98-630Council File # ln �� 3 �
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ORlGINAL
�
Presented By '"
Referred To �
Green Sheet # .� fl��
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Committee: Date
APPROVAL OF FINANCING FOR CLEANLTP AND REDEVELOPMENT OF THE
MIDWAY CENTER PROJECT
WHEREAS, on May 6, 1998 the Housing and Redevelopment Authority, Resolurion 98-5/6-1 and St. Paul
City Council, File 98-387, approved the execution of a Memorandum ofUnderstanding with RK Midway
LLC far the cleanup and redevelopment of the Midway Center project; and
WHEREAS, the attached Midway Center Contract for Private Redevelopment ("Redevelopment
AgreemenY') incorQarates the terms and conditions outlaned in the Memorandum of Understanding; and
WIIEREAS, the City Council authorized the Department of Plaxming and Economic Development to submit
a grant application to the Department of Trade and Economic Development on October 25, 1995 for cleanup
of the Midway Center project; and
WI3EREAS, the Department of Trade and Economic Development awazded the City of Saint Paul a grant of
$481,482 for cleanup of the Midway Center project; and
WI3EREAS, the Redevelopment Agreement provides for the award of the $481,482 DTED grant funds to RK
Midway LLC for contamination cleanup; and
VJF3EREAS, the DTED grant funds zequire a local match; and
WHEREAS, the total cleanup cost as budgeted in the DTED grant application is $1,596,000; and
WHEREAS, through City Council Resolution CF94-1306, the City of Saint Paul is authorized to apply for
Section 108 Loan Program funds from the U.S. Department of Housing and Urban Development (H[JD); and
WFIEREAS, through City Council Resolution 96-247, the City is authorized to execute a loan agreement
between the City and HL)ID for expenditure of Section 108 Loan Program funds on the Saint Paul Polluted
lands Cleanup Program; and
WHEREAS, the locai match for the DTED funds will consist of $922,518 in Section 108 loan funds, which
will be repaid with tas increment revenues, and $192,000 of Economic Development Initiarive grant funds;
and
WHEREAS, I3RA Resolution amends the Snelling and University Tax Increment Finance
Plan to include the Voluntary Tnvestigation Response Action Plan for Midway Center; and
`��'-�
43 Vi��,REAS, RK Midway LLC has agreed to enter into a Minimum Assessment and Shortfall Agreement to
44 ensure that sufficient taY increments are generated to provide for repayment of the Section 1081oan funds;
45 and
46
A7 WHEREAS, if RK Midway LLC is unable to complete construction of the project within tluee yeazs of
48 issuance of a Certificate of Completion, but no later than June 1, 2002, RK Midway LLC will repay the EDI
49 and DTED grant funds to the City of Saint Paul;
50
51 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (City) as
52 follows:
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6A
b5
66
Subject to the approval of the City Attorney, the form of the Redevelopment Agreement and e�ibits
thereto, with RK Midway LLC to provide $481,482 in DTED grant funds, $922,518 in Section 108
loan funds, and $192,000 in EDI funds, all for cleanup of contamination of the Midway Center proj ect
as specified in the VRAP dated December 29,1997, aze approved substantially in the form submitted
and on file in the office of the City, with such subsequent changes as may be approved by the City
Attorney and the City staff as may be necessary and appropriate.
2. The Redevelopment Agreement and exhibits thereto, in substantially the form approved hereby, are
directed to be executed or consented to in the name and on behalf of the City by the Mayor, the
Director, Office of Financial Services; and Duectar of Human Rights provided that all closing
certificates and related instrwnents may be executed in the name of and on behalf of the City by its
Director of the Deparhnent of Planning and Economic Development.
by Department
.�. .�.n �- . n-.
Adopted by Council:
Adoption Certified b
By:
Approved by Mayor�
By:
Date �\a
y Council Se taty
1
Form Approved by City Attorney
Approved by Mayor for Submission to Council
�8�-��0
D�RSMENTAFFICE/COUNCII DATE INITIATED � � � j `Z
Planning and Economic Development 7/8/98 GREEN SHEE �
CAN�AGT PERSON & PHONE 1NITIALIDATE 1NITIALlDA7E
� DEPAHiMENT DIRE � dTV COUNCIL
Marie Franchett A$$�GN �CRYATfORNEY OCfTVCLERK
NUMBERFON
MU5T BE ON COUNCILAGENDA BY (DATE) ROUTING � BUDGEf DIflECTOR � FIN. & MGT. SERVICES DIR.
7f8f(�.$ OflDEH �MqYOR(ORASSISTANTJ O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) �
ACTIONREQUESTED: APpI"OVa� of Resolution authorizing execution of Contract for Private
Redevelooment with R.K. Midway LL�, execution of related documents, aporoval of HRA budqet
and TIF Financing Plan amendments.
FIECOMMENDATiONS: approve (A) or Fejea (A) pERSONAL SERVICE CONTHACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
__ PUINNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worketl under a contrac[ for this department?
_ CIBCOMMfREE _ VES NO
_�� 2. Has this person/firm ever been a city employee?
— YES NO
_ DISiRICT CoUR'r _ 3. Does this person/firm possess a skill not normally possessetl by any curtent city employeel
SU�ORTS WHICH COUNCIL O&IECTIVE? YES NO
Explaln all yes answers on separete sheet and attaeh to green sheet
INITIATING PROBLEM, ISSUE. OPPG/RNNITY (Who, What, W�en, Where, Why):
On May 6, 1998 the City Council approved executi'on of a Memo of Understanding regardinq
$922,518 in TIF/Section 108 financing, $192,000 in EDI funds and $481,482 in DTED funds
for project.
ADVANTAGESIFAPPpOVED:
Cleanup and redevelooment of 4,85 acre si'te, i;ncreased property taxes and removal of
blight.
DISAOVANTAGES IF APPftOVEO:
None.
DISADVANTAGES IF NOT APPROVED:
Delay i;n cleanup and redevelopment
TOTAL AMOUNT OF TRANSAC710N $ 1. 596 .000 COS7/FEVENUE BUD6EiED (CIRCLE ONE) VES NO
DTED Grant, T�, �ection l��Coan
FUNDIf1GSOURCE {� AC71VI7YNUM6ER Fund #148 and 108
FINANCIALINFORFhATION�(EXPU�RJe Section 108 loan of $922,518 will be repaid with TIf funds
Council File # ln �� 3 �
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ORlGINAL
�
Presented By '"
Referred To �
Green Sheet # .� fl��
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Committee: Date
APPROVAL OF FINANCING FOR CLEANLTP AND REDEVELOPMENT OF THE
MIDWAY CENTER PROJECT
WHEREAS, on May 6, 1998 the Housing and Redevelopment Authority, Resolurion 98-5/6-1 and St. Paul
City Council, File 98-387, approved the execution of a Memorandum ofUnderstanding with RK Midway
LLC far the cleanup and redevelopment of the Midway Center project; and
WHEREAS, the attached Midway Center Contract for Private Redevelopment ("Redevelopment
AgreemenY') incorQarates the terms and conditions outlaned in the Memorandum of Understanding; and
WIIEREAS, the City Council authorized the Department of Plaxming and Economic Development to submit
a grant application to the Department of Trade and Economic Development on October 25, 1995 for cleanup
of the Midway Center project; and
WI3EREAS, the Department of Trade and Economic Development awazded the City of Saint Paul a grant of
$481,482 for cleanup of the Midway Center project; and
WI3EREAS, the Redevelopment Agreement provides for the award of the $481,482 DTED grant funds to RK
Midway LLC for contamination cleanup; and
VJF3EREAS, the DTED grant funds zequire a local match; and
WHEREAS, the total cleanup cost as budgeted in the DTED grant application is $1,596,000; and
WHEREAS, through City Council Resolution CF94-1306, the City of Saint Paul is authorized to apply for
Section 108 Loan Program funds from the U.S. Department of Housing and Urban Development (H[JD); and
WFIEREAS, through City Council Resolution 96-247, the City is authorized to execute a loan agreement
between the City and HL)ID for expenditure of Section 108 Loan Program funds on the Saint Paul Polluted
lands Cleanup Program; and
WHEREAS, the locai match for the DTED funds will consist of $922,518 in Section 108 loan funds, which
will be repaid with tas increment revenues, and $192,000 of Economic Development Initiarive grant funds;
and
WHEREAS, I3RA Resolution amends the Snelling and University Tax Increment Finance
Plan to include the Voluntary Tnvestigation Response Action Plan for Midway Center; and
`��'-�
43 Vi��,REAS, RK Midway LLC has agreed to enter into a Minimum Assessment and Shortfall Agreement to
44 ensure that sufficient taY increments are generated to provide for repayment of the Section 1081oan funds;
45 and
46
A7 WHEREAS, if RK Midway LLC is unable to complete construction of the project within tluee yeazs of
48 issuance of a Certificate of Completion, but no later than June 1, 2002, RK Midway LLC will repay the EDI
49 and DTED grant funds to the City of Saint Paul;
50
51 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (City) as
52 follows:
53
54
55
56
57
58
59
60
61
62
63
6A
b5
66
Subject to the approval of the City Attorney, the form of the Redevelopment Agreement and e�ibits
thereto, with RK Midway LLC to provide $481,482 in DTED grant funds, $922,518 in Section 108
loan funds, and $192,000 in EDI funds, all for cleanup of contamination of the Midway Center proj ect
as specified in the VRAP dated December 29,1997, aze approved substantially in the form submitted
and on file in the office of the City, with such subsequent changes as may be approved by the City
Attorney and the City staff as may be necessary and appropriate.
2. The Redevelopment Agreement and exhibits thereto, in substantially the form approved hereby, are
directed to be executed or consented to in the name and on behalf of the City by the Mayor, the
Director, Office of Financial Services; and Duectar of Human Rights provided that all closing
certificates and related instrwnents may be executed in the name of and on behalf of the City by its
Director of the Deparhnent of Planning and Economic Development.
by Department
.�. .�.n �- . n-.
Adopted by Council:
Adoption Certified b
By:
Approved by Mayor�
By:
Date �\a
y Council Se taty
1
Form Approved by City Attorney
Approved by Mayor for Submission to Council
�8�-��0
D�RSMENTAFFICE/COUNCII DATE INITIATED � � � j `Z
Planning and Economic Development 7/8/98 GREEN SHEE �
CAN�AGT PERSON & PHONE 1NITIALIDATE 1NITIALlDA7E
� DEPAHiMENT DIRE � dTV COUNCIL
Marie Franchett A$$�GN �CRYATfORNEY OCfTVCLERK
NUMBERFON
MU5T BE ON COUNCILAGENDA BY (DATE) ROUTING � BUDGEf DIflECTOR � FIN. & MGT. SERVICES DIR.
7f8f(�.$ OflDEH �MqYOR(ORASSISTANTJ O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) �
ACTIONREQUESTED: APpI"OVa� of Resolution authorizing execution of Contract for Private
Redevelooment with R.K. Midway LL�, execution of related documents, aporoval of HRA budqet
and TIF Financing Plan amendments.
FIECOMMENDATiONS: approve (A) or Fejea (A) pERSONAL SERVICE CONTHACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
__ PUINNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worketl under a contrac[ for this department?
_ CIBCOMMfREE _ VES NO
_�� 2. Has this person/firm ever been a city employee?
— YES NO
_ DISiRICT CoUR'r _ 3. Does this person/firm possess a skill not normally possessetl by any curtent city employeel
SU�ORTS WHICH COUNCIL O&IECTIVE? YES NO
Explaln all yes answers on separete sheet and attaeh to green sheet
INITIATING PROBLEM, ISSUE. OPPG/RNNITY (Who, What, W�en, Where, Why):
On May 6, 1998 the City Council approved executi'on of a Memo of Understanding regardinq
$922,518 in TIF/Section 108 financing, $192,000 in EDI funds and $481,482 in DTED funds
for project.
ADVANTAGESIFAPPpOVED:
Cleanup and redevelooment of 4,85 acre si'te, i;ncreased property taxes and removal of
blight.
DISAOVANTAGES IF APPftOVEO:
None.
DISADVANTAGES IF NOT APPROVED:
Delay i;n cleanup and redevelopment
TOTAL AMOUNT OF TRANSAC710N $ 1. 596 .000 COS7/FEVENUE BUD6EiED (CIRCLE ONE) VES NO
DTED Grant, T�, �ection l��Coan
FUNDIf1GSOURCE {� AC71VI7YNUM6ER Fund #148 and 108
FINANCIALINFORFhATION�(EXPU�RJe Section 108 loan of $922,518 will be repaid with TIf funds
Council File # ln �� 3 �
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34
35
36
37
38
39
40
41
42
ORlGINAL
�
Presented By '"
Referred To �
Green Sheet # .� fl��
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Committee: Date
APPROVAL OF FINANCING FOR CLEANLTP AND REDEVELOPMENT OF THE
MIDWAY CENTER PROJECT
WHEREAS, on May 6, 1998 the Housing and Redevelopment Authority, Resolurion 98-5/6-1 and St. Paul
City Council, File 98-387, approved the execution of a Memorandum ofUnderstanding with RK Midway
LLC far the cleanup and redevelopment of the Midway Center project; and
WHEREAS, the attached Midway Center Contract for Private Redevelopment ("Redevelopment
AgreemenY') incorQarates the terms and conditions outlaned in the Memorandum of Understanding; and
WIIEREAS, the City Council authorized the Department of Plaxming and Economic Development to submit
a grant application to the Department of Trade and Economic Development on October 25, 1995 for cleanup
of the Midway Center project; and
WI3EREAS, the Department of Trade and Economic Development awazded the City of Saint Paul a grant of
$481,482 for cleanup of the Midway Center project; and
WI3EREAS, the Redevelopment Agreement provides for the award of the $481,482 DTED grant funds to RK
Midway LLC for contamination cleanup; and
VJF3EREAS, the DTED grant funds zequire a local match; and
WHEREAS, the total cleanup cost as budgeted in the DTED grant application is $1,596,000; and
WHEREAS, through City Council Resolution CF94-1306, the City of Saint Paul is authorized to apply for
Section 108 Loan Program funds from the U.S. Department of Housing and Urban Development (H[JD); and
WFIEREAS, through City Council Resolution 96-247, the City is authorized to execute a loan agreement
between the City and HL)ID for expenditure of Section 108 Loan Program funds on the Saint Paul Polluted
lands Cleanup Program; and
WHEREAS, the locai match for the DTED funds will consist of $922,518 in Section 108 loan funds, which
will be repaid with tas increment revenues, and $192,000 of Economic Development Initiarive grant funds;
and
WHEREAS, I3RA Resolution amends the Snelling and University Tax Increment Finance
Plan to include the Voluntary Tnvestigation Response Action Plan for Midway Center; and
`��'-�
43 Vi��,REAS, RK Midway LLC has agreed to enter into a Minimum Assessment and Shortfall Agreement to
44 ensure that sufficient taY increments are generated to provide for repayment of the Section 1081oan funds;
45 and
46
A7 WHEREAS, if RK Midway LLC is unable to complete construction of the project within tluee yeazs of
48 issuance of a Certificate of Completion, but no later than June 1, 2002, RK Midway LLC will repay the EDI
49 and DTED grant funds to the City of Saint Paul;
50
51 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (City) as
52 follows:
53
54
55
56
57
58
59
60
61
62
63
6A
b5
66
Subject to the approval of the City Attorney, the form of the Redevelopment Agreement and e�ibits
thereto, with RK Midway LLC to provide $481,482 in DTED grant funds, $922,518 in Section 108
loan funds, and $192,000 in EDI funds, all for cleanup of contamination of the Midway Center proj ect
as specified in the VRAP dated December 29,1997, aze approved substantially in the form submitted
and on file in the office of the City, with such subsequent changes as may be approved by the City
Attorney and the City staff as may be necessary and appropriate.
2. The Redevelopment Agreement and exhibits thereto, in substantially the form approved hereby, are
directed to be executed or consented to in the name and on behalf of the City by the Mayor, the
Director, Office of Financial Services; and Duectar of Human Rights provided that all closing
certificates and related instrwnents may be executed in the name of and on behalf of the City by its
Director of the Deparhnent of Planning and Economic Development.
by Department
.�. .�.n �- . n-.
Adopted by Council:
Adoption Certified b
By:
Approved by Mayor�
By:
Date �\a
y Council Se taty
1
Form Approved by City Attorney
Approved by Mayor for Submission to Council
�8�-��0
D�RSMENTAFFICE/COUNCII DATE INITIATED � � � j `Z
Planning and Economic Development 7/8/98 GREEN SHEE �
CAN�AGT PERSON & PHONE 1NITIALIDATE 1NITIALlDA7E
� DEPAHiMENT DIRE � dTV COUNCIL
Marie Franchett A$$�GN �CRYATfORNEY OCfTVCLERK
NUMBERFON
MU5T BE ON COUNCILAGENDA BY (DATE) ROUTING � BUDGEf DIflECTOR � FIN. & MGT. SERVICES DIR.
7f8f(�.$ OflDEH �MqYOR(ORASSISTANTJ O
TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) �
ACTIONREQUESTED: APpI"OVa� of Resolution authorizing execution of Contract for Private
Redevelooment with R.K. Midway LL�, execution of related documents, aporoval of HRA budqet
and TIF Financing Plan amendments.
FIECOMMENDATiONS: approve (A) or Fejea (A) pERSONAL SERVICE CONTHACTS MUST ANSWER TNE FOLLOWING QUESTIONS:
__ PUINNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worketl under a contrac[ for this department?
_ CIBCOMMfREE _ VES NO
_�� 2. Has this person/firm ever been a city employee?
— YES NO
_ DISiRICT CoUR'r _ 3. Does this person/firm possess a skill not normally possessetl by any curtent city employeel
SU�ORTS WHICH COUNCIL O&IECTIVE? YES NO
Explaln all yes answers on separete sheet and attaeh to green sheet
INITIATING PROBLEM, ISSUE. OPPG/RNNITY (Who, What, W�en, Where, Why):
On May 6, 1998 the City Council approved executi'on of a Memo of Understanding regardinq
$922,518 in TIF/Section 108 financing, $192,000 in EDI funds and $481,482 in DTED funds
for project.
ADVANTAGESIFAPPpOVED:
Cleanup and redevelooment of 4,85 acre si'te, i;ncreased property taxes and removal of
blight.
DISAOVANTAGES IF APPftOVEO:
None.
DISADVANTAGES IF NOT APPROVED:
Delay i;n cleanup and redevelopment
TOTAL AMOUNT OF TRANSAC710N $ 1. 596 .000 COS7/FEVENUE BUD6EiED (CIRCLE ONE) VES NO
DTED Grant, T�, �ection l��Coan
FUNDIf1GSOURCE {� AC71VI7YNUM6ER Fund #148 and 108
FINANCIALINFORFhATION�(EXPU�RJe Section 108 loan of $922,518 will be repaid with TIf funds