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HomeMy WebLinkAbout9A - Amendment to the Enabling Resolution for the EDA MEETING DATE: AGENDA #: PREPARED BY: PRESENTED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT October 18, 2010 \ :~ank Boyles, City Mana~ Frank Boyles l'g'\.~ Consider Approval of a Resolution Amending the Enabling Resolution for the Economic Development Authority Introduction The purpose of this agenda item is to request City Council approval of an amendment to the Enabling Resolution for the Economic Development Authority (EDA). Historv The City of Prior Lake established an Economic Development Authority decades ago to facilitate economic development in the City. Under State Statute, the Economic Development Authority is established through the adoption of an enabling resolution following two consecutive weeks of public notice and a public hearing. The City Council has adopted or amended enabling resolutions in 1989, 1996 and 2000. In each case, the enabling resolution altered the composition or powers of the Economic Development Authority in hopes of making the body more effective at addressing the development and redevelopment challenges faced by the city. Current Circumstances Earlier this year, the City Council conducted a thorough review of the 2030 Vision and Strategic Plan to reflect the Council's current priorities. As a result, 18 objectives were added to the document, twelve of which were related to economic development. Recognizing that a key tool for the promotion of economic development is the Economic Development Authority, the Council directed that a public hearing be scheduled to consider modification of the form and composition of the Economic Development Authority. Prior to the public hearing the city council conducted a work session and concluded that changes should be made to the EDA to enhance its effectiveness. The council considered all three statutorily allowed EDA formats including three, five or seven members. For various reasons the council concluded that a five member body is most appropriate. But rather than have all five EDA members be from the city council, only two would be council members while the other three would be persons who have considerable business acumen, and either live in the city, have a significant stake in a Prior Lake business or are deemed to be uniquely qualified by the appointing body: the mayor with the city council's affirmation. C:\Documents and Seltings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution Agenda Report.doc On September 20, 2010, the City Council conducted the public hearing. There was no one present to testify at the hearing. Following the hearing, the Council briefly discussed a draft Enabling Resolution. The Council concurred that the Enabling Resolution should not address matters which are more properly addressed in the Economic Development Authority bylaws. The Council also directed its Bylaws and Compensation Committee, composed of Councilors Keeney and Millar, review proposed enabling resolution and bylaw revisions as recommended by the city attorney and assure that the two are appropriately detailed and consistent with one another. Conclusion The Council should determine if the attached Enabling Resolution satisfactorily establishes a new Economic Development Authority which meets the city council's expectations. ISSUES: The Bylaws and Compensation Subcommittee reviewed the draft Enabling Resolution. They agreed that page 3, "Governing Body", should be amended to rewrite portions to assure it is consistent with the bylaws. While the resolution extends significant powers to the EDA it also recites the restrictions on those powers through a new section at the end of the resolution. The Committee also discussed at great length a proposal that one of the five members of the Economic Development Authority could be a person who neither lives nor works in Prior Lake but who is deemed to have extensive skills and understanding of economic development matters. The Committee addressed both the advantages and disadvantages of this proposal. In the end, they concluded that with proper advertising and recruitment the City council will be able to identify three persons who either reside in Prior Lake, have a significant stake in a Prior Lake business or both to serve capably on the EDA. There was also discussion regarding the circumstances under which accountability and commitment can best be identified and reinforced. As a result of the Bylaws and Compensation Committee discussion, the City Attorney redrafted the Enabling Resolution as it appears before you tonight. FINANCIAL IMPACT: An effective Economic Development Authority is intended to make investments in projects which add tax base and jobs to the City over time. The expectation is that but for the investment the project will not take place nor will the jobs be added. In short the financial impact is intended to be positive in the long run. ALTERNATIVES: 1. Adopt the Enabling Resolution as presented or with amendments. 2. Take no action and direct the staff to prepare additional information. RECOMMENDED Alternative #1. MOTION: C:\Documents and Seltings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution Agenda Report.doc 2 4646 Dakota Street SE Prior Lake, MN 55372 R€SQ!...~TI9N gg 119 RESOLUTION 10-XXX A RESOLUTION AMENDING RESOLUTION~ 00-119. 89-17 AND ReS()!...~TI9N 96-99 WHICH ESTABLISHED 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 ~enabling 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 In 1989 City Council of Prior Lake established such an economic development authority ("Authority") by adoption of Enablina Resolution 89-17: and thereafter amended the Enablina Resolution in 1996 bv adoption of Resolution 96-99 and in 2000 bv adoption of Resolution 00-119, and The City Council desires to further amend the Enablina Resolution to provide for a chanae in the comoosition of the aovernina body of the Authoritv: and This Enablina Resolution defines the relationship between the EDA and the City Council and Mayor: and It is intended that this resolution mav be amended from time to time as mJY be required to further define or redefine the respective roles of the economic development authority and the City Council ~md M3yor regarding development and redevelopment within the City, and it is in~9A6e8 ~he{ ~hr~ This resolution and by the actions taken hereunder provide for the City Council and Mayor t03f th9-€ftJ' Ghtl!~ establish broad policies for public assisted development within the Qeity and deleaate that the implementation of such policies will be the responsibility of the ~economic Q€levelopment 6authority~, and ~t is ~r.€-€kxJ1m 9f The City Council believes Jnd 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 e3mm9f::linl cncHesiGm-:tic:! future development within the City so as to increase the tax base, promote employment and enhance the health, safety and welfare of city residents: and, C:\Documents and Seltings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution.doc The City has complied with the statutorv reauirements set out in the Enablina Act pertainina to makina a chanae in the composition of the EDA: to wit: (1) leaal notice of the time and date of the Dublic hearina was dulv Dublished and mailed in accordance with State Statute and Citv: and (2) the Citv Council conducted a Dublic hearina on SeDtember 20, 20104- to Drovide an oDDortunitv for those interested in this amendment to the Enablina Resolution to express their views, NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated 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 Enablinq 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 Citv 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 development 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. C:\DoclIments and Seltings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution.doc 2 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 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 statute shall control; in ths-e.vent there is J conflict botwoon tho ~n8t-!ir.~3t :nd Jny sU3h 3t-stutes,tRs ~n3blir.~t sh811 seffiFel; 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 (EDA) or "Authorit'{.: 6, Governing Body, The aovernina bodv ("board")powors of the Authority shall be vested in a five (5) member board the comm:oci9RJr: thefed ir. :lffice Jt ~my time, a majority of whom shall constitute a quorum for all purposes. P.:.:r:J'd3~t to Minnesst-s ~t3t~t~ Section 46!). S~bdivision 2(0), th9-fA~x1~aFS-ffi the City Couns~1 :Jh2-!1 :9fV8 t}:J th9-Ge-~:T1i&Sbners of the Economic Devel~;>''T1~nt ^uthority. A. Yf1::m 3doption of thi:J 3meOOed ~n3~ing Resoluti3r. tr.9-tJrmc 8f JII current comrr.iOC-:aAefS-3f the Economic Developm9fth^dr.:lrity Jre horeby tormir.:xml-; SA The aovernina board of the Authoritv shall be made uo of five (5) members, Two (2) of the members shall be aooointed from the City Council and the remainina three (3) members shall be aooointed from amona individuals who either live in the City or who own a controllina. interest in a business located within the City- ("community members"). B. The Mavor shall aoooint the Authoritv commissioners with the aooroval of the Citv Council. C, Terms of office. removal and fillina vacancies shall be set out in the EDA Bylaws. D, The Authoritv shall establish bvlaws, with the aooroval of the Citv Council. to aovern the ooeration of the Authoritv. E, The conduct and actions of EDA commissioners shall be aoverned bv a Code of Conduct and Ethics and Conflict of Interest orovisions set out in the EDA Bvlaws. 7. Officers of the AuthoritY.^uthority Officers. The commissioners of the Authority shall elect officers as provided in Section 469.096 of the Enabling Act. 8. Authority Staff. A. The Authoritv shall be empowered to hire such employees, agents and consultants as deemed proper and as further provided by Rooolution 3041', this Resolutio:1 xd JpplicJblo Std3 St:t~t9&.- C:\Documents and Seltings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution.doc 3 the Enablina 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 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 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 Authority. 6. The City Attorney shall serve as counsel to the EDA. 9. Reports. A. At least once annually durino the month of Marchby March 1, the Authority-G~mixbnors of tho Economic Dovolopmont /\l:.o{h9fity shall aooear at a regularly scheduled Council meeting and report to the members of the City Council and public regarding the operational status of the Authority. Such report shall comply with Minnesota statutes Section 469.100, Subdivision 4 and shall include a descriotion of doscribo 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 City Council and Mayor and shall be available to members of the public unless protoctod by tho Minnos3t: ~ata Practicos ,^,ct. 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 c1assifvino the data as private or non-public. 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 AuthorityGemmi:Jeioo Treasurer. The Authority accounting, investment, fund maintenance and disbursement shall be consistent with City procedures. B. On or before July 30 Ser*~~:3r 1 of each year the Authority shall submit its annual budget to the City Manager in a form prescribed by the City Manager. 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 Minnesota Statute Section 469,100, Subdivision 1 of the Enablino Act. The City Council may impose such conditions as it deems aoorooriate and prudent upon the issuance of obligations by the City for the purpose of funding the said Authority~ budget :::: it me)' dotormino. The City Council Manaoer, in consultation with the City Finance DirectorGlefk shall review and consider includinaawmvd :X the proposed 6authority budget as a part of the City budgetary process. The Authority shall appear before the City Council to ,\ mombor of tho /\l:.o{h9AtJ' cr.c:!-I- 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 City 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 the fiscal year of the City of Prior Lake. 11, Powers. C:\DoclIments and SeUings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution.doc 4 A. The Authority may exercise all of the powers contained in the Enabling Act and the Enabling 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 City Council 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 Increment Act. 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 bv the Authority must be approved bv the City Council before issuance. B. The ability of the Authority to participate as a limited partner in a development proiect 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 Citv. and any official controls implementina the comprehensive plan. D. The Authority must submit its bylaws, administrative structure and manaoement practices to the Citv Council for aooroval. PASSED AND ADOPTED THIS 18th DAY OF OCTOBER 2010. YES NO Myser Erickson Hedber~ Keeney Millar Myser Erickson Hedberg Keeney Millar Frank Boyles, City Manager C:\DoclIments and Settings\cgreen\My Documents\SharePoint Drafts\EDA Enabling Resolution.doc 5