th the consent of and details of the o£ the Bonds by the , and that the Council is of the City's full faith, to the Pricing Committee of the Council, and except as is required for the issuance or Section Pledge of Full Faith and Credit. Tha as security for the prompt and faithful payment of both principal and interest of sa' Bonds in an amount not to exceed 54,500,000 (except upon a refunding authorized by authorized to pledge the full faith, such Bonds, both in respect of the 6 hereof), the Port Authority is hereby t and resources of the City of Saint Paul; and amount of the same and with respect to the interest thereon, may be paid by e Port Authority from ta�c levies provided therefor in accordance with Section 4 hereof Section 4 Tas Levy. That the ort Authority, in the event of the issuance of any said Bonds authorized hereunder, principal and said City o£ Saint pay the and, a£ter before the issuance of the same, levy for each year, until the are paid in full, a direct annual tax on all the taxable property in , in an amount not less than °s in excess of the sum reguired to and interest of Che same when and as such principal and interest mature Bonds have been delivered to the purchasers, such t� shall be irrepealable until all-such indebtedness is paid, and after the issuance of such Bonds no £urther action 71356.1. 0 0 -�sq by said Port Authority sha11 be necessary to authorize the extensions, assessments and collection o£ such ta�c. 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 Jregarding the Bonds of said Port Authority for which the tvc is levied and such County Q Auditor shall extend and assess the tax so levied, and shall do so annually until the � �.principal and interest have been paid in full. That any surplus resulting rom the excess �levy therein provided shall be transferred to a sinking fund after he principal and �interest for which the tax was levied and collected has been paid; pr ided, that said Port O Authority shall, on or before in any year, by appro riate action cause its Secretary to certify to the said County Auditor the amount on treasury or in trust from taac increments derived from the � state funds received for the Project, earnings or other i�iC the sinking fund, which it will use to pay the princig� 1 specified issue of the Bonds and the County Auditor herein provided for by that amount. That the aside by said Port Authority and be used for no principal and interest on such Bonds. That Minnesota Statutes, Section 469.060, as ami Port Authority by the County Treasurer in collection of other taxes and shall be Notwithstanding the foregoing canceled or omitted in the manner extent legally permissible. Section 5 � Further Council Act the authority hereby principal amount as � the pledge of the fui for the payment of r the Council. The ayith and available in its own grants of federal or including any amounts in and interest or both on each 1 reduce the levy for that year of funds so acquired shall be set purpose than for the repayment of the taxes being authorized to be levied under shall be collected and remitted to the with provisions of law governing the solely for the payment of such Bonds when due. of this Section 4, taxes may be levied and by Minnesota Statutes, Section 475.61, to the That said Port Authority may provide for the exercise of for its issuance and sale of the Bonds in the aggregate in Sections 2 and 6 hereof, for the aforesaid purposes, and credit and resources of said City of Saint Paul, as security same, by its appropriate resolution, and without further action of ty to set the final principal amount, maturity amounts and interest rates on the Bor�s has been delegated to the Pricing Committee as provided in Section 2 hereof. That� in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requirements for this ordinance, said Section 469.060, 11356.1 00 -�s� Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 � � Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, z terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port �AUthority to issue and sell Bonds as authorized by Minnesota Statutes, Section 469.060, in � aggregate principal amounts necessary for the purpose of securing funds as nee ed by the O Port Authority to refund the Bonds issued under this Ordinance, without any urther action of the Council. The Pricing CommitCee shall have the same role with bonds as is set forth in Section 2 for the initial issuance of the B the refunding bonds may exceed the principal of the Bonds to be necessary and appropriate to pay interest Chereon (including appreciation), to pay costs of issuing the refunding bonds sale, and to fund reserves and capitalized interest for Section 7 Joint Powers Agreement. In connection with financing of the Project, the Council hereby City of a Soint Powers Agreement, to be entered Authority. The form of the Jaint Powers submitted and on file in the offices of the may be approved by City staff, counsel The Mayor, City Clerk and the Director, fshall be conclusive evidence of the approval of such the terms hereof. The approval hereby given to the Joint and directed to execute tlie Joint Powe/rs Agreement in substantially the form submitted, as modified pursuant to this Section 7e and any other documents and certificates which in the opinion of the City staff, counse l and Bond Counsel are necessary to the transactions herein described. The executio of any instrument by the appropriate officer or officers of the City herein auth� documents in accordance Powers Agreement includ and appropriate, and s� f as may be necessary�nd Services of the Ci y. Effective Date approval of such additional details therein as may be necessary modifications thereof, deletions therefrom and additions thereto appropriate and approved by the Director, Office of Financial to refunding The principal of to the extent accruing as capital to allow for discount upon refunding bonds. creation of the District and the s the execution and delivery by the between the City and the Port is approved substantially in the form ty Council, with such subsequent changes as Bond Counsel as contemplated by this Section 7. of Financial Services, are hereby authorized Section 8 That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the 11356.1. ��a�s�;�� e - _�v.\� � � � 3000 �a�es � � a- 3,''�,5 �'�O Ordinance # ORDINANCE . CITY OF SAINT PAUL, MINNESOTA Presented by Referred To Council File # 00 - 65`� Green Sheet # 101333 �� Date AN ORDINANCE (A) GRANTING AUTHORITY TO Tf3E PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL TEMPORARY BONDS IN 'I'fiE AGGREGATE AMOUNT NOT TO EXCEED THE INITIAL PRTNCIPAL AMOUNT OF $4,500,000, At3D ANY BONDS TO REFL3ND SUCI3 BONDS, TO SECURE THE INITIAL ISSUE OF TEMPORARY BONDS AND ONE ADDITIONAL ISSUE OF TEMPORARY REFUNDING BONDS WITH A PLEDGE OF TfiE FULL FAITH, CREDIT AND RESOURCES OF THE CITY OF SAINT PAUL, AND TO USE TIiE PROCBEDS DERSVED FROM THE SAI.,E OF SUCH BONDS TO PAY THE COST AND EXPENSE NECESSARILY TO BE INCURRED BY THE PORT AUTHORITY OF THE CITY OF SAINT PAUL EOR ACQUISITION OF LAND, CLEARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CENTER -PHASE 2 TAX INCFtEMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS AND BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PRESCRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING THE RATE OF ZNTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A JOZNT POWERS AGREEMENT IN CONNECTION WZTH TFIE PROSECT. WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, finding that certain lands were blighted and marginal properties within the meaning of Minnesota Statutes, 5ections 469.048 et seq., and establishing and creating the Great Northern Business Center - Phase I Industrial Development District (the "District"); and WHEREAS, the City of Saint Paul, Minnesota (the "City"), has authority under Minnesota SCatutes, Section 469.178, Subd. 2, to issue general obligation bonds payable from tax increments of a tax increment district created by the Port Authority, and the Port Authority has authority under Minnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of income from any source which are secured by the full Eaith, credit and resources of the City, and pursuant to this Ordinance, the Port Authority will issue bonds to which are pledged both tax increments and Che full faith, credit and resources of the City (the "Bonds"); and WHEREAS, the Port Authority has requested the authorization of the Council of the City of Saint Paul (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance and sale by the Port Authority of the Bonds in the aggregate principal amount not to exceed the initial principal amount of $4,500,000, and for the pledge of the full faith, credit and resources of the City to the payment of such Bonds, which Bonds will also be secured by tax increments to be derived from the District, in connection with the Project, as defined below; and S'u'�:'r :`-i: ", 1171 1.1. a e. :� � ' '� , oo-�5q WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2000; and WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and expenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other puxposes authorized by authority of Minnesota Statutes, Chapter 469, as amended (the "Act"), with respect to the Project; and WHEREAS, it is the preference of the City to avoid the collection of general tax levies to pay the Bonds prior to the time tax increments are received from the District, and for the PorC Authority, as issuer of the Bonds, to avoid such taac levies by capitalizing interest and/or rolling over temposary obligations, and by levying pursuant to Minnesota Statutes, Section 475.61; and WHEREAS, it is anticipated that the Bonds will be issued as temporary bonds pursuant to Section 469.178, Subd. 5, of the Act, maturing within three years £rom their date of issuance; and WHEREAS, the Council, being duly advised in the premises, finds and determines that it is necessary and appropriate that the Port Authority issue and sell Bonds in the aggregate initial principal amount not to exceed $4,506,000 Eor the purposes as stated above; and WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for esCablishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be borne by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources of the City to the payment of the Bonds as the same sha11 be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to the authority granted by this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authority enter into a Joint Powers Agreement to set forth the duties and responsibilities of each in connection with the Project: 15711.'f. � NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: � O�� S� Section 1 Authorization of Bonds. That subject to, and in accordance with, the applicable provisions, terms and conditions of this ordinance and those contained in Section 469.060 of the Act, authority is hereby granted to the Port Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acquisition, clearance, remediation and construction of improvements on land within the District as contemplated by the Plan for the District, and then for all other purposes authorized by the Act with respect to the Project. Section 2 Establishing Terms of the Bonds. That the Port Authority is hereby authorized to establish the date, denomination, place of payment, form and details of the Bonds, provided that the Bonds shall be issued and sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series, in the manner provided and allowed by law; the Bonds shall be secured by a first lien pledge of the tax increments to be received by the Port Authority from the District; the initial principal amount of the Bonds shall not exceed $4, 500, 000; the Bonds shall mature in the amounts and years and bear interest at the rate or rates per annum, including rates which vary in accordance with a formula, established by the offer to purchase the Bonds which is determined to be the most favorable by a Pricing Committee comprised of the President and the Chief Financial Officer of the Port Authority and the Director, Office of Financial Services, the Deputy Mayor and the Director of the Department of the Planning and Economic Development of the City, provided that the true interest rate of the Bonds shall not exceed six percent (6.00°s) per annum payable semi-annually unless such higher true interest is specifically approved by a resolution adopted by a majority of the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction of improvements on land within the District as described in the Plan, and then for aIl other puxposes authorized by the Act with respect to the Project. The Bonds may be made subject to redemption and prepayment at the option of the Port Authority at such time and price or prices as shall be determined by the Port Authority and approved by the Pricing Committee described above. It is recognized that Section 469.060 of the Act provides that the Bonds must be in the amount and form and bear interest at the rate set by the Council, that the Port Authority with the consent of the Council shall set the date, denominations, place of payment, form, and details of the „�,,.,. 3 � oo _ `5� � Honds and that the Council is required to decide whether the issuance of the Bonds by the " Port Authority is proper and if so, the amount of Bonds to issue, and that the Council is required to give specific consent in the Ordinance to the pledge of the City's full faith, credit and resources to the Bonds. The standards and delegation to the Pricing Committee set forth herein are intended as such full required action of the Council, and except as provided herein no further approval of the Council is requized for the issuance or refunding o£ the Bonds under Section 469.060 of the Act. Section 3 Pledge of Full Faith and Credit. That as security for the prompt and faithful payment of both principal and interest of (a) said Bonds in an amount not to exceed $4,500,000 and (b) one issue o£ temporary re£unding bonds issued pursuant to Section 469.176, Subd. 5, of the Act, if the Pricing Committee has determined that the issuance of temporary refunding bonds is desirable, and has established the terms for such temporary refunding bonds, includinq the interest rate to be borne thereby, the Port Authority is hereby authorized to pledge the full faith, credit and resources oP the City of Saint Paul; and such Bonds (including an issue of temporary refunding bonds described in clause (b), both in respect of the principal amount of the same and with respect to the interest thereon, may be paid by the Port Authority from tax levies provided therefore in accordance with Section 4 hereof. Section 4 Tax Levy. That the Port Authority, in the event of the issuance of any 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 an amount not less than 5� in excess of the sum required to pay the principal and interest of the same when and as such principal and interest mature and, after such Bonds have been delivered to the purchasers, such tax shall be irrepealable until all such indebtedness 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 o£ said Port Authority shall forthwith furnish a certified copy of such levy to the County Auditor of Ramsey County, Minnesota, 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. That any suxplus resulting from the excess levy therein provided shall be transferred to a sinking fund 117t'1.1. � � oa_cs`l after the principal and interest for which the tax was levied and collected has been paid; provided, that said Port Authority shall, on or before SepCember 15 in any year, by appropriate action cause its Secretary to provide its preliminary certification to the said County Auditor of the amount on hand and available in its own treasury or in trust from tas increments derived from the District, grants of federal or state funds received for the Project, earnings or other income, including any amounts in the sinking fund, which it will use to pay the principal and interest or both on each specified issue of the 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 puxpose than for the repayment of the principal and interest on such Bonds. That all taxes being authorized to be levied under Minnesota Statutes, Section 469.060, as amended, shall be collected and remitted to the Port Authority by the County Treasurer in accordance with provisions of law governing the collection of other ta�ces and shall be used solely for the payment of such Bonds when due. I3otwithstanding the foregoing provisions oE this Section 4, taxes may be levied and canceled or omitted by the Port Authority in the manner provided by Minnesota Statutes, Section 475.61, to the extent legally permissible. Section 5 No Further Council Action. ThaC said Port Authority may provide for the exercise of the authority hereby granted for its issuance and sale of the Bonds in the aggregate principal amount as provided in Sections 2 and 6 hereof, for the aforesaid puxposes, and the pledge of the fu11 faith, credit and resources of said City of Saint Paul, as security for the payment of the same, by its appropriate resolution, and without further action of the Council. The authority to set the final principal amount, maturity amounts and interest rates on the Bonds has been delegated to the Pricing Committee as provided in Section 2 hereof. That in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requiremenCS for this ordinance, said Section 469.060, Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port Authority to issue and sell {a) one issue of temporary reEUnding bonds as authorized by Minnesota Statutes, Sections 469.060 and 469.178, Subd. 5 and (b) bonds as authorized by '1171 M1.9. � Section 7 Joint Powers Agreement. In connection with the creation of the District and the financing of the Project, the Council hereby approves the execution and delivery by the City of a Joint Powers Agreement, to be entered into between the City and the Port Authority. The form of the Joint Powers Agreement is approved substantially in the form submitted and on file in the offices of the City Council, with such subsequent changes as may be approved by City staff, counsel and Bond Counsel as contemplated by tihis Section 7. The Mayor, City Clerk and Director, Office of Financial Services, are hereby authorized and directed to execute the Joint Powers Agreement in substantially the form submitted, as modified pursuant to this Section 7, and any other documents and certificates which in the opinion of the City staff, counsel and Bond Counsel are necessary to the transactions herein described. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. The approval hereby given to the Joint Powers Agreement includes approval of such additional details therein as may be necessary and appropriate, and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the Director, Office of Financial Services of the City. Section 8 Effective Date. That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the . oo - csq Minnesota Statutes, Section 469.178, Subd. 4, in aggregate principal amounts necessary for the purpose of securing funds as needed by the Port Authority to refund the Bonds issued under this Ordinance, without any further action of the Council, provided that the Port Authority shall not pledge the full faith, credit and resources of the City of Saint Paul to refunding bonds issued pursuanC to clause (b), unless further authorization is granted by the City at the time of the issuance of such refunding bonds. The Pricing Committee shall have the same role with respect to refunding bonds issued pursuant to clause (a) of the preceding sentence as is set forth in Section 2 for the initial issuance of the Bonds. The principal of the refunding bonds may exceed the principal of the Bonds to be refunded to the extent necessary and appropriate to pay interesC thereon (including interest accruing as capital appreciation), to pay costs of issuing the refunding bonds and to allow for discount upon sale, and to fund reserves and capitalized interest for the refunding bonds.. 1'{7'11.5. � oa -G.s 9 City's home rule charter pertaining to the procedure for referendums on ordinances enacted ,� the governing body. Q z � eas a sen enanav �, ey � os om � o eman � ✓ an � ei er �- `�1 O O Adopted by Council: Date �� a 6-� z , Adoprion Certified by Council Secretary BY' �1�� --... Appxoved by er�. Date �� -E <� PUBl.�NEO sy: � ,�;17 �pp eq ested by Departrnent of:_ By� ��- '�"l� Form Approve by City Attomey B , c � . C_. � _� �� Approved by Mayor or Submission to Councll B 11356.1. � o��Gsq Saint Paul Port Authority Hansen �� 6/27/00 GREEN SHEET m NO� On July 12, 2000 �� ROI/7Y16 TOTAL � OF SIGNATURE PAGES on�wri � arvwnaeEr '� � alra.ilUc ❑ w1ucu�� dY � ❑ wuxoKaomKera �wva�lw��wsnwrl ❑ (CLIP ALL LOCATIONS FOR SIGNATURE� Authorization for the Port Authority to issue bonds in the principal amount not to exceed $4,500,000, which will produce at least $4,000,000 fo� project costs. -Authorize the Port Authority to pledge the City's general obligation to the full amount of ±hese bonds, all of which will also be secured by a first lien on tax increr�ent. or PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Pqrt Authority Board Has this pe�soMrm em v,orked uakr a caArac[ torfhis depaAment7 YES NO Fles this peisorJfirm ewr been e�ary empbyee? YE3 NO Does ihis PeisonlFrm P� a eidA rwt �am�albP�eesseU M anY wrtent alY emPbYee'7 YES NO la Mis peraoMum a fa�pded vdMOft VES t� �tan au v� arexers nn renaiate she� and attach tonreen she� ,` I Atithorization of the issuance of this tax incre�nent supporteu� gen.eral obligatiorz debt is necessary for redevelopr.�ent a.nd remediatiQn of the Great NortI�ern Business Center - Phase' I'. isa--.�.--.r.�=.� The Gre�t Northern Business Center - Phase I[nrill provide significant _land , area to �.. manufacturers to expand znd/or relocate their busines�es in St. Paul. Further, job , potential will be maYir.�ized v�ith 281 to 420 jobv beirzg provided an site. ,,.. �OU�G�,�9�� ?R� ��1. Pdone 3ADVANTAGES IF NOT APPROVED Project will not move forward OFTRANSACT10Nt 13,222,000 COET/REVENUEBUD6ETED�dRCLEON� VES NO souece Tax Increment Financin�, Grant ACTNT'NUTABER Receipts, Mandatory Levy, GO Levy NFORMATION (IXPWN) 0 0 —GSQ RIN OF THE CIN OF SAINT PAUL ��.,,, .r,�.,.�.�ARK TOWERS • 345 ST. PEfER STREE� • ST. PAUL, MN 55102-1661 June 27, 2000 Mr. Brian Sweeney, Director Planning & Economic Development Department 1300 City Hall Annex 25 West Fourth Street Saint Paul, Minnesota 55102 RE: GREAT NORTHERN BUSINESS CENTER — PHASE I Dear Mr. Sweeney: FAX (657) 223-5798 TOLL FREE (800) 328-8417 • PHONE (651) 224-5686 „e; r �•.:'':�3i Ce�.1 ��,�a�u�. ;. . y, '��:;�: We submit for your review and referral to the office of the Mayor, City Council, and City Attorney's office, details pertaining to the pledge of the City's general obligation to the Port Authority issuance of $4,500,000 in bonds, for the Great Northern Business Center — Phase I. We have attached a draft copy of the proposed Ordinance. We are requesting the first reading on July 12, 2000. Your expeditious handling of this matter will be appreciated. Sincerely, �i�� / Laurie J. Hansen Chief Financial Officer LJH:ah Attachment cc: Mayor Coleman 113'17.'I. ORiG1NA� Presented by Referred To Committee Date AN ORDINANCE GRANTING AUTfIORITY TO THE PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL BONDS IN THE AGGREGATE AMOUNT NOT TO E CEED THE INITIAL PRINCIPAL AMOUNT OF $4,500,000, AND ANY BONDS TO REFUND SU BONDS; TO SECURE SUCH BONDS WITH A PLEDGE OF THE FUI,L FAITH, CREDIT AND RES CES OF THE CITY OF SAINT PAUL; AND TO USE THE PROCEEDS DERIVED FROM TAE S OF SUCH BONDS TO PAY THE CQST AND EXPENSE NECESSARILY TO SE INCCTRRED BY PORT AUTAORITY OE TFIE CITY OF SASNT PAUL FOR ACQUISITION OF LAND, C ARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CE ER -PHASE I TAX INCREMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PR CRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING RATE OF INTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A SOINT P ERS AGREEMENT IN CONNECTION WITH THE PROSECT. , WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, fin ing that certain lands were blighted and marginal properties within the meaning of Minn ota Statutes, Sections 469.048 et seq., and establishing and creating the Great Nor ern Business Center - Phase Z Industrial Development District (the "District"); an WHEREAS, the City of Saint P 1, Minnesota (the "City"), has authority under Minnesota Statutes, Section 469.178 Subd. 2, to issue general obligation bonds payable from tax increments of a tax incre ent district created by the Port Authority, and the Port Authority has authority under M'nnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of ' come from any source which are secured hy the fu11 faith, credit and resources of th City, and pursuant to this Ordinance, the Port Authority will issue bonds to which a pledged both tax increments and the full faith, credit and resources of the City �Ehe "BOnds"); and WHEREAS, the ort Authority has requested the authorization of the Council of the City of Saint Pa (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance an sale by the Port Authority of the Bonds in the aggregate principal amount not to excee the initial principal amount of $4,500,000, and for the pledge of the full faith, cre t and resources of the City to the payment of such Bonds, which Bonds will also be secur d by tax increments to be derived from the District, in connection with the Proje„E•t, as defined below; and Council File # 00 — G S7 Green Sheet # 101333 Ordinance # ORDWANCE CITY QF SAINT PAUL, MINNESOTA 11356. I cC -G S 9 WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2oo0 and ORIGiNAL WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and eacpenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other purposes authorized by authority of Minnesota Statutes, Chapter 469, a amended (the "ACt"), with respect to the Project; and [kTHEREAS, it is the preference of the City to avoid the col�. levies to pay the Bonds prior to the time tax increments are recei and for the Port Authority, as issuer of the Bonds, to avoic capitalizing interest and/or rolling over temporary obligations program), and by levying pursuant to Minnesota Statutes, Sect WHEREAS, the Council, being duly advised in the pr it is necessary and appropriate that the Port Autkozi aggregate initial principal amount not to exceed $4,5(y� above: and / general tax the District, such tax levies by in a commercial paper finds and determines that 61] and issue and sell Bonds in the ,000 for the purposes as stated 1 To be discussed if no commercial paper program. 11356.1. 00 -cs � WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for establishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be bome by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources o� the City to the payment of the Bonds as the same shall be issued and sold by the Por Authority, pursuant to the authority of the Act, and pursuant to the authority granted b this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authorit enter into a Joint Powers J �reement to set forth the duties and responsibilities o each in connection with the �roject: ((1 NOW, TEiEREFORE, THE COUNCIL OF TAE CITY OF SAINT P DOES ORDAIN: v � Section 1 O Authorization of Bonds. That subject to, d in accordance with, the applicable Drovisions. terms and conditions of this ordinan and those contained in Section 469.060 of the Act, authority is hereby granted to the ort Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acqui tion, clearance, remediation and construction of improvements on land within the Distri t as contemplated by the Plan for the District, and then Eor all other purposes authoriz d by the Act with respect to the Project. 2 Establishing Terms of the Bo Els. That the Port Authority is hereby authorized to establish the date, denomination, lace of payment, form and details of the Bonds, provided � that the Bonds shall be issued �nd sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series,�n the manner provided and allowed by law; the Bonds shall be secured by a first lien p1'edge of the tax increments to be received by the Port Authority from the District, the J�. principal amount of the Bonds shall not exceed $4,500,000; the Bonds shall annum, including in the amounts and years and bear interest at the rate or rates per which vary in accordance with a formula, established by the offer to purchase the Bo ds which is determined to be the most favorable by a Pricing Committee comprised of he President and the Chief Financial Officer of the Port Authority and the Director, O££ice of Financial Services of the City, provided that the average annual weighted interest rate of the Bonds shall not exceed percent (_�) per annum payable 11356.1. ao-GSq semi-annually unless such higher average annual weighted interest is specifically approved by a resolution adopted by a majority o£ the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction �f improvements on land within the District as described in the Plan, and then for all �ther purposes authorized by the Act with respect to the Project. The Bonds may be made r�ubject to redemption and prepayment at the option of the Port Authority at such time and tJ ^�rice or prices as shall be determined by the Port Authority and approved by the Pricing LL �ommittee described above and upon such notice as is required by law. It recognized that Section 469.060 of the Act provides that the Bonds must be in the am t and form and bear interest at the rate set by the Council, that the Port Authori the Council shall set the date, denominations, place of payment Bonds and that the Council is required to decide whether the Port Authority is proper and if so, the amount of Bonds to required to give specific consent in the Ordinance to the F credit and resources to the Bonds. The standards and de e set forth herein are intended as such full required a ioi provided herein no further approval of the refunding of the Bonds under Section 469.060 of the th the consent of and details of the o£ the Bonds by the , and that the Council is of the City's full faith, to the Pricing Committee of the Council, and except as is required for the issuance or Section Pledge of Full Faith and Credit. Tha as security for the prompt and faithful payment of both principal and interest of sa' Bonds in an amount not to exceed 54,500,000 (except upon a refunding authorized by authorized to pledge the full faith, such Bonds, both in respect of the 6 hereof), the Port Authority is hereby t and resources of the City of Saint Paul; and amount of the same and with respect to the interest thereon, may be paid by e Port Authority from ta�c levies provided therefor in accordance with Section 4 hereof Section 4 Tas Levy. That the ort Authority, in the event of the issuance of any said Bonds authorized hereunder, principal and said City o£ Saint pay the and, a£ter before the issuance of the same, levy for each year, until the are paid in full, a direct annual tax on all the taxable property in , in an amount not less than °s in excess of the sum reguired to and interest of Che same when and as such principal and interest mature Bonds have been delivered to the purchasers, such t� shall be irrepealable until all-such indebtedness is paid, and after the issuance of such Bonds no £urther action 71356.1. 0 0 -�sq by said Port Authority sha11 be necessary to authorize the extensions, assessments and collection o£ such ta�c. 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 Jregarding the Bonds of said Port Authority for which the tvc is levied and such County Q Auditor shall extend and assess the tax so levied, and shall do so annually until the � �.principal and interest have been paid in full. That any surplus resulting rom the excess �levy therein provided shall be transferred to a sinking fund after he principal and �interest for which the tax was levied and collected has been paid; pr ided, that said Port O Authority shall, on or before in any year, by appro riate action cause its Secretary to certify to the said County Auditor the amount on treasury or in trust from taac increments derived from the � state funds received for the Project, earnings or other i�iC the sinking fund, which it will use to pay the princig� 1 specified issue of the Bonds and the County Auditor herein provided for by that amount. That the aside by said Port Authority and be used for no principal and interest on such Bonds. That Minnesota Statutes, Section 469.060, as ami Port Authority by the County Treasurer in collection of other taxes and shall be Notwithstanding the foregoing canceled or omitted in the manner extent legally permissible. Section 5 � Further Council Act the authority hereby principal amount as � the pledge of the fui for the payment of r the Council. The ayith and available in its own grants of federal or including any amounts in and interest or both on each 1 reduce the levy for that year of funds so acquired shall be set purpose than for the repayment of the taxes being authorized to be levied under shall be collected and remitted to the with provisions of law governing the solely for the payment of such Bonds when due. of this Section 4, taxes may be levied and by Minnesota Statutes, Section 475.61, to the That said Port Authority may provide for the exercise of for its issuance and sale of the Bonds in the aggregate in Sections 2 and 6 hereof, for the aforesaid purposes, and credit and resources of said City of Saint Paul, as security same, by its appropriate resolution, and without further action of ty to set the final principal amount, maturity amounts and interest rates on the Bor�s has been delegated to the Pricing Committee as provided in Section 2 hereof. That� in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requirements for this ordinance, said Section 469.060, 11356.1 00 -�s� Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 � � Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, z terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port �AUthority to issue and sell Bonds as authorized by Minnesota Statutes, Section 469.060, in � aggregate principal amounts necessary for the purpose of securing funds as nee ed by the O Port Authority to refund the Bonds issued under this Ordinance, without any urther action of the Council. The Pricing CommitCee shall have the same role with bonds as is set forth in Section 2 for the initial issuance of the B the refunding bonds may exceed the principal of the Bonds to be necessary and appropriate to pay interest Chereon (including appreciation), to pay costs of issuing the refunding bonds sale, and to fund reserves and capitalized interest for Section 7 Joint Powers Agreement. In connection with financing of the Project, the Council hereby City of a Soint Powers Agreement, to be entered Authority. The form of the Jaint Powers submitted and on file in the offices of the may be approved by City staff, counsel The Mayor, City Clerk and the Director, fshall be conclusive evidence of the approval of such the terms hereof. The approval hereby given to the Joint and directed to execute tlie Joint Powe/rs Agreement in substantially the form submitted, as modified pursuant to this Section 7e and any other documents and certificates which in the opinion of the City staff, counse l and Bond Counsel are necessary to the transactions herein described. The executio of any instrument by the appropriate officer or officers of the City herein auth� documents in accordance Powers Agreement includ and appropriate, and s� f as may be necessary�nd Services of the Ci y. Effective Date approval of such additional details therein as may be necessary modifications thereof, deletions therefrom and additions thereto appropriate and approved by the Director, Office of Financial to refunding The principal of to the extent accruing as capital to allow for discount upon refunding bonds. creation of the District and the s the execution and delivery by the between the City and the Port is approved substantially in the form ty Council, with such subsequent changes as Bond Counsel as contemplated by this Section 7. of Financial Services, are hereby authorized Section 8 That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the 11356.1. ��a�s�;�� e - _�v.\� � � � 3000 �a�es � � a- 3,''�,5 �'�O Ordinance # ORDINANCE . CITY OF SAINT PAUL, MINNESOTA Presented by Referred To Council File # 00 - 65`� Green Sheet # 101333 �� Date AN ORDINANCE (A) GRANTING AUTHORITY TO Tf3E PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL TEMPORARY BONDS IN 'I'fiE AGGREGATE AMOUNT NOT TO EXCEED THE INITIAL PRTNCIPAL AMOUNT OF $4,500,000, At3D ANY BONDS TO REFL3ND SUCI3 BONDS, TO SECURE THE INITIAL ISSUE OF TEMPORARY BONDS AND ONE ADDITIONAL ISSUE OF TEMPORARY REFUNDING BONDS WITH A PLEDGE OF TfiE FULL FAITH, CREDIT AND RESOURCES OF THE CITY OF SAINT PAUL, AND TO USE TIiE PROCBEDS DERSVED FROM THE SAI.,E OF SUCH BONDS TO PAY THE COST AND EXPENSE NECESSARILY TO BE INCURRED BY THE PORT AUTHORITY OF THE CITY OF SAINT PAUL EOR ACQUISITION OF LAND, CLEARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CENTER -PHASE 2 TAX INCFtEMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS AND BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PRESCRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING THE RATE OF ZNTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A JOZNT POWERS AGREEMENT IN CONNECTION WZTH TFIE PROSECT. WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, finding that certain lands were blighted and marginal properties within the meaning of Minnesota Statutes, 5ections 469.048 et seq., and establishing and creating the Great Northern Business Center - Phase I Industrial Development District (the "District"); and WHEREAS, the City of Saint Paul, Minnesota (the "City"), has authority under Minnesota SCatutes, Section 469.178, Subd. 2, to issue general obligation bonds payable from tax increments of a tax increment district created by the Port Authority, and the Port Authority has authority under Minnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of income from any source which are secured by the full Eaith, credit and resources of the City, and pursuant to this Ordinance, the Port Authority will issue bonds to which are pledged both tax increments and Che full faith, credit and resources of the City (the "Bonds"); and WHEREAS, the Port Authority has requested the authorization of the Council of the City of Saint Paul (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance and sale by the Port Authority of the Bonds in the aggregate principal amount not to exceed the initial principal amount of $4,500,000, and for the pledge of the full faith, credit and resources of the City to the payment of such Bonds, which Bonds will also be secured by tax increments to be derived from the District, in connection with the Project, as defined below; and S'u'�:'r :`-i: ", 1171 1.1. a e. :� � ' '� , oo-�5q WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2000; and WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and expenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other puxposes authorized by authority of Minnesota Statutes, Chapter 469, as amended (the "Act"), with respect to the Project; and WHEREAS, it is the preference of the City to avoid the collection of general tax levies to pay the Bonds prior to the time tax increments are received from the District, and for the PorC Authority, as issuer of the Bonds, to avoid such taac levies by capitalizing interest and/or rolling over temposary obligations, and by levying pursuant to Minnesota Statutes, Section 475.61; and WHEREAS, it is anticipated that the Bonds will be issued as temporary bonds pursuant to Section 469.178, Subd. 5, of the Act, maturing within three years £rom their date of issuance; and WHEREAS, the Council, being duly advised in the premises, finds and determines that it is necessary and appropriate that the Port Authority issue and sell Bonds in the aggregate initial principal amount not to exceed $4,506,000 Eor the purposes as stated above; and WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for esCablishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be borne by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources of the City to the payment of the Bonds as the same sha11 be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to the authority granted by this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authority enter into a Joint Powers Agreement to set forth the duties and responsibilities of each in connection with the Project: 15711.'f. � NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: � O�� S� Section 1 Authorization of Bonds. That subject to, and in accordance with, the applicable provisions, terms and conditions of this ordinance and those contained in Section 469.060 of the Act, authority is hereby granted to the Port Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acquisition, clearance, remediation and construction of improvements on land within the District as contemplated by the Plan for the District, and then for all other purposes authorized by the Act with respect to the Project. Section 2 Establishing Terms of the Bonds. That the Port Authority is hereby authorized to establish the date, denomination, place of payment, form and details of the Bonds, provided that the Bonds shall be issued and sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series, in the manner provided and allowed by law; the Bonds shall be secured by a first lien pledge of the tax increments to be received by the Port Authority from the District; the initial principal amount of the Bonds shall not exceed $4, 500, 000; the Bonds shall mature in the amounts and years and bear interest at the rate or rates per annum, including rates which vary in accordance with a formula, established by the offer to purchase the Bonds which is determined to be the most favorable by a Pricing Committee comprised of the President and the Chief Financial Officer of the Port Authority and the Director, Office of Financial Services, the Deputy Mayor and the Director of the Department of the Planning and Economic Development of the City, provided that the true interest rate of the Bonds shall not exceed six percent (6.00°s) per annum payable semi-annually unless such higher true interest is specifically approved by a resolution adopted by a majority of the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction of improvements on land within the District as described in the Plan, and then for aIl other puxposes authorized by the Act with respect to the Project. The Bonds may be made subject to redemption and prepayment at the option of the Port Authority at such time and price or prices as shall be determined by the Port Authority and approved by the Pricing Committee described above. It is recognized that Section 469.060 of the Act provides that the Bonds must be in the amount and form and bear interest at the rate set by the Council, that the Port Authority with the consent of the Council shall set the date, denominations, place of payment, form, and details of the „�,,.,. 3 � oo _ `5� � Honds and that the Council is required to decide whether the issuance of the Bonds by the " Port Authority is proper and if so, the amount of Bonds to issue, and that the Council is required to give specific consent in the Ordinance to the pledge of the City's full faith, credit and resources to the Bonds. The standards and delegation to the Pricing Committee set forth herein are intended as such full required action of the Council, and except as provided herein no further approval of the Council is requized for the issuance or refunding o£ the Bonds under Section 469.060 of the Act. Section 3 Pledge of Full Faith and Credit. That as security for the prompt and faithful payment of both principal and interest of (a) said Bonds in an amount not to exceed $4,500,000 and (b) one issue o£ temporary re£unding bonds issued pursuant to Section 469.176, Subd. 5, of the Act, if the Pricing Committee has determined that the issuance of temporary refunding bonds is desirable, and has established the terms for such temporary refunding bonds, includinq the interest rate to be borne thereby, the Port Authority is hereby authorized to pledge the full faith, credit and resources oP the City of Saint Paul; and such Bonds (including an issue of temporary refunding bonds described in clause (b), both in respect of the principal amount of the same and with respect to the interest thereon, may be paid by the Port Authority from tax levies provided therefore in accordance with Section 4 hereof. Section 4 Tax Levy. That the Port Authority, in the event of the issuance of any 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 an amount not less than 5� in excess of the sum required to pay the principal and interest of the same when and as such principal and interest mature and, after such Bonds have been delivered to the purchasers, such tax shall be irrepealable until all such indebtedness 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 o£ said Port Authority shall forthwith furnish a certified copy of such levy to the County Auditor of Ramsey County, Minnesota, 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. That any suxplus resulting from the excess levy therein provided shall be transferred to a sinking fund 117t'1.1. � � oa_cs`l after the principal and interest for which the tax was levied and collected has been paid; provided, that said Port Authority shall, on or before SepCember 15 in any year, by appropriate action cause its Secretary to provide its preliminary certification to the said County Auditor of the amount on hand and available in its own treasury or in trust from tas increments derived from the District, grants of federal or state funds received for the Project, earnings or other income, including any amounts in the sinking fund, which it will use to pay the principal and interest or both on each specified issue of the 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 puxpose than for the repayment of the principal and interest on such Bonds. That all taxes being authorized to be levied under Minnesota Statutes, Section 469.060, as amended, shall be collected and remitted to the Port Authority by the County Treasurer in accordance with provisions of law governing the collection of other ta�ces and shall be used solely for the payment of such Bonds when due. I3otwithstanding the foregoing provisions oE this Section 4, taxes may be levied and canceled or omitted by the Port Authority in the manner provided by Minnesota Statutes, Section 475.61, to the extent legally permissible. Section 5 No Further Council Action. ThaC said Port Authority may provide for the exercise of the authority hereby granted for its issuance and sale of the Bonds in the aggregate principal amount as provided in Sections 2 and 6 hereof, for the aforesaid puxposes, and the pledge of the fu11 faith, credit and resources of said City of Saint Paul, as security for the payment of the same, by its appropriate resolution, and without further action of the Council. The authority to set the final principal amount, maturity amounts and interest rates on the Bonds has been delegated to the Pricing Committee as provided in Section 2 hereof. That in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requiremenCS for this ordinance, said Section 469.060, Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port Authority to issue and sell {a) one issue of temporary reEUnding bonds as authorized by Minnesota Statutes, Sections 469.060 and 469.178, Subd. 5 and (b) bonds as authorized by '1171 M1.9. � Section 7 Joint Powers Agreement. In connection with the creation of the District and the financing of the Project, the Council hereby approves the execution and delivery by the City of a Joint Powers Agreement, to be entered into between the City and the Port Authority. The form of the Joint Powers Agreement is approved substantially in the form submitted and on file in the offices of the City Council, with such subsequent changes as may be approved by City staff, counsel and Bond Counsel as contemplated by tihis Section 7. The Mayor, City Clerk and Director, Office of Financial Services, are hereby authorized and directed to execute the Joint Powers Agreement in substantially the form submitted, as modified pursuant to this Section 7, and any other documents and certificates which in the opinion of the City staff, counsel and Bond Counsel are necessary to the transactions herein described. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. The approval hereby given to the Joint Powers Agreement includes approval of such additional details therein as may be necessary and appropriate, and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the Director, Office of Financial Services of the City. Section 8 Effective Date. That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the . oo - csq Minnesota Statutes, Section 469.178, Subd. 4, in aggregate principal amounts necessary for the purpose of securing funds as needed by the Port Authority to refund the Bonds issued under this Ordinance, without any further action of the Council, provided that the Port Authority shall not pledge the full faith, credit and resources of the City of Saint Paul to refunding bonds issued pursuanC to clause (b), unless further authorization is granted by the City at the time of the issuance of such refunding bonds. The Pricing Committee shall have the same role with respect to refunding bonds issued pursuant to clause (a) of the preceding sentence as is set forth in Section 2 for the initial issuance of the Bonds. The principal of the refunding bonds may exceed the principal of the Bonds to be refunded to the extent necessary and appropriate to pay interesC thereon (including interest accruing as capital appreciation), to pay costs of issuing the refunding bonds and to allow for discount upon sale, and to fund reserves and capitalized interest for the refunding bonds.. 1'{7'11.5. � oa -G.s 9 City's home rule charter pertaining to the procedure for referendums on ordinances enacted ,� the governing body. Q z � eas a sen enanav �, ey � os om � o eman � ✓ an � ei er �- `�1 O O Adopted by Council: Date �� a 6-� z , Adoprion Certified by Council Secretary BY' �1�� --... Appxoved by er�. Date �� -E <� PUBl.�NEO sy: � ,�;17 �pp eq ested by Departrnent of:_ By� ��- '�"l� Form Approve by City Attomey B , c � . C_. � _� �� Approved by Mayor or Submission to Councll B 11356.1. � o��Gsq Saint Paul Port Authority Hansen �� 6/27/00 GREEN SHEET m NO� On July 12, 2000 �� ROI/7Y16 TOTAL � OF SIGNATURE PAGES on�wri � arvwnaeEr '� � alra.ilUc ❑ w1ucu�� dY � ❑ wuxoKaomKera �wva�lw��wsnwrl ❑ (CLIP ALL LOCATIONS FOR SIGNATURE� Authorization for the Port Authority to issue bonds in the principal amount not to exceed $4,500,000, which will produce at least $4,000,000 fo� project costs. -Authorize the Port Authority to pledge the City's general obligation to the full amount of ±hese bonds, all of which will also be secured by a first lien on tax increr�ent. or PLANNING COMMISSION CIB COMMITTEE CIVIL SERVICE CAMMISSION Pqrt Authority Board Has this pe�soMrm em v,orked uakr a caArac[ torfhis depaAment7 YES NO Fles this peisorJfirm ewr been e�ary empbyee? YE3 NO Does ihis PeisonlFrm P� a eidA rwt �am�albP�eesseU M anY wrtent alY emPbYee'7 YES NO la Mis peraoMum a fa�pded vdMOft VES t� �tan au v� arexers nn renaiate she� and attach tonreen she� ,` I Atithorization of the issuance of this tax incre�nent supporteu� gen.eral obligatiorz debt is necessary for redevelopr.�ent a.nd remediatiQn of the Great NortI�ern Business Center - Phase' I'. isa--.�.--.r.�=.� The Gre�t Northern Business Center - Phase I[nrill provide significant _land , area to �.. manufacturers to expand znd/or relocate their busines�es in St. Paul. Further, job , potential will be maYir.�ized v�ith 281 to 420 jobv beirzg provided an site. ,,.. �OU�G�,�9�� ?R� ��1. Pdone 3ADVANTAGES IF NOT APPROVED Project will not move forward OFTRANSACT10Nt 13,222,000 COET/REVENUEBUD6ETED�dRCLEON� VES NO souece Tax Increment Financin�, Grant ACTNT'NUTABER Receipts, Mandatory Levy, GO Levy NFORMATION (IXPWN) 0 0 —GSQ RIN OF THE CIN OF SAINT PAUL ��.,,, .r,�.,.�.�ARK TOWERS • 345 ST. PEfER STREE� • ST. PAUL, MN 55102-1661 June 27, 2000 Mr. Brian Sweeney, Director Planning & Economic Development Department 1300 City Hall Annex 25 West Fourth Street Saint Paul, Minnesota 55102 RE: GREAT NORTHERN BUSINESS CENTER — PHASE I Dear Mr. Sweeney: FAX (657) 223-5798 TOLL FREE (800) 328-8417 • PHONE (651) 224-5686 „e; r �•.:'':�3i Ce�.1 ��,�a�u�. ;. . y, '��:;�: We submit for your review and referral to the office of the Mayor, City Council, and City Attorney's office, details pertaining to the pledge of the City's general obligation to the Port Authority issuance of $4,500,000 in bonds, for the Great Northern Business Center — Phase I. We have attached a draft copy of the proposed Ordinance. We are requesting the first reading on July 12, 2000. Your expeditious handling of this matter will be appreciated. Sincerely, �i�� / Laurie J. Hansen Chief Financial Officer LJH:ah Attachment cc: Mayor Coleman 113'17.'I. ORiG1NA� Presented by Referred To Committee Date AN ORDINANCE GRANTING AUTfIORITY TO THE PORT AUTHORITY OF THE CITY OF SAINT PAUL TO ISSUE AND SELL BONDS IN THE AGGREGATE AMOUNT NOT TO E CEED THE INITIAL PRINCIPAL AMOUNT OF $4,500,000, AND ANY BONDS TO REFUND SU BONDS; TO SECURE SUCH BONDS WITH A PLEDGE OF THE FUI,L FAITH, CREDIT AND RES CES OF THE CITY OF SAINT PAUL; AND TO USE THE PROCEEDS DERIVED FROM TAE S OF SUCH BONDS TO PAY THE CQST AND EXPENSE NECESSARILY TO SE INCCTRRED BY PORT AUTAORITY OE TFIE CITY OF SASNT PAUL FOR ACQUISITION OF LAND, C ARANCE, REMEDIATION, AND IMPROVEMENTS IN THE GREAT NORTHERN BUSINESS CE ER -PHASE I TAX INCREMENT FINANCING DISTRICT PURSUANT TO THE PROVISIONS BY AUTHORITY OF MINNESOTA STATUTES, CHAPTER 469, AS AMENDED; AND (B) PR CRIBING THE AMOUNT AND FORM OF SUCH BONDS AND THE MANNER FOR ESTABLISHING RATE OF INTEREST THEREON; AND (C) AUTHORIZING THE EXECUTION OF A SOINT P ERS AGREEMENT IN CONNECTION WITH THE PROSECT. , WHEREAS, on May 27, 2000 the Port Authority of the City of Saint Paul (the "POrt Authority") adopted its Resolution No. 3629, fin ing that certain lands were blighted and marginal properties within the meaning of Minn ota Statutes, Sections 469.048 et seq., and establishing and creating the Great Nor ern Business Center - Phase Z Industrial Development District (the "District"); an WHEREAS, the City of Saint P 1, Minnesota (the "City"), has authority under Minnesota Statutes, Section 469.178 Subd. 2, to issue general obligation bonds payable from tax increments of a tax incre ent district created by the Port Authority, and the Port Authority has authority under M'nnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of ' come from any source which are secured hy the fu11 faith, credit and resources of th City, and pursuant to this Ordinance, the Port Authority will issue bonds to which a pledged both tax increments and the full faith, credit and resources of the City �Ehe "BOnds"); and WHEREAS, the ort Authority has requested the authorization of the Council of the City of Saint Pa (the "Council"), pursuant to Minnesota Statutes, Section 469.060, for the issuance an sale by the Port Authority of the Bonds in the aggregate principal amount not to excee the initial principal amount of $4,500,000, and for the pledge of the full faith, cre t and resources of the City to the payment of such Bonds, which Bonds will also be secur d by tax increments to be derived from the District, in connection with the Proje„E•t, as defined below; and Council File # 00 — G S7 Green Sheet # 101333 Ordinance # ORDWANCE CITY QF SAINT PAUL, MINNESOTA 11356. I cC -G S 9 WHEREAS, the establishment of the District and the tax increment financing plan (the "Plan") in connection therewith were approved by the City by resolution adopted on April 5, 2oo0 and ORIGiNAL WHEREAS, the Bonds will be issued for the purposes of paying or reimbursing the costs and eacpenses necessarily incurred by the Port Authority for acquisition, clearance, remediation, and improvements within the District which are to be undertaken in accordance with the Plan for the purposes of creating an industrial park (the "Project"), and then for all other purposes authorized by authority of Minnesota Statutes, Chapter 469, a amended (the "ACt"), with respect to the Project; and [kTHEREAS, it is the preference of the City to avoid the col�. levies to pay the Bonds prior to the time tax increments are recei and for the Port Authority, as issuer of the Bonds, to avoic capitalizing interest and/or rolling over temporary obligations program), and by levying pursuant to Minnesota Statutes, Sect WHEREAS, the Council, being duly advised in the pr it is necessary and appropriate that the Port Autkozi aggregate initial principal amount not to exceed $4,5(y� above: and / general tax the District, such tax levies by in a commercial paper finds and determines that 61] and issue and sell Bonds in the ,000 for the purposes as stated 1 To be discussed if no commercial paper program. 11356.1. 00 -cs � WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for establishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be bome by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources o� the City to the payment of the Bonds as the same shall be issued and sold by the Por Authority, pursuant to the authority of the Act, and pursuant to the authority granted b this Ordinance; and WHEREAS, in connection with the creation of the District and the financing of the Project, it is proposed that the City and the Port Authorit enter into a Joint Powers J �reement to set forth the duties and responsibilities o each in connection with the �roject: ((1 NOW, TEiEREFORE, THE COUNCIL OF TAE CITY OF SAINT P DOES ORDAIN: v � Section 1 O Authorization of Bonds. That subject to, d in accordance with, the applicable Drovisions. terms and conditions of this ordinan and those contained in Section 469.060 of the Act, authority is hereby granted to the ort Authority for the issuance and sale of its Bonds in the aggregate principal amount set forth in Section 2 and the use of the proceeds of such Bonds first for the acqui tion, clearance, remediation and construction of improvements on land within the Distri t as contemplated by the Plan for the District, and then Eor all other purposes authoriz d by the Act with respect to the Project. 2 Establishing Terms of the Bo Els. That the Port Authority is hereby authorized to establish the date, denomination, lace of payment, form and details of the Bonds, provided � that the Bonds shall be issued �nd sold by the Port Authority as tax exempt and/or taxable Bonds in one or more series,�n the manner provided and allowed by law; the Bonds shall be secured by a first lien p1'edge of the tax increments to be received by the Port Authority from the District, the J�. principal amount of the Bonds shall not exceed $4,500,000; the Bonds shall annum, including in the amounts and years and bear interest at the rate or rates per which vary in accordance with a formula, established by the offer to purchase the Bo ds which is determined to be the most favorable by a Pricing Committee comprised of he President and the Chief Financial Officer of the Port Authority and the Director, O££ice of Financial Services of the City, provided that the average annual weighted interest rate of the Bonds shall not exceed percent (_�) per annum payable 11356.1. ao-GSq semi-annually unless such higher average annual weighted interest is specifically approved by a resolution adopted by a majority o£ the members of the Council; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used first to pay or reimburse the costs of the acquisition, clearance, remediation and construction �f improvements on land within the District as described in the Plan, and then for all �ther purposes authorized by the Act with respect to the Project. The Bonds may be made r�ubject to redemption and prepayment at the option of the Port Authority at such time and tJ ^�rice or prices as shall be determined by the Port Authority and approved by the Pricing LL �ommittee described above and upon such notice as is required by law. It recognized that Section 469.060 of the Act provides that the Bonds must be in the am t and form and bear interest at the rate set by the Council, that the Port Authori the Council shall set the date, denominations, place of payment Bonds and that the Council is required to decide whether the Port Authority is proper and if so, the amount of Bonds to required to give specific consent in the Ordinance to the F credit and resources to the Bonds. The standards and de e set forth herein are intended as such full required a ioi provided herein no further approval of the refunding of the Bonds under Section 469.060 of the th the consent of and details of the o£ the Bonds by the , and that the Council is of the City's full faith, to the Pricing Committee of the Council, and except as is required for the issuance or Section Pledge of Full Faith and Credit. Tha as security for the prompt and faithful payment of both principal and interest of sa' Bonds in an amount not to exceed 54,500,000 (except upon a refunding authorized by authorized to pledge the full faith, such Bonds, both in respect of the 6 hereof), the Port Authority is hereby t and resources of the City of Saint Paul; and amount of the same and with respect to the interest thereon, may be paid by e Port Authority from ta�c levies provided therefor in accordance with Section 4 hereof Section 4 Tas Levy. That the ort Authority, in the event of the issuance of any said Bonds authorized hereunder, principal and said City o£ Saint pay the and, a£ter before the issuance of the same, levy for each year, until the are paid in full, a direct annual tax on all the taxable property in , in an amount not less than °s in excess of the sum reguired to and interest of Che same when and as such principal and interest mature Bonds have been delivered to the purchasers, such t� shall be irrepealable until all-such indebtedness is paid, and after the issuance of such Bonds no £urther action 71356.1. 0 0 -�sq by said Port Authority sha11 be necessary to authorize the extensions, assessments and collection o£ such ta�c. 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 Jregarding the Bonds of said Port Authority for which the tvc is levied and such County Q Auditor shall extend and assess the tax so levied, and shall do so annually until the � �.principal and interest have been paid in full. That any surplus resulting rom the excess �levy therein provided shall be transferred to a sinking fund after he principal and �interest for which the tax was levied and collected has been paid; pr ided, that said Port O Authority shall, on or before in any year, by appro riate action cause its Secretary to certify to the said County Auditor the amount on treasury or in trust from taac increments derived from the � state funds received for the Project, earnings or other i�iC the sinking fund, which it will use to pay the princig� 1 specified issue of the Bonds and the County Auditor herein provided for by that amount. That the aside by said Port Authority and be used for no principal and interest on such Bonds. That Minnesota Statutes, Section 469.060, as ami Port Authority by the County Treasurer in collection of other taxes and shall be Notwithstanding the foregoing canceled or omitted in the manner extent legally permissible. Section 5 � Further Council Act the authority hereby principal amount as � the pledge of the fui for the payment of r the Council. The ayith and available in its own grants of federal or including any amounts in and interest or both on each 1 reduce the levy for that year of funds so acquired shall be set purpose than for the repayment of the taxes being authorized to be levied under shall be collected and remitted to the with provisions of law governing the solely for the payment of such Bonds when due. of this Section 4, taxes may be levied and by Minnesota Statutes, Section 475.61, to the That said Port Authority may provide for the exercise of for its issuance and sale of the Bonds in the aggregate in Sections 2 and 6 hereof, for the aforesaid purposes, and credit and resources of said City of Saint Paul, as security same, by its appropriate resolution, and without further action of ty to set the final principal amount, maturity amounts and interest rates on the Bor�s has been delegated to the Pricing Committee as provided in Section 2 hereof. That� in exercising the foregoing authority, the Port Authority shall make due compliance with all applicable requirements for this ordinance, said Section 469.060, 11356.1 00 -�s� Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws. Section 6 � � Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, z terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port �AUthority to issue and sell Bonds as authorized by Minnesota Statutes, Section 469.060, in � aggregate principal amounts necessary for the purpose of securing funds as nee ed by the O Port Authority to refund the Bonds issued under this Ordinance, without any urther action of the Council. The Pricing CommitCee shall have the same role with bonds as is set forth in Section 2 for the initial issuance of the B the refunding bonds may exceed the principal of the Bonds to be necessary and appropriate to pay interest Chereon (including appreciation), to pay costs of issuing the refunding bonds sale, and to fund reserves and capitalized interest for Section 7 Joint Powers Agreement. In connection with financing of the Project, the Council hereby City of a Soint Powers Agreement, to be entered Authority. The form of the Jaint Powers submitted and on file in the offices of the may be approved by City staff, counsel The Mayor, City Clerk and the Director, fshall be conclusive evidence of the approval of such the terms hereof. The approval hereby given to the Joint and directed to execute tlie Joint Powe/rs Agreement in substantially the form submitted, as modified pursuant to this Section 7e and any other documents and certificates which in the opinion of the City staff, counse l and Bond Counsel are necessary to the transactions herein described. The executio of any instrument by the appropriate officer or officers of the City herein auth� documents in accordance Powers Agreement includ and appropriate, and s� f as may be necessary�nd Services of the Ci y. Effective Date approval of such additional details therein as may be necessary modifications thereof, deletions therefrom and additions thereto appropriate and approved by the Director, Office of Financial to refunding The principal of to the extent accruing as capital to allow for discount upon refunding bonds. creation of the District and the s the execution and delivery by the between the City and the Port is approved substantially in the form ty Council, with such subsequent changes as Bond Counsel as contemplated by this Section 7. of Financial Services, are hereby authorized Section 8 That this ordinance shall take effect and be in force 30 days after the passage, approval and publication. This ordinance is subject to the provisions of the 11356.1.