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.
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~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
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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).
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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.
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