Title
Granting authority to the Port Authority to issue and sell bonds in the principal amount of approximately $6,000,000, and any bonds to refund such bonds, to secure such bonds with a pledge of the full faith, credit and resources of the City (the “City”) and to use the proceeds derived from the sale of such bonds to pay the cost and expense necessarily to be incurred by said Port Authority for a portion of the cost of the redevelopment of part of the St. Joseph’s hospital site.
Body
WHEREAS, on December 16, 2025 the Port Authority of the City of Saint Paul (the “Port Authority”) adopted a resolution (the “Port Authority Resolution”), approving a Tax Increment Financing Plan finding that the land commonly known as the St. Joseph’s Hospital Site (the “Redevelopment Property”) is blighted and marginal properties within the meaning of Minnesota Statutes, Sections 469.048 et seq., and proposing to establish and create the Fairview / St. Joe’s Tax Increment Financing District (the “TIF District”) within the boundaries of the Downtown Industrial Development District (the “Downtown IDD”) previously established by the Port Authority and the City; and
WHEREAS, the City has authority under Minnesota Statutes, Section 469.178, Subd. 2, to issue general obligation bonds payable from tax increments of a tax increment district created by the Port Authority, and the Port Authority has authority under Minnesota Statutes, Section 469.060, to issue bonds for its purposes in anticipation of income from any source which are secured by the full faith, credit and resources of the City, and pursuant to this Ordinance, the Port Authority will issue bonds to which are pledged both tax increments derived from the TIF District and the full faith, credit and resources of the City; and
WHEREAS, under the terms of the Port Authority Resolution, the Port Authority requested the authorization of the City Council of the City (the “Council”), pursuant to Minnesota Statutes, Section 469.060, for the issuance and sale by the Port Authority of its general obligation tax increment bonds in the original aggregate principal amount of approximately $6,000,000 (the “Bonds”) and the full faith, credit and resources of the City to the payment of such Bonds, which Bonds will also be secured by tax increments to be derived from the TIF District; and
WHEREAS, the Council being duly advised in the premises, finds and determines that it is necessary and appropriate that the Port Authority issue and sell the Bonds to pay for a portion of the cost of the redevelopment of the Redevelopment Property and to pay for the costs of issuance of the Bonds; and
WHEREAS, on the basis of the foregoing, it is now the intention of the Council to grant authority to the Port Authority for the issuance of the Bonds; to prescribe the manner for establishing the amount, maturity schedule, rates of interest, and the maximum rate of interest, to be borne by the Bonds; to authorize the Port Authority to establish the date, denomination, place of payment and other details of the Bonds, including the form of the Bonds; and to authorize and consent to the pledge by the Port Authority of the full faith, credit and resources of the City to the payment of the Bonds as the same shall be issued and sold by the Port Authority, pursuant to the authority of the Act, and pursuant to the authority granted by this Ordinance.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Authorization of Bonds. That subject to, and in accordance with, the applicable provisions, terms and conditions of this ordinance and those contained in Section 469.060 of the Act, authority is hereby granted to the Port Authority for the issuance and sale of its Bonds in the original aggregate principal amount of approximately $6,000,000 and the use of the proceeds of such Bonds for purposes authorized by the Act. The tax increments from the TIF District shall be pledged by the Port Authority to the payment of debt service on the Bonds
Section 2
Establishing Terms of the Bonds. That the Port Authority is hereby authorized to establish the date, denomination, place of payment, form and details of the Bonds, provided that the Bonds shall be issued and sold by the Port Authority as tax exempt and/or taxable bonds in one or more series, in the manner provided and allowed by law; the Bonds shall also be secured by a pledge of the tax increments to be received by the Port Authority from the TIF District; the initial principal amount of the Bonds shall be equal to an amount sufficient to pay costs incurred in connection with the issuance of the Bonds, and to fund a reserve as necessary to allow the tax levy to be canceled as provided in Section 4 below. The Bonds shall mature in the amounts and years and bear interest at the rate or rates per annum established by the offer to purchase the Bonds which is determined to be the most favorable by a Pricing Committee comprised of one representative each from the Port Authority, the City’s Office of Financial Services and Ehlers & Associates, Inc. or such other fiscal consultant as may have been retained by the Port Authority in connection with the issuance of the Bonds; and the proceeds from the issuance and sale of the Bonds as received by said Port Authority shall be used for purposes authorized by the Act. The Bonds may be made subject to redemption and prepayment at the option of the Port Authority at such time and price or prices as shall be determined by the Port Authority and approved by the Pricing Committee described above and upon such notice as is required by law. It is recognized that Section 469.060 of the Act provides that the Bonds must be in the amount and form and bear interest at the rate set by the Council, that the Port Authority with the consent of the Council shall set the date, denominations, place of payment, form, and details of the Bonds and that the Council is required to decide whether the issuance of the Bonds by the Port Authority is proper, and if so, the amount of Bonds to be issued, and that the Council is required to give specific consent in the Ordinance to the pledge of the City’s full faith, credit and resources to the Bonds. The standards and delegation to the Pricing Committee set forth herein are intended as such full required action of the Council, and except as provided herein, no further approval of the Council is required for the issuance of the Bonds under Section 469.060 of the Act.
Section 3
Pledge of Full Faith and Credit. That as security for the prompt and faithful payment of both principal and interest of said Bonds the Port Authority is hereby authorized to pledge the full faith, credit and resources of the City, and such Bonds, both in respect of the principal amount of the same and with respect to the interest thereon, may be paid by the Port Authority from tax levies provided therefor and authorized by the Act.
Section 4
Tax Levy. That the Port Authority, in the event of the issuance of any said Bonds authorized hereunder, shall before the issuance of the same, levy for each year, until the principal and interest are paid in full, a direct annual tax on all the taxable property in said City, in an amount not less than 5% in excess of the sum required to pay the principal and interest of the same when and as such principal and interest mature and, after such Bonds have been delivered to the purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the issuance of such Bonds no further action by said Port Authority shall be necessary to authorize the extensions, assessments and collection of such tax. That the Secretary of said Port Authority shall forthwith furnish a certified copy of such levy to the County Auditor of Ramsey County, Minnesota (the “County”), the county in which said Port Authority and said City are located, together with full information regarding the Bonds of said Port Authority for which the tax is levied and such County Auditor shall extend and assess the tax so levied, and shall do so annually until the principal and interest have been paid in full. That any surplus resulting from the excess levy therein provided shall be transferred to a sinking fund after the principal and interest for which the tax was levied and collected has been paid; provided, that said Port Authority may, on or before September 15 in any year, by appropriate action cause its Secretary to certify to the said County Auditor the amount on hand and available in its own treasury from tax increments derived from the TIF District, earnings or other income, including any amounts in the sinking fund, which it will use to pay the principal and interest or both on each specified issue of its Bonds and the County Auditor shall reduce the levy for that year herein provided for by that amount. That the amount of funds so acquired shall be set aside by said Port Authority and be used for no other purpose than for the repayment of the principal and interest on such Bonds. That all taxes being authorized to be levied under Minnesota Statutes, Section 469.060, as amended, shall be collected and remitted to the Port Authority by the County Treasurer in accordance with provisions of law governing the collection of other taxes and shall be used solely for the payment of such Bonds when due.
Section 5
No Further Council Action. That said Port Authority may provide for the exercise of the authority hereby granted for its issuance and sale of the Bonds in the aggregate par value amount provided in Section 2 hereof, for the aforesaid purposes, and the pledge of the full faith, credit and resources of said City, as security for the payment of the same, by its appropriate resolution, and without further action of the Council. The authority to set the maturity amounts and interest rates on the Bonds has been delegated to the Pricing Committee as provided in Section 2 hereof. That in exercising the foregoing authority, the Port Authority shall comply with all applicable requirements for this ordinance, said Section 469.060, Minnesota Statues, as amended, Sections 469.174 through 469.179, as amended, Chapter 475, Minnesota Statutes, as amended, and all other applicable laws.
Section 6
Authorization of Refunding Bonds. Pursuant to and in accordance with the provisions, terms and conditions of this Ordinance and the Act, authority is hereby granted to the Port Authority to issue and sell Bonds as authorized by Minnesota Statutes, Section 469.060, in aggregate principal amounts necessary for the purpose of securing funds as needed by the Port Authority to issue bonds under this Ordinance. The principal of the Bonds may exceed the principal of the Bonds to be issued to the extent necessary and appropriate to pay interest thereon (including interest accruing as capital appreciation), to pay costs of issuing the Bonds and to allow for discount upon sale, and to fund reserves and capitalized interest for the Bonds.
Section 7
Effective Date: Nullification. That this ordinance shall take effect and be in force 45 days after the passage, approval and publication.