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34 4859-6924-4449\6 Port Authorities: Municipal Development Districts: City Council Purpose: Originally, the purpose behind port authorities was to acquire and promote development of harbors and ports. Currently, the only operating port in this regard is that of the Duluth Port Authority. The additional 25 port authorities in Minnesota exist to promote economic development, including increased commerce and acquisition of facilities within the specified port district of the City. Governing Body: A port authority is a governmental subdivision of the state. Direct authority is handled by a board of commissioners (usually 3-7 members) appointed by the City Council. Ports are a statutorily created municipal body. General Port Activities: 1. Adopt plans for improvement and development of port districts. 2. Oversee the activities of privately owned port facilities. 3. Acquire and construct various facilities and charge for the use of these facilities. 4. Acquire, lease, own and operate real or personal property. 5. Sell or exchange property (real or personal) owned by the port. 6. Determine legislation to improve development and commerce within the district. 7. Apply to the federal Foreign Trade Board for authorization to exercise the powers relating to foreign trade zones. 8. Act as agent for the federal government to carry out the provisions of sections 469.090 to 469.108. 9. Issue Revenue Bonds and with the approval of the City Council, given by ordinance, General Obligation Bonds secured by a pledge of the “Full Faith and Credit” of the City. Purpose: The purpose of an MDD is to improve the general economy of a community by increasing employment and enhancing the tax base. Governing Body: The MDD falls under control of the City Council/County Commissioners. The council then designates a board to administer the districts. In first class Cities, an advisory board must be created to aid with district activities. A majority of members on the board must be real property owners on lands within the district. In St. Paul and Minneapolis the board must be elected, in other Cities the members may be appointed. Activities: 1. An MDD may obtain land through eminent domain or negotiation. 2. The MDD may design a development program within the district. 3. The MDD may further develop the facilities, transportation, or overall quality of life in a district through building acquisition, construction or reconstruction. 4. The municipality may be given ordinances regulating traffic in parking facilities or pedestrian skyway systems. 5. A municipality may lease all or portions of the basement, 1st or 2nd floors of buildings within the district. 6. The MDD may accept grants from private institutions or other sources for public facilities and general improvements. 7. The municipality may use private developers to construct buildings/facilities under the development plan. The City will reimburse the developers from MDD funds. 8. A municipality has the authorization to: install lighting systems, street signs, construct special landscaping, install snow removal systems, and build public parking ramps. Purpose: The main purpose of any City Council regarding the development units in this report, is to act as a control mechanism for operations. The power of the City Council and the controls it has over each of these units varies from City to City. For Port Authority: The City Council/County Commissioners of any port has indirect control over a port’s use of general obligations bonds used for industrial projects. City Council/County Commissioners has the authority to approve the board of commissioners for any port. If a seven-member board is developed, two members must be from the City Council/County Commissioners. For Municipal Development District: City Council has the power to designate an existing department, agency, HRA, or other to administrate the district. City Council may adopt ordinances designed to aid specific MDD projects. The City has the power to create an MDD advisory board. The City Council may defer property taxes on improved property (within the district) where a private developer constructs the improvement upon request of the economic developer.