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HomeMy WebLinkAboutJune 1, 1993 Work SessionNOTICE OF OFFICIAL MEETING Notice is hereby given that an official meeting is to be held in the City of Columbia Heights as follows: Meeting of: JOINT MEETING MANAGER AND AUTHORITY OF MAYOR, CITY COUNCIL, CITY HOUSING AND REDEVELOPMENT Date of Meeting: TUESDAY, JUNE 1, 1993 Time of Meeting: 8:00 PM Location of Meeting: CITY HALL COUNCIL CHAMBERS Purpose of Meeting: WORK SESSION 1. Discuss Future Economic and Housing Development Direction 2. Discuss Consolidation of HRA Staff with City Inspection/ Planning and Zoning Staff 3. Discuss Various Economic Development, Redevelopment and Housing Board Organizations 4. Adjournment The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, to make arrangements. (TDD/782-2806 for deaf only) CITY OF COLUMBIA HEIGHTS TO: MAYOR AND CITY COUNCIL MEMBERS FROM: PATRICK HENTGES, CITY MANAGEI~x'~ SUBJECT: WORK SESSION OF TUESDAY, JUNE 1 DATE: MAY 28, 1993 Be advised I am forwarding the following information as an attachment to the Work Session scheduled for Tuesday evening, June 1, 1993. 1) Goal and Policy Direction 2) Organizational and budget information on the consolidation of staff 3) Background information from the City Attorney on EDA and HRA powers and authority. I'll see you Tuesday at 8:00 PM. PH:bj May 28, 1993 DISCUSS ESTABLISHMENT OF A POLICY OR GOAL DIRECTION FOR THE ECONOMIC AND HOUSING DEVELOPMENT ACTIVITIES OF COLUMBIA HEIGHTS Below please find a discussion outline that can be used in the establishment of Economic Development, Redevelopment, and Housing Development goals for Columbia Heights: ECONOMIC DEVELOPMENT Southeast Industrial Area: The southeast industrial area of the City has been a recent source of planning and development discussions at the City and HRA level. Does the City have further interest in pursuing a redevelopment plan for the area along 37th Avenue and University Avenue? o Industrial Base: The City's primary economy, the industrial base, has suffered from decline as a result of lack of expansion opportunities, outdated facilities, and economic setbacks. What strategies should the City focus upon to promote a revitalization and expansion of the primary industrial tax base and employment base of the City business retention/expansion, new development or growing business)? Commercial Retail Vacancies: Columbia Heights Commercial arid Retail Base has declined, perhaps slightly more than other suburbs. What strategy should the City focus on replacing the commercial/retail vacancies? 4o Redevelopment Priorities: There are a high number of instances where commercial or industrial land is in direct land use conflict with adjacent residential uses that are suffering resulting decline. Should the redevelopment of the areas be a priority in the City's development strategy? o RevolvingLoan Fund: The City/HRA Business Revolving Loan Fund is limited in terms of its reserve funds. Should the City/HRA maintain a fund balance level or possibly secure additional funding through local banks (using our funds to write down the interest rate)? Incubator Building: Many cities have had success in the establishment of incubator buildings or private/public partnership industrial buildings that are leased to growing or expanding businesses. Should the City explore the concept of a business incubator building by considering the development of a new multi-use industrial building or the purchase of a smaller existing industrial property? Vacant Land: The HRA owns both commercial and industrial land that could be developed. To what extent and priority should staff focus on developing a strategy and soliciting proposals to development property? o Gap Financing Approach: The HRA and City can more expressively pursue business development proposals. For the proposals to be successful, they typically require "gap" financing. Should the City more aggressively pursue and follow up on proposals of this nature? Customer Service Attitude: Many cities tend to concentrate their economic development efforts on a philosophy of being simply "responsive and understanding" to the business sector's needs. For example, elected officials, department managers, and inspectors are trained and Page 2 May 28, 1993 10. 11. instilled with a customer service attitude. Do you feel this approach could be successfully implemented in Columbia Heights City government? Targeted Approach: Many cities have conducted targeted marketing approaches, special incentive packages aimed at certain industries, special promotional events, etc. Are there special economic development marketing initiatives or ideas that you wish staff to pursue? Business Center: You have been briefed on the condition and the status of the Columbia Heights Business Center. As an interim strategy, what posture should staff take in attempting to revitalize or stabilize the Business Center? HOUSING DEVELOPMENT 12. HRA Programs: The HRA has concentrated their housing efforts on senior housing, C.D.B.G. rehab program, Section 8 administration, and administration of various MHFA programs. What direction should our housing programs go and are there particular deficiencies in our current efforts? 13. 14. 15. Section 8 Program: Section 8 housing assistance has a poor perception among Columbia Heights' residents. What administrative steps or efforts can we make to improve the program? Sheffield Neighborhood: City staff is finishing up a development strategy for the Sheffield Neighborhood and have discussed various housing development ideas with developers. What is your preferred format or process to review the proposals (City being the lead or HRA being the lead)? What is your level of priority or commitment to addressing the neighborhood problem? City's Housing Rental Trends: The Sheffield trends are developing in other neighborhoods because of the City's abundance of two and three-unit rental buildings that are older, with lower rent structures. What preventive measures can the City and the HRA take to minimize this problem (housing maintenance, financial incentives, further rental ordinances, long-term State/Federal legislation lobbying)? 16. Housing Code: The City has had some success with the housing maintenance code, but it needs further technical measures and landlord management requirements, and inspection frequency changes. How would you like to see these changes brought forward for consideration? 17. Elderly Housing: There appears to be a good market for further elderly housing development in Columbia Heights. With all the down sides or negatives associated with subsidized housing, should the HRA be pursuing new elderly projects? 18. RevolvingFund: It appears that the cash reserves of the HRA, tax increment districts, and housing mortgage bond refunding could be restructured into some type of community development, housing or economic development revolving fund. Are you interested in further investigating the restructuring of this nature? PH:bj Housing & Redevelopment Authority of Columbia Heights Commluionm's Eusebius Hein= PatHcia Jindra Bruce Nawrocld Richard Dustin Jon P. Pawiuk 590 N.E. 40th Avenue, Columbia Heights, MN 55421 Fax: (612) 782-2801 · (612) 782-2854 PROPOSED GOALS FOR 1993 The following is a list of the consolidated HRA Goals for January !, !993 through December 31, 1993. 1. Parkview Villa ~PW)/Parkview Villa South (PWS) Housinq. Apply for 1993 CIAP grant from HUD for apartment renovations, apartment sprinkler system, handicapped improvements and other improvements in PVV. Be Complete any additional accessibility improvements for visually and hearing impaired residents in PVV. Ce Continue research and develop, if deemed feasible, additional senior low income housing for residents of Columbia Heights. 2. Community/Economic Development. ae Continue work on Multi-Use Redevelopment Plan (MI/RP) project south of City Hall. Be Continue single family and rental housing neighborhood improvement program by continuing efforts to encourage and assist owners to rehabilitate deteriorating units and by acquisition and rehabilitation or clearance of deteriorated houses. Ce Conduct an informational meeting to inform rental property owners about Rights and Responsibilities of Landlords/Tenants. De Implement 1992/1993 Anoka County CDBG activities and complete planning for 11993/1994 ACCDBG program. Work toward meeting redevelopment needs identified in the City Comprehensive Plan. Continue and improve Business Revolving Loan Program for industrial and commercial businesses in Columbia Heights. _.Ge Equal Opportunity Employer Continue providing technical assistance to City Planning Department. Monitor state and federal legislative issues in regard to housing and community development. EquaiHousing Opportuni~ Agency HRA GOALS FOR 1993 PAGE 2 Home Improvement Proqrams. A. Continue current single family and rental rehabili- tation programs through the Minnesota Housing Finance Agency (MHFA). B. Continue involvement in the CDBG Home Improvement Grant Program for single family homes· F~rst Time Homebuyer Proqram. A. Continue involvement in the M~FA Minnesota cities Participation Program First Time Homebuyer Program. Rental Assistance Pro,ram.' A. Continue to administer the Metro Council HRA Section 8 Rental Assistance Program locally for approximately 215 Columbia Heights and Hilltop families. e General. ae Be Continue efforts to computerize office functions and provide training to staff. Computerize, in-house, all accounting functions 'by July i, 1993. Continue to research,!apply for funding, and implement new housing and community development programs to enable further diversification of agency efforts and financing. bt/8/19/92 PROPOSED REORGANIZATION OF HRAAND CITY BUILDING DEPARTMENT (Director of Community Development/ COMMUNITY DEVELOPMENT DEPARTMENT ~ Exec%~tive Director) Administrative Secretary ¢~RA Board Secretary} Building Inspections/ Zoning/Permits/Licenses (Buildinq Ilspection~ I Building Inspection/ City Hall Bldg. Mant. (Asst. Bldg. I~sDector) Permits, Licenses Secretary to P&Z (Blda. InsD. Sec.~ Community/Economic Devel./Housing Rehab {Community Dev. Rental ~ssist. Program (Occupancy SpecSa~ist~ Parkview Villa Housing Complex (Crestview & KRA pVHC staff) The above proposed reorganization of the HRA with the City Building Inspection Department would result in the HRAstaff becoming City employees. The HRAwould have a contract with the City for the City to provide services to the HRA on a cost reimbursement basis. With reorganization, the Building Inspector/Zoning Administrator would retain basically the same duties and responsibilities.- Under the Building Inspections/Zoning/Permits/Licenses Division, the responsibility for completing the Rental Assistance Program Housing Quality Control inspections would be added. Also, the Building Inspector would be in charge of the Department in the event of the absence of the Director of Community Development. There would be a division of Community/Economic Development and Housing Rehabilitation which would be administered by the Community Development Coordinator with assistance and guidance of the Director. There would also be a Housing Division under which the Rental Assistance Program would be administered by a 30 hours per week Occupancy Specialist and the Parkview Villa Housing Complex which is managed by a Housing Manager from Crest View Lutheran Homes on a contract basis with an Office Assistant, a Maintenance Person, and Resident Caretaker Couple employed by the HRA but supervised by the Crestview on-site Housing Manager. The Director will oversee and provide assistance as necessary in the operation/management of this 146 unit housing complex. BACKGROUND INFORMATION REGARDING CREATION OF EDA' PURPOSE The City of Columbia Heights was interested in finding a way to increase the accountability of the Housing and Redevelopment Authority. The Council was specifically interested in creating elected official accountability. They were concerned that the current organizational structure consisting of an appointed board of commissioners lacked accountability to the general public. The city council requested that the city attorney's office investigate a method by which the city council could be made the commissioners of the Housing Authority and still continue the current Authority's functions. Such a move would thereby create accountability from the HRA, for its actions, to the general public. In addition, the city council may streamline the operation of the EDA by combining the functions of the authority with other city department operations wherever possible. CREATION OF AN ECONOMIC DEVELOPMENT AUTHORITY Under Minn. Stat. § 469.090 to 469.108 a city may consolidate the functions of a housing and redevelopment authority and an economic development authority. The city, may, by resolution transfer the control, authority, and operation of any project as defined in section 469.001 to 469.047 located within the city, from the agency that established the project to the economic development authority. The economic development authority may exercise all of the powers that the governmental unit establishing the project could exercise with respect to the project. Minn. Stat. 469.04 (2) . By establishing an economic development authority, the city council may dissolve the current housing and redevelopment authority, but yet, retain the ability to perform the functions and projects previously administered by the HRA. Establishment A city may by adopting an' enabling resolution, create a economic development authority which has the powers contained in Minn. Statute § 469.090 to 469.108 and the powers of a housing and redevelopment authority under Minn. Statute § 469.001 to 469.047. The creation of an authority by a city must be by written resolution. Before adopting the resolution, the city must hold a public hearing with the required statutory notice given. Minn. Stat. § 469.093(1). , Transfer of Authority The city may, by resolution transfer, the control, authority and operation of any project defined in section 469.174(8) or any other project authorized by sectiOns 469.001 to 469.047 (housing and redevelopment authority), or 469.124 to 469.134 (city development districts), that are within the city, from the agency that established it to the economic development authority. Subsequent the transfer, the economic development authority may exercise all of the powers that the agency establishing the project could have exercised. Minn. Stat. § 469.094(2). Once a project has been transferred to the economic development authority, the authority shall be held to perform the terms, conditions, and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the governmental subdivision that originated the project. In addition, the economic development authority may exercise all the .powers necessary to perform the terms and conditions of any indenture or other agreements executed for the security of the bonds. They shall also become obligated on the bonds when the project or program is transferred pursuant to Minn. Statute § 469.094(2). Transfer of Personnel and ApDointment of Commissioners The city council may, by resolution, place any employees of the housing and redevelopment authority under the direction, supervision, or control of the economic development authority. Transfer of employees to the economic development authority does not affect the rights of the employee, including tho~e that may exist under collective bargaining agreements or fringe benefit plans. Minn. Stat. § 469.094(3). The enabling resolution may provide that the members of the city council shall serve as the commissioners of the authority. Minn. Stat. § 469.095(2) (d) o The enabling resolution may further provide for the appointment of additional commissioners in excess of the number of city council members. Minn. Stat. § 469.095(2) (e). Normally, commissioners would be appointed for six- year terms, however, the council may set the term of the commissioners who are members of the city council to coincide with their term of office as members of'the city council. Minn Stat. § 469.095(2) (f) . Powers of the Authority Pursuant to Minn. Stat. § 469.101: 1. An authority may create and define the boundaries of economic development districts at any place or places within the city if the district satisfies the requirements of § 469.174(10) (tax increment financing), except tha~ the district boundaries must be contiguous, and may use the powers granted in § 469.090 to 469.108 to carry out its purpose. First, however, the authority must hold a public hearing on the matter. 2. The authority may acquire by lease, purchase, gift, devise, or condemnation proceedings the needed rights and interest in properties to create economic development districts. 3. They may sign options to purchase, sell or lease property. 4. The authority has the right to acquire property through the use of eminent domain or if it is authorized under it's city's charter, by condemnation. 5. The economic development authority may enter into contracts for the purpose of economic development, within the powers given it in § 469.090 to 469.108. 6. An authority may be a partner or a limited partner in a partnership whose purpose is consistent with that of the authority. 7. An authority may acquire the rights of an easement for the development of an economic district. 8. The economic development authority may by the necessary supplies it needs to carry out its purposes. 9. The economic development authority may accept money, land, or any other assistance in any form from, the federal or state government or a subdivision thereof, in order to acquire and develop an economic development district. 10. The authority may sell or lease land held by it for development in economic development districts. tl. The economic development authority may apply to the board defined in 19 U.S.C. 8la, for the right to use the powers provided in 19 U.S.C. 8la - 81u (foreign trade zone). An authority may apply for the powers in conjunction with another authority. 12. The economic development authority may exercise the powers and duties of a redevelopment agency under § 469.152 to 469.165 (municipal industrial development), for the purposes of a housing and redevelopment authority(§ 469.001 to 469.047) or an economic development authority(§ 469.090 to 469.~08). The authority may also use the powers and duties enumerated in § 469.001 to 469.047 or 469.090 to 469.108 for a purpose in § 469.152 to 469.165. 13. The authority may maintain and operate public facilities (i.e. parking ramps) to promote economic development in an economic development district. 14. An economic development authority may cooperate with or act as an agent for the federal or the state government, or a state public body, or an agency or instrumentality of a government or a public body to carry out the powers enumerated in § 469.090 to 469.108, or any other federal, s~ate, or local law relating to economic development district improvement. 15. An authority may study and analyze economic development needs in the city and ways to meet those needs within the city, including, patterns for land use,and community and industrial growth. Additionally, an may disseminate information on economic development within the city. 16. An authority may, to further an authorized purpose: (1) join an official, industrial, commercial, or trade association, or another organization concerned with economic development (2) have a reception of officials, .who may contribute to advancing the city and its economic development, and (3) carry out other public relations activities to promote the city and its economic development. 17. The authority may accept conveyances of land from other public agencies or other units of government, if the land may be properly used by the authority to promote economic development in an economic development district. 18. An authority may carry out the laws relating to and enabling economic development to develop and improve the lands in an economic development district to make it suitable and available for economic development uses andlpurposes. 19. After authorizing bonds under the appropriate sections, an authority may borrow to provide money immediately required for the bond purpose. The amount borrowed, however, must not exceed the amount of the bonds (see § 469.101(19)). 20. the proceeds of obligations issued by an authority under § 469.103(revenue bonds) and temporary loans as described in § 6' 469.101(19), may be used to make or purchase loans for~economic development facilities that the authority believes will require financing (see § 469.101(20). 21. Upon delegation by a municipality an authority may exercise the delegated powers in relation to mined underground space development (see § 469.135 to 469.141). 22. An authority may sell, at' private or public sale, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan for economic development purposes to a business, for-profit or nonprofit organization, or an individual. 23. Not withstanding any contrary law, the authority may participate with public or private corporations or other entities, whose purpose is to provide seed or venture capital to small businesses that have facilities located or to be lochted in the economic development district (see 469.101(23)). Limits on Powers The enabling resolution approved by the city council may impose the following limits upon the powers and actions of the authority: 1. The authority must obtain prior approval from the city council before exercising the specified powers contained in sections 469.001 to 469.047, 469.090 to 469.108 and 469.124 to 469.134. 2. The city council may require the authority to transfer any portion of the reserves generated by the authority, not previously pledged, to the debt service fund of the city to be used solely to reduce tax levies for bonded indebtedness of the city. 3. The city may require that the sale of all bonds or obligations issued by the authority be approved by the city prior to issuance. 4. The resolution may require that the authority follow the budget process required for city departments. 5. The city may require that all official actions of the authority are consistent with the comprehensive plan of the city. 6. The city may require that the authority submit all planned activities for influencing the aCtion of any other governmental agency, subdivision, or body to the council for approval. 7. They may require that the authority submit their administrative structure and management practices to the council for approval. : ' 8. The council may include in the enabling resolution any other limitation or control deemed necessary. Minn. Stat. § 469.092(1) . The enabling resolution may be modified at any time provided that the limitations imposed are not applied in such a manner as to impair the security of any bonds issued or contracts executed before the modification is imposed. In addition, the council must not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations, or any contracting party. Modifications 8 must be made in compliance with the procedural requirements set out in section 469.093. Minn. Stat. 469.092(2), (3), and (5). Bonds General Obliqation Bonds ~ 469.102 An economic development authority may issue general obligation bonds in the principal amount authorized by a two-thirds majority vote of the city council. The bonds may be issued in anticipation of income from any source. They may be issued: (1) to secure funds needed to pay for acquired property, (2) for any other purpose authorized by sections 469.090 to 469.108. Minn Stat. 469.102(1). The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only if the city specifically authorizes them to do so. An authority that issues a bond under § 469.102, shall, before issuing them levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature, the tax must be levied annually until the principal and interest are paid in full. Minn Stat. § 469.102(5). Revenue Bonds ~ 469.103 An economic development authority may, by resolution decide to issue revenue bonds. acquisition of land, purchase, construct, They may be issued to provide funding for the to purchase of construct facilities, to install, or furnish capital equipment to 9 operate a facility for economic development of any kind, or to pay to extend or enlarge any projectI under the authority's control. Minn. Stat. § 469.103(1). In issuing general obligation or revenue bonds, the authority may secure the payment of the principal and the interest on the bonds by a pledge or lien on authority revenue. The revenue must come from the facility to be acquired, constructed, or improved with the bond proceeds or from other facilities named in the bond- authorizing resolutions. The authOrity may also secure the payment with its promise to impose, maintain, and collect enough rentals, rates, and charges, for the use and occupancy of the facilities and for services furnished in connection with the use and occupancy of the facilities. Revenues pledged by the authority must not be used or pledged for any other authority purpose or to pay any other bonds issued under this section or under section 469.102, unless the other use or pledge is specifically authorized in the bond- authorizing resolutions. Revenue bonds issued under § 469.103 are not'debt of the authority's city nor a pledge of that city's full faith and credit. The bonds are payable only from project revenue as described in § 469.103. Obligations secured or payable from tax increment revenues and issued pursuant to § 469.102 or § 469.103 are subject to the provisions of § 469.178, dealing with tax increment bonding Tax Levies A city may, at the request Of the authority, levy a tax for 10 the benefit of the authority. The tax must not be more than 0.01813 percent of taxable market value. The tax must be paid by the city treasurer to the treasurer of the authority and the money is to be spent only by the authority. A city may increase its levy in accordance with section 469.107(2). Minn. Stat. § 469.107. Secondly, an authority that issues bonds under § 469.102 must before issuing them levy a tax. "An authority that issues bonds under this section [469.102], shall before issuing them, levy a tax for each year on the taxable property in the authority's city. the tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full." Minn. Stat. § 469.102(5). Sale of Property An economic development authority may sell or 'convey any property under its control within a city or economic district if it determines that the sale or conveyance is in the best interest of the city or district, and that the sale furthers its purpose of economic development. Minn Stat. § 469.105(1). Prior to the sale of any property, the authority must hold a hearing on the sale. At the hearing a taxpayer may testify for or against the sale. The authority is required to give proper notice of the hearing, at least ten, but not more than twenty days before the proposed hearing. Minn. Stat° § 469.105(2). The authority shall make its findings, as to the proposed 11 sale, known within thirty days of the hearing° A taxpayer may appeal the authority's decision by filing a notice of appeal with the district court in the city or economic development district's county and serving notice on the authority's secretary within twenty days after the decision of ithe authority was entered. The only grounds for filing an appeal is that the actions of the authority were arbitrary, capriciOus, or contrary to law. Minn. Stat. § 469.105(3). There are specific terms and conditions for the sale of property which can be found in detail at Minn. Stat. § 469.105. ADVANTAGES OF CREATING ECONOMIC DEVELOPMENT AUTHORITY There are many advantages that will accrue to the City of Columbia Heights as a result of establishing an economic development authority. First, the newly created EDA will have all of the powers of the existing HRA, however, it will also have the power to become a limited partner in economic developmen~ ventures, to participate in certain public relations activities, to exercise any of the delegated powers in connection with mined underground space development, it may supply small business capital, and it may apply for foreign trade zone powers with the federal government. Additionally, the EDA may be organized in a manner consistent with other city departments. This will streamline its structure and reduce costs. The EDA may take.iadvantage of city services and facilities. The budgetary process and accounting procedures will be in accordance with other city departments. Another significant advantage is the fact that the EDA~commissioners may be members of 12 the city council. This will significantly accountability of the EDA to the general public. increase the 13 MEMORANDUM To: From: Date: Re: Stu W. Anderson Gregg Woods October 21, 1992 Disbandment of the HRA and the creation of an Economic Development Authority ISSUE How may the city disband the current HRA and still continue the activities of the Housing and Redevelopment Authority? CONCLUSION Under Minn. Stat. § 469.090 to 469.108 a city may consolidate the functions of a housing and redevelopment authority and an economic development authority. The city, may, by resolution transfer the control, authority, and operation of any project as defined in section 469.001 to 469.047 located within the city, from the agency that established the project to the economic development authority. The economic development authority may excersise all of the powers that the governmental unit establishing the project could excersise with respect to the project. Minn. Stat. 469.04(2). By establishing an economic development authority, the city council may dissolve the current housing and redevelopment authority, but yet, retain the ability to perform the functions and projects previously administered by the HRA. ~stablishment A city may by pISCUSSION adopting an enabling resolution, create a economic development authority which has the powers contained in Minn. Statute § 469.090 to 469.108 and the powers of a housing and redevelopment authority under Minn. Statute § 469.001 to 469.047. The creation of an authority~by a city must be by written resolution. Before adopting the resolution, the city must hold a public hearing with the required statutory notice given. Minn. Stat. § 469.093(1). Transfer of Authority The city may, by resolution transfer, the control, authority and operation of any project defined in section 469.174(8) or any other project authorized by sections 469.001 to 469.047 (housing and redevelopment authority), or 469.124 to 469.134 (city development districts), that are within the city, from the agency that established it to the economic development authority. Subsequent the transfer, the economic development authority may excersise all of the powers that the agency establishing the project could have excersised. Minn. Stat. § 469.094(2). Once a project has been transferred to the economic development authority, the authority shall be held to perform the terms, conditions, and covenants Of the bond indenture or other agreements executed for the security of any bonds issued by the governmental subdivision that originated the project. In addition, the economic development authority, may excersise all the powers necessary to perform the terms and conditions of any indenture or other agreements executed for the security of the bonds. They shall also become obligated on the bonds when the project or program is transferred pursuant to Minn. Statute S 469.094(2). Transfer of Personnel and Appointment of Commissioners The city council may, by resolution, place any employees of the housing and redevelopment authority under the direction, supervision, or control of the economic development authority. Transfer of employees to the economic development authority does not affect the rights of the employee, including those that may exist under collective bargaining agreements or fringe benefit plans. Minn. Stat. § 469.094(3). The enabling resolution may provide that the members of the city council shall serve as the commissioners of the authority. Minn. Stat. § 469.095(2)(d). The enabling resolution may further provide for the appointment of additional commissioners in excess of the number of city council members. Minn. Stat. § 469.095(2) (e). Normally, commissioners would be appointed for six- year terms, however, the council may set the term of the commissioners who are members of the city council to coincide with their term of office as members of the city council. Minn Stat. § 469.095(2) (f). ~owers of the ~uthorit¥ Property: Pursuant to Minn. Stat. § 469.101(2), (3), (4), (5), (6), (7), (10), (13), and (17). 1. The authority may acquire by lease, purchase, gift, devise, or condemnation proceedings the needed rights and interest in properties to create economic development districts. 2. They may sign options to purchase, sell or lease property. 3. The authority has the right to acquire property through the use of eminent domain or if it is authorized under it's city's charter, by condemnation. 4. The economic development authority may enter into contracts for the purpose of economic development, within the powers given it in S 469.090 to 469.108. 5. An authority may be a partner or a limited partner in a partnership whose purpose is consistent with that of the authority. 6. An authority may acquire the rights of an easement for the development of an economic district. 7. The economic development authority may accept money, land, or any other assistance in any form from, the federal or state government or a subdivision thereof, in order to acquire and develop an economic development district. 8. The authority may sell or lease land held by it for development in economic development districts. 9. The authority may maintain and operate public facilities (i.e. parking ramps) to promote economic development in an economic development district. 10. The authority may accept'conveyances of land from other public agencies or other units of igovernment, if the land may be properly used by the authority to Promote economic development in an economic development district. 4 ~imits of Powers The enabling resolution approved by the city council may impose the following limits upon the powers and actions of the authority: 1. The authority must obtain prior approval from the city council before excersising the specified powers contained in sections 469.001 to 469.047, 469.090 to 469.108 and 469.124 to 469.134. 2. The city council may require the authority to transfer any portion of the reserves generated by the authority, not previously pledged, to the debt service fund of the city to be used solely to reduce tax levies for bonded indebtedness of the city. 3. The city may require that the sale of all bonds or obligations issued by the authority be approved by the city prior to issuance. 4. The resolutio~ may require that the authority follow the budget process required for city departments. 5. The city may require that all official actions of the authority are consistent with the comprehensive plan of the city. 6. The city may require that the authority submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the council for approval. 7. They may require that the authority submit their administrative structure and management practices to the council for approval. 8. The council may include in the enabling resolution any 5 other limitation or control deemed necessary. Minn. Stat. § 469.092(1) . The enabling resolution may be modified at any time provided that the limitations imposed are not applied in such a manner as to impair the security of any bonds issued or contracts executed before the modification is imposed. In addition, the council must not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations, or any contracting party. Modifications must be made in compliance with the procedural requirements set out in section 469.093. Minn. Stat. 469.092(2), (3), and (5). Bonds An economic development authority may issue general obligation bonds in the principal amount authorized by a two-thirds majority vote of the city council. The bonds may be issued in anticipation of income from any source. They may be issued: (1) to secure funds needed to pay for acquired property, (2) for any other purpose authorized by sections 469.090 to 469.108. Minn Stat. § 469.102(1). An economic development authority may, by resolution decide to · i issue revenue bonds. They may be ~ssued to provide funding for the acquisition of land, to purchase of construct facilities, to purchase, construct, install, or' furnish capital equipment to operate a facility for economic development of any kind, or to pay to extend or enlarge any project under the authority's control. Minn. Stat. § 469.103(1). 6 Sale of Property An economic development authority may sell or convey any property under its control within a city or economic district if it determines that the sale or conveyance is in the best interest of the city or district, and that the sale furthers its purpose of economic development. Minn Stat. S 469.105(1). Tax Levies A city may, at the request of the authority, levy a tax for the benefit of the authority. The tax must not be more than 0.01813 percent of taxable market value. The tax must be paid by the city treasurer to the treasurer of the authority and the money is to be spent only by the authority. A city may increase its levy in accordance with section 469.107(2). Minn. Stat. S 469.107. 7