97-1537Presented By
Green Sheet # 38290
Council File # 97 -f537
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
:^
Referred To Committee: Date
RESOLUTION APPROVING AND AUTHORIZING TI�E ISSUANCE OF A LOAN TO ENERGY
PARK STUDIOS, LLC 'PHItOUGH TAE STAR LOAN PROGRAM, COMO DISTRICT 10
2 WHEREAS, James Lund dfbla Energy Pazk Studios, LLC, a Minnesota Corporation, has requested a
3 $46,SOO loan together with a$4,650 grant through the STAR loan program for building unprovements and
4 renovations; and
6
7
9
10
11
12
13
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16
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20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
WHEREAS, the project consists of the renovation of the existing Bnergy Park Studios to allow for additional
office rental space. The build out for a new tenant includes renovation of nearly the entire second floor of the
buildang. The first floar houses sound and stage studios for the film indushy. Renovation will also occur on
the first floor with new offices constnzcted far James Productions. Finally, the project includes the purchase
and installation of a new lighting grid and new audio and TV wiring in Studio 1. The total cost of the project
is $146,500 which includes $108,000 for building renovation and improvements and 38,000 for new wiring
and equipment; and
WHEREAS, the bonower is a new entity formed by 7ames and Susan Lund who previously owned the
building personally. The corporation is wholly owned by James and Susan Lund. The Lunds established
7ames Productions in 1982 as a film production company specializing in high-end television commercials. In
1995, the Lunds purchased the present site of Energy Park Studios and expanded the activiries of James
Producfions to include the rental of studio space for motion pictures, other TV commercials and still
photography. Films which have used the studio include "Grumpier Old Men" and "7ingle All The Way".
The building ownership is structured with 3ames Productions renting the entire building from James and
Susan Lund (Energy Park Srixdios, L.L.C.). James Productions manages the building, leasing office and
studio space; and
WHEREAS, the proposed terms for the loan include monthly payments over a five year term, maturing on
12/2/2002, with loan repayment from rental income; loan will be evidenced by a full recourse Promissory
Note from Energy Park Studios, LLC to City; collateral will consist of a subordinate security interest in all
assets of the Borrower and James Productions, including real estate and an assignment of leases; and a
personal guazanty from James and Susan Lund; and
WI3EREAS, the borrower will comply with all federal, state and local laws and policies but not limited to
prevailing wage standards for constnxction (Davis-Bacon), affirmative action/equal opportunity and targeted
business pro�ams; and
WHEREAS, the primary public purpose of the project is job creation and also support of commercial
activity, stabilize market value and support vitality of industry.
47 • /S37
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86
NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that approval is hereby
granted for a loan in the amount of $46,500 and a gant in the amount of $4,650 from the STAR loan Fund
for building iruprovements and renovafions, under the terms described herein, and with such additional terms
and conditions as the Execufive Director of the Housing and Redevelopment Authority of the City of Saint
Paul, Minnesota deems necessary and appropriate.
BE TT FURTFIER RESOLVED, that the Executive Director of the Housing and Redevelopment Authority
of the City of Saint Paul, Miuvesota and other appropriate City officials are authorized to execute the
necessary documents in connection with the loan, in form acceptable to the City Attomey, on behalf of the
City.
Adoptio Certified by Council Secretary
BY� � a- 1�- �.`ra --
Approved by Mayor: Date �Z+�� �R�
BY: '�� . (�'�G
Requested by
Form
of:
by City attorney
B t9P�sa.. bR• �'�-+�dJ
Approve by �£ Submiss'on to Council
; � � .
By: /wL
Adopted by Council: Date � a.� �`L�{�
97-/S37
3$23�
DEPARTMENTIOFFICE�OUNGIL DATE INITIATED
��7 �a—�—g� GREEN SH
INITIAV E INITIAVDATE
CONTACTPERSON&PHONE �D� CITYCOUNGIL
�� ` �� � ""'� NUYBERFOA �L�� ATTORNEV � -{f— �� -v-/-L, CITYCLERK
MUST BE ON CQUNCIL AGENOA 8Y (�ATE) p�ny� BUIX'iET �IREG70R � FIN. & MGL SERVICES DIR.
1^� ^_� � OROEN MAYOR (OR ASSISTA p
Ld� �
TOTAL # OF SIGNATURE PAGES (CLIP ALL IOGATIONS FOR SIGNATURE)
ACTION REQUESTED: n H �` �� B �
i��ue-ri�t'i� � (C� �� C'vw�-� �� `�°7' 1.2-1-2-�7
RECAMMENDAT�oNS: Approve (/.) or Raject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS:
_ PLANNING CAMMISSION _ CIVIL SEHVICE COMMISSION 1• Has this personAirm ever worked under a contrect for this tlepartment?
_ CIB CAMMIi7EE ,� CMP l. � CQ'/�MU�lC YES NO
2. Has this personNirm e�er been a ciy employee?
.� STAFF — YES Id0
_ DisTqICT CoURT _ 3. Does this personttirm possess a skill not normally possessed by any curcent city employee?
SUPPORTSWHICHCOUNCILOBJECTIVE? YES NO
Explatn ell yes nnswers on seperete sheet ami attech to green sheet
INITIATING PHOBLEM. ISSUE, OPPORTUNITV M/ho, What, When, WYiere, Why):
�Dw- fe+�2s`T `P°rv. ct�. .PYC'.t5��j � F'GU'x �.j°x5rYl25S `ur Plt��c�i� II�QfA�V2H.ntn.�S,
v C1 �
ADVANTAGES IF APPROVED:
�- �ht��{tWv� 0� -� {'Lt.i.3 .�[.,pJr c.39�'Y. d.._ NN�Y� W�e l�t 2�GGJS a`"F '��o��,pKY3
a V
W t� � N4o�tCtl 1 s .,� � C(�� �LbhS�a9� d� �Q.AZtf'�� �C ^�o
l.�C�,oa.ce d�x�- `f � �"' �• /
DISADVANTAGES IF APPROVED�
/Johe, RL�£tYE�
` i�EC 10
1997 C��:�,.� ���b��� �,���
� OfF,ECE DEC 11 1g97
DISADVANTACaES 1P NOT APPROVED: i� 4:. ._ _
�,pst af ,SP�aS. ��,��ka,
DEC 09 �97
� f ., t� � � � C�RNEY
TOTAL AMOUN70F TRANSACTION $./ I, ��� ��'� COS7/REVENUE 9UDGETED (CIRCLE ONE) VES NO
FUNDIfiGSOURCE S��K �H'� •��� AC7IVITVNUMBER
FINANCIAL INFORFSATION: (EXPLAIN)
Presented By
Green Sheet # 38290
Council File # 97 -f537
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
:^
Referred To Committee: Date
RESOLUTION APPROVING AND AUTHORIZING TI�E ISSUANCE OF A LOAN TO ENERGY
PARK STUDIOS, LLC 'PHItOUGH TAE STAR LOAN PROGRAM, COMO DISTRICT 10
2 WHEREAS, James Lund dfbla Energy Pazk Studios, LLC, a Minnesota Corporation, has requested a
3 $46,SOO loan together with a$4,650 grant through the STAR loan program for building unprovements and
4 renovations; and
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
WHEREAS, the project consists of the renovation of the existing Bnergy Park Studios to allow for additional
office rental space. The build out for a new tenant includes renovation of nearly the entire second floor of the
buildang. The first floar houses sound and stage studios for the film indushy. Renovation will also occur on
the first floor with new offices constnzcted far James Productions. Finally, the project includes the purchase
and installation of a new lighting grid and new audio and TV wiring in Studio 1. The total cost of the project
is $146,500 which includes $108,000 for building renovation and improvements and 38,000 for new wiring
and equipment; and
WHEREAS, the bonower is a new entity formed by 7ames and Susan Lund who previously owned the
building personally. The corporation is wholly owned by James and Susan Lund. The Lunds established
7ames Productions in 1982 as a film production company specializing in high-end television commercials. In
1995, the Lunds purchased the present site of Energy Park Studios and expanded the activiries of James
Producfions to include the rental of studio space for motion pictures, other TV commercials and still
photography. Films which have used the studio include "Grumpier Old Men" and "7ingle All The Way".
The building ownership is structured with 3ames Productions renting the entire building from James and
Susan Lund (Energy Park Srixdios, L.L.C.). James Productions manages the building, leasing office and
studio space; and
WHEREAS, the proposed terms for the loan include monthly payments over a five year term, maturing on
12/2/2002, with loan repayment from rental income; loan will be evidenced by a full recourse Promissory
Note from Energy Park Studios, LLC to City; collateral will consist of a subordinate security interest in all
assets of the Borrower and James Productions, including real estate and an assignment of leases; and a
personal guazanty from James and Susan Lund; and
WI3EREAS, the borrower will comply with all federal, state and local laws and policies but not limited to
prevailing wage standards for constnxction (Davis-Bacon), affirmative action/equal opportunity and targeted
business pro�ams; and
WHEREAS, the primary public purpose of the project is job creation and also support of commercial
activity, stabilize market value and support vitality of industry.
47 • /S37
41
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71
72
73
74
75
76
77
�8
80
81
82
83
84
85
86
NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that approval is hereby
granted for a loan in the amount of $46,500 and a gant in the amount of $4,650 from the STAR loan Fund
for building iruprovements and renovafions, under the terms described herein, and with such additional terms
and conditions as the Execufive Director of the Housing and Redevelopment Authority of the City of Saint
Paul, Minnesota deems necessary and appropriate.
BE TT FURTFIER RESOLVED, that the Executive Director of the Housing and Redevelopment Authority
of the City of Saint Paul, Miuvesota and other appropriate City officials are authorized to execute the
necessary documents in connection with the loan, in form acceptable to the City Attomey, on behalf of the
City.
Adoptio Certified by Council Secretary
BY� � a- 1�- �.`ra --
Approved by Mayor: Date �Z+�� �R�
BY: '�� . (�'�G
Requested by
Form
of:
by City attorney
B t9P�sa.. bR• �'�-+�dJ
Approve by �£ Submiss'on to Council
; � � .
By: /wL
Adopted by Council: Date � a.� �`L�{�
97-/S37
3$23�
DEPARTMENTIOFFICE�OUNGIL DATE INITIATED
��7 �a—�—g� GREEN SH
INITIAV E INITIAVDATE
CONTACTPERSON&PHONE �D� CITYCOUNGIL
�� ` �� � ""'� NUYBERFOA �L�� ATTORNEV � -{f— �� -v-/-L, CITYCLERK
MUST BE ON CQUNCIL AGENOA 8Y (�ATE) p�ny� BUIX'iET �IREG70R � FIN. & MGL SERVICES DIR.
1^� ^_� � OROEN MAYOR (OR ASSISTA p
Ld� �
TOTAL # OF SIGNATURE PAGES (CLIP ALL IOGATIONS FOR SIGNATURE)
ACTION REQUESTED: n H �` �� B �
i��ue-ri�t'i� � (C� �� C'vw�-� �� `�°7' 1.2-1-2-�7
RECAMMENDAT�oNS: Approve (/.) or Raject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS:
_ PLANNING CAMMISSION _ CIVIL SEHVICE COMMISSION 1• Has this personAirm ever worked under a contrect for this tlepartment?
_ CIB CAMMIi7EE ,� CMP l. � CQ'/�MU�lC YES NO
2. Has this personNirm e�er been a ciy employee?
.� STAFF — YES Id0
_ DisTqICT CoURT _ 3. Does this personttirm possess a skill not normally possessed by any curcent city employee?
SUPPORTSWHICHCOUNCILOBJECTIVE? YES NO
Explatn ell yes nnswers on seperete sheet ami attech to green sheet
INITIATING PHOBLEM. ISSUE, OPPORTUNITV M/ho, What, When, WYiere, Why):
�Dw- fe+�2s`T `P°rv. ct�. .PYC'.t5��j � F'GU'x �.j°x5rYl25S `ur Plt��c�i� II�QfA�V2H.ntn.�S,
v C1 �
ADVANTAGES IF APPROVED:
�- �ht��{tWv� 0� -� {'Lt.i.3 .�[.,pJr c.39�'Y. d.._ NN�Y� W�e l�t 2�GGJS a`"F '��o��,pKY3
a V
W t� � N4o�tCtl 1 s .,� � C(�� �LbhS�a9� d� �Q.AZtf'�� �C ^�o
l.�C�,oa.ce d�x�- `f � �"' �• /
DISADVANTAGES IF APPROVED�
/Johe, RL�£tYE�
` i�EC 10
1997 C��:�,.� ���b��� �,���
� OfF,ECE DEC 11 1g97
DISADVANTACaES 1P NOT APPROVED: i� 4:. ._ _
�,pst af ,SP�aS. ��,��ka,
DEC 09 �97
� f ., t� � � � C�RNEY
TOTAL AMOUN70F TRANSACTION $./ I, ��� ��'� COS7/REVENUE 9UDGETED (CIRCLE ONE) VES NO
FUNDIfiGSOURCE S��K �H'� •��� AC7IVITVNUMBER
FINANCIAL INFORFSATION: (EXPLAIN)
Presented By
Green Sheet # 38290
Council File # 97 -f537
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
:^
Referred To Committee: Date
RESOLUTION APPROVING AND AUTHORIZING TI�E ISSUANCE OF A LOAN TO ENERGY
PARK STUDIOS, LLC 'PHItOUGH TAE STAR LOAN PROGRAM, COMO DISTRICT 10
2 WHEREAS, James Lund dfbla Energy Pazk Studios, LLC, a Minnesota Corporation, has requested a
3 $46,SOO loan together with a$4,650 grant through the STAR loan program for building unprovements and
4 renovations; and
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
WHEREAS, the project consists of the renovation of the existing Bnergy Park Studios to allow for additional
office rental space. The build out for a new tenant includes renovation of nearly the entire second floor of the
buildang. The first floar houses sound and stage studios for the film indushy. Renovation will also occur on
the first floor with new offices constnzcted far James Productions. Finally, the project includes the purchase
and installation of a new lighting grid and new audio and TV wiring in Studio 1. The total cost of the project
is $146,500 which includes $108,000 for building renovation and improvements and 38,000 for new wiring
and equipment; and
WHEREAS, the bonower is a new entity formed by 7ames and Susan Lund who previously owned the
building personally. The corporation is wholly owned by James and Susan Lund. The Lunds established
7ames Productions in 1982 as a film production company specializing in high-end television commercials. In
1995, the Lunds purchased the present site of Energy Park Studios and expanded the activiries of James
Producfions to include the rental of studio space for motion pictures, other TV commercials and still
photography. Films which have used the studio include "Grumpier Old Men" and "7ingle All The Way".
The building ownership is structured with 3ames Productions renting the entire building from James and
Susan Lund (Energy Park Srixdios, L.L.C.). James Productions manages the building, leasing office and
studio space; and
WHEREAS, the proposed terms for the loan include monthly payments over a five year term, maturing on
12/2/2002, with loan repayment from rental income; loan will be evidenced by a full recourse Promissory
Note from Energy Park Studios, LLC to City; collateral will consist of a subordinate security interest in all
assets of the Borrower and James Productions, including real estate and an assignment of leases; and a
personal guazanty from James and Susan Lund; and
WI3EREAS, the borrower will comply with all federal, state and local laws and policies but not limited to
prevailing wage standards for constnxction (Davis-Bacon), affirmative action/equal opportunity and targeted
business pro�ams; and
WHEREAS, the primary public purpose of the project is job creation and also support of commercial
activity, stabilize market value and support vitality of industry.
47 • /S37
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
�8
80
81
82
83
84
85
86
NOW, THEREFORE BE TT RESOLVED, by the Council of the City of Saint Paul, that approval is hereby
granted for a loan in the amount of $46,500 and a gant in the amount of $4,650 from the STAR loan Fund
for building iruprovements and renovafions, under the terms described herein, and with such additional terms
and conditions as the Execufive Director of the Housing and Redevelopment Authority of the City of Saint
Paul, Minnesota deems necessary and appropriate.
BE TT FURTFIER RESOLVED, that the Executive Director of the Housing and Redevelopment Authority
of the City of Saint Paul, Miuvesota and other appropriate City officials are authorized to execute the
necessary documents in connection with the loan, in form acceptable to the City Attomey, on behalf of the
City.
Adoptio Certified by Council Secretary
BY� � a- 1�- �.`ra --
Approved by Mayor: Date �Z+�� �R�
BY: '�� . (�'�G
Requested by
Form
of:
by City attorney
B t9P�sa.. bR• �'�-+�dJ
Approve by �£ Submiss'on to Council
; � � .
By: /wL
Adopted by Council: Date � a.� �`L�{�
97-/S37
3$23�
DEPARTMENTIOFFICE�OUNGIL DATE INITIATED
��7 �a—�—g� GREEN SH
INITIAV E INITIAVDATE
CONTACTPERSON&PHONE �D� CITYCOUNGIL
�� ` �� � ""'� NUYBERFOA �L�� ATTORNEV � -{f— �� -v-/-L, CITYCLERK
MUST BE ON CQUNCIL AGENOA 8Y (�ATE) p�ny� BUIX'iET �IREG70R � FIN. & MGL SERVICES DIR.
1^� ^_� � OROEN MAYOR (OR ASSISTA p
Ld� �
TOTAL # OF SIGNATURE PAGES (CLIP ALL IOGATIONS FOR SIGNATURE)
ACTION REQUESTED: n H �` �� B �
i��ue-ri�t'i� � (C� �� C'vw�-� �� `�°7' 1.2-1-2-�7
RECAMMENDAT�oNS: Approve (/.) or Raject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS:
_ PLANNING CAMMISSION _ CIVIL SEHVICE COMMISSION 1• Has this personAirm ever worked under a contrect for this tlepartment?
_ CIB CAMMIi7EE ,� CMP l. � CQ'/�MU�lC YES NO
2. Has this personNirm e�er been a ciy employee?
.� STAFF — YES Id0
_ DisTqICT CoURT _ 3. Does this personttirm possess a skill not normally possessed by any curcent city employee?
SUPPORTSWHICHCOUNCILOBJECTIVE? YES NO
Explatn ell yes nnswers on seperete sheet ami attech to green sheet
INITIATING PHOBLEM. ISSUE, OPPORTUNITV M/ho, What, When, WYiere, Why):
�Dw- fe+�2s`T `P°rv. ct�. .PYC'.t5��j � F'GU'x �.j°x5rYl25S `ur Plt��c�i� II�QfA�V2H.ntn.�S,
v C1 �
ADVANTAGES IF APPROVED:
�- �ht��{tWv� 0� -� {'Lt.i.3 .�[.,pJr c.39�'Y. d.._ NN�Y� W�e l�t 2�GGJS a`"F '��o��,pKY3
a V
W t� � N4o�tCtl 1 s .,� � C(�� �LbhS�a9� d� �Q.AZtf'�� �C ^�o
l.�C�,oa.ce d�x�- `f � �"' �• /
DISADVANTAGES IF APPROVED�
/Johe, RL�£tYE�
` i�EC 10
1997 C��:�,.� ���b��� �,���
� OfF,ECE DEC 11 1g97
DISADVANTACaES 1P NOT APPROVED: i� 4:. ._ _
�,pst af ,SP�aS. ��,��ka,
DEC 09 �97
� f ., t� � � � C�RNEY
TOTAL AMOUN70F TRANSACTION $./ I, ��� ��'� COS7/REVENUE 9UDGETED (CIRCLE ONE) VES NO
FUNDIfiGSOURCE S��K �H'� •��� AC7IVITVNUMBER
FINANCIAL INFORFSATION: (EXPLAIN)