HomeMy WebLinkAbout8A - Enabling Resolution for the EDA
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
DISCUSSION:
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4646 Dakota Street SE
Prior Lake. MN 55372
CITY COUNCIL AGENDA REPORT
September 20, 2010 ()<,~
~:ank Boyles, City Managr:!x..Y
Frank Boyles
Public Hearing to Consider Amendment of Resolution 00-119, the
Enabling Resolution for the Economic Development Authority (EDA)
Introduction
The purpose of this agenda item is to assist the Council in conducting a
public hearing to receive input with respect to changing the format and
composition of the City's Economic Development Authority (EDA).
Historv
The City Council previously took action to review the 2030 Vision and
Strategic Plan to update goals and objectives. The Council clearly
concurred that economic development is a high priority and adopted twelve
additional objectives for completion.
In a separate work session, the City Council discussed the most effective
format and composition for the EDA. In order to revise the EDA format and
composition, the City Council must revise the enabling resolution of the
EDA following a public hearing. The public hearing must be announced in
the newspaper for two consecutive weeks and no more than 30 days in
advance of the public hearing. A copy of the public notice placed twice in
the Prior Lake American is attached for your information.
Current Circumstances
Minnesota Statutes 469.094 provides that: "All modifications to the
enabling resolution must be by written resolution and must be adopted after
notice is given and a public hearing conducted as required for the original
adoption of the enabling resolution."
The EDA is a public corporation responsible to the Prior Lake City Council.
It is created and altered by the City Council and the City Council approves
or denies its budget and other financial actions of the body.
Presently the City Council serves as the EDA. That means that, in addition
to the myriad of issues the City Council addresses, as EDA members the
Council must also become familiar with economic development issues.
From work session discussions it appears that the City Council believes
that:
1. Acting both as City Council and EDA dilutes the Council's ability to
focus on high priority economic development issues;
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2. There are persons in the community who have extensive economic
development and business knowledge;
3. Appointing highly knowledgeable individuals to the EDA can
improve the effectiveness of the body since its members will have
the time, expertise and interest to foster effective economic
development.
Under State Statute, the EDA can be three, five or seven members.
Three Members
At least one member must be from the City Council, but two or all
three could be council members.
Five Members
At least two members must be members of the City Council, but the
entire body could be council members as we do now. Three, four
or five members can be council members as well.
Seven Members
At least two must be members of the City Council, but up to five
could be.
ISSUES:
This City Council has discussed the size and composition of the EDA.
There are various criteria to consider in determining the most effective size
and composition.
Focus
It seems logical to assume that some members of the EDA should
be non-Council members who can spend all of their energies
focused on economic development rather than all of the issues a
council member must focus on.
EXDertise
Council members mayor may not have expertise in economic
development. Since it is not typically an important criterion to
becoming elected, it is not surprising if council members do not
have the expertise. Non-council members may be selected based
upon economic development expertise.
Balance
There is a delicate balance which should be achieved between the
autonomy and accountability of the EDA to the City Council. If only
council members constitute the EDA, there is no dynamic tension
from which new, aggressive economic development plans can
emerge. If three members of a five-member Council serve, the
EDA could become a "rubber stamp" to the Council. On the other
hand, if a minority of council members serve, the EDA can author
ideas different than those which thE! Council may espouse and a
measure of accountability is still retained through the two council
members.
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Cost
Since EDA members do receive per diems, the size of the EDA
should be kept to the minimum size necessary to get the job done.
Overall
A five-member body composed of two council members and three
persons possessing skill, knowledge, expertise and passion for
economic development would comprise the new EDA.
The attached Enabling Resolution outlines the new EDA
composition. There are some questions the City Council should
address. For example, community member EDA members are
subject to a three-term, six-year term limit. This is three years less
than the term limits for other advisory bodies. Is this appropriate?
Council members remain EDA members as long as they remain
council members and are appointed to the EDA. Is this appropriate,
or should some term limit apply? Once a council member has
completed his/her term of office, the council member can serve on
the EDA as a council member and then be appointed as a
community member representative. Does the term limit for
community member apply at that point?
There may be other questions the Council has as well regarding the
Enabling Resolution. Once the City Council adopts the Enabling
Resolution, staff will work with the Bylaws and Compensation
Committee to modify the EDA bylaws for future Council
consideration.
Conclusion
The City Council should conduct the public hearing and based upon input
received; determine the form and composition of the EDA for inclusion in
the revised enabling resolution.
FINANCIAL
IMPACT:
The City's EDA has been inactive for the most part for a number of years.
By re-constituting the EDA and giving it specific objectives to achieve, the
City Council can expect that per diem, staff, legal and professional service
costs will increase. Resources have been included in the 2011 budget
based upon this assumption. The objective, though, will be to offset these
costs by the addition of businesses to the community providing new tax
base and employment.
AL TERNATIVES:
1. Adopt the attached Enabling Resolution as proposed or with
amendments which will reconstitute thE~ Prior Lake EDA.
2. Take no action and direct that the staff provide additional information on
this topic.
RECOMMENDED Alternative #1.
MOTION:
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4646 Dakota Street SE
Prior Lake. MN 55372
NOTICE OF PUBLIC HEARING
Notice is hereby given that the Prior Lake City Council will be conducting a public hearing on Monday,
September 20, 2010, commencing at 8 p.m. or as soon as possible thereafter in the City Council
Chambers of the Prior Lake City Hall at 4646 Dakota Street.
The purpose of the public hearing is to solicit resident input regarding a proposal to amend the enabling
resolution of the Prior Lake Economic Development Authority #00-119.
As presently constituted, the Prior Lake Economic Development Authority is composed of five members
all of whom are current Prior Lake City Council members.
The proposal is to revise the composition of the Prior Lake Economic Development Authority to include
five persons, two of whom are City Council members and three of whom are residents or business
persons in Prior Lake who are at least eighteen (18) years old.
Minnesota Statutes Section 469.094 provides:
All modifications to the enabling resolution must be by written resolution and must be adopted
after notice is given and a public hearing conducted as required for the original adoption of the
enabling resolution.
Questions regarding the public hearing should be directed to Charlotte Green at 952.447.9803.
Published in the Prior Lake American on September 11 and 18,2010.
Phone 952.447.9800 ! Fax 952.447.4245! \\\\\\.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake. MN 55372
R€S0!...IJTI0N 8947-
RESOLUTION 1 Q-XXX
A RESOLUTION AMENDING RESOLUTION 00-119. RESOLUTION 96-99 AND RESOLUTION 89-17
WHICH ESTABLISHED ESTAB!...IS!1lNG THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES, CHAPTER 469
WHEREAS,
WHEREAS,
WHEREAS.
WHEREAS.
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS.
Motion By:
Second By:
The Minnesota State Legislature has enacted Minnesota Statues, Sections 469.090 to
469.108 authorizing any statutory or home rule charter city to establish an economic
development authority having the powers contained in the ,Eenabling 6act and a housing
and redevelopment authority established under Minnesota Statutes, Sections 469.001 to
469.047 or other law, and a city under Minnesota Statutes, Sections 469.124 to 469.134
or other law, and
the CityGity Council of Prior Lake wishes to establish~:Q such an economic development
authority ("Authoritv") by adootion of Enablina Resolution 89-17: and thereafter amended
the Enablina Resolution bv adootion of Resolution 96-99 and Resolution 00-119. and
the Citv Council desires to further amend the EnablinG Resolution to orovide for a chanae
in the comoosition of the aovernina bodv of the Authority: and
this enablina resolution is also intended to :md to define the relationship between it and
the Council and Mayor by adoption of this resolution, and
it is intended that this resolution be amended from time to time as may be required to
further define or redefine the respective roles of the economic development authority and
the Council and Mayor regarding development and redevelopment within the city, and
it is intended that by this resolution and actions taken hereunder, the Council and Mayor
of the city shall establish broad policies for public assisted development within the city and
that the implementation of such policies will be the responsibility of the economic
development authority, and
it is the desire of the Council and Mayor that adoption of this resolution and the creation of
an economic development authority will result in a conscientious and coordinated effort to
encourage and precipitate future development within the city so as to increase tax base,
promote employment and enhance the health, safety and welfare of city residents: and7
The Citv comolied with the statutorv reauirements set out in the Enablina Act reaardinq
the reauirements to conduct a oublic hearina on the orooosed amendments to the
Enablina Resolution and: (1) leaal notice of the time and date of the oublic hearina was
duly oublished and mailed in accordance with State Statute and City: and (2) the City
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Council conducted a oublic hearina on Seotember 20. 2011 for those interested in this
amendment to the Enablina Resolution to exoress thHir views.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
I 1. The recitals set forth above are incoroorated herein.
2. Establishment. There is hereby created in the city an economic development authority which, subject
to the provisions of this Enabling Resolution, shall have all of the powers, duties and responsibilities of
any economic development authority created pursuant to the Act, or other law, a housing and
redevelopment authority created pursuant to the Housing Act, or other law and which shall constitute an
"Agency" pursuant to the Development Act. It shall be the role and responsibility of such economic
development authority to carry out economic, housing and industrial development and redevelopment
within the city in accordance with such general policies as may from time to time be established by the
Council and Mayor.
3. Definitions.
A. "Authority" means the Prior Lake Economic Development Authority.
B. "City" means the City of Prior Lake, Minnesota.
C. "Council" means the duly elected governing body of the city.
D. "Enablina Act" means Minnesota Statutes. Sections 469.090 to 469.108. authorizina the Citv of
Prior Lake to create an economic develooment authoritv.
E. "Enabling Resolution" means this resolution of the Council establishing the Prior Lake Economic
Development Authority pursuant to the Enabling Act.
F. "The Development Act" means the City Development Districts, Minnesota Statutes, Sections
469.124 to 469.134.
G. "Federal Limitation Act" means certain acts of Congress which limit the aggregate amount of
obligations of a specified type which may be issued within the city, as further defined in Section
474.16, Subdivision 5 of the Industrial Bond Act and as may from time to time be defined in other
state laws.
H. "The Housing Act" means Municipal Housing and Redevelopment Authorities, Minnesota Statutes,
Sections 469.001 to 469.047.
I. "The Housing Bond Act" means the Municipal Housing Program Act, Minnesota Statutes, Chapter
462C.
J. "Industrial Bond Act" means the Municipal Industrial Development Act, Minnesota Statutes,
Sections 469.152 to 469.165.
K. "Project Area Plan" means an outline for the development or redevelopment of a geographic area
of Authority concentration which contains a statement of objectives for improvement of the area as
well as a description of public facilities to be constructed, and estimated schedule of the open
space to be created, the environmental controls to be applied, the property to be publicly acquired
and the condition under which the Authority shall exercise the right of eminent domain, if any, the
proposed reuse of private property and the general standards of development. Said plan shall be
sufficiently complete to constitute a "development program" pursuant to Section 469.125,
Subdivision 3 of the Development Act and a "redevelopment plan" pursuant to Section 469.002,
Subdivision 16 of the Housing Act.
L. "Project Budget" means a financial budget containing the sources and uses of public funds to be
expended in carrying out the public costs associated with a Project Plan or Project Area Plan. In
the event any or all such public costs are to be paid with tax increment, the Project Budget shall
constitute a "tax increment financing plan" as described in Section 469.175 of the Tax Increment
Act.
M. "Project Plan" means a description of the development or redevelopment of property, including an
estimated schedule, the property to be publicly acquired and the condition under which the
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Authority will exercise its right of eminent domain, if any, description of the public facilities to be
constructed, and the proposed reuse of private property.
N. "Tax Increment Act" means Tax Increment Financing, Minnesota Statutes, Sections 469.174 to
469.179.
4. Legal Status. The Authority shall be a public body politic and corporate and a political subdivision of
the State of Minnesota. It shall not be considered a department of the city nor shall the city be liable for
its obligations, unless assumed by the city in writing. Its relationship to the Council and Mayor shall be
governed by the Enabling Act, this Enabling Resolution and the various statutes under which it
operates, including the Enabling Act, the Housing Act, the Development Act, the Industrial Bond Act,
the Housing Bond Act and the Tax Increment Act; provided, that in the event there is a conflict between
the terms of this Enabling Resolution and any such statute, the Enabling Resolution shall control and in
the event there is a conflict between the Enabling Act and any such statutes, the Enabling Act shall
control; provided further, that a statute granting authority shall not be deemed to be in conflict with a
statute that grants less or no such authority.
5. Name. The economic development authority created by the Enabling Act and this Enabling Resolution
shall be known legally as the Prior Lake Economic Development Authority.
6. Governing Body. The qoverninq bodv ("board")powers of the Authority shall be vested in a five (5)
member board.veste::! in th&-WmmiGsi9fK){"::; thereof in
-effi63 3t 3ny-t+me, a majority of whom shall constitute a quorum for all purposes.
A. The qovernina board of the Ms~!;nrchip 9f...tAe Authority shall be made UP of Goncd of five (5)
members. TWOseveR (2) of the members shall be appointed from the Citv Council and the
remaininq three (3) members shall be appointed from amonq residents who either live in the Citv or
who own businesses within the Citv- ("communitv members").E,€xnmiGsk:lners wi~h 311 fiv-e-GHy
Getffi::;il m9fOOfXG cerving in 3ddition to one M3yor Gpp::Jinted PIGnnin~::Jmmiccion m9fOOer ::ma.
one M3Y3r :pt)ointed Economic De'.'obpm9Ht--G3mmittee mernBefo
B. The Mayor shall appoint the Authority commissioners with the approval of the City Council.
C. Commissioners shall serve two (2) year terms.The terms of the commissione~D ::;h311 ba
Commissioners mav be re-appointed to serve a maximum of three (3) consecutive terms.
consistent with their City Coun::;il, MaYef;-or u~pointed position&.-
D. Members of the City Council who leave the Councille3ving offiG€--3r G p::Jsition on the EDG-ef
Pk::nning--GemmiG~9R--shall forfeit their seat on the EDA. Newly elected or appointedCity Council
members shall replace outgoing City Council members. Nothina shall prohibit an outaoina City
Council member from beinq appointed as a community members of the Authority. ,aflti-Qeutgoing
Citv Council EGG-Dr PIGm~ir.~or.1r.1i:::;:::;i9R members shall be replaced by an appointment by the
Mayor with approval and consent of the City Council.
E. The Authoritv shall establish bylaws. with the approval of the Cityt=P? Council. to aovern the
operation of the Authoritv.--:- The bvlaws shall contain recommended criteria for the selection and
appointment of community members to the Authoritv.
F. The conduct and actions of an Authority commissioners shall be aoverned bv a Code of Conduct
and Ethics set out in the Authoritv's bylaws.
Tl-. Officers of the Authority./\uthority Officers. The commissioners of the Authority sAaJ.l.-shall elect
officers as provided in Section- 469.096 of the Enabling Act.
8. Authority Staff.
A. The commissioners of the Authoritv shall be empowered to hire such employees, agents and
consultants as deemed proper and as further provided in the Enabling Act. Such employees,
agents and consultants shall assist the commission in performing the following powers and duties:
1. To see that all resolutions, rules, regulations, or orders of the Authority are enforced.
2. To appoint and remove upon the basis of merit and fitness, all subordinate officers and
regular employees of the Authority.
3. To present to the Authority plans, studies and reports prepared for Authority purposes
and recommend to the commissioners for adoption such measures as deemed
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necessary to enforce or carry out the powers and duties of the Authority or the efficient
administration of the affairs of the Authority.
4. To recommend to the commissioners for adoption such rules and regulations as
deemed necessary for the efficient operation of the Authority's functions.
5. To perform such other duties as may be prescribed by the commissioners.
6. The Citv Attornev shall serve as leaal counsel to the Authoritv.
9. Reports.
A. At least once annually durina the month of Marchby M3rch-4-, the Authority shall appear at a
regularly scheduled Council meeting and report to the members of the City Council and public
regarding the operational statutes of the Authority. Such report shall comply with Section
469.100, Subdivision 4 of the Enabling Act and shall include a description of current and
proposed projects as well as general development goals for the city.
B. The Authority shall be responsible for all filings and reports required by the various statutes
under which it operates. Copies of all such reports shall be provided to the Council and Mayor
and shall be available to members of the public unless classified as orivate or non-oublic under
the Minnesota Data Practices Act or classified as orivate or non-oublic bv a state of federal
statute classifvina the data as orivate or non-oublic.etA€fwise-ft8rmitted or required by 13w.
10. Account, Budget and Fiscal Year.
A. The accounting, maintenance of books and records, establishment and maintenance of funds
and accounts, investment of cash surpluses, disbursement of monies and other necessary financial
matters of the Authority shall be the responsibility of the Authol'itvG3r.1r.1i0Gi9R Treasurer. The
Authority accounting, investment, fund maintenance and disbursement shall be consistent with city
procedures.
B. On or before Julv 30th~Dmb9f--t-of each year the Authority shall submit its annual budget to
the City Glefk in a form prescribed by the GityCitv.-Qe/:k. Such budget shall include a detailed
written estimate of the amount of money that the Authority expects to need from the City for
Authority business during the next fiscal year and shall otherwise comply with Section 469.100,
Subdivision 1 of the Enabling Act. The Citv Council may impose such conditions as it deems
aoorooriate and Drudent upon the issuance of obligations by the City for the purpose of funding the
said Authority], budget 3::> it me}' determine. The City Manaaer. in consultation with the Citv
Finance DirectorGlefk shall review and consider includina~ the proposed 6authority
budget as a part of the City budgetary process. The AuthoritVt;Dmm:ssioo shall appear before the
Citv Council as requested to explain and discuss the content of the proposed Authority budget.
Upon approval of such budget, the Authority shall not exceed total budgeted expenditures without
approval of corresponding budget amendments by the Citv Council; provided, however, that this
provision shall not preclude the Authority from unilaterally making line-item changes as it deems
appropriate.
C. The fiscal year of the Authority shall be the same as that of the City of Prior Lake.
11. Powers"
A. The Authority may exercise all of the powers contained in the Enabling Act and the Enablinq
Resolution.
B. The Authority may exercise all of the powers contained in the Housing Act.
C. The Authority may exercise all of the powers of an Agency contained in the Development Act.
D. The Authority may exercise all of the powers of a redevelopment agency contained in the
Industrial Bond Act.
E. The Authority may exercise all of the powers of a city contained in the Housing Finance Act,
provided it has been authorized to do so by ordinance of the CikCouncil pursuant to Section
462C.02, Subdivision 6 of the Housing Financing Act.
F. The Authority may exercise all of the powers of an authority contained in the Tax I ncrement Act.
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G. The Authority may exercise such powers as may be contained in other laws applicable to
economic development authorities or housing and redevelopment authorities not specifically
described herein.
12. Limit of Powers.
A. The sale of all bonds issued by the Authority must be approved by the City Council before
issuance.
B. The ability of the Authority to participate as a limited partner in a development project must have
prior approval of the City Council.
C. All official actions of the Authority must be consistent with the adopted comprehensive plan of
the City, and any official controls implementing the comprehensive plan.
D. The Authority must submit its bvlaws. administrative structure and management practices to the
City Council for approval.
PASSED AND ADOPTED THIS 20th JOOR DAY OF SEPTEMBERmeE, 2010.
YES
NO
I Myser
I Erickson
I Hedberg
I Keeney
I Millar
Myser
Erickson
Hedberg
Keeney
Millar
Frank Boyles, City Manager
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