City Council Agenda Packet 09-27-1995 SpecialAGENDA
SPECIAL MEETING - MONnCELLD CITY COUNCitL
Wednesday, September 27, 1996 - 7 p.m.
Mayor. Brad F yle
Council Members: Shirley Anderson, Clint Herbst, Tom Perrault, Brian Stumpf
HRA Chairperson. Al Larson
EDA Chairperson: Ron Hoglund
IDC Officers: Chairperson Kevin Doty and Vice Chairperson Ken Maus
Attorney at Law: Steve Bubul
1. Call to order.
2A Historical review of the establishment of the Monticello HRA, EDA, and IDC.
2B. Review options for structuring economic development organisation (see
chart).
2C. Statutorial overview of the powers of an HRA and EDA - Steve Bubul
presentation.
1. Comparison of the functions, powers, and duties of an HRA and
EDA.
2. Comparison of the levy powers of an HRA and EDA.
3. Comparison of the composition, appointment, and terms of HRA
commiasionets and EDA commissioners.
3. Discussion: What role should the IDC play in the organization?
4. Summary and recommendation.
b. Adjournment.
ECONOMIC DEVELOPMENT ORGANIZATION
STRUCTURE OPTIONS
OPTION 2:
COMBINE EDA/HRA
OPTION 1: IDC AS SUBCOMM
FACT§ AND DECI�IQN FACTORS, NO CHANGE OF NEW EDA
Powers and duties SAME SAME
Projected number of regular meetings per year
HRA
12
0
EDA
4
12
IDC
12
4
Total
28
16
Projected number of people actively Involved
(in addition to Council Members)
HRA
5
0
EDA
5
5
IDC
15
15
T�ta,l
25
29
Staff efficiency
staff time In mlas - wdUng anendas/minutes
+
Coordination of Mancina oackagIR1
+
Number of citizens Involved
+
Best match of ornanlzatlon duties with authority
+
Best linkage between City Council and
economic development programs and Ideal
+
HRA.WK4: 09/21/85
Special Council Agenda - 8/27/85
IEA. Iffistwdeal review
EDA. (O -R)
HOUMNIG AND REDEVEL.OPM6NP AUTHORnT
A public hearing and a resolution declaring the need for a Housing and
Redevelopment Authority in and for the City of Monticello was adopted in
November 1870 by Mayor Schleif and Councilmembers Martie, Sandberg,
Swanberg, and Maus. A Council resolution adopted in March 1971
appointed the commissioners of the HRA: Arve Grimamo, Gloria LaBau,
Roman Brauch, Vern Smedstad, and William Johnson. The HRA
commissioners adopted Resolution No. 1 organizing the said HRA, Resolution
No. 2 adopting bylaws of the said HRA, and Resolution No. 9 adopting a seal
for the HRA in April 1971.
ECONOMIC DEVEWPMENP AUTHORITY
A public hearing of the City Council found the establishment of an EDA to be
in the beat interest of the City. On April 10, 1989, Mayor Maus and
Councilmembere Fair, Fair, Smith, and Blonigen adopted Ordinance
Amendment No. 172 deleting the Industrial Development Commission and
establishing an EDA. The Council appointed the commissionere of the EDA:
Ron Hoglund, Barb Schwientek, Bob Moaford, Al Larson, Harvey Kendall,
Warren Smith, and Fran Fair. Additionally, the Council adopted the GMEF
Guidelines and the Joint Powers Agreement. The EDA commissioners
adopted resolutions approving the EDA Bylaws, organising the EDA, and
approving the Joint Powers Agreement on April 9, 1990.
COMPARISON OF EDA AND HRA POWERS AND COMPOSITION
GENERAL POWERS
HRA: M3naesota Statutes, Sections 469.001 to 469.047 (HRA Act)
• Establish and operate redevelopment projects; housing development projects
(for low and moderate income persons); and housing projects (for low income
persons).
• Acquire and convey real or personal property.
• Issue bonds for any corporate purposes, secured by mortgages upon property
held by the HRA and HRA revenues; may also be secured by City general
obligation pledge for certain qualified housing development projects.
• Develop and administer interest reduction programs for low and moderate
income housing.
• Develop and adminibter housing rehabilitation loan and grant program for low
and moderate income persons.
• Administer a commercial rehabilitation loan program, if so authorized by City
ordinance.
• Make loans for any purpose the HRA is otherwise authorized to carry out.
EDA: M Unnesota Statutes, Sections 460.090 to 469.1081 (EDA Act)
• Exercise the powers of an HRA under the HRA Act; the powers of a city under
Sections 469.124 to 469.134; and the powers of an EDA under the EDA Act; the
powers and duties of a redevelopment agency under Sections 499.152 to
469.195 for a purpose in the HAA Act or EDA Act; and the powers and duties
under the HRA Act and the EDA Act for a purpose in Sections 499.152 to
499.165; all subject to any limitations set forth In the enabling resolution by
which the Council established the EDA.
• Establish economic development districts, which must satisfy the conditions
for creation of a redevelopment tax Increment financing district.
• Within or in conjunction with an economic development district: acquire and
convoy property; oporato public parking facilities; act as an agent for federal
or state government In the economic development district; accept conveyance
of public land; carry out the EDA law to develop and improve land in the
economic development district.
• Anywhere in the City: exorcise power of eminent domain; enter contracts for
the purpose of economic development; be a limited partner in a limited
partnership whose purpose Is consistent with the EDA's purposes; buy
supplies and materials nodded to carry out oconomic development; study and
analyze economic davolopmont needs; use "cross-fertilization" powers as
an"74%
para -n
described above; make loans for any purpose the HRA is otherwise authorized
to carry out.
Issue revenue bonds to finance economic development facilities, secured by
revenues from specified facilities; issue general obligation bonds, if the City
pledges its full faith and credit by ordinance. General obligation bonds
subject to election requirements unless some other exception applies (such as
tax increment bonds).
LEVY POWERS
HRA
The HRA, as a special taxing district, maw levy 9 tax on al_I taxable property in the
City, subject to naent of City Council. Consent may be given on an annual basis
of by a blanket consent. T e um levy is . Q131 percent of taxable market value
in the City, plus an additional .0013 percent of tamable market value to defray costs
of informational services and relocation assistance.
SDA
At the request of the EDA, the City may levy for the benefit of the EDA. The
maximum -levy is .01813 percent of taxable market value. The City may levy a larger
amount after public hearing, subject to referendum if a petition Is filed, within 30
days of publication of the levy resolution, by voters equalling five percent of the
votes cast in the city in the last general election.
Using HRA powers, the EDA may levy the "HRA levy" as described for HRAs. It is
not clear whether such a levy may be Imposed in addition to the City's levy on behalf
of the EDA as described above.
III. COMPOSITION OF BOARD
HRA
Five commissioners appointed by the mayor and approved by the City Council.
Any number of City Council members may be appointed as HRA commissioners.
Commissioners must be residents of the City.
Commissioners serve staggered five-year terms, except that the term of a
commissioner who is also a City Council member may be set to coincide with the
term of office as a council member.
anwn5
,oleo-�I
EDA
One of three options:
(1) Three-member EDA, one of whom must be a City Council member; initial
terms of two, four and six years, then six-year terms.
(2) Five -member EDA, two of whom must be City Council members; initial
terms of two, three, four, five and six years, then six-year terms.
(3) Seven -member EDA, two of whom must be City Council we bore; initial
terms of one, two, three, four and five years, plus two members for six
years, then six-year terms for all.
All commissioners are appointed by the mayor and approved by the City
Council. The terms of any commissioners who are City Council members may
be set to coincide with the term of office as a council member.
City Council members may be appointed in excess of the required number
described above.
The City Council itself may serve as the EDA board of commissioners.
There is no express City residency requirement for EDA commissionere in the
EDA Act.
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