11-08-1989 Council Agenda - Laserfiche WebLink

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Procedure for Establishing an EDA. The City Council creates an Economic Development Authority by passing a written resolution called an enabling resolution. Before adopting an enabling resolution, the City Council must conduct a public hearing. Notice of the time and place of hearing, a statement of the purpose of the hearing and a summary of the resolution must be published in a newspaper of general circulation within the city once a week for two consecutive weeks, with the first publication appear- ing less than thirty days from the date of the public hearing. Minn. Stat. 5469.093. Each year, prior to the anniversary of the passing of the enabling resolution, the EDA must submit a report to the City Council stating whether and in what respects the enabling resolution should be modified. Within thirty days of receipt of the report, the City Council must consider the recommendations and make any modifications it deems appropriate. Minn. Stat. S469.092, Subd.3. Modifications to the enabling resolution must be by written resolution and may be adopted only after notice and public hearing as required for the adoption of the original enabling resolution. Minn. Stat. 9469.093, Subd 2. Once established, an EDA is a public body corporate and politic and a political subdivision of the State. It may sue or be sued in its own right. Section 469.091, Subd. 2 characterizes an EDA as a body which "carries out an essential governmental function when it exercises its power...." Nevertheless, sovereign immunity does not apply -- an EDA is not immune from liability because of its function. 2. Limiting the Powers of the Authority. (a) The City, through the enabling resolution, may impose the following limits upon the actions of the Authority: 1. The enabling resolution may provide that the EDA may not exercise any specified power contained in the EDA law or that the EDA may not exercise a specified power without the prior approval of the City Council; 2. The City Council may require that any unpledged reserves generated by activities of the EDA and not needed for its successful operation be transferred 2 Page 4