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City of Saint Paul's AAA Sewer Bonds Certified ‘Green’

The city continues to be a leader in its commitment to resiliency and protecting the environment

SAINT PAUL, MN – For the first time in city history, Saint Paul’s sewer bonds have been formally verified as “green bonds.” The city will issue these Sewer Revenue Bonds, Series 2023E (Green Bonds) with the independent second party opinion provided by Baker Tilly US, LLP.

The “green bond” designation provides investors with a verification that the city’s financing of major sewer repairs, stormwater quality improvements, tunnel rehabilitation, and sewer rehabilitation aligns with the International Capital Markets Association Green Bond Principles and the United Nation’s Sustainable Development Goals. The designation also provides investors with an opportunity to purchase bonds funding environmentally-oriented infrastructure improvement projects. As part of this issuance, the city implemented a Green Bond Framework that it will use to guide future green bond funding opportunities.

“Sustainability and green practices are core tenets of our economic development strategy,” said Mayor Melvin Carter. “These bonds being certified as ‘green’ is a testament to our ongoing commitment to the environment. We are hopeful this designation will attract more interested investors.”

The city recently launched its Climate Action Dashboard, which gives residents and investors access to information regarding green bonds and insight into the benefits of other ongoing city projects.

Saint Paul is committed to addressing climate change impacts in the community in an equitable and inclusive manner. Adopted in December 2019, the Climate Action & Resilience Plan guides the city’s work to achieve carbon neutrality in city operations by 2030 and citywide by 2050.

The city provides annual updates related to its “green bonds” on its Saint Paul Investor Relations website.

About the “Green Bonds” Designation

Since 2015, the city has annually issued bonds self-designated as green to complete sewer improvements, but this is the first time they have been formally designated by an outside party. Designating bonds as “green bonds” is just one of the many city initiatives supporting community resiliency.

Saint Paul was the first Minnesota municipal issuer to offer green bonds, and one of the first cities in the United States to issue green bonds with a par amount under $10 million.

About the Saint Paul Office of Financial Services, Treasury Division

The Saint Paul Office of Financial Services, Treasury Division manages all city financing needs. The city maintains an “AAA” rating for its sewer revenue bonds from S&P Global Ratings (“S&P”) and an “AAA” rating for its outstanding general obligation bonds from S&P and Fitch Ratings.

The Saint Paul Port Authority has successfully earned a LEED for Communities Platinum level precertification for The Heights, a brownfield redevelopment project slated to bring 1,000 new housing units and 1,000 living wage jobs to Saint Paul, Minnesota’s, Greater East Side.

This award was granted by the U.S. Green Building Council as part of its LEED for Cities and Communities certification program. Platinum is the highest level to be obtained and puts The Heights on course as the first project in the State of Minnesota and one of fewer than 55 communities worldwide to reach this milestone_._

“This precertification represents the Port Authority’s dedication to equitable and sustainable development. From day one, our objective at The Heights has been to bridge social, economic, and environmental investments to protect the health and wellness of those who live and work on the Greater East Side,” said Kathryn Sarnecki, chief development officer for the Saint Paul Port Authority. “Our next step is to find businesses that are poised for growth and share our commitment to sustainability to relocate to our light industrial parcels.”

A LEED for Communities Platinum® certification is achieved through a comprehensive rating system evaluation. To achieve Platinum certification, a minimum score of 80 points is required. The Heights received 87 points.

“After working closely with the Port Authority on this project, LHB is excited to see that the precertification score validates the work we’ve done on the front side and verifies that we’re on the right track with our plans for The Heights,” adds Rick Carter, chief executive officer for LHB.

Reflecting on these results, Asa Posner, vice president of sales, Sustainable Investment Group states, “Our engineers and LEED consultants have thoroughly enjoyed guiding the Port on precertification and are grateful to be part of the shared vision for a more equitable, resilient, prosperous, joyful, and sustainable community on Saint Paul’s Greater East Side.”

Developer Chris Sherman of Sherman Associates said he’s little more than a week away from finalizing a deal to acquire the 26-story Landmark Towers office building off Fourth Street, the first step toward a complete office-to-residential conversion that will create 187 new units of market-rate housing downtown, filling commercial space that’s increasingly becoming vacant.

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