08-1082Conncil File # � �! (i'�a
Green Sheet # 3059718
ORDINANCE
OF SAiNT PAUL, MiNNESOTA ��-
Presented by
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'TI� COUNCIL OF'TI� CITY OF SAINT PAUL DOES ORDAIN NOV r� 200�
3 An ordinance granting authority to the Port Authority of the City of Saint Paul to issue
4 and sell bonds in the aggregate principal amount necessary to generate $16,000,000 of net
5 proceeds for the Project described herein; to secure such bonds with a pledge of the full faith,
6 credit and resources of the City of Saint Paul, a city of the first class of the State of Mimiesota;
7 to use the proceeds derived from the sale of such bonds to pay the cost and expense necessarily
8 to be incurred by said Port Authority for acquisirion of lands, the construction of infrastructure
9 improvements thereon and the preparation of such land for redevelopment, pursuant to the
10 provisions and by authority of said Minnesota Statutes 1992, Chapter 469, as amended; and
11 prescribing the amount and form of such bonds and the manner for establishing the rate of
12 interest which shall attach to the same.
13
14 WHEREAS, the Port Authority of the City of Saint Paul (the "Port Authority") has advised the City of
15 its belief that the 45 acres currently comprising the 3M St. Paul campus (the "Propert}�') are blighted and
16 marginal properties within the meaning of Minnesota Statutes 1992, Section 469.048, Subd. 1, and has asked
17 the City to authorize the issuance and sale, by the Port Authority, of its bonds in an aggregate principal amount
18 necessary to generate $16,000,000 ofnet proceeds for use in the Project described below (the "Bonds"), in one
19 or more series, and for the pledge of the full faith, credit and resources of the City of Saint Paul to the payment
20 of such Bonds all pursuant to Minnesota Statutes 1992, Section 469.060; and
21 WIIEREAS, a copy of the Port Authority's request has been presented to said City Council on behalf
22 of said Port Authority, as and for its application for the authorization described above, and, by reference, such
23 request is made a part hereof; and
24 WHEREAS, in its request the Port Authority described the purposes for which the Bonds will be used,
25 to wit: the acquisition and redevelopment of the Property, and the payment of costs incurred in connection
26 with such acquisition and redevelopment (the "Project"}; and
27 WHEREAS, Council of the City of Saint Paul, being duly advised in the premises, finds and
28 determines that the Project constitutes blighted and marginal properiy within the meaning of Minnesota
(7 g �1���
29 Statutes 1992, Chapter 469, as amended (the "AcY�, and that it is urgent and necessary that the Port Authority
30 issue and sell, bonds of the Port Authority in an aggregate principal amount necessary to generate $16,OOQ000
31 of net proceeds for use in the Project, to wit: to defray the cost and expense necessary to be incurred by said
32 Port Authority for its acquisition of the Project, its construction of infrastructure improvements thereon, the
33 prepazarion of the Proj ect for redevelopment, and for all other purposes authorized by authority of the Act; and
34 WHEREAS, on the basis of the foregoing, it is now the intention of the Council of the City of Saint
35 Paul to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for
36 establishing the amount, maturity schedule and rates of interest to be bome by the Bonds; to authorize the Port
37 Authority to establish the date, denomination, place of payment and other details of the Bonds, including the
38 form of the Bonds, in the manner provided in this Ordinance; and to authorize and consent to the pledge by the
39 Port Authority of the full faith, credit and resources of the City of Saint Paul to the payment of the Bonds as
40 the same shall be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to
41 the authority granted by this Ordinance.
42 NOW, THEREFORE, THE COUNCIL OF THE CITY OF St1INT PAUL DOES ORDAIN:
43
Section 1
44 That subject to, and in accordance with, the applicable provisions, terms and conditions of this
45 Ordinance and those contained in the Act, authority is hereby granted to the Port Authority of the City of Saint
46 Paul, far the issuance and sale of Bonds in an aggregate principal amount to generate $16,000,000 of net
47 pzoceeds for use in the Project and the use of the proceeds of such Bonds, for its defrayment of the wst and
48 expense necessarily to be incurred by it for its acquisition of the Project, its construction of infrastructure
49 improvements thereon, the preparation of the Project for redevelopment, and for all other purposes authorized
50 by authority of the Act.
51
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53
Section 2
54 That the Port AuthoriTy is hereby authorized and directed to establish the date, denomination, place of
55 payment, form and details of the Bonds, provided that: the Bonds shall be issued and sold by the Port
56 Authority as taY exempt andior taxable Bonds, in one or more series, in the manner provided and allowed by
57 law; the Bonds shall mature in the years and bear interest at the rate or rates per annum established by the offer
58 to purchase the series of the Bonds then being issued which is deternuned to be the most favorable by a
59 Pricing Committee comprised of a representative from the Port Authority, the City's Treasurer and Debt
60 Manager representing the City's Office of Pinancial Services, and a representative of Ehlers & Associates or
bl such other fiscal consultant as may have been retained by the Port Authority in connection with the issuance of
62 the Bonds, on the basis of bids received by the Port Authority after a public solicitation; and the proceeds from
63 the issuance and sale of the Bonds as received by said Port Authority shall be deposited by it in a fund of the
64 Port Authority subject to disbursement only in defrayment of the costs and expenses necessarily to be incurred
65 by the Port Authority for its acquisition of the Project, its construcrion of infrastructure improvements thereto,
66 the preparation of the Project for redevelopment, and for all other purposes authorized by the Act. The Bonds
67 may be made subject to redemprion and prepayment at the option of the Port Authority at such time and price
68 or prices as shall be determined by the Port Authority and approved by the Pricing Committee described above
69 and upon such notice as is required by law.
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Section 3
71 That as security for the prompt and faithful payment of both principal and interest of said Bonds said
72 Port Authority is hereby authorized to pledge the full faith, credit and resources of the Ciry of Saint Paul, and
73 such Bonds, both in respect of the principal amount of the same and in respect of the interest thereon, shall be
74 paid by the Port Authority from tas levies provided therefore and authorized by the Act.
75
76
Section 4
77 That the Port Authority, in the event of the issuance of any series of said Bonds authorized hereunder,
78 shall, before the issuance of the same, levy for each yeaz, until the principal and interest are paid in full, a
79 direct annual tas on all the taxable property in said City of Saint Pau which the Port Authority has been
80 created, in an amount not less than 5% in excess of the sum required to pay the principal and interest of the
81 same when and as such principal and interest mature and, after such Bonds have been delivered to the
82 purchasers, such ta�c shall be irrepealable until all such indebtedness is paid, and after the issuance of such
83 Bonds no further action by said Port Authority shall be necessary to authorize the extensions, assessments and
84 collecfion of such tas. That the Secretary of said Port Authority shall forthwith furnish a certified copy of
85 such levy to the County Auditor of Ramsey County, Minnesota, the county in which said Port Authority and
86 said City are located, together with full information regazding the Bonds of said Port Authority for which the
87 taac is levied and such County Auditor shall extend and assess the taac so levied, and shall do so annually until
88 the principal and interest have been paid in full. That any surplus resulting from the excess levy therein
89 provided shall be transferred to a sinldng fund after the principal and interest for which the tax was levied and
90 collected has been paid; provided, that said Port Authority shall, on or before October 15 in any year, by
91 appropriate action cause its Secretary to certify to the said County Auditor the amount on hand and available
92 in its own treasury from eamings or other income, including the amount in the sinking fund, which it will use
08� I UBa-
93 to pay the principal and interest or both on each specified series of the Bonds and the County Auditor shall
94 reduce the levy for that year herein provided for by that amount. That the amount of funds so acquired shall
95 be set aside by said Port Authority and be used for no other purpose than for the repayment of the principal
96 and interest on such Bonds. That all such taxes being authorized to be levied under Section 469.060,
97 Minnesota Statutes 1992, as amended, pursuant thereto shall be collected and remitted to the ort Authority by
98 the County Treasurer in accordance with the provisions of law goveming the collection of other taxes and
99 shall be used solely for the payment of such Bonds when due.
100
Section 5
101 That said Port Authority shall provide for the exercise of the authority hereby granted for its issuance
102 and sale of the Bonds, in one or mare series, in an aggregate principal amount necessary to generate
103 $16,000,000 of net proceeds for the aforesaid purposes, and the pledge of the full faith, credit and resources of
104 said City of Saint Paul, as security for the payment of the same, by its appropriate resolution, and without
105 further action of the City Council of the City of Saint Paul. That in each such instance said Port Authority
106 shall make due compliance with all applicable requirements for this Ordinance, and Minnesota Statutes
107 Chapters 469.060 and 475, as amended, and all other applicable laws.
pg -/OSa--
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109
Section 6
That this ordinance shall take effect and be in force 30 days after the passage, approval and publication.
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Yeas Nays Absent
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Helgen ✓
Lantry �
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Requested by Deparhnent oE
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Adopted by Council: Date ���a��/J,� Ap
Adoption Certified by Coi eil Secietary gy_
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Approved Date d L
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� Green Sheet Greert SMeet Green Sheet Green Sheet Green Sheet Green Sheet �
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Contaet Person & Phone:
Bob Geurs
266-8837
Must Be on Council Aaen
Doc: Type: ORDINANCE
22SEP-08
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Assign
Date): Number
For
Routing
Order
E•DowmeM Required: N
DocumentContact: Bob Geurs
ConqM Phone: 26&8837
Total # of Signature Pages _(Clip All Locallons for Signature)
Green Sheet NO: 3059718
0 �Etinancia( Services /.�Da l�l� --�
1 cial Services De arlment DireUOr
2 ' Attorne
3 or's Office Ma or/Assistant
4 ooncil
5 ' C7uk ' Clerk
Approve an Ordinynce Authorization for Port Authority to issue $16 million (net) of G. O. Bonds for the acquisition and land
prepararion of the 3-M site for redevelopment.
iaauons: approve (A) or F
Planning Commission
CIB Committee
Civil Service Commission
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firtn ever been a city employee?
Yes No
3. Does this personlfirtn possess a skil� not normally possessed by any
curzent city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
initiating Problem, lssues, Opportunity (Who, What, When, Where, Why)•
Oppor[unity for the Port Authoriry to acquire 3-M site on the east side. City under the ordinance will allow the Port Authority to issue
$16 million (net) of G. O. Bonds
AdvantageslfApproved:
Redevelopment for former 3-M site and oppommity for new jobs for St. Paul residents over time.
DisadvaMages If Approved:
Debt Service is paid for by taces.
Disadvantages If Not Approved:
3-M site will remain vacant after 3-M completes relocarion.
Trensaction: $16,000,000.00
Funding Source: poft G. O. BondS
Pinancial Information:
� (Explain)
Activity Number:
Cost/Revenue Budgeted:
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1900 LandmarkTowers
345 St. Peter Street
Saint Paul, Mmnesota
SSiOZ-1667
September 18, 2006
Kathy Lantry, President
Saint Paul City Council
Room 320C City Hall
15 West Keliogg Boulevard
Saint Paul, MN 55102
Re: Proposed Ordinance
Dear Council President Lantry:
pORT
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Tel: 651-224-5686
fax:651-223-5198
Toll Free: 800-328-8417
wwwsppa.com
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Minnesota Statutes, Section 469.060 provides for the issuance by the Port Authority of the City of Saint
Paul ("Port Authority') of bonds secured by a general obligation piedge of the City of Saint Paul. The
statute requires that such bonds be approved by both the Port Authority Board and the Saint Paul City
Council. The City Council procedure is by ordinance.
We respectFuily request that the City Council consider the adoption of the attached ordinance providing
for the issuance of Port Authority general obligation bonds in the principai amount necessary to generate
$16,000,000 of net proceeds for the project described below. It is anticipated that these bonds would be
issued in one or more series, each sold by public bid with the help of a fiscal advisor, currently Ehlers &
Associates. Details of each sale will be overseen by a pricing committee composed of representatives of
the Port Authority, the City's Budget office and the fiscal advisor.
Proceeds from these bonds would be used by the Port Authority to provide, initially, for the acquisition of
35 of the 45 acre 3M St. Paul campus (which we believe to be "blighted" and "marginal" within the
meaning of Minnesota Statutes), and to provide for the redevelopment of those parcels. We believe that
we will need to issue $8,250,000 of these bonds in December, 2008 to finance these activities. Pursuant
to agreements that are being put in place now, 3M has the right to tender the remaining 10 acres to the
Port Authority for purchase in the next 2— 3 years. In that event, additional series of bonds will be issued
under the authority provided by the proposed ordinance to purchase and redevelop that additional 3M
property.
We anticipate Port Authority Board approval of these bonds at the Port Authority Board meeting
scheduled for October 28, 2008. We are asking that you begin this process, however, on October 1,
2008, because the ordinance adoption process requires reading of the ordinance at four consecutive
meetings, publication of the ordinance and a 30 day "reverse referendum" period.
Very truly yours,
� a
Jo Grzywinski
Chair
cc: Mayor Christopher Coleman
Ann Mulholland
Margaret Kelly
Todd Hurley
Bob Guers
`�<2�G%��„��
Kenneth R. Johnson
President
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