HomeMy WebLinkAbout85-184 - ADMIN Resolution - City Council - 1985/10/21a
567B RESOLUTION No. 85-184
RESOLUTION AUTHORIZING
EXECUTION OF INDUSTRIAL
DEVELOPMENT BOND ALLOCATION
AGREEMENT
WHEREAS, the City of St. Louis Park, Minnesota (the
"City"), will not be utilizing all of its 1985 allocation of
authority to issue private activity bonds within the meaning of
Section 103 of the federal Internal Revenue Code of 1985, as
amended; and
WHEREAS, the Port Authority of the City of St. Paul,
Minnesota, has requested that the City enter into a joint
powers agreement by which said Port Authority will issue bonds
pursuant to issuance authority allocated to the City pursuant
to Minnesota Statutes, Section 474.18, as an entitlement; and
WHEREAS, there is on file with the Clerk and before this
Council of the City on the date on which this resolution is
adopted a form of joint powers agreement (the "Industrial
Development Bond Allocation Agreement") which transfers
$2,830,547 of the City's 1985 entitlement allocation to said
Port Authority;
NOW, THEREFORE,, BE IT RESOLVED by the Council of the City
of St. Louis Park, Minnesota, as follows:
1. The Mayor and Clerk are hereby authorized
to execute the Industrial Development Bond Allocation Agreement
in the form submitted, with such changes and modifications
thereto as may be necessary and appropriate and approved by
said officers, and to do all other acts and things necessary to
effect the transfer contemplated by this resolution.
2. The Industrial Development Bond Allocation
Agreement shall transfer the entitlement of the City in the
amount, to the extent, and under the terms and conditions set
forth therein.
Adopted by the City Council October 21, 1985.
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Reviewed for administration:
1P aaz� J - &I" �11 -A A XtA'
y Manager
f'.6 -
May r
Approved as to form and legality:
City Attorney`
'567B
INDUSTRIAL DEVELOPMENT BOND
ALLOCATION AGREEMENT
THIS AGREEMENT, entered into as of this 21st day Of
October, 1985, by and between the City of St. Louis Park, a
municipal corporation in Hennepin County, Minnesota ("City"),
and the Port Authority of the City of Saint Paul, a��bPody
ort
corporate and politic in Ramsey County, -Minnesota
Authority"):
WITNESSETH:
In consideration of the mutual undertakings set
forth
herein, the City and the Port Authority agree
as I.
This Agreement is entered into Pursuant to the powers
Minnesotagranted to the City and the Port Authority
582 (the v
Statutes, Section 471.59, and Laws 1984,
"Act"). The purpose of this Agreement is to enable the Portnue
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Authority to issue its industrial development rurguant to an
.' ("Bonds") for an approved project or projects p
allocation made pursuant to the Act to the City as an
entitlement issuer under the Act.
II.
As used in this Agreement, the terms
a) "entitlement issuer,"
b) "local issuer,"
C) "allocation,"
d) "bonds," and
e) "project"
have the meanings given them by the Act and by Minnesota
Statutes, Chapter 474. The term "Department" means the
Oi�' `, Minnesota Department of Energy and Economic Development.
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III.
1. The City has received a final certified allocation as
an entitlement issuer in the amount of $2,830,547. It has not,
and will not, use any of such entitlement itself.
2. The Port Authority is a local issuer, and anticipates
granting preliminary approval for a project or projects in an
amount in excess of $90,000,000-
3. The Port Authority desires to use the City's
allocation, in the amount of $2,830,547 for eligible projects
intended to benefit the City of Saint Paul and its residents,
as well as the local economy.
4. The City finds it is desirable and in its interests to
make $2,830,547 available to the Port Authority, from the
' City's unused allocation.
5. The City hereby grants to the Port Authority the
exclusive use of said $2,830,547 entitlement. Pursuant to
Section 15 of the Act (Minnesota Statutes, Section 474.18), the
Port Authority shall issue Bonds pursuant to the issuance
authority allocated to the City as an entitlement issuer
pursuant to said Section 15.
L IV.
1. In order to induce the City to enter into this
Agreement, the Port Authority represents and agrees as follows:
a) In consideration of the grant of the exclusive use of
part of said entitlement, the Port Authority will
reimburse the City for the $28,305.47 previously
deposited with the Department, such amount being
equal to one percent (1%) of the amount of the
allocation being transferred. This sum shall be
payable on or before delivery of this Agreement.
b) The Port Authority has before it a proposal or
proposals for a project or projects requiring Bonds
in an amount of at least $2,830,547 in excess of its
• share of the entitlement previously awarded to the
City of Saint Paul.
c) The Port Authority intends to issue Bonds for said
project or projects prior to December 31, 1985.
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d) The Port Authority will deliver to the Department on
or before November 1, 1985, the documentation
required by the Act in order to preserve the
allocation contemplated by this Agreement, or any
portion thereof, past November 1, 1985.
e) The Port Authority will, and hereby does, indemnify
the City for all legal, administrative, and other
costs and expenses associated with the transactions
contemplated hereby, and hereby releases and holds
harmless the City from any claims, demands, or causes
of action arising out of the transactions
contemplated hereby.
f) The Port Authority will timely and promptly notify
the City of all proceedings relating to the approval
of the project or projects for which the City's
entitlement has been requested, and the issuance of
Bonds therefor.
2. In recognition of its undertakings under this Agree-
ment, the City represents and agrees as follows:
a) The City will promptly and timely submit to the
Department all documents, deposits, and other papers
necessary to carry out the transaction contemplated
hereby, provided that the City is given a reasonable
amount of time, not less than five business days, to
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perform such functions.
b) The City represents that it has the necessary amounts
of uncommitted allocation to enable it to enter into
this Agreement.
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c) In recognition that, pursuant to the City's power to
enter into a joint powers agreement assigning its
entitlement allocation to another local issuer, the
City may constitute the public official responsible
for making allocations of the State ceiling to
issuing authorities within the State" within the
meaning of Section 1.103(n)-3T(A-14) of the Treasury
Regulations promulgated pursuant to Section 103 of
the Internal Revenue Code of 1954, as amended, the
City shall maintain a record'of this assignment and
s _.
' Agreement during the period coextensive with the term
of the Port Authority's Bonds. The Port Authority
and the Department will similarly undertake to
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maintain a record of this assignment and Agreement
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during such period.
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IN WITNESS WHEREOF, the Port Authority ands bhq C3Xy
have caused this Agreement to be executed by their respective
duly authorized officers as of the date first written -above.
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Attest: CITY OF ST. LOUIS PARK, MINNESOTA
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By1
City ler -Treasurer Ma or .'-
City Manager (SEAL)
r ,
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Attest:
Secretary
PORT AUTHORITY OF THE CITY
OF SAINT PAUL
By
President
(SEAL)
Signature Page to that certain IndustrialDevelopmenttBonCity
Allocation Agreement dated October 21,
of St. Louis Park, Minnesota and the Port Authority of the City
of Saint Paul•
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