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4 4859-6924-4449\6 FORMATION AND OPERATION OF AN ECONOMIC DEVELOPMENT AUTHORITY Reasons for Forming an EDA The Minnesota Legislature granted Cities the power to create economic development authorities in 1987. Giving Cities this ability promotes economic growth. EDAs were created to work in conjunction with and to facilitate other economic development organizations such as Port Authorities and Housing Redevelopment Authorities (HRA). This allows Cities to create a better approach to economic development allowing them to create flexible business assistance and development programs. In addition to HRA powers, EDAs were authorized to exercise the powers of Cities in connection with City development districts and the powers of municipalities or development agencies in connection with municipal industrial development. By consolidating the powers of economic and housing development into one body, City officials are not only able to focus development on blighted areas but also to create programs that will prevent blight from occurring elsewhere within the community. The primary powers of an EDA: • Serve to promote business and to recruit new businesses • Issue revenue bonds. • Acquiring property. • Purchase and sell land. • Serve as a limited partner. • Make or guarantee or other credit enhancements. • Issue general obligation bonds (approved by election). Procedures for Establishing an EDA In order for a City to create an EDA, the City Council must adopt a written resolution called an enabling resolution. A County can also create an EDA, but this handbook describes the process for a City to establish an EDA. Through the enabling resolution, EDAs are granted all of the powers described in Minnesota Statutes, 469.090-1082, subject to any limitation on those powers as specified by the City. EDAs are also granted the powers given to HRAs in the HRA law, powers almost identical to Port Authorities under the Port Authority Law and all of the development powers granted to a City under the municipal development district law and the industrial development act. Before adopting an enabling resolution, the City Council must hold a public hearing. (Minn. Stat. § 469.093, Subd. 1). The notice of the public hearing must identify the place and time of the hearing, provide a brief statement of the purpose of the hearing, and contain a summary of the resolution. (Minn. Stat. § 469.093, Subd. 1). The notice of public hearing must be published in a newspaper of general circulation within the city once a week for two consecutive weeks prior to the meeting. (Minn. Stat. § 469.093, Subd. 1). The first publication must appear not more than 30 days from the date of the public hearing. (Minn. Stat. § 469.093, Subd. 1). The enabling