98-260��� qg
_ � ����
` �k � a
\� ��
RESOLUTION
�� CITY OF SAINT PAUL, N
Presented By
Referred To
8
Council File # ag_aGc
Green She # lo � �
ESOTA . �''��/ /
RESOLUTION FOR DELAY
IN DEMOLITION OF EXISTING A]
WIIEREAS, the Ciry of Saint Paul has entered into legally binding contract (the Arena
Lease) with the Minnesota Wild; and
WFIEREAS, part of that contract requires tha demolition begin on the e�sting
RiverCentre Arena as early as April 10, 1998 and t a new arena be constructed in its place;
and
WI3EREAS, the City is seeking $65 llion in state bonding to partially fmance the
azena; and
WHEREAS, the State has not y authorized the required bonding or other state financing
alternatives; and
WIIEREAS, if the State f s to approve the total state financing for the arena, the City
will be required to finance up t as much as an additional $65 million tfirough other sources; and
WHEREAS, any
taxpayers and on St. Pau
and /
�rnative financing plan may have a detrimental effect on St. Paui
ability to fully and appropriately fund basic and critical city services;
an alternative financing plan has not yet been approved by the city council;
�
either
3AS, the demolition of the Existing Arena before securing the necessary financing
State or other sources is not in the best interests of the citizens of St. Paul; now,
it
VED, that the Council of the Ciry of Saint Paul hereby demands that the
seek to delay temporarily the demolition of the Existing Arena, either:
(a) by redefining the Possession Date of Apri1 10, 1998, as that term is fiirther defined in
Section i.l of the Arena Lease; or
� ��,jq�
1
2
3
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
98-�.Go
(b) by modifying the requirement in Section 6.2 of the Arena Lease t the Tenant
proceed to abate, demolish and cleaz the E�sting Arena within th time period required
by the Arena Lease; and, be it
FURTF�R RESOLVED, that such delay or modificafion
foregoing Resolved Clause shall in any case delay the demolition
such tune as either: /
referenced in the
ie Existing Arena untii
(a) the State of Mannesota shall haue passed a bondin bill or other measure providing
$65 million in staxe assistance for the construction the new Arena; or
(b) if the State of Minnesota shall have passed other measure or measures which
direcUy or indirectly provide financial assis e for the construction of the new Arena,
but directly or indirectly have a negative un ct on othez City revenue sources or
allocations, the City Council shall have ha the opportunity to consider and act on the
implications of such measure; or
(c) the City Council shall have had
alternatives that may be available t
and the amount that is actually pr�`
million. /
opportunity to consider and act on financing
'.dge the gap between the totai cost of construction
d by the State of Minnes�, if less than $65
- ��
�
� �� �C�
\ \
�\
Adopted by
Adoption Ce
By:
Approved by
By: �
Date
by Covncil Secretary
. Date
Requested by Department of:
By:
Form App oved by C� rney
$Y= � J��
Appsoved by Mayor for Submission to Council
By:
GREEN SHEET
�
TOTAL # OF SIGNATURE PAGES
L�-�I�:�::L'.�(%!
q �-i�a
n,a 60865
InItlaYDM1
alYCallllCJL
� ❑ arvwnonlEV ❑ arvainR
❑liLI1C14LfERVICFJOR ❑AUIlCLLiFRVIACClO
❑ WYORIORAYISfNR) ❑
(CLIP AlL LOCATIONS FOR SIGNATURE)
Requesting that the Administration seek to delay temporarily the demolition of the
F,�cisting Arena.
PUINNING CAMMISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
AMOUNT OF TRANSACTION S
SOURCE
RSONAL SERVICE CONTRACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
f�96 �fll6 PQISON�11112V2( Ntlli(M UIIdEIB C011hdL1 fOf NXB d2pHf�I11ElIf7
VES NO
Hec Mis G���im e� been a CdY emPbYee9
YES NO
Dces Mis person/fi�m poesess a sldll not nwmalrypoeaessetl M a�ry current cily empbyee'T
YES NO
�s Mis oe+soNfiim a tarpeted venda4
YES F�
CAST(REYENUE BUD6ETED (CIRCLE ONE)
ACTIYITY NUMeER
YES NO
(��M
a �_�,�o
ARENA FINANCING COMPARISON
BEGINNING OF SESSION END OF SESSION
'CEA,1V1P1#I3TICIP.2TION: TEA�RTi('TPATTON•
�35 Million up-front contribution far the $3.5 miliion annual rent payments instead
arena financing of an up-front $35 million contribution
Team is responsibie for maintaining SAME
facility at industry standard over the lease
period
retains parking revenue from game night SAME
only
retains all other facility revenues except retains all revenues from the facility
for: including:
- ticket facility surcharge estimated - ticket facility surcharge estimated
at $1.4 million per year in the first at $1.4 million per year in the first
year at $1.00 year at $1.00
- outdoor marquee payment to the - outdoor marquee payxnent to the
City starting at $385,000 in the first City starting at $385,000 in the first
year and escalating at 5% annually year and escalating at 5% annually
thereafter thereafter
and assumes:
- teams imposes an additional $.50
ticket facility surcharge
immediaTely estimated to generate
an additional $700 thousand each
year
Team makes no property tax payments as Team makes a payment in lieu of taxes to
property is tax-exempt under special state the City that is calculated based on the
law. estimated value of the total revenue
generated from the ticket surcharge and
outdoor marquee, beginning at $2.5
million in the first year and increases to
over $6.0 million by the end of the 25 year
lease.
NO PROVISION Team agrees to repay the State an
additional $750,000 per year each year
that a loan payment is due if there is not
an agxeement in place with the Minnesota
Amatuer Sports Commission regarding
MASC use of the facility.
/� ,� ,M
STAT +�. PARTICIPAT�ON: �'�AT +�. PARTf�PATI0IY=
$65 Million in bond proceeds for the State loans $65 miliion interest free to the
arena financing City that is solely repaid from that portion
of the Team's annual $3.5 million rent
(and some o£the PILOT payment in the
last years of the loan). $17 million of the
loan is conditionally forgiven and the
remaining $48 million is repaid during the
term of the lease as follows:
- $1.25 million in years three
through five,
- $1.5 million in years six through
ten,
- $2.0 million in years eleven
through thirteen,
- $3.0 million in year fourteen,
- $4.0 million in year fifteen,
- $4.75 million in years sixteen
through twenty of the lease.
Receives revenues generated from the SAME
presence of the team through general state
taxes - estimated at up to $8 million in the
first year
��.a`°°
�ITy PABTI�IPATLQN: ('iTY_�A_R,TL��ON:
City contributes land foz new arena SAME
�30 Million in bond proceeds for the $65 Million in bond proceeds for the
arena financing with debt service funded arena financing with debt service funded
by: by:
- ticket facility surcharge estimated - Annual tax payments by the Team
at $1.4 million per year in the first which start at $2.5 million and
year at $1.00 escalate to over $6 million during
- outdoor marquee payment to the the term of the lease
City starting at $385,000 in the first - Annual rent payments from the
year and escalating at 5% annually Team not otherwise used to repay
thereafter state loan
- `h cent sales tax revenues from the - Tax increments available from
40% dedicated to the RiverCentre Block 391Arena district in years 16
not otherwise needed far existing through 25 of the district
debt - %a cent sales taY revenues from the
40% dedicated to the RiverCentre
not otherwise needed for existing
debt
Hotel/Motel tax proceeds identified as a HoteUMotei taxes not needed for debt
possible source for interim financing plan service on City's debt.
Local % cent sales tax scheduled to expire Local'h cent sales tax could be extended,
in 2023 with local approval, to 2030 to provide
additional coverage for city's debt
City retains parking revenues except for SAME
game night event parking
�
C
L
Q
3
a�
z
R
O
c
0
�
i
N
C
0
d
L
w
�
_
.�
C
R
_
�
w
�
w
N
�
w
�
G
�
a
,°
U
w
N
�
R
R
Q
N
N
�
C
�
�
�
d
�
�
01
r
t>
�
c
m
m m a �
��a
�
�
N ?
� � c
� O'� >
v > �
Q �
.-. X � C
�F N j
c K
x
y� C W
�^p �U N
v W R @
2 (b
� �
c � d
� � y �
� ~ N
m a
o` c
c "' °�
d c E
� � �
� � J 4.
� � 0
� `,.�.� a
0
H C
N
� T
aa
O C
� w N
� N >.
N,�.
� « y
N
� � J
O
C
�
.-. � N
�- @ a
v � �
00000°
00
00
��
O NO>O
iI1 M O o�
r��r�n
oJ OJ 6� O
ro 6� c0 W
wmr_n
ui �!i t 7
i o 0 0 0 0 0 0 0 0 0 0 0 0
�0000000000000
�0000000000000
i00000000dodoo
) 0 0 0 0 0 0 0 0 0 h�[ l N N
�����0000a����
,������������v
�fJ O O� N
f�- O (O h
co v_ �o v
c�'i�N�
� � � �
no�co
� n ti n
O�c-
� � �
(O N�
h � (h
W N N
��
(p O� O N th N� tOI�- � rn(V
t � N� ��� V M:� � 1� n
N OJ 6� I� V N O t0 'd' �.- c0 CO i�
N I� ifl N M W CO tn o]�O� N V�
N(O r tD'cD r P- 1�- o'li.-- O f� �
oo c<rv
N NIN N N N
r�� � c- 'I
000 00000'00000`00 000 0000
O O O O
I O O O O
u>ood
� � � � �
O O O O O O O O
O O O O m� �
nv �r ° �
W � � O
W �(061
� � � n
N h V V
0000000
oc9o<oo»mC� N`S m(p
N<N ONNMNTaONI�M
o��tOCn V oi��n6)CINMt�
th00 NMt0�f10QN(OM
LL�N O � � <�(O'C'Q N6�
[{I�ON� W NN�C�I+� N
�-- � N N N N M Ci c•i �i � N tfi
tn'Q6> O>N V NO]OlN[V o]
�oD'V ��'cT`o')�NON
� cv_ o �o co r� m v m�n
mv�c�iomorincioo �n
OCf (O�� �N s-�'CMN(O
th th o') C') tD f0 tO h 1� i� I� GD W
�ANNNNNtn�7 M [nMt7t7
0000000000000
00000
00000
00000
o in v� �n �n
� _-._,......
00000�mo
� M O N
n v_ v_ M
� W � V
M�Y�YJ
NNtV N
00000°
O O
N N
O O O O O O O
O O O O
0000
O O O O
v� v� �n v�
MthMM
c0� P�NMd
N� O O O O O
`m ornw0000a
} C t n t V N N N N
7
� W �
J a
in�SO� O>N7NmO>NNm
n N o�� m� c�n a' ro _ m i n
O� � N O 6� O c� 1� a') O O f- �
Of`�(OO�vtfiNc-�af MI�.-
t9c9c�M�«NN �OOa-
r� vi ai c� v v v" v v v vi �n �ri
0000
O O O O O O O O�O O O O
O O O O O O O O O O O O O
O O O OIO O O O O O O O O
O O O Q'O O O O O O O O O
N N N NIO O O O��f1 N h h
�� �N N N M M t7 vvM
..�.�.-.:a......���1....
� O O O O'O O O O O
� O O O O�O
1 O O O O�O
� o 0 0 0 0
i O O O O Y J
_`n
>CO y �y �NO00
J� Nt7�� - -Nh��
a107��'7K V
1MI� N1� NN(D(O(O
dN V'N��I�tV NN
)O � V'O(ON �� W
it � t ��`������
)l�0] O�N(OI��N1�
JN�-�NNM(0o] V
)00 W V cON(DNNO]
)�N�(ON NOc-tn
)� < CO (V OJ � N dl CO
� V'h �n(DCOI�o�o�m
00) W bi W ���6��
> o 0 0 0 0 0 0 0 0
r�mmc
� ro a a
N�(�OC
W O O a
uimma
�rmc��
N tncOCO�
N(DNN tt
N N O s U
NNNO�¢
Ncnc'��
m�ocoma
00000l00000
0 0 0 010 0 0 0 O10 0 0 0 0�0 0 0 0 0 0 0 0 0
O O O O!O O O O OIO O O O O,O O O O OIO O O O
0000�0000000000,000000000
OOOOIO o 0 0000000100000�00 00
O O O O,O O O O O O O O O Oj O O O O�O O O O
NNt[Jtn�tntntntnhtn�[J�tn�NN N���tntnNtn
th M M th � M M M M f") (7 M M t7 M� M M th ch th � th M� t7
I�m�OI•-NC")��A
00�� �� �<.-
0 0 0 0�0 0 0 0 0
NNNNI�NNNNN
r �� NlN N N N
`o`000�0000
N N N N N N N
O O O
N N N
� o'
I .�
��f ��
i!
w^ ai
�I N
V{ N @
m
�;I N V y
O
o �, � � o
O! p C N
�I
° o'! � � a�i
�� O N X
�1� ���°�
� ��-=�
Q
�li r r � ''
N
R� � T � tr
� � Q � R
� U
N � � C p
c a m � E
� � m,
0 N �"'
� N
3 �
�� p O aw
� c� � o - o
m� EEO�
T
G � O �
<r o a o
sl = �oV
of
�o� a'c a c
o o m��
o� o — a�
�I � o ��
� � N N N
� + � O
+,�.. N N :-'
��-w m
ErnU o
�X
rn
m @ r C
�I �°?om
� �
I �ma�
ro o � � o
w � _
1 O (6 U
jI pv= > N
m . � �
= d �
t � � �
i �
° o�l m a�^
O I .�_. � � `�
�, � � C
< J, ="
� �� � N 0 �
o � p) �
I =
' I C N ; O
O
� � N
� �
� O, � T.�.. N (O
� �'i a � ^ �`1
i
��C
� p @ �p t
O. C
' uiii �� m >.
I °'�� a v .t m
� c w t
i �il m m ._...
i .� � ..�� IL
� �
� N
C
O
�a
�
N
Q
�
�
<
C
��� qg
_ � ����
` �k � a
\� ��
RESOLUTION
�� CITY OF SAINT PAUL, N
Presented By
Referred To
8
Council File # ag_aGc
Green She # lo � �
ESOTA . �''��/ /
RESOLUTION FOR DELAY
IN DEMOLITION OF EXISTING A]
WIIEREAS, the Ciry of Saint Paul has entered into legally binding contract (the Arena
Lease) with the Minnesota Wild; and
WFIEREAS, part of that contract requires tha demolition begin on the e�sting
RiverCentre Arena as early as April 10, 1998 and t a new arena be constructed in its place;
and
WI3EREAS, the City is seeking $65 llion in state bonding to partially fmance the
azena; and
WHEREAS, the State has not y authorized the required bonding or other state financing
alternatives; and
WIIEREAS, if the State f s to approve the total state financing for the arena, the City
will be required to finance up t as much as an additional $65 million tfirough other sources; and
WHEREAS, any
taxpayers and on St. Pau
and /
�rnative financing plan may have a detrimental effect on St. Paui
ability to fully and appropriately fund basic and critical city services;
an alternative financing plan has not yet been approved by the city council;
�
either
3AS, the demolition of the Existing Arena before securing the necessary financing
State or other sources is not in the best interests of the citizens of St. Paul; now,
it
VED, that the Council of the Ciry of Saint Paul hereby demands that the
seek to delay temporarily the demolition of the Existing Arena, either:
(a) by redefining the Possession Date of Apri1 10, 1998, as that term is fiirther defined in
Section i.l of the Arena Lease; or
� ��,jq�
1
2
3
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
98-�.Go
(b) by modifying the requirement in Section 6.2 of the Arena Lease t the Tenant
proceed to abate, demolish and cleaz the E�sting Arena within th time period required
by the Arena Lease; and, be it
FURTF�R RESOLVED, that such delay or modificafion
foregoing Resolved Clause shall in any case delay the demolition
such tune as either: /
referenced in the
ie Existing Arena untii
(a) the State of Mannesota shall haue passed a bondin bill or other measure providing
$65 million in staxe assistance for the construction the new Arena; or
(b) if the State of Minnesota shall have passed other measure or measures which
direcUy or indirectly provide financial assis e for the construction of the new Arena,
but directly or indirectly have a negative un ct on othez City revenue sources or
allocations, the City Council shall have ha the opportunity to consider and act on the
implications of such measure; or
(c) the City Council shall have had
alternatives that may be available t
and the amount that is actually pr�`
million. /
opportunity to consider and act on financing
'.dge the gap between the totai cost of construction
d by the State of Minnes�, if less than $65
- ��
�
� �� �C�
\ \
�\
Adopted by
Adoption Ce
By:
Approved by
By: �
Date
by Covncil Secretary
. Date
Requested by Department of:
By:
Form App oved by C� rney
$Y= � J��
Appsoved by Mayor for Submission to Council
By:
GREEN SHEET
�
TOTAL # OF SIGNATURE PAGES
L�-�I�:�::L'.�(%!
q �-i�a
n,a 60865
InItlaYDM1
alYCallllCJL
� ❑ arvwnonlEV ❑ arvainR
❑liLI1C14LfERVICFJOR ❑AUIlCLLiFRVIACClO
❑ WYORIORAYISfNR) ❑
(CLIP AlL LOCATIONS FOR SIGNATURE)
Requesting that the Administration seek to delay temporarily the demolition of the
F,�cisting Arena.
PUINNING CAMMISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
AMOUNT OF TRANSACTION S
SOURCE
RSONAL SERVICE CONTRACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
f�96 �fll6 PQISON�11112V2( Ntlli(M UIIdEIB C011hdL1 fOf NXB d2pHf�I11ElIf7
VES NO
Hec Mis G���im e� been a CdY emPbYee9
YES NO
Dces Mis person/fi�m poesess a sldll not nwmalrypoeaessetl M a�ry current cily empbyee'T
YES NO
�s Mis oe+soNfiim a tarpeted venda4
YES F�
CAST(REYENUE BUD6ETED (CIRCLE ONE)
ACTIYITY NUMeER
YES NO
(��M
a �_�,�o
ARENA FINANCING COMPARISON
BEGINNING OF SESSION END OF SESSION
'CEA,1V1P1#I3TICIP.2TION: TEA�RTi('TPATTON•
�35 Million up-front contribution far the $3.5 miliion annual rent payments instead
arena financing of an up-front $35 million contribution
Team is responsibie for maintaining SAME
facility at industry standard over the lease
period
retains parking revenue from game night SAME
only
retains all other facility revenues except retains all revenues from the facility
for: including:
- ticket facility surcharge estimated - ticket facility surcharge estimated
at $1.4 million per year in the first at $1.4 million per year in the first
year at $1.00 year at $1.00
- outdoor marquee payment to the - outdoor marquee payxnent to the
City starting at $385,000 in the first City starting at $385,000 in the first
year and escalating at 5% annually year and escalating at 5% annually
thereafter thereafter
and assumes:
- teams imposes an additional $.50
ticket facility surcharge
immediaTely estimated to generate
an additional $700 thousand each
year
Team makes no property tax payments as Team makes a payment in lieu of taxes to
property is tax-exempt under special state the City that is calculated based on the
law. estimated value of the total revenue
generated from the ticket surcharge and
outdoor marquee, beginning at $2.5
million in the first year and increases to
over $6.0 million by the end of the 25 year
lease.
NO PROVISION Team agrees to repay the State an
additional $750,000 per year each year
that a loan payment is due if there is not
an agxeement in place with the Minnesota
Amatuer Sports Commission regarding
MASC use of the facility.
/� ,� ,M
STAT +�. PARTICIPAT�ON: �'�AT +�. PARTf�PATI0IY=
$65 Million in bond proceeds for the State loans $65 miliion interest free to the
arena financing City that is solely repaid from that portion
of the Team's annual $3.5 million rent
(and some o£the PILOT payment in the
last years of the loan). $17 million of the
loan is conditionally forgiven and the
remaining $48 million is repaid during the
term of the lease as follows:
- $1.25 million in years three
through five,
- $1.5 million in years six through
ten,
- $2.0 million in years eleven
through thirteen,
- $3.0 million in year fourteen,
- $4.0 million in year fifteen,
- $4.75 million in years sixteen
through twenty of the lease.
Receives revenues generated from the SAME
presence of the team through general state
taxes - estimated at up to $8 million in the
first year
��.a`°°
�ITy PABTI�IPATLQN: ('iTY_�A_R,TL��ON:
City contributes land foz new arena SAME
�30 Million in bond proceeds for the $65 Million in bond proceeds for the
arena financing with debt service funded arena financing with debt service funded
by: by:
- ticket facility surcharge estimated - Annual tax payments by the Team
at $1.4 million per year in the first which start at $2.5 million and
year at $1.00 escalate to over $6 million during
- outdoor marquee payment to the the term of the lease
City starting at $385,000 in the first - Annual rent payments from the
year and escalating at 5% annually Team not otherwise used to repay
thereafter state loan
- `h cent sales tax revenues from the - Tax increments available from
40% dedicated to the RiverCentre Block 391Arena district in years 16
not otherwise needed far existing through 25 of the district
debt - %a cent sales taY revenues from the
40% dedicated to the RiverCentre
not otherwise needed for existing
debt
Hotel/Motel tax proceeds identified as a HoteUMotei taxes not needed for debt
possible source for interim financing plan service on City's debt.
Local % cent sales tax scheduled to expire Local'h cent sales tax could be extended,
in 2023 with local approval, to 2030 to provide
additional coverage for city's debt
City retains parking revenues except for SAME
game night event parking
�
C
L
Q
3
a�
z
R
O
c
0
�
i
N
C
0
d
L
w
�
_
.�
C
R
_
�
w
�
w
N
�
w
�
G
�
a
,°
U
w
N
�
R
R
Q
N
N
�
C
�
�
�
d
�
�
01
r
t>
�
c
m
m m a �
��a
�
�
N ?
� � c
� O'� >
v > �
Q �
.-. X � C
�F N j
c K
x
y� C W
�^p �U N
v W R @
2 (b
� �
c � d
� � y �
� ~ N
m a
o` c
c "' °�
d c E
� � �
� � J 4.
� � 0
� `,.�.� a
0
H C
N
� T
aa
O C
� w N
� N >.
N,�.
� « y
N
� � J
O
C
�
.-. � N
�- @ a
v � �
00000°
00
00
��
O NO>O
iI1 M O o�
r��r�n
oJ OJ 6� O
ro 6� c0 W
wmr_n
ui �!i t 7
i o 0 0 0 0 0 0 0 0 0 0 0 0
�0000000000000
�0000000000000
i00000000dodoo
) 0 0 0 0 0 0 0 0 0 h�[ l N N
�����0000a����
,������������v
�fJ O O� N
f�- O (O h
co v_ �o v
c�'i�N�
� � � �
no�co
� n ti n
O�c-
� � �
(O N�
h � (h
W N N
��
(p O� O N th N� tOI�- � rn(V
t � N� ��� V M:� � 1� n
N OJ 6� I� V N O t0 'd' �.- c0 CO i�
N I� ifl N M W CO tn o]�O� N V�
N(O r tD'cD r P- 1�- o'li.-- O f� �
oo c<rv
N NIN N N N
r�� � c- 'I
000 00000'00000`00 000 0000
O O O O
I O O O O
u>ood
� � � � �
O O O O O O O O
O O O O m� �
nv �r ° �
W � � O
W �(061
� � � n
N h V V
0000000
oc9o<oo»mC� N`S m(p
N<N ONNMNTaONI�M
o��tOCn V oi��n6)CINMt�
th00 NMt0�f10QN(OM
LL�N O � � <�(O'C'Q N6�
[{I�ON� W NN�C�I+� N
�-- � N N N N M Ci c•i �i � N tfi
tn'Q6> O>N V NO]OlN[V o]
�oD'V ��'cT`o')�NON
� cv_ o �o co r� m v m�n
mv�c�iomorincioo �n
OCf (O�� �N s-�'CMN(O
th th o') C') tD f0 tO h 1� i� I� GD W
�ANNNNNtn�7 M [nMt7t7
0000000000000
00000
00000
00000
o in v� �n �n
� _-._,......
00000�mo
� M O N
n v_ v_ M
� W � V
M�Y�YJ
NNtV N
00000°
O O
N N
O O O O O O O
O O O O
0000
O O O O
v� v� �n v�
MthMM
c0� P�NMd
N� O O O O O
`m ornw0000a
} C t n t V N N N N
7
� W �
J a
in�SO� O>N7NmO>NNm
n N o�� m� c�n a' ro _ m i n
O� � N O 6� O c� 1� a') O O f- �
Of`�(OO�vtfiNc-�af MI�.-
t9c9c�M�«NN �OOa-
r� vi ai c� v v v" v v v vi �n �ri
0000
O O O O O O O O�O O O O
O O O O O O O O O O O O O
O O O OIO O O O O O O O O
O O O Q'O O O O O O O O O
N N N NIO O O O��f1 N h h
�� �N N N M M t7 vvM
..�.�.-.:a......���1....
� O O O O'O O O O O
� O O O O�O
1 O O O O�O
� o 0 0 0 0
i O O O O Y J
_`n
>CO y �y �NO00
J� Nt7�� - -Nh��
a107��'7K V
1MI� N1� NN(D(O(O
dN V'N��I�tV NN
)O � V'O(ON �� W
it � t ��`������
)l�0] O�N(OI��N1�
JN�-�NNM(0o] V
)00 W V cON(DNNO]
)�N�(ON NOc-tn
)� < CO (V OJ � N dl CO
� V'h �n(DCOI�o�o�m
00) W bi W ���6��
> o 0 0 0 0 0 0 0 0
r�mmc
� ro a a
N�(�OC
W O O a
uimma
�rmc��
N tncOCO�
N(DNN tt
N N O s U
NNNO�¢
Ncnc'��
m�ocoma
00000l00000
0 0 0 010 0 0 0 O10 0 0 0 0�0 0 0 0 0 0 0 0 0
O O O O!O O O O OIO O O O O,O O O O OIO O O O
0000�0000000000,000000000
OOOOIO o 0 0000000100000�00 00
O O O O,O O O O O O O O O Oj O O O O�O O O O
NNt[Jtn�tntntntnhtn�[J�tn�NN N���tntnNtn
th M M th � M M M M f") (7 M M t7 M� M M th ch th � th M� t7
I�m�OI•-NC")��A
00�� �� �<.-
0 0 0 0�0 0 0 0 0
NNNNI�NNNNN
r �� NlN N N N
`o`000�0000
N N N N N N N
O O O
N N N
� o'
I .�
��f ��
i!
w^ ai
�I N
V{ N @
m
�;I N V y
O
o �, � � o
O! p C N
�I
° o'! � � a�i
�� O N X
�1� ���°�
� ��-=�
Q
�li r r � ''
N
R� � T � tr
� � Q � R
� U
N � � C p
c a m � E
� � m,
0 N �"'
� N
3 �
�� p O aw
� c� � o - o
m� EEO�
T
G � O �
<r o a o
sl = �oV
of
�o� a'c a c
o o m��
o� o — a�
�I � o ��
� � N N N
� + � O
+,�.. N N :-'
��-w m
ErnU o
�X
rn
m @ r C
�I �°?om
� �
I �ma�
ro o � � o
w � _
1 O (6 U
jI pv= > N
m . � �
= d �
t � � �
i �
° o�l m a�^
O I .�_. � � `�
�, � � C
< J, ="
� �� � N 0 �
o � p) �
I =
' I C N ; O
O
� � N
� �
� O, � T.�.. N (O
� �'i a � ^ �`1
i
��C
� p @ �p t
O. C
' uiii �� m >.
I °'�� a v .t m
� c w t
i �il m m ._...
i .� � ..�� IL
� �
� N
C
O
�a
�
N
Q
�
�
<
C
��� qg
_ � ����
` �k � a
\� ��
RESOLUTION
�� CITY OF SAINT PAUL, N
Presented By
Referred To
8
Council File # ag_aGc
Green She # lo � �
ESOTA . �''��/ /
RESOLUTION FOR DELAY
IN DEMOLITION OF EXISTING A]
WIIEREAS, the Ciry of Saint Paul has entered into legally binding contract (the Arena
Lease) with the Minnesota Wild; and
WFIEREAS, part of that contract requires tha demolition begin on the e�sting
RiverCentre Arena as early as April 10, 1998 and t a new arena be constructed in its place;
and
WI3EREAS, the City is seeking $65 llion in state bonding to partially fmance the
azena; and
WHEREAS, the State has not y authorized the required bonding or other state financing
alternatives; and
WIIEREAS, if the State f s to approve the total state financing for the arena, the City
will be required to finance up t as much as an additional $65 million tfirough other sources; and
WHEREAS, any
taxpayers and on St. Pau
and /
�rnative financing plan may have a detrimental effect on St. Paui
ability to fully and appropriately fund basic and critical city services;
an alternative financing plan has not yet been approved by the city council;
�
either
3AS, the demolition of the Existing Arena before securing the necessary financing
State or other sources is not in the best interests of the citizens of St. Paul; now,
it
VED, that the Council of the Ciry of Saint Paul hereby demands that the
seek to delay temporarily the demolition of the Existing Arena, either:
(a) by redefining the Possession Date of Apri1 10, 1998, as that term is fiirther defined in
Section i.l of the Arena Lease; or
� ��,jq�
1
2
3
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
98-�.Go
(b) by modifying the requirement in Section 6.2 of the Arena Lease t the Tenant
proceed to abate, demolish and cleaz the E�sting Arena within th time period required
by the Arena Lease; and, be it
FURTF�R RESOLVED, that such delay or modificafion
foregoing Resolved Clause shall in any case delay the demolition
such tune as either: /
referenced in the
ie Existing Arena untii
(a) the State of Mannesota shall haue passed a bondin bill or other measure providing
$65 million in staxe assistance for the construction the new Arena; or
(b) if the State of Minnesota shall have passed other measure or measures which
direcUy or indirectly provide financial assis e for the construction of the new Arena,
but directly or indirectly have a negative un ct on othez City revenue sources or
allocations, the City Council shall have ha the opportunity to consider and act on the
implications of such measure; or
(c) the City Council shall have had
alternatives that may be available t
and the amount that is actually pr�`
million. /
opportunity to consider and act on financing
'.dge the gap between the totai cost of construction
d by the State of Minnes�, if less than $65
- ��
�
� �� �C�
\ \
�\
Adopted by
Adoption Ce
By:
Approved by
By: �
Date
by Covncil Secretary
. Date
Requested by Department of:
By:
Form App oved by C� rney
$Y= � J��
Appsoved by Mayor for Submission to Council
By:
GREEN SHEET
�
TOTAL # OF SIGNATURE PAGES
L�-�I�:�::L'.�(%!
q �-i�a
n,a 60865
InItlaYDM1
alYCallllCJL
� ❑ arvwnonlEV ❑ arvainR
❑liLI1C14LfERVICFJOR ❑AUIlCLLiFRVIACClO
❑ WYORIORAYISfNR) ❑
(CLIP AlL LOCATIONS FOR SIGNATURE)
Requesting that the Administration seek to delay temporarily the demolition of the
F,�cisting Arena.
PUINNING CAMMISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
AMOUNT OF TRANSACTION S
SOURCE
RSONAL SERVICE CONTRACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
f�96 �fll6 PQISON�11112V2( Ntlli(M UIIdEIB C011hdL1 fOf NXB d2pHf�I11ElIf7
VES NO
Hec Mis G���im e� been a CdY emPbYee9
YES NO
Dces Mis person/fi�m poesess a sldll not nwmalrypoeaessetl M a�ry current cily empbyee'T
YES NO
�s Mis oe+soNfiim a tarpeted venda4
YES F�
CAST(REYENUE BUD6ETED (CIRCLE ONE)
ACTIYITY NUMeER
YES NO
(��M
a �_�,�o
ARENA FINANCING COMPARISON
BEGINNING OF SESSION END OF SESSION
'CEA,1V1P1#I3TICIP.2TION: TEA�RTi('TPATTON•
�35 Million up-front contribution far the $3.5 miliion annual rent payments instead
arena financing of an up-front $35 million contribution
Team is responsibie for maintaining SAME
facility at industry standard over the lease
period
retains parking revenue from game night SAME
only
retains all other facility revenues except retains all revenues from the facility
for: including:
- ticket facility surcharge estimated - ticket facility surcharge estimated
at $1.4 million per year in the first at $1.4 million per year in the first
year at $1.00 year at $1.00
- outdoor marquee payment to the - outdoor marquee payxnent to the
City starting at $385,000 in the first City starting at $385,000 in the first
year and escalating at 5% annually year and escalating at 5% annually
thereafter thereafter
and assumes:
- teams imposes an additional $.50
ticket facility surcharge
immediaTely estimated to generate
an additional $700 thousand each
year
Team makes no property tax payments as Team makes a payment in lieu of taxes to
property is tax-exempt under special state the City that is calculated based on the
law. estimated value of the total revenue
generated from the ticket surcharge and
outdoor marquee, beginning at $2.5
million in the first year and increases to
over $6.0 million by the end of the 25 year
lease.
NO PROVISION Team agrees to repay the State an
additional $750,000 per year each year
that a loan payment is due if there is not
an agxeement in place with the Minnesota
Amatuer Sports Commission regarding
MASC use of the facility.
/� ,� ,M
STAT +�. PARTICIPAT�ON: �'�AT +�. PARTf�PATI0IY=
$65 Million in bond proceeds for the State loans $65 miliion interest free to the
arena financing City that is solely repaid from that portion
of the Team's annual $3.5 million rent
(and some o£the PILOT payment in the
last years of the loan). $17 million of the
loan is conditionally forgiven and the
remaining $48 million is repaid during the
term of the lease as follows:
- $1.25 million in years three
through five,
- $1.5 million in years six through
ten,
- $2.0 million in years eleven
through thirteen,
- $3.0 million in year fourteen,
- $4.0 million in year fifteen,
- $4.75 million in years sixteen
through twenty of the lease.
Receives revenues generated from the SAME
presence of the team through general state
taxes - estimated at up to $8 million in the
first year
��.a`°°
�ITy PABTI�IPATLQN: ('iTY_�A_R,TL��ON:
City contributes land foz new arena SAME
�30 Million in bond proceeds for the $65 Million in bond proceeds for the
arena financing with debt service funded arena financing with debt service funded
by: by:
- ticket facility surcharge estimated - Annual tax payments by the Team
at $1.4 million per year in the first which start at $2.5 million and
year at $1.00 escalate to over $6 million during
- outdoor marquee payment to the the term of the lease
City starting at $385,000 in the first - Annual rent payments from the
year and escalating at 5% annually Team not otherwise used to repay
thereafter state loan
- `h cent sales tax revenues from the - Tax increments available from
40% dedicated to the RiverCentre Block 391Arena district in years 16
not otherwise needed far existing through 25 of the district
debt - %a cent sales taY revenues from the
40% dedicated to the RiverCentre
not otherwise needed for existing
debt
Hotel/Motel tax proceeds identified as a HoteUMotei taxes not needed for debt
possible source for interim financing plan service on City's debt.
Local % cent sales tax scheduled to expire Local'h cent sales tax could be extended,
in 2023 with local approval, to 2030 to provide
additional coverage for city's debt
City retains parking revenues except for SAME
game night event parking
�
C
L
Q
3
a�
z
R
O
c
0
�
i
N
C
0
d
L
w
�
_
.�
C
R
_
�
w
�
w
N
�
w
�
G
�
a
,°
U
w
N
�
R
R
Q
N
N
�
C
�
�
�
d
�
�
01
r
t>
�
c
m
m m a �
��a
�
�
N ?
� � c
� O'� >
v > �
Q �
.-. X � C
�F N j
c K
x
y� C W
�^p �U N
v W R @
2 (b
� �
c � d
� � y �
� ~ N
m a
o` c
c "' °�
d c E
� � �
� � J 4.
� � 0
� `,.�.� a
0
H C
N
� T
aa
O C
� w N
� N >.
N,�.
� « y
N
� � J
O
C
�
.-. � N
�- @ a
v � �
00000°
00
00
��
O NO>O
iI1 M O o�
r��r�n
oJ OJ 6� O
ro 6� c0 W
wmr_n
ui �!i t 7
i o 0 0 0 0 0 0 0 0 0 0 0 0
�0000000000000
�0000000000000
i00000000dodoo
) 0 0 0 0 0 0 0 0 0 h�[ l N N
�����0000a����
,������������v
�fJ O O� N
f�- O (O h
co v_ �o v
c�'i�N�
� � � �
no�co
� n ti n
O�c-
� � �
(O N�
h � (h
W N N
��
(p O� O N th N� tOI�- � rn(V
t � N� ��� V M:� � 1� n
N OJ 6� I� V N O t0 'd' �.- c0 CO i�
N I� ifl N M W CO tn o]�O� N V�
N(O r tD'cD r P- 1�- o'li.-- O f� �
oo c<rv
N NIN N N N
r�� � c- 'I
000 00000'00000`00 000 0000
O O O O
I O O O O
u>ood
� � � � �
O O O O O O O O
O O O O m� �
nv �r ° �
W � � O
W �(061
� � � n
N h V V
0000000
oc9o<oo»mC� N`S m(p
N<N ONNMNTaONI�M
o��tOCn V oi��n6)CINMt�
th00 NMt0�f10QN(OM
LL�N O � � <�(O'C'Q N6�
[{I�ON� W NN�C�I+� N
�-- � N N N N M Ci c•i �i � N tfi
tn'Q6> O>N V NO]OlN[V o]
�oD'V ��'cT`o')�NON
� cv_ o �o co r� m v m�n
mv�c�iomorincioo �n
OCf (O�� �N s-�'CMN(O
th th o') C') tD f0 tO h 1� i� I� GD W
�ANNNNNtn�7 M [nMt7t7
0000000000000
00000
00000
00000
o in v� �n �n
� _-._,......
00000�mo
� M O N
n v_ v_ M
� W � V
M�Y�YJ
NNtV N
00000°
O O
N N
O O O O O O O
O O O O
0000
O O O O
v� v� �n v�
MthMM
c0� P�NMd
N� O O O O O
`m ornw0000a
} C t n t V N N N N
7
� W �
J a
in�SO� O>N7NmO>NNm
n N o�� m� c�n a' ro _ m i n
O� � N O 6� O c� 1� a') O O f- �
Of`�(OO�vtfiNc-�af MI�.-
t9c9c�M�«NN �OOa-
r� vi ai c� v v v" v v v vi �n �ri
0000
O O O O O O O O�O O O O
O O O O O O O O O O O O O
O O O OIO O O O O O O O O
O O O Q'O O O O O O O O O
N N N NIO O O O��f1 N h h
�� �N N N M M t7 vvM
..�.�.-.:a......���1....
� O O O O'O O O O O
� O O O O�O
1 O O O O�O
� o 0 0 0 0
i O O O O Y J
_`n
>CO y �y �NO00
J� Nt7�� - -Nh��
a107��'7K V
1MI� N1� NN(D(O(O
dN V'N��I�tV NN
)O � V'O(ON �� W
it � t ��`������
)l�0] O�N(OI��N1�
JN�-�NNM(0o] V
)00 W V cON(DNNO]
)�N�(ON NOc-tn
)� < CO (V OJ � N dl CO
� V'h �n(DCOI�o�o�m
00) W bi W ���6��
> o 0 0 0 0 0 0 0 0
r�mmc
� ro a a
N�(�OC
W O O a
uimma
�rmc��
N tncOCO�
N(DNN tt
N N O s U
NNNO�¢
Ncnc'��
m�ocoma
00000l00000
0 0 0 010 0 0 0 O10 0 0 0 0�0 0 0 0 0 0 0 0 0
O O O O!O O O O OIO O O O O,O O O O OIO O O O
0000�0000000000,000000000
OOOOIO o 0 0000000100000�00 00
O O O O,O O O O O O O O O Oj O O O O�O O O O
NNt[Jtn�tntntntnhtn�[J�tn�NN N���tntnNtn
th M M th � M M M M f") (7 M M t7 M� M M th ch th � th M� t7
I�m�OI•-NC")��A
00�� �� �<.-
0 0 0 0�0 0 0 0 0
NNNNI�NNNNN
r �� NlN N N N
`o`000�0000
N N N N N N N
O O O
N N N
� o'
I .�
��f ��
i!
w^ ai
�I N
V{ N @
m
�;I N V y
O
o �, � � o
O! p C N
�I
° o'! � � a�i
�� O N X
�1� ���°�
� ��-=�
Q
�li r r � ''
N
R� � T � tr
� � Q � R
� U
N � � C p
c a m � E
� � m,
0 N �"'
� N
3 �
�� p O aw
� c� � o - o
m� EEO�
T
G � O �
<r o a o
sl = �oV
of
�o� a'c a c
o o m��
o� o — a�
�I � o ��
� � N N N
� + � O
+,�.. N N :-'
��-w m
ErnU o
�X
rn
m @ r C
�I �°?om
� �
I �ma�
ro o � � o
w � _
1 O (6 U
jI pv= > N
m . � �
= d �
t � � �
i �
° o�l m a�^
O I .�_. � � `�
�, � � C
< J, ="
� �� � N 0 �
o � p) �
I =
' I C N ; O
O
� � N
� �
� O, � T.�.. N (O
� �'i a � ^ �`1
i
��C
� p @ �p t
O. C
' uiii �� m >.
I °'�� a v .t m
� c w t
i �il m m ._...
i .� � ..�� IL
� �
� N
C
O
�a
�
N
Q
�
�
<
C