City Council Minutes 09-27-1995 SpecialMINUTES
SPECIAL MEETING - MONTICELLQ CITY COUNCIL
Wednesday, September 27, 1996 - 7 p.m.
Council Members Present: Brad Fyle, Shirley Anderson, Brian Stumpf, Tam
Perrault
Council Members Absent: Clint Herbst
Others Present: Al Larson, HRA Chair, Ken Maus, IDC Vice Chair; Kevin Doty,
IDC Chair; Ron Hoglund, EDA Chair; Steve Bubul, HRA
Attorney
Staff Present: Rick Wolfsteller, City Administrrator; Ollie Koropchak, Economic
Development Director; Jeff O'Neill, Assistant Administrator
A special meeting of the City Council was held for the purpose of discussing the
possibility of consolidating the Housing and Redevelopment Authority (HRA) and
the Economic Dev;:Iopment Authority (EDA), and for the purpose of defining the
role of the Industrial Development Committee (IL'C) as it relates to the City's
governing bodies.
IDC Chair Kevin Daty explained that the IDC is a marketing group for Monticello
and has received comments regarding the redundancy of presenting inf'armatian to
so many committees during the process of relocating an industry to Monticello. It
was proposed by the IDC that by combining the HRA and EDA, prospective
businesses and industries would be better served by eliminating a repetitive step in
the process.
Economic Development Director Ollie Koropchak reviewed the history of the
establishment of the HRA in 1971 and the EDA in 1989. Assistant Administrator
O'Neill reviewed structure options, noting that combining the HRA and EDA would
result in a more efficient link between the city Council and economic development
programs, coordination of finance packaging, and policy-making.
HRA Attorney Steve Bubul then presented information regarding the general
powers of the HRA and EDA as established by He noted that
the EDA may exercise the powers of an HRA and the powers of a city in addition to
the powers of the EDA as established by the Statutes. The HRA may levy a tax on
all taxable property in the sty subject to consent of the City Council. Similarly, at
the request of the EDA, the City may levy for the benefit of the EDA.
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Special Council Minutes - 9/27/95
Bubul also reviewed the composition of each board, noting that an HRA consists of
five commissioners appointed by the Mayor and approved by the City Council, and
any number of Council members maybe appointed as commissioners. In some
communities, the HR,A is made up entirely of Council members. State Statutes also
require that HRA commissioners be residents of the city. The EDA, however, has
three options for board composition. Athree-member EDA must include one
Council member, afive-member or seven-member EDA must include two Council
members. In some communities, the entire City Council serves also as the EDA.
Unlike the HRA, the Statutes do not contain a residency requirement for EDA
commissioners.
IDC Vice Chair Ken Maus noted his concern that if the HRA is eliminated, the
focus on housing will fade. He suggested that two subcommittees of the EDA be
formed, one to concentrate on business and industry and the other for housing.
Since the IDC's strength is marketing business and industry, perhaps the IDC
could be appointed as a subcommittee of the EDA.
Discussion focused on the current operation of the IDC. It was noted by Steve
Bubul that if the IDC became an appointed subcommittee of the EDA, they would
be subject to open meeting laws, and any fund-raising proceeds would essentially
become part of the EDA funds and, as public funds, would likely have more
restrictions. He noted it may be beneficial to have three IDC members appointed as
a subcommittee to the EDA and continue to maintain the IDC as a separate
organization.
EDA Chair Ron Hoglund explained that when the IDC was created in the early
19$0'x, it was an entity of the Chamber of Commerce. Over the years they have
drifted apart, but Hoglund suggested that if the IDC returned to being a part of the
Chamber, the IDC/Chamber could raixe and donate funds to the EDA for specific
economic development purposex and/or retain the funds for independent marketing
efforts ar other economic development purpoxex. This would eliminate the public
finds restrictions but would continue to benefit the community.
HRA Chair Al Larson suggested that the EDA be allowed to have non-resident
members if the EDA and HRA are combined so that specific well-qualified
individuals can be appointed even if they do not live in the city. It was also
suggested that rather than a residency requirement, perhaps it would be sufficient
to require that members have a vested interest in the community such ax owning
property within the city limitx. The number of non-residentx on the EDA could be
limited to a specific number as well.
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Special Council Minutes - 9/27/95
Mayor Fyle expressed his support, and it was the consensus of Council to pursue
the consolidation of the EDA and HRA. Staff was directed to outline the basic
program for reorganization and submit it to the affected committees for comments
prior to placement on a future Council agenda, possibly in January 1996.
According to the Statutes, a public hearing would be necessary to allow public
comments prior to consolidating the HRA and EDA into an EDA.
There being no further discussion, the meeting was adjourned.
" (ley ~1
Kane Doty
4flYCe Manager
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