Minutes 4/25/2006 PORT AUTHORITY OF THE CITY OF SAINT PAUL I�FCF�V
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MINUTES OF THE ANNUAL BOARD MEETING MAY 3 0 2006
APRIL 25, 2006 c�r FRk
The annual meeting of the Port Authority Board was held on April 25, 2006 at 2:00 p.m. in
the Board Room of the Port Authority of the City of Saint Paul, 1900 Landmark Towers, 345 St.
Peter Street, St. Paul, Minnesota.
The following Commissioners were present:
- Mike Goldner - Joan Grzywinski
- Kathy Lantry - Dick Anfang
- John Regal - Dan Bostrom
Also present were the following:
- Ken Johnson - Laurie Hansen
- Laurie Siever - Lorrie Louder
- Pat Dean - Terry Garvey, General Counsel
- Bruce Kessel - Bruce Gehrke
- Monte Hilleman - Tom Collins
- Robyn Dixon - Pete Klein
- Sherry Meyer, McGladrey & Pullen - Corey Topp, McGladrey & Pullen
- Tom Dimond - Jackie Crosby, Star Tribune
- Robyn Hansen, Leonard Street & Deinard
- Gary Warren, Metropolitan Airports Commission (MAC)
APPROVAL OF MINUTES
Commissioner Lantry made a motion to approve the minutes from the March 28, 2006
regular Board meeting. The motion was seconded by Commissioner Grzywinski and carried
unanimously. A copy of the March minutes is on file at the office of the Saint Paul Port
Authority.
CONFLICT OF INTEREST
Commissioner Grzywinski indicated that she and Terry Garvey, general counsel, had
discussed whether she had a conflict of interest as Chair of the HealthEast Board, and Mr.
Garvey stated that she did not have a legal conflict of interest. However, to avoid the
appearance of any impropriety, she will abstain from voting on Resolution No. 4168. None of
the other Commissioners had a conflict of interest with the items on the agenda.
Chair Goldner stated the Board would review the Credit Committee matters before
Administrative Committee to accommodate guests who wish to address the Board. He
indicated the testimony would be limited to five minutes per person.
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NEW BUSINESS
CREDIT COMMITTEE
RESOLUTION NO. 4166
HOLMAN DIKING PROJECT— METROPOLITAN AIRPORTS COMMISSION
REQUEST TO THE PORT AUTHORITY FOR EASEMENT AMENDMENT
Commissioner Grzywinski made a motion stating that Resolution No. 4166 had been
reviewed by the Credit Committee and recommended for approval by the Board.
President Johnson indicated this recommendation is made for the sole purpose of
forwarding the MAC's proposal to the policy bodies having jurisdiction: the Saint Paul Planning
Commission and the Saint Paul City Council.
Chair Goldner asked Mr. Garvey if the action the Board is being asked to take is in the
nature of a quit claim or is there some type of warranty attached to what we are granting.
Mr. Garvey indicated we are granting an easement. There is no warranty attached.
Tom Dimond stated his concerns and opposition to the Board taking action on MAC's
request of the Port Authority to deed over control of 15,159 acres of prime riverfront property
until the Mayor and City Council have an opportunity to review and comment on that request.
He further stated that if the Board decides to approve the easement amendment, there should
be a time limit on that easement. A copy of the information provided by Mr. Dimond is on file at
the Port Authority offices.
Gary Warren addressed the Board giving the history of the Metropolitan Airport
Commissions' use of land at Holman Field, the restricted use of the land, and the moorings that
the Port Authority manages. He also expressed the MAC's need to be able to go forward and
do this on a permanent basis. Therefore, they request approval of a permanent easement by
the Port Authority Board of Commissioners. They will continue to work with the City of Saint
Paul to work out unresolved issues.
Chair Goldner asked who would pay the costs of moving the moorings.
Mr. Warren stated that the Metropolitan Airports Commission would incur the costs.
Chair Goldner wanted to make sure the Port Authority was not doing more than what
MAC needs.
President Johnson stated that if there is no longer an airport, the other land—not the land
in question here—would revert back to the City. It would seem to be prudent to make sure that
the Port Authority's easement contains that same protection. If the airport does not exist in the
future, this land would then similarly revert to the Port Authority and it would be the Port's
intention—based on today's discussion—to make it so.
Commissioner Lantry stated she wears a different hat when she is at the Port Authority
and will be in support of the easement, even though it is clear to everyone involved that she has
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not been in support of the project itself. The Board has had this discussion on previous projects
involving the City of Saint Paul and the Port Authority: "How do you have the role at the Port
Authority versus the council members' role at the City?" She will vote in favor of the easement
because she does not see any reason not to from the Port Authority prospective. The Port
Authority is a very small player and the policy decision will be made somewhere else.
Commissioner Lantry addressed her concerns with the easement. She agrees with Mr.
Dimond's point regarding compensatory excavation regarding the removal of 155,000 cubic
yards of river bank. She also wants to make sure the Port Authority is not giving away more
than we need to and that must be clearly stated. She understands why they want to have a
permanent easement because they are making a permanent alteration. Therefore, she would
like the documents to state that this easement is for compensatory excavation only and that if
the airport were to go away, the land would revert back to the Port Authority to do with as they
see fit.
President Johnson stated the Port would commit—with the approval of the
Commissioners—to make those two points a part of the document and transaction.
Chair Goldner stated the mission of the Port Authority is economic development in its
broadest sense: jobs, training, etc. The Port is really not a political organization and tries not to
allow political agendas to play a role at their meetings. The policy question will need to be
decided among the elected officials in the community. As a matter of economic development,
this appears to be the right thing to do for the City.
The motion carried unanimously. A copy of Resolution No. 4166 is on file at the office of
the Saint Paul Port Authority.
RESOLUTION NO. 4167
AUTHORIZATION FOR THE APPLICATION TO THE INTERNAL REVENUE
SERVICE (IRS) FOR UP TO $100,000,000 OF CLEAN RENEWABLE ENERGY
BONDS (CREBS) TO PARTIALLY FINANCE A NEW POWER PLANT TO BE BUILT AT THE
ROCK TENN SITE AND OWNED BY THE SAINT PAUL PORT AUTHORITY
Commissioner Grzywinski made a motion stating that Resolution No. 4167 had been
reviewed by the Credit Committee and recommended for approval by the Board. The motion
was carried unanimously. A copy of Resolution No. 4167 is on file at the office of the Saint Paul
Port Authority.
RESOLUTION NO. 4168
REGIONS HOSPITAL / HEALTHPARTNERS PUBLIC HEARING
PRELIMINARY AUTHORIZATION FOR THE ISSUANCE OF CONDUIT
LEASE REVENUE BONDS AND THE EXECUTION OF RELATED
DOCUMENTS, INCLUDING GROUND LEASES, LEASE & PURCHASE
OPTION AGREEMENTS, AND THE SALE OF PROPERTIES TO REGIONS
Commissioner Grzywinski made a motion stating that Resolution No. 4168 had been
reviewed by the Credit Committee and recommended for approval by the Board.
Chair Goldner stated that in accordance with Minnesota law, a public hearing must be
held to hear any comments from the public regarding Resolution No. 4168. No one requested
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to address the Board; therefore, Chair Goldner declared the public hearing closed and
proceeded with the role call vote with the Commissioners voting as follows:
Commissioner Lantry - aye Commissioner Anfang - aye
Commissioner Bostrom - aye Commissioner Regal - aye
Commissioner Grzywinski - abstained Chair Goldner - aye
The motion carried by a 5-0 vote. A copy of Resolution No. 4168 is on file at the office of
the Saint Paul Port Authority.
RESOLUTION NO. 4169
GREAT NORTHERN BUSINESS CENTER NORTH (GNBCN)
AUTHORIZATION FOR THE ISSUANCE OF TAX INCREMENT
TAX-EXEMPT BONDS IN THE APPROXIMATE AMOUNT OF $4,565,000
Commissioner Grzywinski made a motion stating that Resolution No. 4169 had been
reviewed by the Credit Committee and recommended for approval by the Board. The motion
was carried unanimously. A copy of Resolution No. 4169 is on file at the office of the Saint Paul
Port Authority.
RESOLUTION NO. 4170
APPLICATION OF MINNESOTA'S DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT AND THE METROPOLITAN COUNCIL FOR
CONTAMINATION CLEANUP GRANT FUNDS — GRIFFIN WHEELWORKS SITE
Commissioner Grzywinski made a motion stating that Resolution No. 4170 had been
reviewed by the Credit Committee and recommended for approval by the Board. The motion
was carried unanimously. A copy of Resolution No. 4170 is on file at the office of the Saint Paul
Port Authority.
ADMINISTRATIVE COMMITTEE
2005 AUDITS OF THE PORT AUTHORITY, 876 FUND,
AND COMPLIANCE REPORT FOR FEDERAL GRANTS
Commissioner Anfang stated the 2005 Audits of the Port Authority, 876 Fund and
Compliance Report for Federal Grants were reviewed by the Administrative Committee with the
recommendation for acceptance by the full Board. The acceptance of the Compliance Report
for Federal Grants, and the Port Authority and 876 Fund Audits was unanimous. Copies are on
file at the office of the Saint Paul Port Authority.
RESOLUTION NO. 4163
2005 — 876 FUND ANNUAL REPORT
Commissioner Anfang stated Resolution No. 4163 was reviewed by the Administrative
Committee with the recommendation for approval by the full Board. The motion carried
unanimously. A copy of Resolution No. 4163 is on file at the office of the Saint Paul Port
Authority.
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RESOLUTION NO. 4164
AUTHORIZATION FOR CONTINUATION
OF CAPITAL CITY PROPERTIES CORPORATION
Commissioner Anfang stated Resolution No. 4164 was reviewed by the Administrative
Committee with the recommendation for approval by the full Board. The motion carried
unanimously. A copy of Resolution No. 4164 is on file at the office of the Saint Paul Port
Authority.
RESOLUTION NO. 4165
AUTHORIZATION FOR CREDIT CARDS
Commissioner Anfang stated Resolution No. 4165 was reviewed by the Administrative
Committee with the recommendation for approval by the full Board. The motion carried
unanimously. A copy of Resolution No. 4165 is on file at the office of the Saint Paul Port
Authority.
OTHER MATTERS
Chair Goldner informed the full Board of Mr. Dean's concerns regarding the proceeds
from the sale of the Radisson hotels and ramp, and outlined the steps going forward to review
these concerns.
Commissioner Anfang stated these concerns were discussed at the Administrative
Committee and appreciated that Mr. Dean brought his questions to the Board for clarification.
Chair Goldner stated that the election of officers takes place at the Board's annual
meeting in April; however, several Commissioners approached Chair Goldner and indicated
their preference to hold the election of officers in August with the new Board members in
attendance. The Commissioners agreed unanimously to delay the election of officers until the
regular Board meeting on August 22, 2006.
There being no further business, the meeting stood adjourned at 2:43 p.m.
Michael Gol n r, Chair
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