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91-1478�f�f�NA L . � � � , Council File # �'-��70 I Green sheet � � •2 � RESOLUTION j °� �"= CITY OF INT PAUL, MINNESOT�1 � �� , � „ �_ P esented By � ' � Referred To / y ' ' f �,�;� y �c> e.- r' -v,. Comrhittee: Date �/.: � _ '' _ �/ U I RESOLUTION AUTHORIZING THE� PLEDGE OF WESTGATE TAX INCREME�TTS TO SECURE THE PORT AUTHORITY REFINIANCING BONDS AND AUTHORIZING THE MAYOR OF THE CITY OF SAINT P�AUL TO GIVE PUBLIC APPROVAL OF CERT�AIN OF THOSE BONDS I WHEREAS, 1. The Housing and Redevelopment Authority of the �ity of Saint Paul, Minnesota (the "HRA") has previously established a redevelopment project and created a tax increment financing district designated as the "University A�enue/Highway 280 Redevelopment Area and Tax Increment Financing District". , 2. The HRA has entered into a Joint Powers Agreem�nt for the administration and operation of this tax increment district (the "V�estgate District") with the Port Authority of the City of Saint Paul (the "Port Authority"), pursuant to which the �� l �.. Port Authority has been designated as the administrator and oper�ator of the Westgate , District, pursuant to Minnesota Statutes, Section 4(9.012, Subd. 1� 3. In connection with this designation, the Port Authorhty has been specifically authorized to receive and use tax increment and project revenues Ipursuant to the te of the Joint Powers Agreement. , � 4. In connection with a proposed refinancing of the bo�nds currently outstanding with respect to the Westgate District, the Port Authorlity is required to � provide a valid, binding, and enforceable pledge of the tax increments and land sale or lease revenues from the Westgate District to secure the repaymen� of amounts due to First Bank National Association, as the issuer of letters of credit s�ecuring the refinancing, and its successors and assigns, all in form and substance satisfactory to First Bank and its counsel 5. Also in connection with the proposed refinancing of Ithe bonds outstanding with respect to the Westgate District, the average weighted matur�ty of the tax-exempt bonds currently outstanding as part of that financing will be exten�ed, requiring that the Port Authority obtain the approval of an elected official following la public hearing on the issuance of the proposed refunding bonds. i I �R��6��,`� �� _,,�� , � � , �' 6. The Port Authority has requested that the City Co�ncil facili �� issuance of the proposed refunding bonds, by authorizing the pleldge and enctr�bi�,i�ce of Westgate District tax increments and land sale or lease revenues� as needed to facilitate the anticipated refinancing, and authorizing and directing the Malyor of the City of Saint Paul to authorize the tax-exempt refunding bonds, as required by' the Internal Revenue Code of 1986, as amended. ' 7. The City would like to encourage and facilitate thel�refinancing of the outstanding bonds. � RESOLVED, I, � 1. The City Council hereby (a) approves the pledge a�pd encumbrance of � Westgate District tax increments and land sale or lease revenuesl to secure the repayment of all amounts and owed to First Bank National Assodiation, and its successors and assigns, in connection with the proposed refinanci�g of the Westgate District and (b) authorizes and directs the appropriate City offici�ls to execute all documents as are reasonably required by First Bank or its counse7 to evidence such pledge and encumbrance. ' 2. The City Council hereby authorizes and directs the �Vlayor of the City of Saint Paul to provide the Port Authority with the approval to the ,issuance of the tax- exempt refunding bonds for the Westgate District required by the,Internal Revenue Code, in a form reasonably requested by the Port Authority and its bond counsel, and acceptable to the City Attorney. � ., I� ., . � I� �� Yeas Navs Absent Requested by Depllartment of: , imon Gosws z --- ^i ' L on ��a YlY1� t'L� `�� C G�1�Y1�►� ' ��Q.,� (Yl�y(� facca ee — ettman � aF T une -_ " i son � — BY� `"°� � J Adopted by Council: Date AUG 1 5 19�1 Form Approved bylCity A �orney Adoption Certified by Council Secretary gy; ' / G �L�'!� (� BY� �� '�... `yr, ro d b Ma o for Submisaion to App Y Y �' �;�I� � � �99� Council ^ Approved by Mayor: Date � � I ��.,.�-�.�� By: ..��a� By� Pib11SNED �U� �� '91 � _/'�'`� DEPARTMENT/OFFICE/COUNCIL DATE INITIATED I '� � PEU $�5�91 GREEN SHEET , ,� Ao � CONTACT PERSON&PHONE INI A E ' °' E �DEPARTMENT DIRECTOR Warren F�d11$�T� ,3213 ASSIGN �CITYATTORNEY �� m ' , MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR LJ �y. + ROUTING �BUDGET DIRECTOR �Fjp� ` ` ' � �� 8 6 91 for 8 13 91 meeti n oROER �MAYOH(ORASSISTANTj m P D A ��?' - Z TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) 5�E)� Counc i 1 Rese�r ;.�. ACTION REQUESTED: Approval of agreement(s) regarding fPes and other obligations ow�d �o City by the Saint Paul Porc Auc�ori��y, and au�tnoriz�:-��; re-stated agr�ements on w'estgate Office and Industrial Park, Sainr: Pau1 Noi.�1 UuAG i?:�rti�ipa�on Agreement, and Port Authority Bond fees RECOMMENDATfONS:Approve(A)or Reject(R) pERSONAI SERVICE CONTRACTS MUST ANSWER THE FOLLOWINQ QUESTIONS: 1. Has this P � �'� _PLANNING COMMISStON _ CIVIL SERVICE COMMISSION person/firm ever worked under a contr8ct for this de artment? 5 _CIB COMMITTEE _ YES NO � ,, _S7AFF 2. Has this person/firm ever been a city employee? , ° YES NO ��'� i _ DISTRiC7 COURT _ 3. Does this person/firm possess a skill not normalll �' . y possessed by any current city emplo < t SUPPORTS WHICH COUNCIL OBJECTNE? YES NO �'� ',; , �'..�:.v.K , Explain all yes anawers on separate sheet and attach to green sheet '�`�. ' - INITIATING PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): Planning and Economic Developmenz (PED) and Sain:� Paul Port Auth rity have �articipated financially in several projects in common. Past agreements for ecei��c of,:• loan payments and fees have been under dispute since 1981. Both sides have recently worked hard -to:resolve : tnese disputes. The actions, requested of City Council herein permanently resolve thAse dispu es , _ ADVANTAGES IFAPPROVED: , :S:" .. i City/H�<A �vill receive $724,OU0 from Port Authority in settlement of certain past due obligati r�� and agre�ment to receive in exces's of $18 million ov�r 25 years �In deferred loan �ayments 44 and fEts on various tax increment districts and Port Autnority at�ojects. Resolves disputed , l;r. , agreements going 5ack io 1981. ;;� ; � i � a�� :�;-;� �.� ` DISADVANTAGES�F APPROVED: , None II � �� , ' w_:, � ��'' ,,r� . ,' �'°t�,.±; �� ti > DISADVANTAGES IF NOT APPROVED: * � Less revenue to City/HRA, dispute over various inter-agency agre ments would cont��rn�and deplete staff time, and future projects in Westgate Office and I dustrial Par;<, En�rc�y Park, Selby Western would be threatened. C j��?�`�� '-q!�;+�'�F�;{j ��E'F 1'"� i� �/ L � ..�.5: �J f'' � � AUG 0 6 1991 � � 724,543 Income ' �+ TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED( IRCLE ONE) YES NO �� l FUNDINGSOURCEUDAG, UDAG RLF, PED Operations ACTIVITYNUMBER var ous , FINANCIAL WFORMATION:(EXPLAIN) I �, 1 , UV :� ��- _ ��/y�1 �' r� � ,� � ;y;, Jsk, t:�yi'. ... r�*�, k�'�� `��.,. ._• �y� � . �. ' �S `� IC DEVELOPMENT COMMITTEE �; � `� T - AUGUST 14, 1991 , � �E r�,� , 13. Authorization to acquire three tax forfeit parcels: 769 Hague, 974 Hague, 751 Laurel , Summit-University District 8 (Referred from HRA 8-13-91) . ;� z, COMMITTEE RECOMMENDED APPROVAL, 3-0 (HRA) ,�s :;;'. ��tional Items � t� .�G '��, � _.. a�YS�•� . �,�:� Resolution 91-1477 - authorizing the execution of an agreement with the Port � Authority of the City of Saint Paul pertaining to the Saint Paul Hotel �C� (Referred from Council 8-13-91) . � COMMITTEE RECOMMENDED APPROVAL, 3-0 15. Resolution 91-1478 - authorizing the pledge of Westgate Tax Increments to ' � secure the Port Authority refinancing bonds and authorizing the Mayor to give ��` public approval of certain of those bonds (Referred from Council 8-13-91) . COMMITTEE RECOMMENDED APPROVAL, 3-0 ��.�' ° 16. Resolution 91-1479 - authorizing the execution of an agreement with the Port �:��' ,� Authority of the City of Saint Paul pertaining to bond issuance fees � (Referred from Council 8-13-91) . ,�. p �'�'�� COMMITTEE RECOMMENDED APPROVAL, 3-0 � ��,, �Ytht�� f �:�' . �.* cfir ;>.� �n ; a�.. ;��. :: ,, � . ,.�- . u � j�Yl 1 \ _.y � ; :� , �F,, ra, o� , ,. �`�� '�': '"Si �a� � ..�