02-14-2024 Workshop Packet - Laserfiche WebLink

Home Browse Search

RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 8/1/2023 Community Development and Redevelopment Chapter 14 | Page 10 Minn. Stat. § 469.095. The enabling resolution establishes a board of commissioners for the EDA. The city council can choose to serve as the EDA board of commissioners or create a board composed of community members. The mayor, with approval of the council, appoints the commissioners. The board may consist of three, five or seven members who serve six-year terms. The board is subject to the Open Meeting Law. 1. EDA levies Minn. Stat. § 469.107. As discussed above, an EDA levy differs from an HRA levy. It is not a levy raised by the EDA — it is a levy set by a city at the request of the EDA. Minn. Stat. § 469.107. Minnesota Department of Employment and Economic Development: The Economic Development Authority Handbook. A city may, at the request of the EDA, levy a tax for the benefit of the EDA in an amount not more than 0.01813% of the taxable market value. The amount levied must be paid by the city treasurer to the treasure of the EDA to be spent by the EDA. Because the EDA levy is part of the city levy, it is not a “special levy” under state law and therefore the EDA levy is part of the city’s overall levy limit. Minnesota Department of Employment and Economic Development, The Economic Development Authority Handbook. As a result of being part of the city’s overall levy limit, the most common practice to fund an EDA is a direct general fund appropriation out of the city’s general fund. There is no limit to the amount of funding that can be provided to an EDA through this mechanism. Minn. Stat. § 469.091. Alternatively, if the city council’s enabling resolution adopts all of the powers of the HRA for the EDA, the EDA may levy the separate HRA tax levy, which is not calculated in the city’s levy limit. It is still subject to all of the statutory limitation of an HRA, including the levy limit of 0.0185% of the estimated market value. 2. EDA loans Minn. Stat. § 469.192. EDAs are authorized to make loans to businesses, for-profit organizations, nonprofit organizations, or individuals to effectuate the purpose of the EDA. Minn. Stat. § 469.192. Minn. Stat. § 469.102. Loans 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. Minn. Stat. § 469.033 subd. 4. Metropolitan Council, City Development Powers. One benefit of establishing an EDA is that the EDA can create a pool where each project’s revenue goes into a common fund, improving the security on the pooled bonds, leading to a more favorable interest rate and ultimately a reduced cost of borrowing.