Laserfiche WebLink
RELEVANT LINKS: <br />League of Minnesota Cities Handbook for Minnesota Cities 8/1/2023 <br />Community Development and Redevelopment Chapter 14 | Page 8 <br />Minn. Stat. § 469.107. <br />Minn. Stat. § 275.066. There is crossover between HRA and EDA (economic development <br />authority) levies that can be confusing. While a city may, at the request of <br />an EDA, levy a tax not more than 0.01813% of the estimated market <br />value, many city EDA-enabling resolutions adopt all the powers of an <br />HRA, and then the EDA/HRA functions as a special taxing district under <br />state law. <br />Minnesota Department of <br />Employment and Economic <br />Development: The Economic <br />Development Authority <br />Handbook. <br />If the enabling resolution so allows, the EDA will then function as an <br />HRA and, with consent of the city council, levy the HRA levy, which is <br />not subject to levy limits or city debt limits, but is subject to the 0.0185% <br />of the city’s estimated market value limit in state law. The city attorney <br />may verify the structure and levy authority of each city’s HRA and/or <br />EDA. <br />Minn. Stat. § 469.012, subd. <br />4. <br />Minn. Stat. § 469.028. <br />While HRAs have the legal authority to “do whatever is necessary and <br />convenient” to implement redevelopment, they are subject to the <br />ordinances and laws of the city. The city council must approve HRA plans <br />before the HRA may begin implementation. <br /> 6. HRA contracting <br />Minn. Stat. § 469.015, subds. <br />1a, 4. All HRA construction work and purchases of equipment, supplies, or <br />materials that involve expenditure of more than $175,000 must be <br />competitively bid. An HRA (and a city) may also use the “best value <br />alternative.” There are limited exceptions to these requirements for <br />emergencies and certain circumstances. <br /> 7. HRA financing <br />Minn. Stat. § 469.033. <br />Minn. Stat. § 469.034. Operating funds, capital improvements, and debt retirement expenses for <br />HRA projects may be financed by any one or any combination of the <br />following methods: <br /> • Federal grants. <br />• Revenue bonds the HRA or local governing body sells. <br />• General obligation bonds the local governing body sells. <br />• Tax increments from redevelopment projects. <br />• A limited levy for redevelopment projects and planning activities. <br />Minn. Stat. § 469.034, subd. <br />1. <br /> <br />When an HRA issues bonds, the revenue generated must be used for the <br />projects financed, or bond costs must be paid from income generated by <br />designated projects.