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CHAPTER 17 Minn. Stat. §§ 469.090 to All cities may create economic development authorities that have most of x69.1 osz, the powers of port authorities. The city may consolidate the economic The Minnesota Department of development authority (EDA) with an existing HRA or the city may grant Trade and Economic the authority HRA powers. The city council may create an EDA by passing Development publishes the Economic Development an enabling resolution. Before adopting the enabling resolution, the city Aulhorittes Hcrndbook. This book must first .conduct a public hearing. The enabling resolution establishes a is not available online. DTED board of commissioners for the EDA. The city council can choose to serve may be contacted at 500 Metro sgnare Bldg, 121 E. 7`h Place, st. as the EDA board of commissioners or create a board composed of a cross- Paul, MN 55101-2146 (651) section of the community. The mayor, with approval of the council, 297-1291 or (soo) 657-Hass. appoints the commissioners. The boazd may consist of three, five or seven visit thou web site ar. http:/hvww.dted.state.mn.us/ members who serve six-year terms. The board is subject to the open meeting law. For a copy of this book, and for sample trosolutions and by laws for an EDA, contact dte League's Research Department at (651) 281-1220 or (800)925-1122. Minn. Stet. § 469.192. See also ~ EDA is authorized to make a loan to a business, afor-profit or nonprofit various parts of Minn. slat, §§ 469.090 to 469.1082. organization or an individual. The loan must be for a purpose the EDA is authorized to carry out under the law. An authorized purpose must deal with or contribute to economic or industrial development. EDAs have the ability to use pooled bond reserving. Inmost development programs, each bond • issue is independent of any other bond issue with a separate .service or sinking fund account. EDAs, however, may create a single common bond reserve fund. Under this arrangement, each project's revenues go into a common fund, which in ttlrn pays the bondholders on all projects. Through this pooling mechanism, the security of each project's bonds increases and borrowing costs decrease as long as the pool has the necessary volume and diversity of cash flow. Minn. scat. § 469.102. EDAs cannot own and operate facilities or issue debt without an election. The city must authorize the issuance of debt in the resolution creating the EDA. Also, EDAs cannot act outside of districts that are contiguous and qualify as blighted under the tax increment law. D. Municipal or area redevelopment agencies Minn. Stitt. §§ 469.109 to Any municipality or group of municipalities may establish a public body, 469.12x. known as a municipal or area redevelopment agency, in and for the area the municipality covers. This law defines municipalities as home rule charter or statutory cities, counties, towns or school districts. • 17-8 HANDBOOK FOR MINNHSOTA CITIES ~a