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Home My WebLink About2003 [03] Mar 14 .A . www.cityofstjoseph.com ity of St. Joseph 25 College Avenue North St . Joseph Economic Development Authority PO Box 668 City of St. Joseph City Council St Joseph. MN 56374 Special Joint Meeting Notice (320) 363-720 I F!:!9.ªY...I. March 14, 2003 Fax: (320) 363-0342 12:00 noon. City Hall ADMINISTRATOR Judy Weyrens 1. Call to Order MAYOR Larry J. Hosch 2. Business A. Maintenance Facility Site Purchase and EDA Lease Revenue Bond COUNCILORS Alan Rassier 3. Adjournment Ross Rieke Gary Utsch Dale Wick . . . " · R\ M UNIC1PAL DEVELOPMENT GROUP, INC. DATE: March 11, 2003 MEMO TO: St. Joseph Economic Develppment Authority '",. ":(\I'r~l C}jJ FROM: JoannclÞoust & Cynthia Smith-Strack, MDG, Inc. RE: Maintenance Facility Lease-Revenue Bond The EDA and City Council will be conducting a special joint session on Friday, March 14, 2002 at 12 noon. The purpose of the meeting is to discuss the location, construction and financing of a new public works maintenance facility. Background: The City of St. Joseph currently owns a public works maintenance facility located at 500 2nd Avenue NW. The ourrent structure is in fair condition and the City is in need of additional space for the storage of equipment and public works offices. As noted in the Comprehensive Plan, the City Council and Public Works Staff identified a need to expand the facility. As a part of the 2002 planning process, the current · structure was proposed to be demolished with a new 12,000 square foot (60' wide by 200' long) building constructed in 2003. In 2002, the City Council advertised for bids and awarded the project, which is proposed to commence this spring. The City had intended to finance the maintenance facility through a lease back arrangement with the bank. Since that time however the state legislature has been discussing possible local government aid (LGA) reductions (estimated to be $120,000 for the City in 2003 and $220,000 in 2004) as well as the imposition of levy limits. In order to reserve cash and levy abilities for other projects and operations, the City Council has discussed alternative financing options. The City Council at their March 6, 2003 meeting discussed the use of Lease-Revenue Bonds, which would be issued by the EDA. The Council is requesting EDA review and approval of this financing mechanism. If approved, the EDA would issue bonds for and own the maintenance facility. The City would make lease payments to the EDA to make the bond payments. The construction contract would remain between the contractor and the City of St. Joseph. Along with reviewing financing options, the City Council has also discussed the best long-term location for the new maintenance facility. Several sites were reviewed. Rather than reconstruct at the current site at 500 2nd Avenue NW, the Council has discussed the possible purchase of approximately 5 acres along Nineteenth Avenue NE (see attached map). The site would be of sufficient size to accommodate the proposed maintenance facility, a future water tower and possible the police department offices, as the need arises. The EDA has been working with a couple of business prospects which had expressed an interest in these lots for their businesses. MDG, Inc. contacted the companies on March 10th to determine their interest. Both indicated that due to the price of the land they will be seeking alternatives sites. Attached are (1) an elevation drawing of the proposed facility, (2) a fioor plan, (3) a map illustrating the · proposed new site and (4) a bond payment schedule which includes both the facility and land purchase. City staff has consulted with bond counsel (Briggs and Morgan), the city's financial advisor (Northland .~ . Securities) and the City Engineer (S.E.H.) regarding the feasibility of the above proposal. All have indicated it could be accomplished this spring/summer. Action: The EDA is asked to authorize the Mayor to negotiate the purchase of the land ( Lots 1 & 2, Slock 1 measuring approximately 98,000 sq. feet or approximately: 175' x 570') for a price not to exceed $225,000. A MOTION is in order. The EDA will be asked to take formal action on the lease-revenue bond at their March 19' 2003 meeting. Additional information on this process will be fOTwarded to EDA members with their packet. . . _0 t1.....:ÞUI.L::> -.¡} A.LI.J ,.j " . z JJa'EI9~ ~ ~NI01In8 3JNVN31NIVr-I « to s:; .. .. II> A\)", ~ g ~~~I> ~t~ r1 n ~ H ! . i ilHa dl! ¡¡!~HiP!IP~ ~.i:!ìhh d~ ~..... <ri.,,,¡ '" ,.;..... ti.. . _ n_... ___. _n._. '''' "-..-..--..-... o .... -. 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I ~ '¡:F!!§~' ~. ~h~2 I ~~.." i .. . .. ffiIIl1] ~ ~¡i~ ~ ~ ~ ~ ~ . ü~~~ .0-.0. I d ~ i Ü i ~ ~ ~ ~F!:iÍg ~~ ~~ ~., .~j :ë! Shh ~ n~~~HH~ ~. ~ !!hWlm ~L..._._. , ~~ Ii B§ß6~6H ~ <aU""'~'h ~ D- ~~ " L . . ..I V. ~ 1:; <:C: . ~ . ~ U _ < \IN OCM IV WOZ '<n, 1~,.J(r'¡ ŒlJO"... , ~ l I .-/ ~ - Proposed Site (approx. 5 acres) ~ " ~ : z m SINGLE FAMILY RESIDENTIAL i .1 . IØ~ 1WO FAMILY RESIDENTIAL ~ MULTlPLE FAMILY RESlDENT1AL _ MDBILE HOME RESlDENTlAL III HIGHWAY BUSINESS _ GENERAL BUSINESS l'fti~f,\1 INDUSTRIAL _ PUBUC R1 ~ AGRICUL"lURAL . _ EDUCATlONA1.. ANO ECClESIAST1CAL ---- of ST . JO ~-1 w4· 8~ . lnr G" 4Ò ~ s MAP 4 - ZONING ....~- , 500 1000 MARCH 2002 . 545-15 . ECONOMIC DEVELOPMENT AUTHORITY OF THE City OF ST. JOSEPH, MINNESOTA PUBLIC PROJECT REVENUE BONDS OF 2003 PUBLIC WORKS FACILITY :: :~: :H~:'~:"": ::~::: ::~::':~:' :::~:'::¡$þ:Ô:(j::p~' ':fu~ijt~~: :::: :~:¡ :': :::~::¡::~ :::: ::' ::~¡:~~~::~:H::"": ::¡:: :::¡::::::: :::'~n in: :R~W@~'¡$.ÞUrÞ~~:~:::: ::: ::: ::::¡::~::; :::,:: :': :::::: Þ~~h~ f_ØW;: ::~~ ::: :::::::' Estimated Total Statutory Annual (12-1) Interest Debt 0.00% Capitalized Other Municipal Surplus/ Cumulative Year Principal Rates Interest Payment Coverage Interest Payments Funds Deficit Balance 2003 0 0.00% 10,630 10,630 10,630 20,635 ° ° 10,005 10,005 2004 25,000 2.50% 21,260 46,260 46,260 ° 47,000 740 10,745 2005 ·30,000 2.75% 20,635 50,635 50,635 0 47,000 -3,635 7,110 2006 30,000 3.00% 19,810 49,810 49,810 0 47,500 -2,310 4,8'00 2007 30,000 3.10% 18,910 48,910 48,910 0 48,000 -910 3,890 2008 30,000 3.25% 17,980 47,980 47,980 0 48,500 520 4,410 2009 35,000 3.40% 17,005 52,005 52,005 0 49,000 -3,005 1 ,405 2010 35,000 3.60% 15,815 50,815 50,815 0 49,500 -1,315 90 2011 35,000 3.80% 14,555 49,555 49,555 0 50,000 445 535 2012 35,000 4.00% 13,225 48,225 48,225 0 50,000 1,775 2,310 2013 40,000 4.20% 11,825 51,825 51,825 0 50,000 -1,825 485 2014 40,000 4.40% 10,145 50,145 50,145 ° 50,000 -145 340 2015 40,000 4.50% 8,385 48,385 48,385 0 50,500 2,115 2,455 2016 45,000 4.60% 6,585 51,585 51,585 ° 50,500 -1,085 1,370 2017 45,000 4.70% 4,515 49,515 49,515 ° 50,500 985 2,355 50,000 4.80% 2,400 52,400 52,400 0 50,500 -1,900 455 545,000 213,680 758,680 758,680 20,635 0 738,500 455 ; ~PP'i ¡~ ~~íø ~: 9f f~ ~d$ ~ ~ ~:::::':::::: ~::::: ~:' ~::::' ~: ~ ~:: ~: ~: ~ ¡::: ~ ~:'::::: ~ ¡':' ~: :a9Jid':i ~f9rm~i.qô¡::::~:::::::::::: ::~:::: :~~::::~::::: ::::::::::, :::~::: :~::: ::::::: :¡:::~ :::::::: :::: ::::::: ::: ::: ::::: Est. Public Works Building Project 500,000 Bonds Dated: 6/1/2003 Est. Furniture, Fixtures, Equipment 0 Bonds Mature: 12/1/04 Through 12/1/18 Est. Architect/Engineer Fees 0 Interest Payments: 12/1/03 & Each 6/1 & 12/1 Thereafter. Est. Contingency ° Call Option: 12/1/2009 @ Par Plus Accrued Interest Less: City Cash Contribution 0 Registrar/Pay Agent: U,S. Bank Trust, N.A., St. Paul Less: Investment Proceeds (A) -295 Purchase Price: $531,375 Total Hard Costs 499,705 Est. Average Coupon: 4.229% Est. Net Effective Rate: 4.499% Add: Issuance Expenses Bond Sale Date: Late May, Early June, 2003 Est. Underwriter Discount @2.50% 13,625 Bond Closing Date: Approx. 21 Business Days After Sale. :apitalized Interest (12 Months) 20,635 Bond Counsel: Briggs & Morgan, PA cst. Financial Advisory Fee 0 ::st. Bond Counsel 7,500 ~ating Fee 0 (A) $100,000 Invested @ 1.20% For 90 Days, ::st. O/S Printing 650 ::st. Registration (One-Time Fee) 3,225 Total 545,340 ~ounded For Issuance II 545,00011 . Monte Eastvold, V.P., Partner, Northland Sécurities,înc. Dated: 3/6/2003 . www.cityofstjoseph.com itg of St. Joseph 25 College Avenue North St. Joseph Economic Development Authority PO Box. 668 City of St. Joseph City Council St. Joseph. MN 56374 Special Joint Meeting Notice (320) 363-7201 F!:!º~ March 14.2003 Fax.: (320) 363-0342 12:00 noon. City Hall ADMINISTRATOR Judy Weyrens 1. Call to Order MAYOR Larry J. Hosch 2. Business A. Maintenance Facility Site Purchase and EDA Lease Revenue Bond COUNCILORS Alan Rassier 3. Adjournment Ross Rieke Gary Utsch Dale Wick . . ..;:- ~ ~ "- ~ . Ã - - M UNICIPAL DEVELOPMENT GROUP, INC. DATE: March 11, 2003 MEMO TO: St. Joseph Economic Development Authority Mayor Hosch, City Coun~il¡ Members, City Administrator Weyrens C~-'" "11:j (öt!J FROM: . \/ . Joanne Foust & Cynthia Smith-Strack, MDG, Inc. RE: Maintenance Facility Lease-Revenue Bond The EDA and City Council will be conducting a special joint session on Friday, March 14,2002 at 12 noon. The purpose of the meeting is to discuss the location, construction and financing of a new public works maintenance facility. Background: The City of St. Joseph currently owns a public works maintenance facility located at 500 2nd Avenue NW. The current structure is in fair condition and the City is in need of additional space for the storage of . equipment and public works offices. As noted in the Comprehensive Plan, the City Council and Public Works Staff identified a need to expand the facility. As a part of the 2002 planning process, the current structure was proposed to be demolished with a new 12,000 square foot (60' wide by 200' long) building constructed in 2003. In 2002, the City Council advertised for bids and awarded the project, which is proposed to commence this spring. The City had intended to finance the maintenance facility through a lease back arrangement with the bank. Since that time however the state legislature has been discussing possible local government aid (LGA) reductions (estimated to be $120,000 for the City in 2003 and $220,000 in 2004) as well as the imposition of levy limits. In order to reserve cash and levy abilities for other projects and operations, the City Council has discussed alternative financing options. The City Council at their March 6, 2003 meeting discussed the use of Lease-Revenue Bonds, which would be issued by the EDA. The Council is requesting EDA review and approval of this financing mechanism. If approved, the EDA would issue bonds for and own the maintenance facility. The City would make lease payments to the EDA to make the bond payments. The construction contract would remain between the contractor and the City of St. Joseph. Along with reviewing financing options, the City Council has also discussed the best long-term location for the new maintenance facility. Several sites were reviewed. Rather than reconstruct at the current site at 500 2nd Avenue NW, the Council has discussed the possible purchase of approximately 5 acres along Nineteenth Avenue NE (see attached map). The site would be of sufficient size to accommodate the proposed maintenance facility, a future water tower and possible the police department offices, as the need arises. The EDA has been working with a couple of business prospects which had expressed an interest in these lots for their businesses. MDG, Inc. contacted the companies on March 10th to determine their interest. Both indicated that due to the price of the land they will be seeking alternatives sites. . Attached are (1) an elevation drawing of the proposed facility, (2) a floor plan, (3) a map illustrating the proposed new site and (4) a bond payment schedule which includes both the facility and land purchase. ~ . . . . " . Securities) and the City Engineer (S.E.H.) regarding the feasibility of the above proposal. All have indicated it could be accomplished this spring/summer. Action: The EDA is asked to authorize the Mayor to negotiate the purchase of the land ( Lots 1 & 2, Block 1 measuring approximately 98,000 sq. feet or approximately: 175' x 570') for a price not to exceed $225,000. A MSHION is in order. The EDA will be asked to take formal action on the lease-revenue bond at their March 19' 2003 meeting. Additional information on this process will be forwarded to EDA members with their packet. . - - - . .'.... 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II I I I ¡ I I @)u S I Fe ee e e ~ ~ I I , ¡ I I ~~ ~ -e®®<iJ I I ~I .~=] I, I I i I I ~ I I ã @)u I I ~r I I I ~ I I I I) I Z I I I I I : ! I . I I I~ ~ ¡ ! ~I ~I¡ '-.-. M @). @)< ~ i n.m.1n_.m ---- --------- @). @)< " r - - ~ I ~I I I '-.-. I I ï ~ @)" @)< I ~ " II! @)< ð~ r -- I ~¡ ~ ~ I ~ i ~i~~ ~ I g< ~~ I ~ ~~~~ . I li~ ~§ I @). I ~~I @) < . L @)< ~~<! .\.. __Uh..U..UU.__·h r - - ~~~ ~¡¡~ n i!~ ~~~ @). @)< ~~!'! " ~"'~ ~ ~i~ ~I r -- ¡ ~ ~ '-.-. ~~~ "-, ~I~ ~ I @)" .... I ~ r I I .. . 9< i1i@ E:J. 8~~ ~~I¡¡ <!h I m· ~~L ~~~~; ~8~ ~. ~... .Q--'" ICJ ~o . . ~ §~ b ~ . ~ - . 4: u . 'iN cx::ra IV rooz "9/, lø:Ari ~o--' , , . . . , . '\ l ../ - roposed Site (approx. 5 acres) R1 o SJNGLE FAMILY AESJDENTlAL . [®"~ lWO FAMILY AESIDENTlAL _ MULilPLE FAMILY AESIDENTlAL _ MOBILE HOME AESJDENTlAL IIiII HIGHWAY BUSINESS _ GENERAL BUSINESS 1:~;£h\:.¡;1 INDUSTRIAL R1 _ PUBUC ~ ~ AGAlCULilJAAL ~ . iii! EOUCAilOIlW. AND ECCl£S\I\S11CAL ~ .----- of ST . - ~~ W~E JO lnr- 8~ - G'" ./4 ~ s ....~- , MAP -4 - ZONING 500 100D MARCH 2002 -I . . .. ~ 545-15 ... '. . ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ST. JOSEPH, MINNESOTA PUBLIC PROJECT REVENUE BONDS OF 2003 PUBLIC WORKS FACILITY :·:::::i:::::::::::':'i==::::::::::::i:::::$9ð#)i!~··:m~~t~~:i:i:::i:i:::iii:::::i:i:i::ii:::i:::::::::::::::::'::: ::::::::::i::::'n::::J~~v~"µ~i:$.øU~~~~::::::::::::::::::::::' i::=:=:::::::i:Ç~~h:f:.9.w::::::::::::::::: Estimated Total Statutory Annual (12-1) Interest Debt 0.00% Capitalized Other Municipal Surplus/ Cumulative Year Principal Rates Interest Payment Coverage Interest Payments Funds Deficit Balance 2003 ° 0.00% 10,630 10,630 ' 10,630 20,635 ° ° 10,005 10,005 2004 25,000 2.50% 21,260 46,260 46,260 0 47,000 740 10,745 2005 30,000 2.75% 20,635 50,635 50,635 0 47,000 -3,635 7,110 2006 30,000 3.00% 19,810 49,810 49,810 0 47,500 -2,310 4,8'00 2007 30,000 3.10% 18,910 48,910 48,910 0 48,000 -910 3,890 2008 30,000 3.25% 17,980 47,980 47,980 0 48,500 520 4,410 2009 35,000 3.40% 17,005 52,005 52,005 0 49,000 -3,005 1 ,405 2010 35,000 3.60% 15,815 50,815 50,815 ° 49,500 -1,315 90 2011 35,000 3.80% 14,555 49,555 49,555 0 50,000 445 535 2012 35,000 4.00% 13,225 48,225 48,225 0 50,000 1,775 2,310 2013 40,000 4.20% 11,825 51,825 51,825 0 50,000 -1,825 485 2014 40,000 4.40% 10,145 50,145 50,145 0 50,000 -145 340 2015 40,000 4.50% 8,385 48,385 48,385 ° 50,500 2,115 2,455 2016 45,000 4.60% 6,585 51,585 51,585 0 50,500 -1,085 1,370 2017 45,000 4.70% 4,515 49,515 49,515 0 50,500 985 2,355 50,000 4.80% 2,400 52,400 52,400 0 50,500 -1,900 455 545,000 213,680 758,680 758,680 20,635 ° 738,500 455 ApP'i@itîpÞ:~ff~Mi$~:i::::::::::::ii::::::::::::::::::::::i:i:::i::=:::=:i::::i: :t3.~nd::i@mn~H~W:::::::::::::::::::::i:::::=:::::':i:::::::=:::::::::::::::::·:::::::::::::i::::::::::::::::::::ii::::: Est. Public Works Building Project 500,000 Bonds Dated: 6/1/2003 Est. Furniture, Fixtures, Equipment 0 Bonds Mature: 12/1/04 Through 12/1/18 Est. ArchitecVEngineer Fees ° Interest Payments: 12/1/03 & Each 6/1 & 12/1 Thereafter. Est. Contingency 0 Call Option: 12/1/2009 @ Par Plus Accrued Interest Less: City Cash Contribution 0 Registrar/Pay Agent: U.S. Bank Trust, NA, St. Paul Less: Investment Proceeds (A) -295 Purchase Price: $,531,375 Total Hard Costs 499,705 Est. Average Coupon: 4.229% Est. Net Effective Rate: 4.499% Add: Issuance Expenses Bond Sale Date: Late May, Early June, 2003 Est. Underwriter Discount @2.50% 13,625 Bond Closing Date: Approx. 21 Business Days After Sale. Capitalized Interest (12 Months) 20,635 Bond Counsel: Briggs & Morgan, P.A. Est. Financial Advisory Fee 0 Est. Bond Counsel 7,500 Rating Fee 0 (A) $100,000 Invested @ 1.20% For 90 Days, Est. O/S Printing 650 Est. Registration (One-Time Fee) 3,225 Total 545,340 Rounded For Issuance II 545,00011 . Monte Eastvold, V.P., Partner, Northland Securities,'lnc. Dated: 3/6/2003