91-1448 ORtG1NA,�. �� �
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RESOLUTION
SAINT AUL, MINNESO ��
Pre nted By I
eferred To Coa�nittee: Date '�- /
, -
RESOLUT'ION APPROVING THE ISSUANCE OF B NDS BY
THE PORT AUTHORITY OF THE CTTY OF S PAUL
TO JOINTLY REFINANCING A MULTI-FAM Y
HOUSING PROGRAM
WHEREAS,
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a) Pursuant to Minnesota Statute, Chapter 462 (the "Act"), the ity of Saint Paul (the"City")
has been authorized to develop and administer programs of multi-family ho ing development under the
circumstances and within the limitations set forth in the Act. Section 462C.07 f the Act provides that such
programs for multi-family housing developments may be financed by revenue b nds issued by either the City
or any port authority referred to in the Minnesota Statutes, Chapter 458.
b) On March 1, 1983, following a public hearing held on the sarc�e date, the City approved by
Council Resolution No.279896(the"Resolution")a program(the"Program")fo financing 325 units of rental
housing (the "Project") to be owned and operated by AHW Corporation in aint Paul Energy Park, and
authorized The Housing and Redevelopment Authority of the City of Saint Pa 1,Minnesota (the"HRA") to
issue revenue bonds in the aggregate principal amount of$13,000,000, includi�g $5,600,000 to finance 138
rental units comprising Phase I of the Project and$7,400,000 to finance 175 um�ts comprising Phase II of the
PrQject.
c) On April 14, 1983 the HRA issued its multi-family housing r enue bonds (First Federal
Savings and Loan Association of Minnesota - FSLIGHilltop Partners Project) ' the amount of$3,500,000
to provide partial financing for Phase I of the Project (the "HRA Bonds").
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Yeas Na s Absent F' !'�Y ' '
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Form Approv by� City Attorne�
Adopted by Council: Date
Adoption Certified by Council Secretary
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SY� Approved by Mayor for Submission to
Approv'��l5y Mayor: Date Ccuncil .
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d) In connection with the issuance of the HRA Bonds, the Port Authority of the City of Saint
Paul(the"Port Authority")issued its$1,500,000 in taxable revenue bonds purs ant to Special Resolution No.
1270 of the Port Authority (the "Second Lien Bonds"), whi¢h revenue bon�were used in addition to the
$3,500,000 HRA Bonds to complete the financing of Phase I of the Project.
e) The City has been advised that the HRA Bonds are to be redeemed by the issuance of
$3,500,000 Multi-Family Housing Development Revenue Refunding Bonds,joi ly issued by the HRA and Port
Authority,and the Second Lien Bonds are to be refunded by the issuance of$�25,000 Multi-Family Housing
Development Revenue Refunding Bonds, issued by the Port Authority.
� Laws of Minnesota 1976, Chapter 234, provides thai the Por Authority may issue revenue
bonds only with the consent of the City Council of the City of Saint Panl(the City Council"),by Resolution
adopted in accordance with law.
g) Minnesota Statutes,Chapter 462C also requires that the City uncil authorize the issuance
of bonds under Chapter 462C.
h) The Port Authority and HRA have requested that the City Co ncil give its requisite consent
pursuant to said laws to facilitate the issuance of the refunding revenue bonds refened to herein,sub}ect to
final approval of the details of said issues by the respective issuers.
i) In addition to the City consent which is required by state 1 w, Section 1313(a)(3) of the
Intemal Revenue Code of 1986 requires that the tax-exempt refunding reve ue bonds be approved by an
elected official or body following a public hearing. The Port Authority has sch uled a public hearing on this
matter for August 20, 199, and has asked that the City Council authorize th Mayor to sign the approval.
required by the Internal Revenue Code at that time.
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Gr�Ben Sheet #
RESOLUTION
CITY OF SAINT PAUL, MINNES A
Presented By �
Referred To � Committee: Date
I
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RESOLVED,by the C
1. In accordance TO CITY COUNCIL COMMITTE : Chapter
462C, the City Council hereby ❑ FINANCE,MANAGEMENT 8 PERSON EL � )by the
Port Authority and HRA for t � �rity for
the purposes of refunding the; HOUSING&ECONOMIC DEVELOPME T � ing,but
not limited to,provisions relati � ;���
by the Port Authority and HR, ❑ HOUSING&REDEVELOPMENTAUTH RITY ��'►�
issuance of any additional bonc e��
found by those entities to be ne ❑ HUMAN SERVICES,REGULATED IND TRIES, -�ss�
AND RULES AND POLICY
2. The Mayor of I : to the
issuance of the tax-exempt refi ❑ INTERGOVERNMENTALRELATIONS of such
consent as the Port Authority
❑ NEIGHBORHOODSERVICES
❑ PUBLIC WORKS,UTILITIES&TRANSP RTATION
❑ ACTION
❑ OTHER
DATE
FROM
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Adopted by Council: Date Form Approved b ity Attorney
Adoption Certified by Council Secretary
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BY� Approved by Mayo for Submission to
Appro�8b9toy Mayor: Date Council �� , .
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By: BY�
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DEPARTMENT/ FFICE/COUNCIL DATE INITIATED
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P.E.D. - HOUSZNG 7/30/91 GREEN SH E ;,. - � N° _ 1�36�9
CONTACT PERSON&PHONE INITIAU TE INITIAUDATE
]�,,,n,, �DEPARTMENT DIRECTOR �CITY COUNCIL
^��,( "�-k}�
ASSIGN 0 Wa t B '-�]
ALLEN CARLS ON -3`�`k� NUIi18ER FOR CITY ATTORNEY CITY CLERK
MUST BE ON COUNCIL AOENDA BY(DATE) ROUTING �BUDQET DIRECTOR j''� �FIN.&MQT.SERVICES DIR.
8/6/91 ORDER �MAYOR(OR ASSISTANT) • �gY'�7 Pe ltie
TOTAL#OF SIGNATURE PAGES 2 (CLIP ALL LOCATIONS FOR SIGNATURE) en a o
ACTION REOUESTED:
Approve � resolution which permits the Port Authority o the City of Saint Paul
to issue with the HRA $3,50.0,000 in refunding revenue bonds t re-finance the
Kendrick Apartments in Energy Park `
RECOMMENDATIONS:Approve(A)or ReJsct(R) PERSONAL SERVICE CONTRACTS MUST ANS ER THE FOL40WIN0 GUE&TIONS: Y
_PLANNING COMMISSION _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a o0ntr ct for this department? �i-
_CIB COMMITTEE _ YES NO '
A SrAFF �� 2• Has this person/firm ever been a city employee
— — YES NO -
_DISTRICT COUR7 _ 3. Does this person/firm possess a skill not norm ly ppssessed by any�ciry e�dplqyee7 ,
SUPPORT3 WHICH COUNCIL OBJECTIVE? YES NO � -
Explain all yes anawers on separate�hest an gnen shql k
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INITIATINQ PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): .
The 144-unit Kendrick Apartments has been incurring since its de elopment in 5�83
cash flow defecits due to higher than expected operating costs a d burdensome
debt service obligations. Bond rates are much lower, thus refin cing the existii�,,�' `'�
$3,500,000 outstandings bonds will significantly lower the debt ervice obligati�� --:'
of the project.
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AOVANTACiES IFAPPROVED:
Refinancing the $3,500,000 HRA Bond issue will strengthen the pro'ect's cash flow
and insure its long term stability. ,
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DISADVANTAQES IF APPROVED: � O
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D13ADVANTAGES IF NOTAPPROVED: ?' .�
The project is currently in default of its second mortgage. If n action is taken��`'�
the project could go into forclosure and threaten repayment of th outstanding _ "�`' '
$3,500,000 HRA revenue bonds.
�-
TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED(C RCLE ONE) YES NO
FUNDING SOURCE ACTIVITY NUMBER
FINANCIAL INFORMATION:(EXPLAIN)
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NOTE: COMI�LETE DIRECT'IQN8 , ,� 1lVCLUDED IN THE GREEN SHEET INSTRUCTIONAL
MANUAL AVAILABLE iN T RCHASING OFFICE(PHONE NO.298-4225).
ROUTING ORDER:
correct routings for the f�ve most frequent types of documents:�
C �ACTS assumes authorized bud et exists COUNCIL RESOLUTION Amend Bud ets/Accept.Grants)
E 9 ) ( g
;<.. .. .. ...n
� 1. Outside Agency 1. Department Director
`-2. Department Director 2. City Attorney
3. City Attorney 3. Budget Director
�#. ..Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. City Council
�:'":Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
. --���inance Accounting
•'i4�!IINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION(all others,and Ordinances)
>,�,_y
7. ��tivity.ilAltilager 1. Department Director
2.' "t)a�•.IA��untant;-. 2. City Attorney
3_ �Depert��q�ctor _ 3. Mayor Assistant
.',:d; Bu�geC _ 4. City Council
` 5. Gity�Ierk „`";�� }
':;"B. Chief Accowitari��ir�ance and Management Services
ADMI�iSTRA7IV��RS(all others)
1. �Uep�rfinent DireGbr.-'
2. Ciry l�orney
3. Finaru�rvd Management Services Director
4. City�:;�;,. ,
,�r.`?�_ •t,r. .
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TOTAL N�7��`SIGNATURE PAGES
Indicate�#of pages on which signatures are required and paperclip or flag
each ot thess pages.
ACTION REQUESTED
Describe what the projecUreque,st seeks to accomplish in either chronologi-
cai order or oMer of importance,whichever is most appropriate for the
issue. Do not write complete sentences. Begin each item in your list with
a verb.
RECOMMENDATIONS
� Complete if the issue in question has been presented before any body, public
or private.
SUPPORTS WHICH COUNCIL OBJECTIVE?
Indicate which Council objective(s)your projecUrequest supports by listing
the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC D.EVELOPMENT,
BUD(3ET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
PERSONAL SERViCE CONTRACTS:
This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rules.
INITIA7'1NG PROBLEM, ISSUE,OPPORTUNITY
Expla_'tl'i�situation or conditions that created a need for your project
or req ..+:
ADVA� �,IF APPROVED
Indicat& this is simply an annual budget procedure required by law/
charte� �' _ ;t�ier there are specific ways in which the Ciry of Saint Paul
and ita:`' w+ll benefit from this project/action.
,,�.
DISADVAN�'A�,4ES IF APPROVED
What negative�effects or major changes to existing or past processes might
this project/request produce if it is passed(e.g.,traffic delays, noise,
tax increases or assessments)?To Whom1 When? For how long?
DISADVANTAGES IF 1t10T APPROVED
What wiii be the negative consequences if the promised action is not
approved?Inability to _" service?Continued high traffic, noise,
accident rate?Loss of ue?
FINANCIAL IMPACT
Although you must tailor the information you provide here to the issue you
are addressing, in general you must answer two questions: How much is it
going to cost?Who is going to pay?
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612 298�'�, .
TOM DIMOND �=''
COUNCILMEMBER :�,� ,� � � s� ��� ��
Mem rs: °r �ti,
Tan imond, ;,'. �<:�
Paul Maccabe '
oa� rhune �: RECEIYE�;;h�, `:�
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Date: August 14, 1991 ' �:''��, �J��=x�;� ��
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COMMITTEE REPORT - `;���;;��:x
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE �� � �' � � � }-�`'�`.� .�X ,
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1� Resolution 91-1448 - approving the issuance of bon by the Par��''� " y of
the City of Saint Paul to �ointly refinance a mul i-family Mousing p° ` am
( for the Kendrick Apartments in Energy Park (Referre from Cpuncil 8-8-91) .
COMMITTEE RECOMMENDED APPROVAL, 3-0
2. Minnesota Housing Finance Agency Application for Fu ding Deferred Loan
Program - Phase VI (Referred from HRA 7-23-91).
THIS ISSUE WAS LAID OVER TO THE AUGUST 28, 1991, HO SING AND ECONOMIC
DEVELOPMENT COMMITTEE MEETING (HRA)
3. Authorization to provide financing for the Families First Program (Referred
from HRA 8-13-91) .
COMMITTEE RECOMMENDED APPROYAL AS AMENDED (HRA)
4. Resolution - regarding Neighborhood Partnership Pro ram 16th Cycle. : ��°'�
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� THIS ISSUE WAS LAID OVER TO THE AUGUST 28, 1991, HO SING AND ECONOMI . �'
DEVELOPMENT COMMITTEE MEETING �; '�' '
5. Resolution 91-1432 - approving the issuance of $650 000 Tax Exempt Re�� 'Y�
� Bonds for the acquisition and renovation of 20,460 quare foot facili�y;r` �vr
Gilbert and Martha Thoele at 253 State Street in Ri erview Industrial Park
(Referred from Council 8-6-91; on Council agenda 8- 5-91) .
COMMITTEE RECOMMENDED APPROVAL, 3-0
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CHAIR: Housing and Redevelopment Authority& Housing and Econom c Development Committee
COMMITTEES: Public Works & Intergovernmental elations , �=�;;,,:.
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Printed on Recycled Paper '`et`�°S '°`
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HOUSING' .AND ECONOMIC LOPMENT COMMITTEE
� TEE REPORT - AUGUST 14, 1991
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��� Final Order 91-738 - In the Matter of condemning and taking Fee Title for
� ` ' � phopert�, ar Smith Avenue and Kellogg Boulevard in part of Block 63,
Irvine' `�`' ';1argement for Civic Center Parking Lot (Referred from Council
��'s � ' 4-23-9 '� aid Over in Committee 7-24-91) .
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��; � t �'ion authorizing mortgages and pledges of revenues from the Housing and
Yh. , � optnent Authority's Block 23 Parking Ramp and the proposed Seventh
r J. Mr�, �* �+ ' Parking Ramp and expressing an intent to re-budget funds (Referred
i� , ",;� � � � f ���-23-91) .
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'�� ,.� , . . COMM�1"�E RECOMt+IfNDED APPROVAL AS AMENDED, 3-0 (HRA)
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� ,�,., � lic Hearing on Midway Corridor Light Rail Transit Preliminary Design
� ;�-�. � �fe"rred from Council 7-16-91; Laid Over in Committee 7-24-91) .
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THIS ISSUE WAS LAID OVER TO THE AUGUST 28, 1991, HOUSING AND ECONOMIC
DEYELOPMENT COMMITTEE MEETING
9. Termination of tentative developer designation for the Old Gillette Hospital
West Wing - District 5 (Referred from HRA 7-23-91) .
COMMITTEE RECOMMENDED APPROVAL OF A SUBSTITUTE RESOLUTION, 3-0 (HRA)
10. Resolution 91-1413 - approving the execution of a second amended and restated
JJJoint Powers Agreement for the Energy Park and Twin City Testing Tax
Increment Districts and approving the issuance of bonds by the Port Authority
,� of the City of Saint Paul in connection with that project (Referred from
�p Council 8-1-91) .
COMMITTEE RECOMMENDED APPROVAL, 3-0
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� Resolution 91-1313 - calling for the inclusion of aircraft noise abatement
�, measures and "night flight curfews" as part of the State Financial Assistance
H=:. package to Northwest Airlines (Referred from Council 7-23-91) .
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�'x "� COMMITTEE RECOMMENDED APPROVAL AS AMENDED, 4-0
1�. Resolution 91-261 - an Ordinance amending Chapters 60 and 62 of the
Legislative Code pertaining to revising the Off-Street Parking Standards
(Referred from Council 3-28-91; Laid Over in Committee 6-12-91) .
THI� ITEM WAS LAID OVER TO THE AUGUST 28, 1991, HOUSING AND ECONOMIC
DEVELOPMENT COMMITTEE MEETING
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